I think a demand that businesses undertake some social responsibility is sensible, given the privileges corporations receive (like limited liability). I think many people overlook that corporations are granted real privileges beyond those granted to individual citizens.
But I'd point out that, if one makes social responsibility particularly onerous on individual businesses, "You want a workforce? ... pay up" may reach equilibrium not by people paying up but by fewer and fewer wanting a workforce. Then everyone is poorer.
At the end of the day, businesses are started and run by people. Pro-little-guy positions like "tough shit, pay up" are aggressive stances not just against abstract legal entities but also against often-well-meaning individuals who aspire to offer products and services. Even people strongly aligned with European social democratic values agree that the government can't do everything, so if you want locally produced products and services you have to ensure that the conditions are suitable for people to do that.
Yet, somehow I don't think we'd feel the same sort of emotional satisfaction from "You want jobs? Tough shit, stop voting for policies that make it hard to offer them."
"Pro-little-guy positions like "tough shit, pay up" are aggressive stances not just against abstract legal entities but also against often-well-meaning individuals who aspire to offer products and services." So nicely put. This was an important concern, why I decided to write this post from this perspective. "Business" is a person. I am a person. And if they treat me inhumanly, I die.
Yes, sorry that's indeed an important distinction but I don't think it changes the substance of my comment; the people who form corporations to do business receive privileges.
Also, it's not just the owners; employees acting as agents are typically protected by the corporate veil, so it's not just a fat-cat capitalist protection. This is important for, say, employees managing hazardous waste that may be spilled (through employee negligence) into public land. Or imagine who would be willing to be employed as an aircraft designer if their individual errors could lead to personal legal liability for crashes.
Also, it's not just the owners; employees acting as agents are typically protected by the corporate veil,
That's not true at all. The corporate veil exists solely to protect investors' investment in a corporate entity. It does not extend to any other persons. Employees can and have been held civilly and criminally liable for their negligence.
I'd be grateful for clarification here, as I am indeed not a lawyer.
My understanding of vicarious liability (http://en.wikipedia.org/wiki/Vicarious_liability) is that the corporation is liable for actions of the employee in the course of duties (as an "agent"). I thought that the individual was liable only in the case of negligence outside the scope of employee duties (so if you're a garbage truck driver and also happen to be a burglar, you are personally liable for on-the-side burglaries during your rounds but not necessarily for accidentally crashing into someone's car).
However, I am not an expert and would appreciate clarification.
Edit: I did a bit more research and it turns out I misused the term "corporate veil" which appears to be a term of art (http://en.wikipedia.org/wiki/Piercing_the_corporate_veil) specifically pertaining to shareholder liability and which does not pertain to vicarious employee liability.
Thanks rprasad for pointing out the error. Terminology aside, is the rest of my commentary on vicarious liability accurate?
But I'd point out that, if one makes social responsibility particularly onerous on individual businesses, "You want a workforce? ... pay up" may reach equilibrium not by people paying up but by fewer and fewer wanting a workforce. Then everyone is poorer.
At the end of the day, businesses are started and run by people. Pro-little-guy positions like "tough shit, pay up" are aggressive stances not just against abstract legal entities but also against often-well-meaning individuals who aspire to offer products and services. Even people strongly aligned with European social democratic values agree that the government can't do everything, so if you want locally produced products and services you have to ensure that the conditions are suitable for people to do that.
Yet, somehow I don't think we'd feel the same sort of emotional satisfaction from "You want jobs? Tough shit, stop voting for policies that make it hard to offer them."