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Why do corporations exist?

Why do corporations exist?

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Seitse
Doug Stanhope

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Corporations are creations of society, designed to serve
people's needs. Fundamentally, corporations exist to satisfy
human needs by providing useful goods and services and
meaningful, fulfilling work -and to do so while adding to
society's wealth


Elsworth, Richard. New Corporate Realities. Stanford, 2002. Page 29

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P
Upward Spiral

Halfway

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Originally posted by Seitse
Corporations are creations of society, designed to serve
people's needs. Fundamentally, corporations exist to satisfy
human needs by providing useful goods and services and
meaningful, fulfilling work -and to do so while adding to
society's wealth


Elsworth, Richard. New Corporate Realities. Stanford, 2002. Page 29

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[/b]
Ridiculous, politically charged definition.

zeeblebot

silicon valley

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well, it's true, but the also game the system, that part's bad.

spruce112358
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Originally posted by Seitse
Corporations are creations of society, designed to serve
people's needs. Fundamentally, corporations exist to satisfy
human needs by providing useful goods and services and
meaningful, fulfilling work -and to do so while adding to
society's wealth


Elsworth, Richard. New Corporate Realities. Stanford, 2002. Page 29

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[/b]
Not at all. Corporations exist because individuals who participate in them improve their own well-being. They are not designed to provide anything (work or well-being) to society except indirectly through advantages participants in the corporation receive and goods and services the corporation provides to customers.

p

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Originally posted by Seitse
Corporations are creations of society, designed to serve
people's needs. Fundamentally, corporations exist to satisfy
human needs by providing useful goods and services and
meaningful, fulfilling work -and to do so while adding to
society's wealth


Elsworth, Richard. New Corporate Realities. Stanford, 2002. Page 29

[b]Debate
[/b]
The part where it says to do so while adding to society's wealth???
Well I cannot come up with one corporation where they care at all about society's wealth. Oil companies, Chemical companies, especially Dow chemical, holy mother of god, anyone seen their new advertisement. "The human element" They are the company that makes plastic that is toxic and sells it to baby toy companies. They also made agent orange. Wow, do they care about society's wealth, or just their own.

p

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Edit : Sorry multiple posts

Seitse
Doug Stanhope

That's Why I Drink

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Actually, I think it is not only an interesting but also a necessary
debate to take place. Why? Because some corporations nowadays
have more power* than a single nation-state, with the dangers we've
seen already happening: sweatshop slave work, environmental
disasters, Enrons, etc.

Many authors claim that such disasters happen because of the
underlying philosophy that the goal of a corporation is to create
wealth for its shareholders at all costs
.

Therefore, many management academics and governments are
currently debating: How to level all the stakeholders' interests
within corporations?: Shareholders, employees, clients, and the
communities which the corporations affect.


Debate.

Edit. With greater power comes greater responsibility. Who
agrees with this statement?

zeeblebot

silicon valley

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it's not really to create wealth for its shareholders, it's to create wealth for whoever has control of the corporation. the shareholders can take a hike if it's decided to take the corp into bankruptcy.

Seitse
Doug Stanhope

That's Why I Drink

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an interesting, debatable point in these days when management and
control are divorced. So, in your view, stock-market is king?

w
Stay outta my biznez

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Originally posted by zeeblebot
it's not really to create wealth for its shareholders, it's to create wealth for whoever has control of the corporation. the shareholders can take a hike if it's decided to take the corp into bankruptcy.
Agreed. Corporations, under American law, are considered living entities. They have a birth, a life and a death, just like an American citizen.

The main difference between a corporation and you and I? They're all sociopaths. Most humans are not.

To the OP - Corporations exist for one main reason - to make as much money as possible - and one minor reason - to shield the owners and managers of the corporation from personal liability in the affairs of the corporation.

At the end of the day shareholders are irrelevant. The Presidents and CEOs of corporations, along with senior board members, have reached a level of political power in the US that is beyond anything seen before. All of it stems from having a tremendous amount of money.

The idea behind incorporating a business is a good one, it lessens personal financial responsibility for the owners and greatly reduces the risk of starting a business. What has been happening lately though is extremely bad, and that's corporate managers hiding behind the corporate shield to get away with a lot of financial "shenanigans".

Fortunately criminal and civil laws are catching up and corporate managers are being dragged into court by shareholders for all sorts of charges.

zeeblebot

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Originally posted by Seitse
an interesting, debatable point in these days when management and
control are divorced. So, in your view, stock-market is king?
no (re "stock-market is king"😉; see wib's post.

Seitse
Doug Stanhope

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So, what's the solution then for corporations having tremendous
power, causing not only financial scandals where workers end up
with their retirement funds lost, but also thrid world countries going
bankrupt if they don't bend to the transnationals?

How to tackle the race to the bottom in the 3rd world, on which
back the West's wealth is built?

Wajoma
Die Cheeseburger

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Originally posted by Seitse
So, what's the solution then for corporations having tremendous
power, causing not only financial scandals where workers end up
with their retirement funds lost, but also thrid world countries going
bankrupt if they don't bend to the transnationals?

How to tackle the race to the bottom in the 3rd world, on which
back the West's wealth is built?
If it's a problem for you, do not buy any of their products.

TD
Enjoying Life

Tirau NZ

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Originally posted by Wajoma
If it's a problem for you, do not buy any of their products.
No don't say that I'm running a new corporate shop... at the top of the hill.. gotta sell lotsa corporate product to pay my wages. Lol

Only support corporates who employ countrymen not ones who get stuff made overseas in sweat shops at the expense of fellows.

Seitse
Doug Stanhope

That's Why I Drink

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Yup, both of you have reason... but was about in a corporate governance level?

Enforceable corporate social responsibility (CSR) codes?

How? By whom? UN? OECD? In which direction?

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