what does it mean to own something?
As Matt and I adjust to renters and new neighbours, we wonder what it means for us to own a house, the pivotal piece of our private American dream. What does it mean to own something? Most would say that owning something entitles you to use it however you wish, as long as you do not harm anyone else or cross certain cultural taboos (e.g. sale of organs etc…).
But as with any concept, our understanding of ownership has been culturally determined. Nowhere is this more evident than our understanding of a corporation. Currently, a public corporation, or more precisely, a for-profit publicly-traded private company exists to increase shareholder value. What is owned serves solely the owner. And what is owned by the corporation must serve the owners of the corporation. But our understanding of corporations and of ownership was not always so, and many wish for a change.
From Habits of the Heart:
Henry Lee Higginson, a leading member of Boston’s business establishment, wrote in 1911, “I do not believe that, because a man owns property, it belongs to him to do with as he pleases. The property belongs to the community, and he has charge of it, and can dispose of it, if it is well done and not with the sole regard to himself or to his stockholders.”
The word [corporation] refers to any association of individuals bound together into a corpus, a body sharing a common purpose in a common name. In the past, that purpose had usually been communal or religious; boroughs, guilds, monasteries and bishoprics were the earliest European manifestations of the corporate form… It was assumed, as it is still in nonprofit corporations, that the incorporated body earned its charter by serving the public good… Until after the Civil War, indeed, the assumption was widespread that a corporate charter was a privilege to be granted only by a special act of a state legislature, and then for purposes clearly in the public interest. Incorporation was not yet thought of as a right available on application by any private enterprise.
Reasserting the idea that incorporation is a concession of public authority to a private group in return for service to the public good, with effective public accountability, would change what is now called the “social responsibility of the corporation” from its present status, where it is often a kind of public relations whipped cream decorating the corporate pudding, to a constitutive structural element in the corporation itself. This, in turn, would involve a fundamental alteration in the role and training of the manager. Manager would become a profession in the older sense of the word, involving not merely standards of technical competence but standards of public obligation that could at moments of conflict override obligations to the corporate employer.
There’s a recently-created legal entity, known as the low-profit limited-liability company (L3C) that has been structured to be a business entity for the public good. While reading and hearing about the L3C, I was struck by how the language and the hype surrounding this new legal entity was rooted in pragmatism and lacked a greater moral vision.
The public good is privatized as L3C’s must “significantly further the accomplishment of one or more charitable or educational purposes,” as though “charitable or educational purposes” are but fragmented demands and desires of special interest groups. It is designed to attract program-related investments from foundations and hopefully obtain certain tax benefits.
I have yet to read anything that suggests the L3C could be part of building a moral vision of stewardship. (But if you do see anything, please let me know!) In fact, its very existence reinforces the idea that private companies and public corporations serve the private interests of their owners. That being said, I do commend the creators of the L3C for making a legal entity that could be a better vehicle for improving the common good.
Rather, what all this suggests is our collective poverty of language and imagination. We are caught in thinking in categories of for-profit, non-profit and government. And when we think about ownership, we are foolish enough to presume that our property really is ours.
*This was supposed to be a quotes-only post. Oops. I guess I like this topic a lot.
**It feels rather self-aggrandizing to bold your own text. I suppose they are my little delusions of grandeur in this little corner of the interweb. Alternatively, I could also argue that I bold text because I don't actually believe anyone will read this entire blog post...
***Sigh, time to make my mortgage payment. Ownership is only enjoyable when you get to exercise tyranny, not when you assume the liabilities.
