CORPORATE GOVERNANCE AND
ETHICS
Assignment – Review on “The Corporation”
Submitted to: Dr. Ridhi Rani
The Corporation is a 2003 Canadian documentary film written by University of British Columbia law
professor Joel Bakan, and directed by Mark Achbar and Jennifer Abbott. The documentary examines the
modern-day corporation. Bakan wrote the book, The Corporation: The Pathological Pursuit of Profit and
Power, during the filming of the documentary.
Both the film and the book explore the modern-day concept of a corporation. The book is based on
Bakan’s extensive interviews with authorities in the corporate world and in-depth research. As an
illustration and point of comparison, Bakan compares corporations to a mentally unstable person. His
thesis and diagnosis is that corporations are pathological in nature, pursuing profit before the common
good, even the good of their own employees, managers, or industry.
Bakan supports his thesis with the following claims: corporations pursue their own interests above
others, exploiting people without regard for legality or morality; a corporation’s singular vision victimizes
individuals, the environment, and investors, and can cause self-destruction; privatization and
deregulation has allowed corporations to operate with greater autonomy from governments.
The book explores how corporations operated a century ago in comparison to present day. At that time,
corporations were not as influential or ubiquitous as today. Partnerships were more valued, Bakan
asserts, and owners were more responsible for the consequences of their actions. Over time, corporations
have manipulated moderating policies from the government and promoted the free market as the answer
to all problems. Now, lobbyists and public relations wield unbridled power to the point that the
unregulated business practices of their corporations can spell ruin for the community and themselves.
These changes are not irreversible, Bakan believes. Reform and regulation through democratic processes
can change the way corporations essentially run the country. In the end, he believes that more public
ownership of corporations would solve many of the current woes of the system.
Bakan’s tone is at once serious and playful. His assertions are shocking and provocative, but he maintains
a sense of wit and clear-headedness that helps sell his thesis. Despite being a law professor, the writing is
simplistic and accessible to mass readership. He provides footnotes and additional sources for readers to
do their own research.
Even so, the book and the film are regarded as left leaning. Critics have pointed out the omission of the
consequences of public ownership of companies, such as those that occurred within Communist countries
and monarchies. The book sticks to one idea, for better or worse, and doesn’t consider capitalist practices
from other countries. Despite criticisms about its monomania and simplicity, the book and film were both
generally well-received and considered accessible and thought-provoking.
