The Validity of an Argument from Supercapitalism by Robert Reich - Book Report/Review Example

University of Southern Queensland =========================== Fulfilling Lives INVESTIGATION OF THE VALIDITY OF AN ARGUMENT FROM SUPERCAPITALISM BY ROBERT B. REICH (2007) POL 1000 Assignment 3: Investigation of an Argument (1,490 words) Faisal Almutairi U1020277 INVESTIGATION OF THE VALIDITY OF AN ARGUMENT FROM SUPERCAPITALISM BY ROBERT B. REICH (2007) SUMMARY OF REICH'S MATERIAL ON THE ARGUMENT Reich's Opinion of the Argument "Corporate social responsibility is a largely meaningless slogan. This is because in a world of intense competition, corporations cannot afford to be environmentally or socially responsible". This paper investigates the validity of this argument that is dealt within Robert Reith's book, Supercapitalism (2007). Reith's view is that due to competition, there is the escalating role of money within the political system. These funds are being “contributed” by large business corporations to the politicians. This means that corporations are making use of their funds to finance politicians which is not anymore benefitting the society but only a chosen few. This is way far from being business entities that are socially-responsible. The Reasons of Reich for His Opinion According to Reith, the number of registered lobbyists swelled. This coincided with the increase in the funds that are allocated on lobbying (p.134). Politicians have become dependent on the money pouring in by business entities (p. 135). Bureaucrats became corporate lobbyists. This is happening the moment they stepped down of government service (p. 139). Big money and big government are resulting to increasing number of people willing to shell out big funds in order to manipulate the government (p. 140). One more assumption on the intensification of the outpour of corporate funds for, as opined by Reich, is the scheme to take over the mechanism of government. It will also co-opt political parties, according to Reich (p. 141). The incongruities at the Congress are usually clashes among competing industries, sectors or business entities (p. 142). That is, when one competitor disburses for access, its rival likewise pays. This is happening because these competing businesses counter the influence of the other (p. 143). The money shelled out for politics, according to Reich, is giving out by business entities in the semblance of donations. Money is a derivative of the main characteristic of supercapitalism. This supercapitalism has shown the way to its financial victory, as opined by Reith. It is intensifying competition among these business entities for investors and customers. It is believed by Reich that business competition has affected so much the politics. These businesses are believed to be achieving their competitive advantage thrugh the public policies that they supported. This is causing the reduced reactions to the welfare of the citizenry. Evidence in Reich's Book that Relates to the Argument Whims of corporations for their private achievements or acquisitions have augmented as competition among them has soared. It has been like an unclean means to struggle in the previous years. People's expressions and voices have been overwhelmed. This is mainly because business entities are connected in soaring rivalry for political upshots that will be an beneficial for themselves. Business rivalry has affected politics. Several countries were lured into the supercapitalist mania. In this instance, the concentrating fortune suppresses self-governance. The wealth has so crooked the politics. At some point, businesses have controlled politics. These are happening within the branches and organizations government. Even the governing bodies and others have become influenced by corporations. This is the way that businesses are in quest of competitive advantage. It can be obswerved that most of the fresh rules, regulations as well as legislations are at the will of some business industries, sectors or entities. Reich observed that big businesses are the major agent in the distortion of the process of democracy. They are already intervening at times with the matters of the government. SUMMARY OF THE EVIDENCE OF THE ARGUMENT Research to Investigate the Validity of the Argument Proposition testing was used in this study. The contention is that (CSR)is a principally an empty slogan. As claimed, this is a result of extreme business rivalries. As a result, these business establishments are said to find difficulty of being socially responsible. Supposed to be included in the dimensions of CSR are the environmental (the natural environment and ‘sustainability’ of business practice); social (the connection between people and business in general), economic (relating corporate social responsibility based on its impact on business operation or it may be the financial or socio-economic aspects) and stakeholders (considering all stakeholders or stakeholders transactions not prescribed by law, doing more that you have to). The conclusions of other authors based on their research is that with the money or the presence of money, corruption may occur. Corruption may happen especially in the legalized form, lobbyism. Several authors discussed this openly and deeply. Several authors did their research by observing what are happening in several countries. However, the limits of their research are that of scope and depth. Key evidences are found through the years. According to Reich, this had started in the 80s in the United States. The evidences are shown to be concrete. The factual evidences from the books, newspapers and other media tell about the validity of this argument. One of the examples cited are about the nuclear power plants. No nuclear plant has an insurance against a GAU. The profit of the enterprise is, of course, given to the shareholders. The gerneral public is made to belive that we need power plants to secure our status, that they are safe to operate, or that the chances of a maximum credible accident is negligible. However, the devastations are still huge. A similar situation was in the financial crisis when the US Govenment saved banks and car manufacurers. It seems the big enterprises create a situation where the government is forced to step in, to avoid greater damage to the community. The politicians, even if the agents of the voters, keep the voters in a state of ignorance to make their own lifes as rulers easier. As Reich states, there is a competition as in the arms race. But in the arms race never a winner was sought, because the race - even if many nationlists see it differently - was not started to win, but to gain knowlwedge, create weapons that soon became obsolete by newer ones. It served as a focal point for the voters, created income for the workers and also was a reason to spend for things that helped few to get richer. The same applies to certain companies in this race. This argument explained the real world. This is one concrete evidence that applies to one set of circumstances yet very powerfull. An evidence that disagrees with my personal views is that the current reality of the political and corporate systems prevents a government to act for the good of the people, or limits it to a finacial well-being, and even so limiting to a "few". Research to Investigate the Validity of the Argument Even if Reich calls Corporate Social Responsibility meaningless, he actually demands it. It is an ideal. Throughout history, around the globe, there were ideals. And throughout history and around the globe this ideals were corrupted, or used to corrupt people. Again in each single case there was a reason to justify the corruption. In historical times, everyting was slower. This has changed with the globalisation and the information age. EVALUATION OF THE ARGUMENT BASED ON THE EVIDENCE The assessment of the chosen argument is based both on the substantiation and analysis that Reich presented and the verification that I found in my research. The argument based from the substantiation and analysis given by Reich does not reflect not that the Corporate Social Responsibility is insincere, empty or worthless. The problem is that the identification with the company and maybe the concern for the own career is valued higher than a long term sustainability of society. Satisfying the stakeholders on a yearly base is valued higher than the prediction on a long term base. The dispute based on the evidence that I found in my research is contrary to Reich's ideal. What it really asks for is a change in paradigma and the need for new ideas if we want to switch from a reactive form of governing to a predictable course of action. The nature and quality of the evidence I find is stunning. Is there a way out? Political aspect to trade and industry and the manners in which humanity, trade and industry and government interrelate nowadays may look like corruption. But the indivdual, weak in a minority position, gets argued into beliving that the choosen path is the best for all involved. The government have a tremendous spending power, and they have the power to implement laws and regulations, but often not the knowledge of the technology nor the foresight for the consequencies. The CSR, as Reich demands is an ideal, but the stocks demand the sort term solutions. The weakest element is society which has to bear the consequences without a way out. Not even a change in the political arena makes any real difference becasue the work is done by the government employees. Reference Reich, Robert. B. 2007. Democracy Overwhelmed. Chapter 4. Supercapitalism: The Transformation of Business, Democracy, and Everyday Life. Knopf Doubleday Publishing. pp. 131-167. Read More