Assignment 1: Review of the New Corporation Documentary

Simone T. Rodrigues

Bob Gaglardi School of Business & Economics, Thompson Rivers University

BUSN 6010: Ethics & Corporate Social Responsibility

Ryan Scorgie

October 30th, 2023.

 Assignment 1: Review of the New Corporation Documentary

Introduction

Directed by Jennifer Abbott and Joe Bakan, "The New Corporation" is a sequel to the original

documentary film "The Corporation" that sheds light on the power and influence that corporate titans

wield over society. This film aims to open the audience's eyes to a world in control of corporations on

the verge of losing democracy.

'The New Corporation' is a provocative eye-opener that takes the viewer on a journey through

the years of vulture capitalism, its impact on the environment and society and the numerous ethical

implications that these corporate behemoths cause.

The documentary begins by talking about studies conducted that treat an organization as a

human entity based on its legal status and proceeds to diagnose this entity as psychopathic. This

diagnosis sets the groundwork for the film, supported by various interviews and cases, that urge the

audience to call out corporations for their role in triggering societal issues such as income inequality,

exploitation of vulnerable populations and environmental degradation, which the filmmakers have

strategically linked together. The filmmakers also highlight the key tactics in the form of a playbook that

these powerful institutions undertake to acquire and exert control over the market for the sole purpose

of maximizing profit. It focuses on how corporations have reinvented themselves as responsible citizens,

instilling a sense of hope to solve larger societal issues that, ironically, they play a major role in

contributing to.

This documentary emphasizes the urgency of enacting radical change in the free market,

encouraging activism against social injustice and advocating for a new kind of democracy. Although the

film offers a biased view of corporations, portraying them primarily in a negative light, it does make a

compelling case for the need to reevaluate the dominance of these businesses and push for more

accountability and transparency on their part.

 Analysis

Key Highlights

Societal/Ethical Issues

This documentary brings to light several social and ethical issues caused by business leaders,

such as environmental degradation, unequal wealth distribution, data privacy violations, inadequate

contribution to societal welfare and so on. It creates awareness about the role of corporations in

furthering the issues.

Corporation v/s Government

CEO of Beyond Global, Sandra Navidi, bluntly states in the film that some Corporations hold

more power and influence than government institutions. Vandana Shiva, activist and author, also claims

that the disappearance of independent governments has begun with the rise of corporate rule. The

ideas put forth trigger an ongoing debate about who is to be held accountable for the ethical

implications of corporate behaviour – the Corporation or the Government? While some are of the

opinion that corporations need to assume this responsibility, filmmakers also explore the activities of

the government, such as tax cuts that facilitate these corporations to impose financial burdens on

society.

Unabashed Revelations

The filmmakers' liberal ideologies and unfiltered opinions are what make this documentary

relatable to the audience. The authors do not hold back in boldly outlining their theory of how

corporations gain control and dominate the market by rigging the very system that generates profits for

them. The film uses historical evidence of several corporate-caused crises, followed by the strategies

used to position themselves as saviours during these crises. The film's progressive audience appreciates

the interviewees' audacious statements and hard-hitting facts, as well as examples of massive market
externalities created by the top corporations. For example, the film highlights JP Morgan Chase's role in

the financial crisis and how Jamie Dimon commits to investing in Detroit in order to spin the situation in

the corporation's favour.

Accurate Depiction of Society's Prevailing Sentiments

Regardless of the filmmakers' specific agenda in presenting this skewed perspective on

businesses, the film precisely reflects society's attitude towards these changing times. Beginning with

the 2008 housing crisis up until the recent Black Lives Matter movement, the film focuses on the

emerging generation of educated and aware consumers who not only participate in activist movements

but also take a step further into political campaigning and lobbying to effect real change. The society's

lack of trust in businesses and its leaders is reflected through activism and protests such as the Occupy

Wall Street Movement, Grassroots activism, Australian Coal Mine protests and more.

Ethical Dilemmas in Corporate Practices

In this film, Elizabeth May, former leader of the Green Party of Canada, rightly states that by

law, a corporation is only to make a profit and return benefits to shareholders; therefore, it is

counterintuitive to think of it as having a societal purpose. While society expects corporations to

contribute to society, it is also important to consider the conflict of interest for corporations to pay

shareholders or invest in CSR activities.

Failure of Modern Management Philosophy

The film also puts into question society's faith in creative capitalism and modern leadership.

Corporations make bold claims of utilizing innovation power to focus on the needs of the poorest.

However, this commitment to social responsibility is being used as a ruse to divert attention away from

the activities that continue to negatively impact society. The new age philosophy is a tool used to recast

corporations in a positive light, but the evidence and research by filmmakers show that these initiatives

are hollow in comparison to the magnitude of detriment.

Criticisms

Biased Perspective

The incidents discussed in this film aim to reinforce a negative bias against corporations that the

filmmakers themselves hold rather than cultivate a nuanced understanding of today's business world.

There is also a tone of constant criticism of the businesses' efforts to mitigate crucial societal issues, and

the filmmakers chose to discuss only those efforts that serve the documentary's agenda. The film also

fails to take into account actual business operations, instead attempting to dehumanize top business

leaders as representatives of these 'Psychopathic Corporations' while ignoring the efforts of many

executives within these corporations who have a strong commitment to social responsibility and work

every day to fulfil that commitment.

