Corporate Values. Do Companies Have the Same Rights as People?

A recent article on Reuters.com asks the question “What Role Should Religious Values Play in Business?”

The topic in question is whether companies can be forced to offer specific benefits to their employees that includes something that is objectionable to the owners. Specifically, under the new “Obamacare” law, companies (with 50+ employees) must provide healthcare benefits that include contraceptive insurance coverage. But there are a number of companies challenging this law on the basis of their corporate values.

Some see this as a petty issue about faith. I think the real question is this:
Do companies have the right to operate according to their corporate values?

Christian vs. Jewish Values?

Hobby Lobby and Chick-fil-A are closed on Sundays because their owners are Christian.

B&H Photo Video is closed on Friday afternoons and Saturdays because their owners are Orthodox Jews.

Most people don’t seem to have an issue with these decisions. But the issue goes much further than which days a company is open or closed.

As highlighted in USA Today, Hobby Lobby is being criticized for not selling anything related to the Jewish faith in Marlboro, NJ. Why is this so important in this particular city? Because roughly a quarter of the population is Jewish. Some residents are claiming it’s discrimination.

So, is this a legitimate concern or simply fair business practice? Who gets to choose what, where, and when a company can sell its products and services?

Corporate vs. Individual Rights

Lawyers refer to this dilemma as a question of corporate personhood whereby companies are treated like individuals in the eyes of the law. This issue was exacerbated  in 2010 when the Supreme Court ruled companies could spend whatever they wanted on political campaigns because of their First Amendment right to free speech. In essence, they ruled that a company is the same as an individual. After all, a company is a legal entity.

It’s interesting to compare this topic now to when I wrote about it over 18 months ago. I noted then that people are human beings, not human doings. But companies are measured by what they accomplish.

In America, people are free to choose where they live, where they work, and even where they shop. Similarly, most companies have been able to choose where they locate, what they sell, and even what benefits they offer their employees. This now might be in question.

It will be interesting to see what the Supreme Court decides on the specific issue of forced benefits under Obamacare. The decision could have far greater implications on a company’s right to operate according to their corporate values.

Thankfully, the Reuters’ article highlights the benefits of a free-market economy. Customers can vote with their wallets, and employees can vote with their feet. Hopefully the Supreme Court takes this fact into consideration.

What do you think of this issue?

Do you feel a company has the right to operate according to their corporate values?