expected of a person; it too should be a good citizen, an
honorable, ethical member of the community. In the case of
international corporations, that community has to be defined as
the world.
In actual practice, corporations are the opposite of good
citizens. They bribe politicians to write laws that cheat society on
a mammoth scale, most significantly by allowing them to avoid
paying many of the very real costs incurred in conducting their
businesses. What economists refer to as "externalities" are left out
of pricing calculations. These include the social and
environmental costs of destruction of valuable resources,
pollution, the burdens on society of workers who become injured
or ill and receive little or no health care, the indirect funding
received when companies are permitted to market hazardous
products, dump wastes into oceans and rivers, pay employees less
than a living wage, provide substandard working conditions, and
extract natural resources from public lands at less-than-market
prices. Furthermore, most corporations are dependent on public
subsidies, exemptions, massive advertising and lobbying
campaigns, and complex transportation and communications sys-
tems that are underwritten by taxpayers; their executives receive
inflated salaries, perks, and "golden retirement parachutes," which
are written off as tax deductions.
Under proper accounting all these "externalities" would be
factored into the costs of products. Those goods and services that
are inherently "clean" would also be the cheapest. Consumers
would pay a premium for products that strain the environment and
society; the price would include funds for correcting the damage.
In a truly "free" market economy, these very real costs would be
"internalized"—included. But they are not. Why? Because
accounting firms are not obligated to enforce sound accounting
principles; they only need to adhere to those required by the
laws—which are written by politicians who are dependent on the
corporatocracy.