I received an electronic galley copy of "The New Corporation" in exchange for a fair review. I would give this between 4 and 5 stars. In this book Joel Bakan quite effectively debunks the myth of corporate social responsibility and the increasing number of companies who believe their purpose should be more than just increasing shareholder value and that these supposedly more "enlightened" companies will materially reduce inequality, mitigate environmental desecration or will more effectively solve vexing societal problems than a robust, empowered public sector. In other words, "corporations may pursue social and environmental good, they do so only in kinds and amounts likely to help them do well..."

Fundamentally, businesses have a different purpose than representative government and he offers several examples of how supposedly good corporate citizen actions are not a substitute for effective regulation. He writes, "the law demands corporations do well, while it permits them to do good (but only when that helps them do well)." He gives a brilliant example of the Deepwater Horizon disaster where the CEO would encourage protecting workers ("no coffee cups without lids, no talking on cellphones while driving equipment...") yet ignored costly process measures like the upkeep of wells, drilling rigs and pipelines. ("These personal protective measures aligned well with the BP business model--...however, more costly and disruptive process measures to avoid accidents...-were being dangerously diminished.") He points out the absurdity of carbon offsets--"a ploy which permits maintaining the excessive consumption of some countries and sectors while forestalling the radical change which...circumstances require." Another excellent example Bakan highlights is Coca-Cola promoting "water neutrality" so that critical water tables in countries like India are not depleted for a product that has no health benefits while local citizens suffer from current corporate practices. Bakan highlights the "fuzzy math' that allows Coca-Cola to say they have achieved their goal when, in fact, if viewed by anyone outside Coca-Cola, they are actually harming local communities.

What about NGO's? Bakan does not believe NGO's are an acceptable substitute for effective government regulation because of cozy relationships where some of them rely on the largesse of the companies they are monitoring. Plus, there are no legal ramifications to enforce adherence to specific processes or outcomes. It's voluntary. Where is the company who would volunteer to empower their workers by creating a union to work with management in creating a fair wage structure and promote worker safety?

Bakan also highlights how tax avoidance strategies and their incessant lobbying for tax cuts, "helped corporations reap record profits over the last few decades also effectively starved governments of the means to protect citizens in the facet a global pandemic." This is one area where I wish Bakan would have tackled --the race to the bottom of corporate taxation that allows corporations to locate to countries with favorable tax policies while still earning a majority of their profits in the United States. Clearly, taxation can not be punitive so that it put companies in a non-competitive position but the "hand outs" companies are given to locate a business in a particular area depletes the funds needed to improve infrastructure, fire and EMS services, good schools, etc. Competing against a third world wage structure puts the US at a distinct disadvantage. Also, the tone of the books does a 180 degree turn (from aggressive and skeptical about corporations to starstruck) when Bakan gives examples of individuals who are running for political office with a more enlightened view of what good government can do to improve citizens' lives. I am optimistic about the future and I believe the more individuals that can go into government can have a greater impact than CSR but we are still a long way from a level playing field. What changes need to occur to allow more of these citizens to run and win so a critical mass of elected politicians have real bargaining power to ensure that citizens have a return of investment that is on parity with passive investors?