
This is the third of 3 blog entries on the U.S. Supreme Court's
Citizens United decision. Yesterday I argued that
the Court's decision was fundamentally the right one, because the decision struck down a law that sought to use clumsy and intrusive means to achieve dubious ends. (And I pointed out that it's possible to think the decision is the
right one even if you worry about the possible
consequences of that decision.)
Today I want to talk about the role of corporate personhood in the Court's decision and in the underlying issues. Much of the furor over the
Citizens United decision seems to be rooted in a reaction against the notion of corporations being (or merely receiving protections normally reserved for) persons. I think much of that reaction is misguided: not because I'm in favour of an expansive understanding of corporate rights, but because I think many people are misunderstanding what "personhood" means in this context, and the history of that notion.
A few points about the notion of corporate
personhood, and the Court's view on it:
1. The U.S. Supreme Court did
not, in the
Citizens United decision, suddenly declare corporations to be persons, contrary to what you might have heard. All they did was declare that
one of the limitations on corporate speech could not be justified in light of the U.S. Constitution (in particular, the First Amendment). The Court left in place the legal restrictions on corporate donations to political candidates, and it left in place requirements about the obligations of corporations to disclose their political expenditures. Corporations were, prior to this decision, and they remain, after this decision, a
kind of person before the law, with a limited range of rights and responsibilities.
2. It's worth noting that the Court's decision (in PDF,
here) does not focus on, or argue in favour of, corporate personhood. Indeed, it mentions the concept just once in 57 pages of argument. The view of the Dissenting judges was that the decision by the Majority of the Court must have
assumed that corporations are in some strong sense "real persons." How else could corporations be thought worthy of constitutional protections? As a matter of Constitutional law, though, the majority's argument was simply that the First Amendment applies to speech
per se, not to the speech of men or humans or persons or anything else. Just speech. Ethically, I think the key is really that you can't limit the speech of corporations without
thereby limiting the speech of the persons (executives, employees, and shareholders) who make it up. Corporations are instruments: legal "persons", yes, but also instruments or mechanisms by means of which real, flesh-and-blood humans achieve their ends. The Court's decision is worthy of support not because it helps make sure that corporations
per se are able to express themselves, but rather because it helps make sure that
human beings are not denied a mechanism through which they sometimes choose to express themselves.
3. Legal personhood for corporations is not new. It goes back at least hundreds of years. At heart, all it means is that the corporation exists as an entity separable (ethically and legally) from the human beings that work within it. GM exists today despite the fact that
none of its founders or original employees is alive today. You can sign a contract with Apple, and Apple (as a legal person) is required to honour its warrantees, without you having to interact with every shareholder in the company. Governments and courts have, for centuries, seen the wisdom of allowing (and sometimes insisting) that corporations be treated as collective entities (in legal parlance, as "persons.") As I've argued before, there are good reasons
Why Corporations Must be Legal Persons. Assigning some form of personhood to corporations (and churches and universities and unions and so on) is how we assign both rights
and responsibilities to them. If corporations were not
in some sense persons, they could not sign contracts and own property or do any of the other things that makes them useful to us. If corporations were not
in some sense persons, you could not sue them when they do wrong. The piece of legislation that the U.S. Supreme Court declared, in part, unconstitutional — the Bipartisan Campaign Reform Act of 2002 — itself treats corporations as persons, since it imposes criminal sanctions on certain kinds of
corporate behaviour.
4. Personhood is not a monolithic concept. The fact that the Court rejected
some restrictions on corporations does not imply that corporations are now full-fledged persons in the same sense that competent adult human beings are. We have always recognized many different "kinds" of persons, with different sets of rights and responsibilities. Note that the rights and responsibilities of a child, for example, differ from those of an adult (even though both are persons). And the rights and responsibilities of a foreign tourist, for example, differ from those of a citizen (even though both are persons). The fact that corporations are regarded as a
type of person does not mean that they're going to be accorded the right to vote next. And the fact that they don't have certain rights (e.g., the right to vote, or to adopt children, or to marry) does not mean they aren't (in some sense) persons.
In summary, I think the corporate-personhood issue is a huge red herring, here. It's a distraction. If you think (as I do) that there are specific rights that corporations shouldn't have, argue against those. Treating corporations as in some sense persons should be the
beginning of a conversation about which rights
and responsibilities we think they should have.