Discussion of the Corporation
A few decades ago, the corporations or the incorporated entities were moderately trivial institutions, and with the growing population, the needs of everyone varied and many corporations originated which manufactured various products according to various needs of people.
Today, the corporations are universal, and considered to be an institution that create great wealth and sustain it. Corporations are obligations to themselves to get large and profitable at the cost of others. Different countries define Corporations with diverse meanings, though the basic duties of these corporations remain similar; to make profits. This paper examines how the corporations are formed, the externalities of the corporations, the environmental hazards caused by the corporations, the penalty that these corporations have paid to the government for violating the rules, and how the corporations impact the society to grow and make profits.
Keywords: corporate, profits, environment, society, impact.
Corporations are the incorporated entities formed by a group of people, who are lawfully entitled to perform as a single body. Limited liability is the main feature of a corporation. The corporations are created by a group of shareholders, who invest in the corporate. They elect the board of directors, and these corporations are set in order to provide good returns to the shareholders. That corporation operates legally as an individual person. It is under the law as a legal person. Corporations address the environment and also sort as constructive members of society. There were very few corporations in America earlier, however after the civil war and the industrial revolution there was tremendous growth in the corporations. As stated by (Collins, 1912), the elevation of the Negro race to the plane of equality with white race was accomplished through legislation by congress. It gave constitutional validity to the Civil Rights Act of 1866 that was passed for the benefits of black. This amendment gave equal rights to the black people to work in the corporations without depriving their status.
It is a very harsh truth to know that the textile corporations indulged in child labor that employed children below 13 years, and the products they manufactured advertised that a portion of the product sales would be donated to children’s charity. The World Health Organization (WHO) made a personality diagnostic checklist for the deviations done by these corporations and the corporations that defrauded the federal government were penalized heavily for not following the norms. There was collusion between the corporations of America and Germany during the war of the Nazi’s, and still the corporations kept made profits out of it. The International Business Machines (IBM) made huge profits through the punch card during the Nazi war on the cost of people’s lives. Presently, the Corporations have created a doom machine in our surge for wealth and prosperity that would destroy us.
Corporate law puts forth the righteous and social concerns as inappropriate, and as a blocking entity to the corporation’s essential obligation. This is an internal effect inside the organization; however the effect of such law is quite devastating outside the corporation. It is the law that powers the corporations to actively neglect any damage to the society other than the shareholders. We have always seen the poisonous chemicals spilled in the environment, deforestation, communities laid off due to plant shutdowns and employees left in poverty. These factors are not of much concern to the corporation and they don’t give much importance to such factors as it is outside their concern. For Example, Bolivia wanted to refinance its public water service, and World Bank required that this service be privatized, it’s then the Bechtel Corporation of San Francisco gained control of all the water. The laws and contracts prohibited the people from gathering even the rain water, and as a result the rain water was also privatized. So people who had unpaid bills were forced to sell off their assets, pay for the water and other daily necessity items, or move to different cities in search of good living conditions.
The Benefit Corporations are required to create a sensible positive impact on society, and make decisions that affect their employees in a positive manner, provide good support to the community, and save the environment for getting hazardous.
References
Collins, Charles Wallace, (1912), The Fourteenth amendment and the states: a study of the operation of the States, S.J Parkhill & Co, Boston, USA.
