Articles→The Person the Law Forgot to Give a Conscience
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The Person the Law Forgot to Give a Conscience

BySurucka

We made the corporation a legal person and handed it a person's rights, then never handed it a person's conscience. The lone strikers we keep turning into folk heroes are the cost of that gap.

Two News Stories, One Pattern

Two people made the news this week for the same reason, and almost nobody filed them under one heading.

The first is a security researcher who goes by Chaotic Eclipse. Through the spring he kept publishing working attacks on Microsoft Windows, one after another. By his own account, the company ignored every bug he tried to report. He used the front door first. He filed the reports and heard nothing back. Then the company deleted his account without payment, and later it flagged his code for removal. Security Affairs wrote the fight up, his side and Microsoft's side both.

The second is Luigi Mangione. This week he sat in a Manhattan courtroom, accused of shooting a health insurance executive named Brian Thompson on a city sidewalk in Dec 24. In the year and a half since, strangers who never met him have turned him into a folk hero. Brian Mann of National Public Radio (NPR) reported that more than a million and a half dollars has gone to his defense fund.

Let me be careful, because these two cases sit nowhere near each other morally, and I will never pretend they do. A man is dead. Networks are getting breached. Murder is murder, and reckless disclosure leaves real casualties.

Set the crimes aside for a moment and look only at the public reaction. The pattern is old. A huge, faceless institution treats the people under it as inputs. One of those people finally quits asking and strikes back. And the watching crowd, which has its own long history with that institution, does not recoil. It cheers. That reflex keeps trying to tell us something, and the rest of us keep refusing to hear it.

How the Corporation Became a Legal Person

To understand why the crowd cheers, you have to understand what it is angry at. It is angry at a person who is not a person.

Go back to 1886. That year the Supreme Court heard a narrow tax dispute called Santa Clara County versus Southern Pacific Railroad. The decision itself settled very little. Then the court reporter, the clerk who writes the case summaries, added a note. It claimed the justices agreed a corporation counts as a person under the Fourteenth Amendment. That amendment had been written to protect freed slaves. The point was never argued in the case and never formally decided by the judges. Ciara Torres-Spelliscy at the Brennan Center for Justice tells the history plainly: that one stray note became the start of everything after.

Over the next century the corporation gathered up the full constitutional rights of a human being. In 2010 came Citizens United, the case where the court ruled that corporate spending on politics counts as protected speech. The change was complete. Something that began as a tax entity now carried a citizen's rights, and unlike a citizen it never has to die.

Now look at the trade underneath. The corporation received everything a person gets and almost nothing a person owes. You and I answer for our own reputations. A man who loses the good opinion of the people around him can be shut out of the only community he has. That fear keeps most of us honest when nobody is watching.

A corporation can be fined, and the fine is a line on a budget. It has no face to go red with shame and no neighbors to shut it out, because it lives everywhere and nowhere at once. We built a person with every appetite intact and none of the weaknesses that, in the rest of us, slowly add up to a conscience.

What Kind of Person It Is

The legal scholar Joel Bakan took the law at its word and followed it to the end. If the law insists the corporation is a person, he asked, then what kind of person is it? His answer, in his 2004 book The Corporation, is a psychopath. He means it as a plain clinical label. The corporation is chartered to chase its own economic interest without rest. The law discourages it from giving that interest up for a moral reason. It can act caring whenever caring pays. It drops the act the moment caring stops paying.

Bakan's hardest line is worth sitting with. The corporation cannot recognize a moral reason to hold back from harming other people, and it cannot act on one. That is the clinical definition of the thing we fear most in a single human being. We handed it the leading role in our whole economy.

The cruelty is built into the structure, and that is the part almost everyone misses. The men and women working inside these institutions are ordinary and mostly decent, trying to get home in time for dinner.

Lawyers have a name for the wall between those people and the company's actions. They call it the corporate veil. Behind it, a good person signs off on a decision he would never make in his own name. The decision belongs to the company instead of to him. The harm gets committed by everyone at once, which means by no one. A computer program quietly denies a sick man his insurance claim, and no single hand made the call. A bug report sits ignored in a queue, and no single engineer chose to ignore it.

The veil does not turn ordinary people evil. It does something quieter and worse. It lets a decent man keep his decency fully intact while the entity he serves does things not one of them would do alone.

The Moral Base Capitalism Dropped

We did not always pretend the market runs fine with no conscience attached. That pretense is new. Adam Smith, the Scottish economist everyone now treats as capitalism's founder, wrote a whole other book before The Wealth of Nations. He called it The Theory of Moral Sentiments. Its argument was that all economic life happens between real people who feel for each other and judge each other. They are neighbors who have to meet each other's eyes.

To Smith, a market was always a moral arrangement among people who answer to one another. We kept his famous second book and quietly dropped the first one. We grew the appetite into an industry and walked away from the conscience that was supposed to govern it.

I say this as a man with real sympathy for the market. I lean libertarian. I think John Stuart Mill, the English philosopher, mostly had it right in 1859. The government should not forbid what harms no one but yourself, and a free life is the default a human being deserves. But Mill's principle carries a condition, and the condition is harm to other people. Freedom runs right up to the point where it starts costing somebody else, and there it has to stop.

