Saturday, January 23, 2010

Another look at Corporations

In my previous letter I pointed out the question of foreign ownership. This one is my understanding of what a corporation is. I feel somewhat qualified as I was a member of upper management during the many years I worked for Firestone. I had contact with the top officers and learned how the system worked.
Someone or a group of people decide to come together in a common purpose. They put in capital and expertise. They satisfy all legal requirements and then get going. These are people with a common purpose. They think as one, just as the Dictionary described. If they didn’t then dissension would cause problems leading to failure. I am talking about the President, Vice President, Chief Financial Officer and Directors of the various segments that make up a company. They are assisted by a Board of Directors who oversee the operation and provide guidance and sometimes prohibit the officers from pursuing a course of action. These people are similarly minded. They come from the outside and possess knowledge helpful to the officers.
With the Supreme Court giving them free license to spend as much as they want for or against candidates for Federal Office, the group mentioned above will make those decisions. My problem with this relates to the employees of the corporation. There could be thousands. Each of these has friends, family and acquaintances. They belong to civic and sports or other types of clubs and go to their place of worship. The people they associate with have an impact on how they feel about issues of national importance.
Now this is the point I wish to make. These thousands, who are the heart and soul of the corporation, have no say in corporate decisions. They are the ones that do the work of producing, designing or in any number of other ways make the corporation a success.
There is another group who have no say and that is the shareholders of the company. They have their own opinions about government. There may be social issues that are of importance to either group.
What I am trying to say is that the corporation might be spending the money created by employees or spending money that could be used to upgrade the company or give to shareholders as dividends.
A corporation is much more than the top officers. The Supreme Court made a dreadful decision. The Congress must find a way to reverse it. I will be following this closely as time progresses. I hope you will as well.

Jack B. Walters
3961 N. Hillwood Circle
Tucson, AZ 85750
(520) 722-2958
January 23, 2010

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