Negative Portrayal of Corporations

The film paints corporations as the villains and the sole contributors to the multiple

environmental and social issues that the world faces. Business-related issues are consistently portrayed

as deliberate oversight by executives and corporations for profit, while in truth, many factors could have

contributed to these incidents. It conveys to the viewers the notion that corporations are the enemy,

robbing the public of the freedom to make their own decisions and attempting to seize control by

replacing government bodies.

 Importance / Influence of the Film

'The New Corporation' is an eye-opener for the audience that blatantly explains the untold

truths of capitalism and how these business practices contribute to the numerous challenges that

society faces today. It aims to influence the opinions and attitudes of individuals towards these

corporations by exposing the vile tactics and gross misconduct of these industry giants. It challenges the

existing blind faith in business leaders and the magnetism of these rebranded progressive corporations

by emphasizing the negative effects of their uncontrolled dominance. It promotes open discussion about

the need for a shift in the paradigm, a truly new type of corporation that is more responsible and

accountable. The film not only highlights the ethical issues created but also inspires the public through

past stories of successful activism and calls the society to take collective action against these unethical

businesses. It brings about a sense of awareness among viewers about issues that are not covered by

mainstream media or not openly disclosed or discussed, thereby creating a change in the attitudes of

the public towards corporations.

In the world of digital media, movies play a significant role in influencing today's generation. The

purpose of movies has shifted from merely being a source of entertainment to reshaping the opinions

and attitudes of the viewers towards prevalent issues in society. Visual storytelling makes it easier to

convey complex messages and portray emotions to a diverse audience. In recent times, diversity,

representation and culture depicted in movies have rallied large masses to put pressure on businesses

to do the same. Similarly, movies about businesses and capitalism can be quite thought-provoking and

inspire these audiences to look at corporations from a different perspective, think before falling prey to

their brilliant rebranding and corporate socialism, and push their political representatives to hold these

capitalist corporations accountable for their impact on society and the environment.
 Recommendations

The intent behind this documentary was to challenge corporations to engage in ethical practices

and increase their commitment to society, as well as to encourage the community to advocate for

change and hold these corporations accountable. It becomes apparent that this change cannot be

realized without the involvement of democratic bodies. As a result, the following recommendations can

be made by the President of the Canadian Chamber of Commerce:

Tax impositions on Corporations: The most serious problem faced by working people is the

income inequality created by tax cuts. Corporations earn huge profits by exploiting resources and, in

turn, pay a substantially minimal amount in taxes. Policymakers must amend corporate tax regulations,

ensuring that corporations pay their fair share. The revenue generated from these tax impositions can,

in turn, be allocated towards investing in the public system.

No Industry Self-Regulation: The global market has seen the consequences of allowing industries

the autonomy to self-regulate, particularly in the case of Oil and gas. Regulatory agencies should be

given more authority to oversee corporate behaviour and openly investigate high-risk cases.

Accountability for Corporations: Clear and measurable accountability systems need to be

introduced with industry-specific key performance indicators. The results of these KPIs should be made

available to the public as well to incentivize corporations to conduct business ethically.

Government Action: Collaboration with the government is key for imposing stringent regulations

that aim to curb the consequences of unconscionable corporate behaviour. This would necessitate

lobbying efforts as well as the implementation of policies to address environmental, social and

governance issues. Regulations should be enacted to require regular and mandatory reporting on ESG

activities based on specific criteria, with penalties imposed for inflating or greenwashing these reports.

Corporate funding of electoral campaigns should also be restricted because it gives corporations an

advantage in influencing political decision-making.

 Privacy Laws: With the ever-evolving technological world, there is also a significant need to

reconstruct privacy laws that protect individuals from malicious corporate use of data. A portion of this

documentary explains how businesses predict people's behaviour based on the data collected through

technology to offer products and influence our decisions. Recent cases of data privacy breaches by Meta

raise serious concerns. It is essential to work together with policymakers to implement stricter laws to

safeguard personal data and develop contingencies for detection and inspection in case of violations.

Limitations on Privatization: Society bears the brunt of corporations' greed to maximize profit,

especially in essential services such as healthcare and education. A viable option is to advocate for

government restrictions on the privatization of certain industries that pose significant social and

environmental risks.

Acknowledge problems of the Free Market Economy: The Free Market Economy is sound in its

concept of encouraging innovation and promoting financial growth, but it falls short in its approach to

social welfare. Despite the existence of the Competition Act, large conglomerates are able to control the

market as they see fit, resulting in labour market issues, inflationary prices, controlled supply of

products, etc. It is crucial to stimulate debates among policymakers, business leaders, representatives of

the community and all other stakeholders in order to establish a balanced market that values ethical and

social considerations in addition to profit and growth.

Conclusion

'The New Corporation' is an effort by filmmakers to call together all stakeholders of society for

the purpose of fostering industries that are not just profit-oriented but are transparent about their

operations, engaged in ethical practices, have a high level of commitment to the environment and

possess a true sense of responsibility toward the community that they operate in.