Democratic vs. Corporate Governance

David Brodsky
 
1. In a recently published collection of essays by various hands,
entitled Campus Inc., Michael Parenti reminds his readers that
the private university is a chartered corporation, ruled "by a
self-appointed, self-perpetuating board of trustees composed
overwhelmingly of affluent and conservative businesspeople."  The
class composition of public university governing boards is
similar.  "At no time during their tenure as trustees," Parenti
continues, "are they troubled by anything that might be called
democracy."(1)

2. Corporate governance is now a universal feature of American
higher education.  It is capable of destroying educational
quality and standards; the existence of entire professional
disciplines; the faculty's responsibility to serve the best
interests of their profession, their students, and the public;
and academic freedom.

3. One of numerous examples of administrative indifference to the
idea of democracy is the recent decision by the University of
Missouri Board of Curators to adopt the principle of post-tenure
review.  The Board of Curators took its action despite the solid
opposition of the faculty at UM Columbia, who defeated the
proposal decisively in two separate votes.  Faculty at UMKC,
meanwhile, were denied the opportunity of voting, and thus
expressing their views, on this issue.  Ignoring public opinion
or suppressing it altogether has nothing in common with the
practice of democracy.

4. The issue of post-tenure review is neither technical nor
trivial.  It strikes at the very heart of higher education. 
Post-tenure review belongs to the arsenal of administrative
weapons intended to weaken and abolish tenure.  Tenure protects
faculty freedom of expression, which is both a necessity and an
obligation of their profession.  Faculty working conditions are
student learning conditions.  Abused and intimidated faculty
cannot be as effective as those treated like professionals. 
Without academic freedom faculty are prevented from fulfilling
their public mandate.  If faculty can't teach and research as
they see fit, according to the rigorous standards of their
profession and their mandate to educate the next generation,
students are cheated of the quality educational experience their
tuition, fees, and taxes pay for.

5. Academic freedom pertains to everyone in academia, not just
faculty.  In fact, it covers everyone in the US, since it derives
from First Amendment rights and was affirmed as such by the
Supreme Court in 1967.  In higher education academic freedom
includes such things as the teaching and exercise of critical
thinking; faculty control of and responsibility for the
curriculum, pedagogy, and the direction of research; free speech
and inquiry--in the classroom, in research, on the job, and as
citizen activists; job security, benefits, and working
conditions; and due process in decision-making.

6. Tenure, or job security, is the main guarantee of academic
freedom in education.  Job security and first amendment rights on
the job are essential components in democratic governance.  In
the past, American university and college decision-making was
based on the principles of collegiality and shared governance,
which assumed a community of interest among all the members of an
educational institution.  AAUP guidelines on shared governance
were issued in 1966 and adopted by the AAUP, American Council on
Education, and the Association of Governing Boards of
Universities and Colleges.  They recommend shared responsibility
and joint planning by students, faculty, administrators, and the
governing board. 

7. The operative principle of shared governance is delegation of
responsibility.  The university administration, according to AAUP
guidelines, should "concur with the faculty judgment" in all
"matters where the faculty has primary responsibility."  The
faculty has "primary responsibility" and "primary authority" for
decisions that bear directly or indirectly on "curriculum,
subject matter and methods of instruction, research, faculty
status, and those aspects of life which relate to the educational
process."(2)  Faculty likewise are entitled to participate
significantly in total institutional budgeting and allocation of
funds. 

8. A national conference last year co-sponsored by the AAUP and
the American Conference of Academic Deans reaffirmed the
principles of shared governance.  Participants committed
themselves to working out viable models of shared governance
based on academic, rather than corporate, values.  Speakers at
the final plenary session emphasized the unsuitability of a
corporate governance model to institutions of higher education. 
One speaker concluded: "'Applying corporate models to
universities undermines quality by substituting quantifiable,
business-driven measures for the judgments of faculty who have
the expertise to make sound decisions for higher education.'"(3)

9. The system of shared governance was relatively successful
because administrators used to come from the ranks of the faculty
and returned to those ranks when their terms of service were
over.  In addition, boards of trustees, upper administrators, and
even deans did not make a habit of micro-managing the everyday
affairs of the university.  Instead they typically followed
faculty advice, as AAUP guidelines recommended.

