Curbing
America's
corporate crime wave
by Robert Weissman and
Russell Mokhiber
-Guest Comunists-
Can
it be any more clear that the national response to the
corporate crime wave sweeping the country has been an utter and abysmal
failure?
This is to take nothing away from the hard-working prosecutors who
bust their chops working day in and day out, with minimal resources,
dodging political attacks from the corporate lobbyists whose primary job
it is to keep the cops on their heels and off their case.
For example, lack of enforcement of federal worker safety laws by the
Clinton administration has resulted in fewer inspections and fewer
violations cited compared to prior administrations. Whose fault is that?
Not the head of the Occupational Safety and Health Administration, who
claims in his defense that for him to do an adequate job, his meager
$350 million budget, which is constantly under attack by the corporate
crime lobby, would have to be bumped up to at least $7 billion.
Same with antitrust enforcement. Between 1977 and 1997, the total
budgets of the two primary antitrust enforcement agencies�the Federal
Trade Commission and the Justice Department�s Antitrust Division
decreased by 7 percent in constant dollars while the GNP grew by 112
percent. Mergers have increased by 550 percent since 1992.
According to Albert Foer, director of the American Antitrust
Institute, the failure of antitrust enforcement has resulted in airlines
that monopolize hub terminals, international cartels that cost consumers
dearly, price fixing and bid rigging that are a continual abuse of the
system, monopolies that can control the global flow of information, and
agricultural, meatpacking and food retailing industries that are unduly
concentrated.
Even when the system works, and the prosecutors nail the criminals to
the wall, what good does it do? The recent criminal convictions of major
corporations for fixing the prices of vitamins in the United States
resulted in two of the biggest criminal fines in the history of
corporate crime.
Earlier this year, Hoffman LaRoche pled guilty and was fined $500
million and BASF pled guilty and was fined $225 million for leading a
worldwide conspiracy to raise and fix prices and allocate market shares
for certain vitamins sold in the United States and elsewhere.
Hoffman LaRoche and BASF alone control 80 percent of the vitamin
market worldwide. What impact did the fines have on the behavior of
these two criminals? It made them more aggressive in their desire to
control the remaining 20 percent of the market.
That�s according to Eugene Reed, the Arkansas broker who first blew
the whistle on the price fixing conspiracy.
"They have become super aggressive and more committed (since
their convictions)," Mr. Reed told us. "They are already at
the foot of the bridge. They sent signals into the marketplace. They
want to drive all other vitamin suppliers out of the world market and
control it themselves."
The lesson: even the largest criminal fines ever levied in the United
States were too small to affect giant multinational corporations.
When individuals commit street crimes, on the other hand, they pay
the price with a loss of freedom. That�s why by next year, there will
be two million inmates in U.S. prisons and jails and the United States
will overtake Russia as the world leader in the rate of incarceration�a
rate six to ten times the rate of other industrialized countries. This
rate of incarceration costs the nation about $40 billion a year. And it
disproportionately affects poor and minority populations. One in three
young Black men is now under supervision of the criminal justice system�in
prison or jail, or on probation or parole. A Black male born today has a
29 percent chance of spending time in prison in his lifetime. (For more
on how the United States deals with street criminals, check out recently
released "Race to Incarcerate," by Mark Mauer and "The
Sentencing Project" (The New Press, 1999)).
When we released the Top 100 Corporate
Criminals of the 1990s, we received a message from Robert Waldrop, the
director of the Archbishop Oscar Romero Catholic Worker House in
Oklahoma City.
Mr. Waldrop�s Catholic Worker House feeds the poor, takes in people
who are being evicted and generally helps those in need.
Having worked with the poor, Mr. Waldrop has come to the conclusion
that in this country "you get all of the justice that you can
afford to pay for."
That�s why the prisons aren�t overrun with the executives and
shareholders of our major corporate felons.
Mr. Waldrop has concluded that we should begin treating corporate
criminals the way we treat street criminals.
So, he drew up a list of "Necessary Measures for Curbing the
Corporate Crime Wave." Mr. Waldrop wrote the list "tongue in
cheek," but he has gotten such a rave response to it that he
believes that it might be the basis for a political movement to curb
corporate crime.
After all, why should a corporate felon, its owners and managers, be
allowed to influence our elections when an individual is stripped of his
or her right to vote? It is time to start thinking about how to level
the playing field.
With Mr. Wal-drop�s permission, we hereby reprint his "Eleven
Necessary Measures for Curbing the Corporate Crime Wave:"
1. The stockholders and management of corporations convicted of
felonies should lose their right to vote and run for public office.
2. A registry should be maintained in each area of criminal
corporations, and any corporation convicted of a felony should be
required to register with the local police. A notice should be sent to
all of their neighbors that a criminal corporation is taking up
residence in their locality.
3. Criminal corporations should lose all corporate welfare benefits
and government contracts.
4. Criminal corporations should be required to make weekly visits to
parole officers, and their stockholders and management should be subject
to random drug tests (either urine or hair).
5. Criminal corporations should not be allowed to operate within 500
yards of a school, church or library.
6. Criminal corporations should be required to place the phrase
"A criminal corporation" on all advertising, signs and
vehicles as a public warning.
7. If criminal corporations violate the terms of their parole, their
stockholders and officers should go to jail.
8. In addition to the fine on the corporation, the personal assets of
stockholders should be forfeited for their criminal negligence and lack
of oversight.
9. The increasing number of lawless corporations calls for stricter
penalties. Bring back the death penalty for corporations. In this
context, the "death penalty" is the closure of the
corporation, the forfeiture of its assets to its victims and/or the
government and the winding up of its affairs by a court appointed
receiver.
10. Stockholders and management should be required to wear monitoring
bracelets for the duration of their parole, and may not travel outside
of their jurisdiction without a written pass from their parole officer.
11. The stockholders and management of criminal corporations may not
associate with the stockholders and management of other corporate
felons, and are forbidden to keep and bear arms.
Mr. Waldrop believes says that "the original conception of the
corporation was limited�there had to be a definite public
service."
"Now that whole concept has been stretched and there is no
accountability," Mr. Waldrop says. He encourages readers to spread
his list far and wide. And check out his other good works at his web
site: http://www.justpeace.org.
(Russell Mokhiber and Robert Weissman are co-authors of
"Corporate Predators: The Hunt for MegaProfits and the Attack on
Democracy." (c) Russell Mokhiber and Robert Weissman)
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