Verified Document

Capitalism And The Corporation: The Contemporary Business Case Study

Capitalism and the Corporation: The contemporary business corporation is an initial creation of the United States imagination that was originally designed to expand local markets. The initial design soon became an essential means to develop a national market. As a result, the American industrialization and capitalism were critically dependent on the corporate form of organization. However, the corporation was not an intangible original initiative since it spread in reaction to tangible economic challenges. Moreover, the corporation had first to become a legal technique before it developed into anything else. Therefore, corporate law is not a division of higher mathematics whose cogency needs a series of more elementary operations since external forces like economic pressures helped to create the corporation. The problem under investigation is the history of the corporation in light of its origin and development. The other issues examined in the article include the different definitions of stakeholder, differences in management philosophies, and views of stakeholders.

Existence of Corporations:

According to capitalism, a corporation is described as a group of people organized in a particular legitimate form similar to the way a society is primarily a combination of individuals organized in a specific form ("Corporation," n.d.). Furthermore, capitalism denotes that corporations are products of a particular contractual legal framework offered by the government and dependent on the principle of rights of individuals. Therefore, the existence of corporations is dependent on individual rights and governments to safeguard these individual rights.

Novak states that corporations have existed for a long period of time i.e. forever since they started in the middle ages as burial societies. The existence of...

While the existence of corporations cannot be referred to a certain date and time, they have existed for several centuries (Shah, 2002). Actually, survival in the corporate world can be traced back to the founding generations of fishermen and farmers, land owners, and churchmen (Jennings, 2012, p.105).
Corporation in the United States vs. Britain and Europe:

Corporations in the United States have some fundamental differences with those in Britain and Europe thought the differences are not easy to identify (Hassan, 2012). The main difference in corporations between the two regions is attributed to the rate with which the corporations developed within the two jurisdictions. As compared to Britain and Europe, the United States experienced a rapid growth of corporations between the eighteenth and nineteenth centuries. In contrast, Britain and the whole European continent experienced a slow rate of growth in terms of corporations. As the United States started a new era of a sovereign nation, it had more corporations than Britain and European continent combined. One of the major reasons for the rapid growth of corporations in the United States is the freedom and liberty enjoyed by American citizens that contributed to creativity and growth of corporation.

Definitions of Stakeholders:

Corporations have stakeholders who are described as individuals and/or groups that benefit from and are hurt by corporate actions (Jennings, 2009, p.82). The likelihood of corporate stakeholders to benefit or suffer from corporate actions is dependent on the ability of the corporation to respect or violate their rights respectively. There are two major definitions of stakeholders i.e. The narrow definition and the wide definition. Under the…

Sources used in this document:
References:

"Corporation." (n.d.). Capitalism. Retrieved April 27, 2013, from http://capitalism.org/category/corporation/

Hassan, M.A. (2012, December 13). Michael Novak: Capitalism and the Corporation. Retrieved April 27, 2013, from http://www.netarco.com/notes/2012/12/13/michael-novak-capitalism-and-the-corporation/

Jennings, M. (2012). Business ethics: case studies and selected readings (7th ed.). Mason, OH:

South-Western Cengage Learning.
Shareholders vs. Stakeholders. In Business ethics: case studies and selected readings (6th ed., pp. 71-119). Retrieved from https://travelspice.com/ForumImages/23.pdf
Shah, A. (2002, December 5). The Rise of Corporations. Retrieved April 27, 2013, from http://www.globalissues.org/article/234/the-rise-of-corporations
Cite this Document:
Copy Bibliography Citation

Related Documents

Contemporary Issues in American Business
Words: 1623 Length: 5 Document Type: Term Paper

business and social climate places a myriad of pressures on managers to obtain their objectives. While the defined purpose of the organization, or mission statement, is meant to keep the organization on track toward justifying its existence, and achieving its goals, the modern manager is also a leader, and must exercise concern for how the organization reaches their goals. The most basic motivation of keeping one's job is not

Business Summaries This Chapter Addresses the Reasons
Words: 4707 Length: 13 Document Type: Essay

Business Summaries This chapter addresses the reasons that one should study business and businesses to begin with. The authors make the point that they do not intend for this to be a narrow study that just focuses on particular examples of successive and failed businesses, although it will include case studies too. But the major point of studying business, the authors write, is to provide a larger sense of what is needed

Business Impact of Exxon and
Words: 6336 Length: 20 Document Type: Term Paper

One set of concepts from each area was utilized to explain how the situation at Grand Bois may have come about. The end goal of the authors was to "provide business practitioners, ethics teachers, and readers interested in corporate conduct with insights useful in understanding why managers may act the way they do." It could be argued, according to Hamilton and Berken (2005), that Exxon managers had made a sound

Business' Environmental Responsibilities and Stewardship:
Words: 4956 Length: 15 Document Type: Research Paper

In addition, we might ask ourselves if the richer nations have or not a greater responsibility as far as the research and development in the area of sustainable energy are concerned. (Reid, environmentalleader.com) Believing that there are such energy sources or consumption policies which would allow the planet's resources to be maintained for a longer period, while making sure that all the nations are provided with a comfortable living is

Capitalism, Science and Nature One
Words: 805 Length: 3 Document Type: Term Paper

What people have to understand is that it is impossible to reach a compromise through supporting capitalism and environmentalism concomitantly. Capitalism presently dominates the political landscape and this makes it almost impossible for nature's health to be preserved (Seis 123). Through analyzing a series of trade agreements, it appears that the international public is more concerned about the well-being of transnational corporations than about that of the environment, thus putting

Business Globalization Pro's and Con's
Words: 1618 Length: 5 Document Type: Term Paper

And proof of this sad truth stands the increasing trade deficit, meaning that the United States basically imports more than it exports. The imports from Canada and Mexico for instance have grown by 173%, whereas exports grew at a more toned pace. Then, NAFTA also caused 900,000 Americans in high-paid manufacturing positions to lose their jobs. "We're not signing trade agreements to open new markets for our exports. Instead

Sign Up for Unlimited Study Help

Our semester plans gives you unlimited, unrestricted access to our entire library of resources —writing tools, guides, example essays, tutorials, class notes, and more.

Get Started Now