The History of Corporation
A corporation is a legally distinct entity that has many of the rights attributed to
individuals.
These rights include the ability to enter into contracts, take out loans, sue others, be
sued, own assets, pay taxes, and so on.
A corporation is formed when individuals exchange consideration (usually in the form of
cash) for shares of the corporation, which in turn creates a right to a portion of profits.
Limited liability allows individuals to avoid personal liability for a business entity's losses,
thereby allowing risk-averse individuals to assume risks they otherwise would not have
undertaken.
Corporations also allow individuals to pool resources to achieve goals that would be
unattainable by a person acting in an individual capacity, and can last longer than an
individual's lifetime.
The law requires corporation to "prioritize the interests of thir companies and
shareholders above all other and forbid them from being socially responsible - at least
genuinely so" (Bakan, 2004, p.35).
Issues relating to corporate social responsibilities are not new and the history of the
corporation includes a cycle of regulation and corporate response.
The Corporation; Individual or Institution
to understand the legal rights and responsibilities of a corporation;
to recognize that institutions are comprised of individuals, so it is the character of the
individuals that define the institutions;
that managers have considerable discretion in their decisions, and that shareholders do
not participate in the day-to-day decisions of management;
that corporate social responsibility has a legal and moral aspect to it, and the two are
not always aligned.
The Corporation as Government
A government corporation is a legal entity created by a government to exercise some of
the powers of the government.
Some government corporations may resemble a not-for-profit corporation as they have
no need or goal of satisfying the shareholders with return on their investment through
price increase or individuals, while other government corporations are established as for
profit business.
Governance is the system of rules, practice and processes by which is directed and
controlled
Balancing the interest of company's many stakeholders, such as shareholders,
management, customers, suppliers, financiers, government and the community
Often corporations must address social issues because governments do not, can not, or
should not address them. However, corporations can and should do only so much.
Corporations can easily overextend their activities in the social arena, which may in
itself be irresponsible.
The Global Economy
serves researchers, business people, academics, and investors who need reliable
economic data on foreign countries.
describes a process by which national and regional economies, societies, and cultures
have become integrated through the global network of trade, communication,
immigration, and transportation. These developments led to the advent of the global
economy.
International trade: It refers to the exchange of goods and services between different
countries, and it has also helped countries to specialize in products which they have a
comparative advantage in. This is an economic theory that refers to an economy's
ability to produce goods and services at a lower opportunity cost than its trade partners.
International finance: Money can be transferred at a faster rate between countries
compared to goods, services, and people; making international finance one of the
primary features of a global economy. International finance consists of topics like
currency exchange rates and monetary policy.
The Global Interstate and the Contemporary Global Governance
The goal of global governance, roughly defined, is to provide global public goods,
particularly peace and security, justice and mediation systems for conflict, functioning
markets and unified standards for trade and industry.
is a process of international cooperation among transnational actors, aimed at
negotiating responses to problems that affect more than one state or region.
government has been associated with "governing," or with political authority, institutions,
and, ultimately, control. Governance denotes a process through which institutions
coordinate and control independent social relations, and that have the ability to enforce
their decisions.
Advertising Market
is a marketing communication that employs an openly sponsored, non-personal
message to promote or sell a product, service or idea.
helps making people aware of the new product so that the consumers come and try the
product. Advertising helps creating goodwill for the company and gains customer loyalty
after reaching a mature age.
The pervasiveness of social issues. There are some elements of this segment that may
not be at all contentious for some people in class, and yet are for others. So, when
managing a corporation, one must be sensitive to the fact that almost every decision
can potentially result in some moral backlash.
There are few absolute social standards. Acceptability of a firm's actions depends on
the context, such as the age of the audience, what it is that is being sold, and how.
Market Integration
● Integration shows the relationship of the firm in a market. The extent of
integration influences the conduct of the firms and consequently their marketing
efficiency.
● The behaviour of a highly integrated market is different from that of a
disintegrated market.
● Markets differ in the extent of integration and therefore, there is a variation in
their degree of efficiency.
Responsible Products - have a reduced environmental impact and be produced in
compliance with labor rights
Product Use - a variable in behavioral segmentation in which marketers group
consumers based on how or when they use a product.
Production - Products can be goods, services, or ideas, such as intellectual property.
Products can be tangible or intangible.
Products can also be classified by use, by brand, or by other classifications as well.
good or service that is a result of a process and that is intended for delivery to a
customer or end user.
Political. The World Trade Organization (WTO) and its trade agreements (e.g. TRIPS)
force developing countries to accept the value systems of the developed world. The
WTO lacks accountability and does not treat all members equally.
Economic. Intellectual Property Rights (IPR) protection generally increases the cost of
research and innovation; developing countries can ill afford any mechanisms that hinder
the spread of inexpensive technologies. However, "biopiracy" has been estimated to
cost developing countries $5.3 billion a year in potential markets and revenue lost to
foreign corporate ownership.
Regulation and Research. For developed nations, strong IPR protection of plants and
animals in the developing world limits their access to potentially productive research
material. However, strong IPR regulations also protect the interests of developed
economies, which are increasingly reliant on income from technology and intellectual
capital, rather than from primary or secondary industries.
Environment. The long-term effect of biotechnologies, including genetically altered
products, on consumers and the environment is unknown; however, biotechnology has
the potential to increase the productivity of crops and thus reduce the negative impact of
intensive agriculture on the environment.
