Before commencing to explain how corporate corruption such as the case of Enron undermines Adam Smith's notion of capitalism, it would only be imperative to briefly state Adam Smith concept of free-market capitalism. As it is this very ill of free-market capitalism that has not only created a mirage for the masses, it is in fact a proven tool for severely undermining as well as underpinning the social good that was preposterously propagated by Adam Smith in his famous theories.
According to the great Englishmen Adam Smith, whom we have come to consider as the father of the concept of free-market capitalism since the last more than two centuries, each and every individual and person must act consistently to maximize his or her own profit. To obtain such an objective, the individual must therefore act selfishly and greedily as possible, which would in turn provide for some of the greatest social good. This particular line of thinking has been named as the God's 'invisible hand' at work, yet in reality it is exactly the opposite as rationalization for a few individuals to accumulate huge sums of capital at the expense or exploitation of the working class only goes on to severely undermine society, as well as the environment at large. Some of the examples to this respect are presented in the following lines, which more than prove how Adam Smith's notion of free-market capitalism has been nothing but a mythical curtain used for both the domestic exploitation of small businesses as well as exploitation on a global scale by larger multinationals.
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Growth of Monopolies and End of Free Competition
Taking the example of monopolies and their practices ...