True North

In a "Community Voices" column at MinnPost.com State Sen. John Marty argues for "progressive" legislation that would change corporate design to "encourage" corporate leaders to focus on the "well being of the community" (guess who gets to decide that!!) According to the esteemed Sen. Marty corporate laws should enable business owners to profit (thanks!) but that it is "unethical" for businesses to maximize profits for their own sake. According to Sen. Marty some "good" business leaders want to look out for the public interest but are concerned that their fiduciary responsibility to stockholders precludes them from paying better wages or protecting the environment if profit margins are affected. Obviously Senator Marty has never heard of the Target corporation, or the billions of dollars in corporate charitable giving distributed every year.

Of course, Sen. Marty has a government solution to this problem.

The Minnesota Responsible Business Corporation Act would encourage companies to incorporate as "socially responsible businesses." The corporation's board and executives would then be protected from lawsuits for failing to maximize stockholder profits. In addition, the legislation would mandate worker and public interest representation onto the corporate board, and would ensure that corporate leadership regularly considers its impact on the public. The act would specifically require in statute that 20 percent of a corporation's board include "representation of, and advocacy for," the interests of employees and 20 percent of a corporation's board must represent and advocate "for the public interest."

If this doesn't sound ripe for corruption and regular shakedowns of corporations, I don't know what does. As usual a liberal politician is using the language of "responsibility" and "morality" as a backdoor means to take greater and greater control over the private sector.

Hugo Chavez anyone?