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Put simply, a Net State is a primarily web based organization with near limitless funding, political authority and frequent interactions with billions of people.
Net States exist in a plane above normal multinational companies. They rival even large governments and dwarf small governments in nearly every respect. As such it is reasonable for society to consider:
Facebook is the closest the world has yet seen to a Net State. Facebook has a fast growing user base of more than 2 billion active users, enormous wealth and (ignorantly?) have notable influence on elections. As Apple’s hardware business falters and they continue to push into services, they may yet evolve into a Net State. Google’s current drive in the physical world (think cell phones, autonomous cars and NEST products) may take focus off of their staggering control of the internet, but they are a sophisticated machine that can easily grow to Net State status.
It is also true that corporate lobbying resulted from growing corporate power has a ‘bad rap’ but it has produced many positive outcomes for society. When companies lobby they are trying to expose issues that they see an impediments to growth. Naturally, both political and corporate corruption have also been a byproduct of this corporate strength. As a result, governments and self regulating bodies (i.e. the Society For Business Ethics, IEEE, and even American Medical Association) have created regulations to set limits.
To date, very large web based organizations have operated by trial and error rather than by following a set of guiding principles. In fairness, this is often how business works. You do something innovative; it goes bad; you apologize; you (or a regulatory body) make changes to ensure it won’t happen again; you move on.
Net States are first and foremost corporations and corporations are necessarily psychopathic. This word is not use to inflame the debate . It is simply used to explain that companies have a legal requirement to maximize shareholder value at any cost within the legal framework in which the operate. That means if a chemical company has the legal choice to dump toxic waist or treat it and they see no financial benefit to treating it (i.e. consumer good will, staff retention, future clean up costs…) they are REQUIRED to dump it.
In the late 1990’s a new website named Toys.com had a privacy policy they took very seriously but when the company began to fail one of the first things that sold off was their client list because there was (and is) no legislation in place to prevent it.
What does this ‘me first’ corporate logic do to a Net States interactions? Keep in mind that a Net State’s interaction is often with you. They know your medical information, your future travel plans, when you house is empty, your inheritance, your children’s photos, your banking information…
All is good, until it isn’t. This means that societies around the globe need to consider many questions before Net States become uncontrollable:
There is some existing guidance in the corporate world that we can look to for curbing the financial only interests of a Net State. The names vary by jurisdiction but a Benefit Corporation, a Social Purpose Corporation or a B Corporation provide structures that require organizations to make money but not at the expense of society. Even if these types of corporate structures were created in a multinational legal framework, they will surely not keep us safe from failures and malicious intent, but they will provide some guiding principles that C-Level management and Boards would need to follow.
While Net States can do enormous good (connecting people, crowd sourcing solutions to intransigent problems, …) they can also damage the global economy and billions of lives. I do not think we are ‘there yet’, but more than one true Net State are coming soon and we should be thinking about the implications now.
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