Are big companies above the law?
Monday, 10 December 2007
Tanvir Nowaz
THE current policy of letting big companies and businesses off the hook of corruption in exchange for getting testimonies is not only disingenuous considering the ongoing campaign against corruption but also counter productive in establishing the rule of law.
It just sends the wrong message to society. No matter how corrupt or unfair a business is, it can be assured of the unimpeachable status if it can lobby or influence the right people. This makes a mockery of the mantra "no body is above the law."
If a politician or a government official can be guilty of taking bribe, why can't a big business be guilty of giving bribe in the same case? These big businesses, by throwing huge sums of money at the politicians/officials for illegal favours, not only break the system and spread corruption in an epidemic form but also cause economic havoc by forming syndicates of the few who do all sorts of price fixing, supply controlling, tender manipulating etc.
At first, we're very hopeful about the prospect of justice being seen served to the so called big Kahunas when the list of last 200 corrupts surfaced. But the powerful, invisible hands of big business have again made us look like fool to expect the unexpected.
The government's excuse was prosecuting them would bring negative effects in the economy. We disagree with this logic. First of all, the current special political and social epoch appears to be the only opportunity we might have in our lifetime to take on these big powers in society and set some example before the rest of the community so that everyone may behave within the bounds of law.
Secondly, when companies behave within laws a level playing field is created. As companies compete in the economy according to their merit, rather than using illegal influence, new companies will enter the market easily, since the main impediment to their entry is then reduced. More companies mean no more syndicates which in effect guarantee lower prices and higher qualities.
We hope that this government would realise that bringing the corrupt companies to the justice will not only ensure better economic condition for our country but will also provide the necessary condition for the rule of law to operate in the greater interest of the people and the businesses. Even if there have been some negative short-term effects of the crackdown, it is much better for it to be a bit harsh for the sake of greater welfare of society in the longer term.
(The writer writes from Boston, MA, USA)
THE current policy of letting big companies and businesses off the hook of corruption in exchange for getting testimonies is not only disingenuous considering the ongoing campaign against corruption but also counter productive in establishing the rule of law.
It just sends the wrong message to society. No matter how corrupt or unfair a business is, it can be assured of the unimpeachable status if it can lobby or influence the right people. This makes a mockery of the mantra "no body is above the law."
If a politician or a government official can be guilty of taking bribe, why can't a big business be guilty of giving bribe in the same case? These big businesses, by throwing huge sums of money at the politicians/officials for illegal favours, not only break the system and spread corruption in an epidemic form but also cause economic havoc by forming syndicates of the few who do all sorts of price fixing, supply controlling, tender manipulating etc.
At first, we're very hopeful about the prospect of justice being seen served to the so called big Kahunas when the list of last 200 corrupts surfaced. But the powerful, invisible hands of big business have again made us look like fool to expect the unexpected.
The government's excuse was prosecuting them would bring negative effects in the economy. We disagree with this logic. First of all, the current special political and social epoch appears to be the only opportunity we might have in our lifetime to take on these big powers in society and set some example before the rest of the community so that everyone may behave within the bounds of law.
Secondly, when companies behave within laws a level playing field is created. As companies compete in the economy according to their merit, rather than using illegal influence, new companies will enter the market easily, since the main impediment to their entry is then reduced. More companies mean no more syndicates which in effect guarantee lower prices and higher qualities.
We hope that this government would realise that bringing the corrupt companies to the justice will not only ensure better economic condition for our country but will also provide the necessary condition for the rule of law to operate in the greater interest of the people and the businesses. Even if there have been some negative short-term effects of the crackdown, it is much better for it to be a bit harsh for the sake of greater welfare of society in the longer term.
(The writer writes from Boston, MA, USA)