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Corporate Civil Rights
1/19/2024
Biker Bob is passionate about a healthy living, and he's apalled by a new state law that would reduce the quality of and access to school lunches. He'd like to speak out, and to amplify the message to the cycling community, he'd like Best Bikes to issue a statement as well.
Should Bob be allowed to use the corporation to promote his political beliefs? Would your answer change if the issue were directly related to cycling? What if the issue were racial justice, religious liberty, abortion access, a conflict in the Middle East or gun control? Would it matter if the message criticized the politician sponsoring the bill? Would it matter if it endorsed the politician's primary challeger?
Should all the shareholders have to agree with the message? What if they don't? What if the employees don't?
What if instead of selling bicycles, the corporation were a media company? Should The New York Times Company, which is a corporation organized under the laws of New York, have more speech rights than your bicycle corporation?
Corporate civil rights refers to civil rights like freedom of speech, freedom of religion or other freedoms exercised by corporations. What civil rights a corporation should have turns on what you think a corporation is. Those that believe the aggregate theory—that corporations are just a group of people—tend to take a more expansive view of corproate civil rights, arguing that people shouldn't lose their rights merely because they are acting as a group. Those that believe the legal entity theory—that a corporation is a separate legal person—tend to take a more narrow view of corporate civil rights, arguing that because corporations are a legal fiction they have only those rights granted to them by the legislature.
The following two cases have each sparked intense debates, captivating the attention of legal scholars, activists and the public outrage machines. As you read consider:
- Are corporations people, a group of people, or something else?
- How does your theory of what a corporation is affect what a civil rights a corporation should have?
- Did the Court draw the right line? What costs come with this decision? What benefits?
- Should all entity types have the same civil rights? That is, should we treat a sole proprietorship the same as a corporation or a partnership? Why?
This book, and all H2O books, are Creative Commons licensed for sharing and re-use with the exception of certain excerpts. Any excerpts from the Restatements of the Law, Principles of the Law, and the Model Penal Code are copyright by The American Law Institute. Excerpts are reproduced with permission, not as part of a Creative Commons license.