Parliamentary Committee on Corporate Regulation by Government
Preamble
WHEREAS Since the mid-19th century corporations have been phenomenally successful at doing what they were designed to do: pooling capital to fund large-scale projects and produce ever greater wealth for their shareholders. This success was based on the fact that, when making their decisions, people who run corporations such as CEOs and directors are legally compelled to give priority to shareholders' interests over all other interests. This 'best interests of the corporation rule' is the basis of the shareholder's willingness to invest; without this reassurance, no one would risk investing their money in a corporation.
WHEREAS The same principle of best interest that underlies the success of the corporation puts it in conflict with the public interest. Since corporate managers are legally prohibited from taking action that they cannot justify as promoting the bottom line, corporations cannot regulate themselves when it comes weighing the public interest against corporate objectives. If corporations cannot regulate themselves in the public interest, clearly it is the government's job to protect public interest against corporate-caused harm and exploitation.
WHEREAS Since the 1980s, the Government of Canada, like many others around the world, has retreated from its duty to regulate the private actions of corporations. The growing number of environmental disasters due to unregulated corporate activity is proof of the growing danger in continuing down this path.
WHEREAS The unchecked power and influence of unregulated corporations undermines our most cherished democratic institutions while the Government's unwillingness to acknowledge its regulatory responsibility engenders widespread apathy and cynicism among voters.
Operative
BE IT RESOLVED that the Green Party of Canada will establish a Parliamentary Committee on Corporate Regulation by Government tasked with examining legislation designed to reassert the responsibility and duty of the Government to protect the public interest through the regulation of corporate activity, creating a place in Parliament where corporate regulatory issues can be properly researched and debated and recommendations made as required.
Background
This resolution was triggered by the results of Annual Poll 2014 released last month by the Avaaz.org, one of the world’s largest online activist communities. The 2014 survey asked members “what issues we most want to take on this year “By a clear majority, members responded “fighting political corruption, including corporate capture of our governments”. (https://secure.avaaz.org/en/poll_results_2014/) These results were a clear message that the time has come to start a national debate over what a growing majority believe to be the political issue at the root of many of our social and environmental challenges. And who better to take the leadership role in this debate than the Green Party of Canada? The Green Party of Canada came into existence at a time when the Thatcher and Reagan governments were rolling out their disastrous policies of government deregulation. Who knows better the effects of unfettered corporate power on our communities, on nature and on our quality of life?
With the release almost exactly 10 years ago of the highly successful documentary film The Corporation, UBC law professor Joel Bakan pointed to the problem of corporate power and hinted at how to address it. This resolution is based on the analysis presented by Joel Bakan in a talk at CUSP 2012 conference. In this talk he explains why deregulation is precisely the wrong thing to do at a time when modern business corporations grow more wealthy and influential. In the immediate term our goal should be to reaffirm and restore prudent government regulation of corporate activity.
Code
Proposal Type
Submitter Name
Party Commentary
The motion calls for a the creation of a parliamentary committee to study and make recommendations on corporate regulatory issues. The resolution as drafted raises jurisdictional issues and practical challenges. The federal government does not have jurisdiction over all industry sectors or all corporations, so a parliamentary committee could not look at the adequacy of regulation across the board. The most important practical challenge is with respect to testing corporate interests against the public interest as there is no simple definition of public interest. In the preamble, it is inaccurate to say that the people responsible for managing a corporation are legally compelled to give priority to shareholders' interests, and to say that they are legally prohibited from taking action that they cannot justify as promoting the bottom line. Directors and officers are required to act honestly and in good faith with a view toward the best interests of the corporation.
The motion may have been left vague so as to enable flexibility for the Green Party to study the best way to implement such a committee.
Preamble
WHEREAS Since the mid-19th century corporations have been phenomenally successful at doing what they were designed to do: pooling capital to fund large-scale projects and produce ever greater wealth for their shareholders. This success was based on the fact that, when making their decisions, people who run corporations such as CEOs and directors are legally compelled to give priority to shareholders' interests over all other interests. This 'best interests of the corporation rule' is the basis of the shareholder's willingness to invest; without this reassurance, no one would risk investing their money in a corporation.
WHEREAS The same principle of best interest that underlies the success of the corporation puts it in conflict with the public interest. Since corporate managers are legally prohibited from taking action that they cannot justify as promoting the bottom line, corporations cannot regulate themselves when it comes weighing the public interest against corporate objectives. If corporations cannot regulate themselves in the public interest, clearly it is the government's job to protect public interest against corporate-caused harm and exploitation.
WHEREAS Since the 1980s, the Government of Canada, like many others around the world, has retreated from its duty to regulate the private actions of corporations. The growing number of environmental disasters due to unregulated corporate activity is proof of the growing danger in continuing down this path.
WHEREAS The unchecked power and influence of unregulated corporations undermines our most cherished democratic institutions while the Government's unwillingness to acknowledge its regulatory responsibility engenders widespread apathy and cynicism among voters.
Operative
BE IT RESOLVED that the Green Party of Canada will establish a Parliamentary Committee on Corporate Regulation by Government tasked with examining legislation designed to reassert the responsibility and duty of the Government to protect the public interest through the regulation of corporate activity, creating a place in Parliament where corporate regulatory issues can be properly researched and debated and recommendations made as required.
Sponsors
Background
This resolution was triggered by the results of Annual Poll 2014 released last month by the Avaaz.org, one of the world’s largest online activist communities. The 2014 survey asked members “what issues we most want to take on this year “By a clear majority, members responded “fighting political corruption, including corporate capture of our governments”. (https://secure.avaaz.org/en/poll_results_2014/) These results were a clear message that the time has come to start a national debate over what a growing majority believe to be the political issue at the root of many of our social and environmental challenges. And who better to take the leadership role in this debate than the Green Party of Canada? The Green Party of Canada came into existence at a time when the Thatcher and Reagan governments were rolling out their disastrous policies of government deregulation. Who knows better the effects of unfettered corporate power on our communities, on nature and on our quality of life?
With the release almost exactly 10 years ago of the highly successful documentary film The Corporation, UBC law professor Joel Bakan pointed to the problem of corporate power and hinted at how to address it. This resolution is based on the analysis presented by Joel Bakan in a talk at CUSP 2012 conference. In this talk he explains why deregulation is precisely the wrong thing to do at a time when modern business corporations grow more wealthy and influential. In the immediate term our goal should be to reaffirm and restore prudent government regulation of corporate activity.
Party Commentary
The motion calls for a the creation of a parliamentary committee to study and make recommendations on corporate regulatory issues. The resolution as drafted raises jurisdictional issues and practical challenges. The federal government does not have jurisdiction over all industry sectors or all corporations, so a parliamentary committee could not look at the adequacy of regulation across the board. The most important practical challenge is with respect to testing corporate interests against the public interest as there is no simple definition of public interest. In the preamble, it is inaccurate to say that the people responsible for managing a corporation are legally compelled to give priority to shareholders' interests, and to say that they are legally prohibited from taking action that they cannot justify as promoting the bottom line. Directors and officers are required to act honestly and in good faith with a view toward the best interests of the corporation.
The motion may have been left vague so as to enable flexibility for the Green Party to study the best way to implement such a committee.