Jonah Patel
The question of whether corporations are protected by the Constitution has been a topic of legal debate for over a century. While the word 'corporation' does not appear in the Constitution, corporations have been able to invoke constitutional 'rights' and protections under the Commerce Clause and Contracts Clause, as well as under the First, Fourth, Fifth, Sixth, and Fourteenth Amendments. This has led to a legal concept known as 'corporate personhood', which refers to the ongoing debate over the extent to which rights traditionally associated with natural persons should also be afforded to juridical persons, including corporations.
| Characteristics | Values |
|---|---|
| Corporations are protected by the US Constitution | True |
| Corporations are mentioned in the US Constitution | False |
| Corporations have the right to sue and be sued | True |
| Corporations have the right to own property | True |
| Corporations have the right to enter into contracts | True |
| Corporations have the right to freedom of speech | True |
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What You'll Learn
The 14th Amendment
While the word 'corporation' is not mentioned in the US Constitution, corporations have gained rights and protections under it since the early 1800s. This includes the ability to invoke constitutional 'rights' and protections under the Commerce Clause and Contracts Clause, as well as under the First, Fourth, Fifth, Sixth, and Fourteenth Amendments.
The Fourteenth Amendment, originally adopted after the Civil War to protect the rights of formerly enslaved people, has been central to expanding the protection of civil rights for all Americans. It has been cited in more litigation than any other amendment to the US Constitution, including in famous Supreme Court decisions on school desegregation (*Brown v. Board of Education*), abortion (*Roe v. Wade*), and same-sex marriage (*Obergefell v. Hodges*).
The Fourteenth Amendment's Equal Protection Clause has also played a crucial role in major Supreme Court rulings involving interracial marriage (*Loving v. Virginia*), affirmative action (*Regents of the University of California v. Bakke*), and same-sex marriage (*Obergefell v. Hodges*).
The concept of 'corporate personhood' refers to the ongoing legal debate over the extent to which rights traditionally associated with natural persons should also be afforded to juridical persons, including corporations. While corporations are not able to claim constitutional protections that would not otherwise be available to persons acting as a group, the Supreme Court has interpreted the Fourteenth Amendment's Equal Protection Clause as granting constitutional protections to corporations. This interpretation has allowed corporations to claim some of the essential rights of the Fourteenth Amendment, including the rights to own property, enter into contracts, and to sue and be sued just like individuals.
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The Commerce Clause
Since the early 1800s, corporations have gained rights and protections under the United States Constitution. While the word "corporation" never appears in the Constitution, corporations are able to invoke constitutional "rights" and protections under the Commerce Clause.
One of the key cases that established the Commerce Clause as a source of protection for corporations was the Dartmouth case in 1819. In this case, the Supreme Court ruled that "private" business corporations were protected by the Contract Clause of the Constitution from government interference in their internal governance. This ruling set a precedent for corporations to invoke the Commerce Clause to challenge state and local laws that might interfere with their business operations.
Over time, the Commerce Clause has been used by corporations to challenge a variety of state and local laws, including those related to labour standards, environmental regulations, and consumer protection. For example, in the 1995 case of United States v. Lopez, the Supreme Court struck down a federal law that prohibited the possession of a gun within a certain distance of a school, finding that it exceeded Congress's power under the Commerce Clause. This case demonstrated the potential for corporations to use the Commerce Clause to limit the reach of federal regulations.
While the Commerce Clause has provided corporations with significant protections, it is important to note that it is not without its limitations. The Supreme Court has recognised that Congress's power under the Commerce Clause is not unlimited and has struck down federal laws that it deems to exceed this power. Additionally, the Court has clarified that the Commerce Clause does not give corporations the same rights as individuals, such as the right against self-incrimination under the Fifth Amendment.
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The Contracts Clause
The Fourteenth Amendment, originally adopted after the Civil War to protect the rights of formerly enslaved people, has been central to the expansion of corporate rights. The Equal Protection Clause of the Fourteenth Amendment has been interpreted by the Supreme Court to grant constitutional protections to corporations as well as natural persons. This interpretation was first reported in the 1886 Supreme Court case Santa Clara County v. Southern Pacific Railroad Co., although the Court did not actually make a decision or issue a written opinion on the point.
The expansion of corporate rights under the Fourteenth Amendment has been controversial, with corporations seeking and gaining many of the same rights guaranteed to individuals, including the rights to own property, enter into contracts, sue and be sued. However, it is important to note that corporations are generally not able to claim constitutional protections that would not otherwise be available to persons acting as a group. For example, the Supreme Court has not recognised a Fifth Amendment right against self-incrimination for a corporation, as this right can only be exercised on an individual basis.
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The First Amendment
The Supreme Court has also ruled that corporations have religious freedom protections under the First Amendment. In the 2014 case *Burwell v. Hobby Lobby*, the Court held that closely held corporations could be exempt from providing certain types of contraceptive coverage to their employees if it violated the religious beliefs of the corporation's owners.
While the First Amendment provides important protections for individuals, its application to corporations has been controversial. Some argue that corporate personhood gives corporations too much power and allows them to infringe on the rights of individuals. Others argue that corporations should have the same rights as individuals, including the right to free speech and religious freedom.
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The Fifth Amendment
The word 'corporation' is not mentioned in the US Constitution, but since the early 1800s, corporations have gained rights and protections under the Constitution. The Supreme Court's ruling in the Dartmouth case in 1819 gave 'private' business corporations constitutional protection from government interference in internal governance, under the Contract Clause of the Constitution.
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Frequently asked questions
Yes, corporations have gained rights and protections under the United States Constitution since the early 1800s.
The word 'corporation' is not mentioned in the Constitution. However, corporations are able to invoke constitutional 'rights' and protections under the Commerce Clause and Contracts Clause, as well as under the First, Fourth, Fifth, Sixth, and Fourteenth Amendments.
Corporations use these 'rights' to challenge state and local activism, and to chill efforts to fight corporate extraction, corporate landlords or corporate employers.
The legal concept is known as 'corporate personhood', which refers to the ongoing legal debate over the extent to which rights traditionally associated with natural persons should also be afforded to juridical persons, including corporations.
