Nowadays, it is a matter of controversy the fact that corporations can have the same legal rights as individuals. These entities can not have the same legal right that a human, just because the common sense assumes how the organization doesn´t have a physical body that can be held in jail, do not have feelings, is a profit seeker unit and so on... different arguments that support the creation of a new legislative framework for them. The term "legal person" however is something that is necessary for the developed society, since under its action so many activities are executed, activities that otherwise would not be possible, or thing for example the creation of projects such as a dam, if a "physical person" human had to handle the money and the production activities, would not be appropiate I think. The limit (line) should be at the drawn at the border of responsability because the corporations can get rights, but also duties and obligations to comply with.
In order for the corporations to be held accountable for their actions, there should be a deeper involvement of governmental institutions such as environmental regulators that witness all the steps followed by the corporations regarding pollution, effects on global warming, security in standards of production, the follow of established standards and so on. The previous would work just if there were stronger laws applicable worldwide and supported by any coercitive power. The result could be a diminished effect due to externalities caused by companies, however there would be also an increase in general prices, because a right following of proper regulations world wide would put in evidence the real cost of products once corporations assume the costs of undertaking "fair" business activities.
The directors and shareholders of the corporations should have a total responsability for the actions of "legal persons" that are in charge of them, just because the corporation does what its owners and managers decide it to do. The limited responsability is a figure that should not exist since every person in the world is responsible for the actions that he/she causes, so the corporations should be held liable for anything it did, and does.
After critizicing the corporations we also have to highlight the benefits they have. The essence of the capitalist system is the pursue of the self interest, and that has estimulated enourmous growth in terms of standard of living. The corporations estimulate those improvements since they can organize capital, labour and a management system in a way that individuals and other proven systems (communist in Russia) haven´t achieved, and that effectiveness accomplished through time is what give them the power they nowadays have.
An alternative model could be a free enterprise system but in deep involvement with state and citizens in a way that everyone interest can be better fulfilled.
REFERENCES
- The Corporation: The documentary. DVD video.
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