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The History and Future
of the American
Corporation




Jeff Mendelsohn
New Leaf Paper
In
a
three‐hour
period,
the
Bostonians
turned

approximately
120,000
pounds
of
dry
tea
into
“harbor
tea.”

So
much
was
dum...
You
can
read
the
Constitution


     from
front
to
back,
including


      all
the
amendments
added


to
the
document
to
t...
The
DNA
of
corporate
code

      Influences
behavior.


   Corporations
are
the
most


    powerful
force
on
earth.


Let’...
Ancient Forests and the Paper Industry
•  80% of the world’s large tracts
   of ancient forests have already
   been logge...
Our mission is to inspire
                                  ~ through our success ~
a fundamental shift toward sustainabil...
We
have
a
saying
at
New
Leaf


    “There
are
no
bad
people,


  there
are
only
bad
situations.”



The
current
DNA
of
the...
Who
came
up
with
our
corporate
code?




    How
has
it
evolved
over
time?

The
corporate
form,
characterized
by
a

 charter
and
joint‐stock
ownership,
was

  not
the
typical
way
businesses
were

  ...
•  At
the
time
of
the
Constitutional
Convention
in

   1787,
only
six
business
corporations
other
than

   banks
existed
i...
•  Their
vision
was
to
subordinate
corporations
to

   democratic
oversight,
then
make
use
of
this
tamed

   institution
a...
•  James
Madison
twice
proposed
putting
the
federal

   government
in
charge
of
corporations
“in
cases

   where
the
publi...
•  At
the
time
of
the
Constitutional
Convention
in

   1787,
only
six
business
corporations
other
than

   banks
existed
i...
1809.
Virginia
Supreme
Court



  Stated
that
a
charter
should
not
be


       granted
if
the
applicant’s



  “object
is
...
Anti‐corporate
sentiment
should
not
be

 confused
with
anti‐business
sentiment.



       In
the
public
mind,
the
use


 o...
QUASI-RIGHT            AVAILABLE    AVAILABLE TO                       WHEN?
                       TO PEOPLE?   CORPORATI...
The
DNA
of
corporate
code

      influences
behavior.


   Corporations
are
the
most


    powerful
force
on
earth.


Let’...
History of the American Corporation. Now Let's Harness this for Good - Jeff Mendelsohn
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History of the American Corporation. Now Let's Harness this for Good - Jeff Mendelsohn

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Jeff Mendelsohn of New Leaf Paper discusses the historical purpose and rights of the first American corporations, how businesses were intended to serve the public good, and thus builds the foundation for why corporations can be a force for good.

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History of the American Corporation. Now Let's Harness this for Good - Jeff Mendelsohn

  1. 1. The History and Future of the American Corporation Jeff Mendelsohn New Leaf Paper
  2. 2. In
a
three‐hour
period,
the
Bostonians
turned
 approximately
120,000
pounds
of
dry
tea
into
“harbor
tea.”
 So
much
was
dumped
that
the
tea
piled
up
in
the
shallow
 water
and
threatened
to
spill
back
onto
the
decks.


  3. 3. You
can
read
the
Constitution

 from
front
to
back,
including

 all
the
amendments
added

 to
the
document
to
the
present
day,

 and
not
see
a
single
instance

 of
the
word
“corporation.”

  4. 4. The
DNA
of
corporate
code
 Influences
behavior.
 Corporations
are
the
most

 powerful
force
on
earth.
 Let’s
harness
this
power
for
good.

  5. 5. Ancient Forests and the Paper Industry •  80% of the world’s large tracts of ancient forests have already been logged. •  76 countries have lost all of their original forest cover •  1/3 of all trees logged are used for paper production •  Global paper consumption is expected to double in the next 15 years SOURCE: www.marketsinitiative.org
  6. 6. Our mission is to inspire ~ through our success ~ a fundamental shift toward sustainability in the paper industry. © 2008 New Leaf Paper. All rights reserved. New Leaf Paper www.newleafpaper.com 888-989-5323
  7. 7. We
have
a
saying
at
New
Leaf

 “There
are
no
bad
people,

 there
are
only
bad
situations.”

 The
current
DNA
of
the
corporation

 is
a
bad
situation.

 Sustainable
brands?

 All
brands
should
be
sustainable.

  8. 8. Who
came
up
with
our
corporate
code?


 How
has
it
evolved
over
time?

  9. 9. The
corporate
form,
characterized
by
a
 charter
and
joint‐stock
ownership,
was
 not
the
typical
way
businesses
were
 organized
in
the
colonies.

 Most
businesses
were
owned
by
families

 or
partnerships.
They
had
no
corporate
 charters,
nor
did
they
need
them.

  10. 10. •  At
the
time
of
the
Constitutional
Convention
in
 1787,
only
six
business
corporations
other
than
 banks
existed
in
the
United
States:
 –  one
for
organizing
a
fishery
in
New
York
 –  one
for
conducting
trade
in
Pennsylvania
 –  one
for
conducting
trade
in
Connecticut
 –  one
for
operating
a
wharf
in
Connecticut
 –  one
for
providing
fire
insurance
in
Pennsylvania
 –  one
for
operating
a
pier
in
Boston

  11. 11. •  Their
vision
was
to
subordinate
corporations
to
 democratic
oversight,
then
make
use
of
this
tamed
 institution
as
a
tool
for
meeting
the
pent‐up
need
 for
infrastructure
such
as
roads
and
bridges.

 •  Such
a
notion
of
“good”
corporations
derived
 directly
from
the
experience
of
Washington
and
 Franklin,
among
others.

  12. 12. •  James
Madison
twice
proposed
putting
the
federal
 government
in
charge
of
corporations
“in
cases
 where
the
public
good
may
require
them
and
the
 authority
of
a
single
state
may
be
incompetent.”

  13. 13. •  At
the
time
of
the
Constitutional
Convention
in
 1787,
only
six
business
corporations
other
than
 banks
existed
in
the
United
States:
 –  one
for
organizing
a
fishery
in
New
York
 –  one
for
conducting
trade
in
Pennsylvania
 –  one
for
conducting
trade
in
Connecticut
 –  one
for
operating
a
wharf
in
Connecticut
 –  one
for
providing
fire
insurance
in
Pennsylvania
 –  one
for
operating
a
pier
in
Boston

  14. 14. 1809.
Virginia
Supreme
Court

 Stated
that
a
charter
should
not
be

 granted
if
the
applicant’s

 “object
is
merely
private
or
selfish;

 if
it
is
detrimental
to,

 or
not
promotive
of,
the
public
good….”

  15. 15. Anti‐corporate
sentiment
should
not
be
 confused
with
anti‐business
sentiment.

 In
the
public
mind,
the
use

 of
the
corporate
form
was
associated

 with
monopoly
privileges

 of
one
sort
of
another.

  16. 16. QUASI-RIGHT AVAILABLE AVAILABLE TO WHEN? TO PEOPLE? CORPORATIONS? Limited liability No Gradual statutory revision 1820- for shareholders by states 1900 Perpetual existence No Switch by states from late custom charters to general 1800s incorporation Virtual location No New Jersey general incorporation 1889 law Indefinite entity or No New Jersey general incorporation 1889 “shape shifting” law Protection from No Judicial revision of 1850- lawsuits common law tort; statutory present immunities for particular industries
  17. 17. The
DNA
of
corporate
code
 influences
behavior.
 Corporations
are
the
most

 powerful
force
on
earth.
 Let’s
harness
this
power
for
good.


×