One of the low points in Governor Romney’s 2012 presidential campaign was his offhand and almost cheerful assertion that businesses deserve more rights because “corporations are people, too.” Since many of us believe that large multinational corporations have rigged the system to benefit themselves at our expense, this statement highlighted his disconnectedness from the “common person” while being at least partly inaccurate, as the corporate entity was established to encourage more risktaking behavior by shielding personal assets of business owners (and later leaders of nonprofit organizations) from lawsuits.
However, while corporations are legal constructs, incorporated organizations consist of groups of people who come together to work towards common goals. And like families, government agencies, and other unincorporated organizations, each incorporated organization creates its own unique processes and culture.
In an August 7 blog post entitled “In Praise of the Global organization-and a Toast,” Allon Shevat, an Israeli citizen who has assisted many multinational corporations address knotty cross-cultural challenges, stated that global organizations are healthier than nation states. While by no means a fan, he argued that “Membership in a global organization,” unlike citizens of nation states, “is based on achievement.” Physical violence is discouraged, and moral codes “are defined, measured, policed and enforced.” Organized religion is discouraged, and, he argued, “There is no democracy whatsoever” within these organizations.
Perhaps, Mr. Shevat’s take is a bit too optimistic. While physical violence is discouraged except when used to bust unions in the United States or muzzle upity employees in Asia, verbal violence causes its own brand of ugliness. Membership might be based on achievement, but the bar tends to be set higher for nonmembers of the “in group” (primarily, but not exclusively, white males). Even benevolent dictators can cause pain to those around them. And global organizations, through legal and illegal bribes to key government officials, rig the system to make unethical actions legal and encourage governments to do their physical violence for them.
Yet, organizations of all sizes tend to curb the worst impulses within each of us, especially compared to leaders of nation states who seem more intent in destroying others instead of building up their own nations. A compelling mission statement, leaders modeling supportive behaviors, and the profit motive encourage members to work together despite significant differences — differences that would impede these connections outside of the organization. And sometimes, organizations bring out the best in us.
We weave our way through webs of organizations and groups, each including some people and excluding others. And the broader our webs, the more likely we will learn how to meld our strengths and character with others to accomplish goals we couldn’t reach by ourselves.
Governor Romney, corporations aren’t people; they’re groups of people working together under a legal construct. The distinction is crucial, as each of us functions differently while in a group than being by ourselves.
And a toast to all leaders who highlight, and build upon, the strengths of those they lead.
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