Killing
In The Name Of Capital Gain Is Not A Capital Crime
By Jeff Milchen And Jonathan Power, Pacific News Service,
June 11, 2001
Timothy
McVeigh has been executed for killing 168 people -- a number
that seems to set some sort of unhappy record for human villainy.
But the executives of Ford and Firestone continued to sell
products they knew could kill, and did kill 185 people, though
they have not been tried or even charged.
In
terms of the number of American citizens knowingly killed
over the past five years, executives at the Ford and Firestone
Corporations recently surpassed Timothy McVeigh. Unlike McVeigh,
these executives have not been punished for their actions.
Indeed, neither corporation nor any of their culpable officers
have been charged with any crime to date.
The
National Highway Traffic Safety Administration (NHTSA) has
recorded 185 deaths (McVeigh killed 168) and more than 700
injuries, amid the thousands of complaints involving rollover-prone
Ford Explorers that crashed following sudden tread separation
on factory-installed Firestone tires. This same deadly combination
also was implicated in at least 48 deaths in Venezuela and
the Middle East.
Last
August, the tire manufacturer Bridgestone/Firestone Inc. announced
a voluntary recall of 6.5 million tires, most of them original
equipment on the Explorer. But at that time, Firestone had
been replacing defective tires in 16 other countries for up
to a year, while concealing the danger from U.S. citizens.
Officials
at both Ford and Firestone received complaints as early as
1997 and knew of at least 35 deaths and 130 injuries before
the federal government launched a probe early last year. How
do we know? They were defending lawsuits from scores of survivors
and the families of dead victims.
It
is clear that executives at Ford and Firestone willfully and
knowingly kept unsafe products on the market after they knew
people would be killed -- more, ultimately than McVeigh killed
with his bomb.
The
two cases provide graphic illustration of a dual standard
for accountability and justice in our society.
Nearly
every candidate for public office talks tough on street, but
all ignore the fact that as a society corporate crime costs
us more than street crime in both dollars and lives lost.
Corporate managers, such as those from Ford and Firestone,
can literally kill with impunity.
In
making a cost-benefit analysis, Ford and Firestone include
as one potential expense the potential cost of civil lawsuits
or fines for criminal convictions (such fines are tax-deductible
as a cost of doing business) against the cost of recalls or
other safety measures. Their job simply is to choose the most
lucrative option.
This
is clear in a 1973 memo Ford executives wrote about the Ford
Pinto gas tank problem. Then-president Lee Iacocca and other
Ford executives estimated that human life was worth $200,000
-- a number created by the NHTSA at the auto industry's urging
-- and calculated the company would have to pay on average
$67,000 for each incident involving severe burns.
Next
they calculated the cost of recalling the Pintos and fixing
the fuel tank against an estimated 180 deaths (actually, more
than 500 were killed). The company's net return would be better
if did not spend the $11 per auto (Ford's estimate) needed
to make them safer.
There
are ways to prevent corporations from killing people. First,
we must remove the shield the makes corporate officers not
liable for crimes committed on company time. Officials, like
Ford CEO Jacques Nasser, Masatoshi Ono (who has since resigned
as Firestone Inc.'s CEO) and their respective boards must
be held accountable for fatalities, injuries, and illnesses
caused by their actions.
But
it would be foolish to think that serious corporate crime
can be blamed on a few bad actors. Rather, we must change
a system that permits cost/benefit analyses to take precedence
over human health and life.
We
can learn a great deal from our country's founders on this
matter. They regularly exercised a corporate "death penalty"
by revoking the charters of corporations whose products or
actions harmed society, and refused to let individuals use
the corporate form to hide personal accountability.
By
their very nature, terrorist acts like the Oklahoma City bombing
are often unpredictable and difficult to prevent. But the
criminal actions in corporate boardrooms that kill many more
Americans are neither. A smart cost-benefit analysis would
direct us to focus more attention on these larger, preventable
threats.
Let's
protect ourselves by reinstating appropriate punishments for
criminal corporations and those who run them.
PNS
Commentator Jeff Milchen is founder of ReclaimDemocracy.org,
Jonathan Power is a volunteer with the organization.
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