From the AEGIS e-Journal, Volume 11 Number 2, February 2008
Corpocracy: How CEOs and the Business Roundtable Hijacked the World’s Greatest Wealth Machine — And How to Get It Back Robert A. G. Monks Publisher ISBN: 978-0-470-14509-8 272 pages $29.95 http://www.wiley.com/WileyCDA/WileyTitle/productCd-0470145099.html Corpocracy: Government by corporation. That form of government in which the sovereign power resides in corporations, and is exercised either directly by them, or by elected and appointed officials acting on their behalf. Corpocracy is a hard-hitting work, and at the beginning we expected that the book was going to be an anti-modern corporation treatise. In fact, it is anything but. Rather, it is a champion of the ownership of the companies, but NOT of the insular imperial management. Corprocracy is a well-written book, and a knowledgeable and incisive view into the modern imperial corporation. Monks had us hooked in the preface. The imperial corporations are accused of being aloof, which they are. And of not being good corporate citizens, which they aren’t. ÆGIS, February 2008 10 Rarely are they challenged by competition: If they are challenged, they go to the government to legislate against the competition, either by over- regulation or through requiring new expensive procedures that large companies can afford and small companies cannot. They buy their way out of having to compete by fixing the race. They have no need to be good citizens because we, the people and our government, have become their vassals. Further, since many multinationals have vastly larger resources than many countries, they can change flags of state when they choose. And since the management of these companies is responsible to no one but themselves – not government, not shareholders, not the public, not anyone – they are unconstrained in their actions. The author strikes a strong warning note regarding the outcome of this lack of corporate governance and responsibility. Because Corpocracy is in tune with our thoughts on the seriousness of the issue, we have added it to our list of must-read books. Past must-read books are, in alphabetical order: • All You Need Is Love, and Other Lies about Marriage by John W. Jacobs, M.D (http://www.lubrinco.com/ejournal/ej200504.pdf) • Better by Atul Gawande, M.D. (http://www.lubrinco.com/ejournal/ej200708.pdf) • Beyond Fear by Bruce Schneier (http://www.lubrinco.com/ejournal/ej200309.pdf) • The End of America, by Naomi Wolf (http://www.lubrinco.com/ejournal/ej2000711.pdf) • Inside the Tornado by Geoffrey A. Moore (http://www.lubrinco.com/ejournal/ej200211.pdf) • Rediscover Your Native Fitness (PACE), by Al Sears, M.D. (http://www.lubrinco.com/ejournal/ej2000711.pdf) • Reinventing the CFO by Jeremy Hope (http://www.lubrinco.com/ejournal/ej200708.pdf) • Taking Sex Differences Seriously by Steven E. Rhoads (http://www.lubrinco.com/ejournal/ej200411.pdf) • What Clients Love by Harry Beckwith (http://www.lubrinco.com/ejournal/ej200508.pdf) • With Winning in Mind by Lanny Bassham (http://www.lubrinco.com/ejournal/ej200509.pdf) ÆGIS, February 2008 11 7. Subscription/Unsubscription/Copyright Information •• ÆGIS is supported and maintained by voluntary efforts. This publication is owned, published, and copyright © 2008 by The LUBRINCO Group Ltd, Inc. and Financial Examinations and Evaluations, Inc. It is edited jointly by Richard Isaacs (RBIsaacs@lubrinco.com), L. Burke Files (LBFiles@feeinc.com), and Terry Philips (TPhillips@aegisjournal.com). LUBRINCO provides services in three high-threat areas, too specialized to be dealt-with in-house, that can adversely affect domestic and international bottom lines. • Identification, valuation, and protection of intellectual assets and critical information. • American businesses lose $300 billion in revenues annually to competitive intelligence, economic espionage, inappropriate disclosure, and information theft. • LUBRINCO provides private sector consulting access to OPSEC, the government-standard process for identification, valuation, and protection of intellectual property and critical information. • Implementing an OPSEC program is likely to increase revenues for an at-risk operating group by $75 million. • International asset location and due diligence. o Location of concealed assets in fraud, theft, and divorce. o Due diligence to prevent fraud and loss in China, Central and Eastern Europe, Central Asia, the offshore financial centers, Latin America, and the Caribbean. o Financial fraud, anti-money laundering, and anti-corruption program development and training. • Protection of management, staff, and families. o In the high-threat environments of Latin America, Africa, the Mid- East, and Southeast Asia. o When traveling and living overseas. o When transporting items of substantial value. LUBRINCO identifies and quantifies threats and vulnerabilities, and their associated risk, then manages the vulnerabilities so you can transfer or live with the residual risk. We prevent disastrous financial loss to your company, and physical harm to you, your family, and your staff. ÆGIS, February 2008 12 For information on LUBRINCO and its services, or for the archive of all past issues of ÆGIS in PDF format, please go to http://www.aegisjournal.com/. Subscription to ÆGIS is available for $15 per year in North America and $20 per year outside of North America. To sign up for a complimentary subscription to ÆGIS or the ÆGIS PDF notification list, send an email to subscribe@aegisjournal.com. To subscribe to our AvantGo channel, go to http://avantgo.com/channels/_add_channel.pl?cha_id=1773 To be removed from the subscription list, send an e-mail to unsubscribe@aegisjournal.com. 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Article Title, from the February 2008 ÆGIS (© 2008 LUBRINCO and FE&E), to be found at http://www.aegisjournal.com/. ÆGIS is a forum for the exchange of information, ideas, operating styles, theories, and related topics for corporate managers who make decisions about threats typically outside the expertise available in-house, yet which have the potential to affect their company’s domestic and international ÆGIS, February 2008 13 bottom lines. Nothing appearing in ÆGIS should be construed as legal advice. The information provided is “general information,” not “specific advice.” The solution to any problem is highly dependent upon the precise facts involved. Thus, before making any reliance upon anything said here, you should consult with an appropriately skilled professional. Opinions expressed by contributors are not necessarily endorsed by the publisher, and may be presented to encourage a dialogue among subscribers. The publisher and any re-publisher cannot be held responsible for any loss incurred as a result of the application of any information published in ÆGIS. Please be safe, and be smart.