MBA Reading Notes
The Corporation
Introduction
Faults of corporation run much deeper than greedy and corrupt individuals.
Purpose of this book:
Explore what the corporation, as an institution, truly is.
Chapter 1
History of Corporations:
17th-18th Century
Bubble Act-criminal offense to create a company “presuming to be a corporate body”
New Deal-1934 Roosevelt curbing the powers and freedoms of corporations.
How did corporations become so powerful?:
Through opportunities:
-Combines capital, economic power of unlimited numbers of people
-Industrial breakthroughs-steam driven engine-steam locomotive
-Bubble Act repeal in 1825
-Risk was limited to value of shares
-Public relations strategies to overcome public dissatisfaction and trust
-1979-80-Thatcher and Reagan-deregulation and privatization
-GATT-General Agreement on Tariffs and Trade-freedom from the bonds of location
-WTO-bar regulatory measures that might restrict the flow of international trade.
-Stakeholder influence-corporations ability to influence government
-Branding strategies-provides corporations with a soul to avoid mistrust and earn accountability and from its stakeholders.
How corporate social responsibility evolved?:
Quote from the chapter:
“…they (protester and corporations) both believed the corporation had become a dangerous mix of power and unaccountability…”
Chapter 2
Business as Usual
POV
-Corporations feel responsibility to society as a whole, not just shareholder….still the corporation has not changed…..most corporations have flawed institutional character
-Corporations are not institutions set up to be moral entities………
-Social responsibilit ...