Twenty-six words to change the way corporations operate:
an interview with Bob Hinkley
head of the "Code for Corporate Citizenship" campaign

CITIZENS WORKING: You’ve been a securities lawyer for 23 years, and you say that many of the social ills created by corporations stem directly from corporate law. Can you explain?

BOB HINKLEY: Sure. The corporate law everywhere dedicates the corporation to the pursuit of profit for shareholders. Nothing in that law balances this dedication to self-interest with obligations to the public interest. This lack of balance often results in corporations single-mindedly pursuing profit at the expense of the environment, human rights, the public health and safety, the welfare of our communities and the dignity of employees.

CW: How do we fix this problem?

BOB HINKLEY: The Code for Corporate Citizenship would change the very nature of the corporation by changing its legally mandated purpose. After its enactment, the corporate pursuit of profit would be restricted so that it not come “at the expense of the environment, human rights, the public safety, the welfare of the communities in which the corporation operates or the dignity of its employees.” Companies which violate this provision would subject themselves and their directors to suit by members of the public whose interest was damaged. For example, if the corporation damaged the environment, individuals or an environmental NGO would be able to sue both the corporation and its directors for the full extent of the damage caused.

CW: How are your efforts proceeding?

BOB HINKLEY: All corporate power comes from the people through state corporate law that allows corporations to be created and gives them a license to operate. My objective is to make Americans aware that they have the power to change the corporation in a way that puts damage to the public interest off limits in the pursuit of profit.

Groups are already forming in several states (Maine, Massachusetts, New Hampshire, Vermont, Minnesota and California) to get the Code on the legislative calendar and to make the Code a campaign issue for candidates for state legislatures and governor.

There are several other encouraging signs that the timing is right to change the corporate law to include the Code. The Enron scandal is increasing calls for corporate accountability and social responsibility. In addition, even before the Enron story broke, polls showed that the vast majority of people in this country would prefer corporations that balance the pursuit of profit with respect for employees, the environment and the community to corporations that simply pursue profit. In this regard, the Code will deliver to Americans what they want and repeal what they are dissatisfied with.

CW: What can citizens do at a grassroots level nationwide to help?

BOB HINKLEY: Individuals can start by communicating to their state legislators and governors that they want the corporate law in their state changed to include the Code for Corporate Citizenship. They can do this individually, through groups that are starting to form around this issue, or simply by voting for candidates that support the Code. If they can’t find a group in their state, they can get in touch with me (through Citizen Works, 202-265-6164 or info@citizenworks.org) and I will put them in touch with one or help them form their own.