What is "Corporate Personhood" and Why Does it Matter?

“Corporate Personhood” is a legal concept, also known as a “legal fiction” that, as a matter of interpretation of the word “person” in the 14th Amendment, has legally guaranteed certain, increasing constitutional protections for corporations since 1886.

The misguided argument behind corporate personhood is that, since corporations are organizations of people, people should not be deprived of their constitutional rights when they act collectively.

Under this legal rhetoric, in 1886 corporations were granted the ability to sue and be sued in court in the same manner that natural persons or unincorporated associations of persons can. Since then, over 125 years of oppressive, misguided case law has solidified the fabrication of corporate personhood and laid the path for the extension of corporate power over humans.

Over the past three decades, the fabrication of corporate rights have allowed corporations increased opportunity to legally strike down democratically-enacted laws in environmental, health care, consumer rights and civil rights sectors – specifically through the development of a set of legal rights under state and federal statues that have granted corporations protections under the First Amendment.  Before 1976, “commercial speech” was not protected under the First Amendment. Since then, commercial speech has gained a stranglehold on our nation's electoral processes.

On January 21, 2010, the U.S. Supreme Court ruled in Citizens United v. Federal Election Commission by a 5-4 decision, that restrictions on corporate expenditures in elections contained in the federal Bipartisan Campaign Reform Act (known as BCRA or “McCain-Feingold”) violated the First Amendment protections of free speech .

This Supreme Court ruling gave corporations the right to spend unlimited funds in U.S. elections because their corporate personhood granted them the First Amendment protection of freedom of speech. This represents the largest expansion of corporate personhood to date.

The issue of corporate free speech and corporate personhood therefore became more prominent than ever before in human history during the 2012 U.S. election cycle, due to the unprecedented amounts of money corporations were allowed to spend on campaigns, candidates and committees. In response, last November over 100 communities across the nation passed ballot initiatives to amend the U.S. Constitution and reverse the Supreme Court's 2011 Citizens United decision.

The Legal History of Corporate Personhood:

1886 - Santa Clara County v. Southern Pacific Railroad

Though the court did not make a ruling on the question of “corporate personhood” (whether 14th Amendment covered corporations), the decision subsequently was cited as precedent to hold that a private corporation was a "natural person." Justices have since struck down hundreds of local, state and federal laws enacted to protect people from corporate harm based on this illegitimate premise.

1905 - Lochner v. New York

“Lochner” became shorthand for using the Constitution to invalidate government regulation of the corporation. It embodies the doctrine of “substantive due process.” From 1905 until the mid 1930s the Court invalidated approximately 200 economic regulations, usually under the due process clause of the 14th Amendment.

1908 - Armour Packing Co. v. U.S.

Corporations get 6th Amendment right to jury trial in a criminal case. A corporate defendant was considered an “accused” for 6th Amendment purposes.

1936 - Grosjean v. American Press Co.

A newspaper corporation has a 1st Amendment liberty right to freedom of speech that would be applied to the states through the 14th Amendment. The Court ruled that the corporation was free to sell advertising in newspapers without being taxed. This is the first 1st Amendment protection for corporations.

1976 - Buckley v. Valeo

The Supreme Court rules that political money is equivalent to speech. This ruling expanded the First Amendment’s protections to include financial contributions to candidates or parties.

The Team