10. However, in the past several decades a new class or caste of
academic managers has emerged.  Seldom recruited from tenured
teaching faculty in the same institution, and rarely returning to
teaching and research, they are typically selected by outsourced
head-hunting agencies--at a very high price to the institution,
and therefore to taxpayers--from a pool consisting primarily of
career managers.  Once managers or manager candidates are chosen
independent of the involvement of the academic community, they
arbitrarily claim a mandate to make policy.  The faculty are then
expected to reliably carry out orders transmitted down the
corporate chain of command.

11. Academic CEOs receive astronomical compensation, often
supplemented by fat fees for serving on corporate boards.(4) 
Even mid-level academic managers, aside from inflated salaries
two to four times greater than the highest paid faculty,(5)
frequently derive personal financial benefits from outside
corporate contracts they negotiate and impose on their
institutions.

12. In academic institutions taken over by the nomadic managerial
hordes--particularly in public institutions with a legal mandate
to serve the people--collegiality and shared governance have
bitten the dust.  Administrators have adopted an extreme
adversarial position, tearing to shreds and throwing in the trash
any semblance of a social contract. 

13. The corporation is about as undemocratic a form of governance
as has ever been invented.  It resembles a dictatorship, whether
autocratic or oligarchical.  In a corporation there is no
democratic process--except perhaps for those at the highest
level.  On the job the majority of corporate employees are
excluded in practice from the right to vote on institutional
policy, free speech on the job, the rights to organize and
bargain collectively, a free press voicing their interests and
dissenting from dictated policy, and free assembly, due process,
and fair grievance procedures.  Token gestures--for example,
administratively controlled ad hoc planning committees with
selective input from a limited number of affected people--are
co-optation techniques meant to project democratic images without
changing autocratic substance. 

14. The broader context of the corporate agenda is its goal of
eliminating the public domain, which benefits the vast majority
of people, and to "privatize" (steal) public institutions,
property, assets, services and natural resources.  One way this
is done is by reducing or eliminating public funding, and thus
universal public access and democratic oversight.  Reduced public
funding forces educational institutions to take the bait of
corporate donations.  Once hooked, schools and universities
become tasty snacks at power lunches. 

15. The corporate takeover targets education for the majority of
the people.  As in the health care field, the goal is to
establish a two-tiered system, one for the rich and the other for
the rest.  Elite students will get a semblance of a decent
education, preparing them to occupy positions of power and
influence, and elite faculty will generally continue to be
treated like valued professionals.  The majority of students,
however, will get substandard vocational training for routinized
dead end jobs.  Their jobs will resemble those in the academic
sweatshop, which is staffed by a decisive majority of their
teachers, who are graduate students and contingent labor. 
Increasingly the academic sweatshop will swallow up probationary
faculty and even tenured faculty, who will be replaced with
contingent labor.  Distance learning, where institutions rather
than faculty own the curriculum, threatens to reduce full-time
faculty immediately to adjuncts doing overtime for low pay and no
benefits. 

16. The corporate takeover has both economic and political aims. 
The economic one is familiar, to increase short-term profit by
drastically reducing labor costs, and, in the case of virtual
education, by eliminating the campus with its entire physical
plant.  The political goal is monopolistic control of labor and
of public opinion.  The mega-corporations want to subjugate the
professions, like health care(6), journalism, or education, in
order to destroy professional independence and self-government,
the standards of performance and service which they have
developed over centuries, and the very reason for their
existence, which is to promote knowledge and skill serving the
general welfare.  Thus the professions are being proletarianized.

17. Like journalism, which has already been eviscerated by the
media oligopoly,(7) education is specially targeted in order to
assure corporate ideological control.  Corporations want
ideological dominion over the curriculum, methods of instruction,
research, fields of study and the directions in which they
develop, and even the campus environment, which they deface with
corporate logos, trademarks, and outsourced monopoly franchises
and concessions, many of which profit by sweatshop labor. 
Monopolistic management of public opinion, through the mass media
and educational institutions, is obligatory for corporations to
maintain their power and to deter challeges from democracy.