A market works the same way. Nothing we have ever built converts human effort into human want better. It also needs limits rooted in the society it serves. The corporation as we actually built it kept all the freedom and quietly dropped the limits. It holds tight to Mill's liberty and refuses Mill's condition, and a well-paid lawyer will still call that a free market.

Why the Crowd Cheers the Lone Striker

This is one of the oldest stories on record. In ancient Rome the ruling families were called patricians and the common people were called plebs, and the two fought over exactly this. Concentrated power treats the many as material to use, and it keeps doing so until the many produce someone who refuses. What changed in our version is the target. The concentration now wears the legal form of a person you cannot reason with and cannot vote out. The individual on the other side has fewer honest ways left to be heard.

Look again at Chaotic Eclipse. Strip the exploits away and you find a worker who did what we tell everyone to do. He used the proper channel and filed his reports. He waited. And the proper channel, by his account, swallowed his work and erased him from the record. When an entity that answers to nobody closes the one honest path, some of the people it shuts out will pick a dishonest path.

The same logic, far darker and with an actual body at the end of it, is what the crowd reads into the Mangione case. I do not believe most of them are cheering a killing. They are voicing despair. The institution he stands accused of striking had spent years denying ordinary people their care, from behind a wall nobody could reach through. No normal complaint ever seemed to touch it.

I will not bless any part of this. The lone striker is no hero. He leaves real victims behind him, and he weakens the rule of law that quietly protects the rest of us too. A society that makes him a folk hero is a society already tearing.

But contempt for the vigilante is cheap if you stop there. The vigilante is a symptom. The disease is a structure that manufactured a powerful person with no conscience. Then the structure acted shocked when the people it kept harming stopped believing it had any right to rule them. Condemning the symptom louder cures nothing. Treat the disease, or keep getting the symptoms.

Rights Must Come With Duties

Here is the part I actually care about, because a diagnosis with no demand attached is just a complaint.

If the law keeps insisting a corporation is a person, then that personhood has to carry a person's whole load. The duties ride along with the rights. A person can be held to account. Pull the veil back, and the actual human beings who made a harmful choice should own that choice under their own names, in public.

A person also owes real duties to the community that keeps him alive. The first duty is the one Bakan says the corporation cannot manage on its own: hold back from harm even when the harm would pay. The rights got granted over a single century. The duties can be attached far faster, once we decide the imbalance has become intolerable.

The limits do not have to come only from government. This is where I part ways with people who think the answer is always a bigger agency. A captured regulator becomes one more wall to hide behind. The deeper limit is the one Smith assumed and we forgot. It lives inside the society itself, in the plain expectations of the people who do the work and buy the goods.

Think about that researcher once more. The goodwill of people like him quietly secures a huge share of the working software on earth. That goodwill is a real relationship, and no company gets it for free. Treat it as disposable and you lose the thing your business was resting on. Customer trust works the same way. So does worker loyalty.

A real neighbor honors obligations like these without being forced. The corporation will honor them only when society grows confident enough to demand it. We demand it with what we buy and with what our courts allow. And we demand it by refusing, out loud, to hand a person with no conscience the benefit of the doubt we save for one another.

We made ourselves a person and never gave it a conscience. The lone strikers in this week's news are the running cost of that mistake. Cheering the strikers will not fix it, and bowing to the institution will not either. We fix it by insisting, together, that anything holding the full rights of a person gets held to the full duties of one. Some will call that anti-capitalist. I think it is the one thing that ever made capitalism worth keeping.

Key Takeaways

  • The corporation holds the constitutional rights of a person, built up from a stray court note in 1886 through Citizens United in 2010, while carrying almost none of a person's weaknesses. It cannot be shamed or cast out, and it feels no conscience.
  • Joel Bakan's diagnosis is structural. The corporate charter discourages trading profit for ethics, and that produces an actor unable to hold back from profitable harm.
  • The corporate veil lets decent people approve, together, harms none of them would commit under their own names. The harm belongs to everyone at once, so it belongs to no one.
  • Capitalism began on a moral base, Adam Smith's fellow feeling and Mill's rule against harming others. We kept the appetite and dropped the conscience meant to govern it.
  • The lone striker recast as folk hero, whether Chaotic Eclipse or the Mangione case, is a symptom of a structure that left people no honest recourse against a faceless power.
  • If the law grants a corporation the rights of a person, society has to attach the duties of one: accountability that reaches the people behind the veil, and expectations enforced by the community, never by government alone.

Works Cited

  1. Joel Bakan, The Corporation: The Pathological Pursuit of Profit and Power (Free Press, 2004)
  2. Ciara Torres-Spelliscy, The History of Corporate Personhood (Brennan Center for Justice, 8 Apr 14)
  3. Santa Clara County v. Southern Pacific Railroad, 118 U.S. 394 (1886)
  4. Citizens United v. Federal Election Commission, 558 U.S. 310 (2010)
  5. Brian Mann, As Luigi Mangione's lawyers head to court, support grows for the accused 'vigilante' (NPR, 15 Jun 26)
  6. Microsoft Calls the Zero-Day Dumps Irresponsible. The Researcher Says Microsoft Started It. (Security Affairs, 29 May 26)
  7. Adam Smith, The Theory of Moral Sentiments (1759)
  8. Adam Smith, The Wealth of Nations (1776)
  9. John Stuart Mill, On Liberty (1859)
#capitalism#corporations#corporate-personhood#ethics#labor#disclosure
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