18. Democracy not only is about process but also concerns
outcomes.  Examples of democratic outcomes are equality, justice,
social solidarity, universal abundance, a strong and healthy
public domain, protection of the biosphere, universal human
rights--political, social, and economic--and fair access to and
distribution of products, services, and resources.  Universal
education is a democratic outcome guaranteed by the UN Universal
Declaration of Human Rights and subsequent conventions and
covenants.

19. Needless to say, corporate governance opposes democratic
outcomes.  The anti-democratic bias of corporations derives from
their structure, which assumes the shape of a pyramidal
hierarchy.  The privileging of those at the top directly depends
on the decreasing privileges and increasing abuse and
exploitation of those at lower ranks.

20. Democratic outcomes, by contrast, preclude the existence of
elites or concentrations of wealth and privilege.  In democratic
higher education distinctions in rank are professional ones,
based on knowledge and accomplishments.  All members of the
community have a voice and a vote on matters of interest to
them.  This is a basic democratic principle: decision-making
power resides in all individuals affected by a decision.  Since
my specialty is Slavic culture, I was pleased to find a slogan
from old Polish history (16th and 17th centuries) that expresses
this basic principle of democracy: "nothing about us without us
(nic o nas bez nas)."  In 16th century Poland it applied to at
most 8% of the population.  In today's conception of democracy,
it applies to everyone.

21. The fightback against the corporate takeover depends on
democratic organizing, which is happening nationwide. 
Outstanding examples of effective activism (two of many) are
provided by the California Faculty Association (CFA) and
California Part-Time Faculty Association (CPFA).  In 1999 the CFA
held a series of public hearings across the state to determine a
non-corporate future for public higher education.  In 1997 they
and other faculty, student, and community organizations organized
successfully with a six-week deadline to prevent the takeover of
the entire 23 campus California State University system by four
corporate giants: Microsoft, Fujitsu, GTE, and Hughes
Electronics.  The CPFA is organizing 30,000 part-time faculty
across the state, and earlier this year hosted the fourth
national Conference on Contingent Academic Labor, whose members
are beginning to win collective bargaining units for part-time
faculty.  Unionization of graduate teaching assistants continues
to grow.  Nationally, the AAUP and the Newspaper
Guild/Communication Workers of America have begun working
together to identify common threats to academic and press
freedom.  And the student movement which arose around the issue
of campus products made in third world sweatshops has expanded
its horizons to global corporatism.

22. If the anti-corporate movement sticks together, expands,
stands firm, and intervenes early and often, it has a good chance
to change the course of events.  Grass-roots democratic
organizing and activism is one of the best ways to learn, teach,
and develop the institutions of democratic education.
 

(1) Geoffry D. White and Flannery C. Hauck, eds.,  Campus, Inc.: Corporate Power in the Ivory Tower (Amherst, NY: Prometheus Books, 2000), pp. 85-6. 

(2) American Association of University Professors Policy Documents and Reports (Washington, D.C.: AAUP, 1995), pp. 179-185. 

(3) "Governance Conference Brings Together Faculty and Administrators" ASC Statelines 7.4. (Winter 2000). 

(4) Kevin Kniffin.  "University-Industry Study: A Work in Progress," Multinational Monitor online: www.essential.org/monitor/hyper/mm1197.db.html

(5) For example, public records in the states of Missouri and Kansas show that the Dean of the College of Arts and Sciences at UMKC had a salary of about $160,000 in 1999.  The salary of the Dean of the University of Kansas Medical School in 2000 was $270,000 

(6) A good recent study is: David Himmelstein, Steffie Woolhandler, and Ida Hellander, Bleeding the Patient: the Consequences of Corporate Health Care (Monroe, ME: Common Courage P, 2001). 

(7) See, for example, Robert W. McChesney. Rich Media, Poor Democracy: Communications Politics in Dubious Times (New York: New Press, 2000).
 

David Brodsky (brodskyd@earthlink.net) is an independent scholar
and a member of the AAUP chapter at UMKC.  This article is an
expanded version of a paper presented at the November 2000
organizing meeting for the "Education for Democracy" conference. 


 
 
 

 


 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

 


 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

 


 
 
 
 
 
 
 
 
 

 


 
 

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