Discussion: View Thread

  • 1.  Corporation Gone Wild

    Posted 04-07-2009 11:11
    If my history studies serve me correctly, modern corporations were derived from the Royal Charters of the 17 hundreds.  The king or queen would grant these charters to entrepreneurs for the purpose of monopolizing a particular business in a specific geographical area.  Royal charters stipulated what was permitted in general terms and what was expected in return.
     
    Modern corporations became the legal mechanism of limited liability for shareholders and their agents (employees).
     
    Moving quickly to the present, the corporation has become the unregulated instrument of top management almost completely independent of shareholders, governments, citizens, employees, suppliers. and customers.  They must obey laws that they cannot escape through their lawmaker connections.  But today, corporations are out of control mechanisms of executive greed.  They need to be brought back under control by stakeholders.  They have violated their social contract with their owners, country, community, environment, customers and employees.  How do we regain compliance with the social contract?  Please give me your suggestions and I'll send them to President Obama.  We need to discuss this issue with more than those beholden to corporate lobbyists.  Too long have corporation executives gone much too far for their own edification and comfort because they could do so without negative consequences.  Executive greed is a byproduct of corporate executives "me culture": "I want what I want, when I want it".   These corporate executives are role models for generations X and Y.  We need to change the game for corporate executives or let them control our countries.
     
    George Graen
    /jag

    A Good Credit Score is 700 or Above. See yours in just 2 easy steps!


  • 2.  Corporation Gone Wild

    Posted 04-07-2009 11:30
    I suggest everyone revisit the marvelous book by Adolph Berle and Gardiner Means titled "The Modern Corporation and Private Property." It does an excellent job of analyzing the separation of management and ownership of corporations and, as far as I'm concerned, offers a compelling explanation of managements that are accountable to no one except themselves.

    --
    Regards,

    Fred Nickols
    Managing Partner
    Distance Consulting, LLC
    nickols@att.net
    www.nickols.us

    "Assistance at A Distance"

    -------------- Original message ----------------------
    From: George Graen <Lmxlotus@AOL.COM>
    >
    > If my history studies serve me correctly, modern corporations were derived
    > from the Royal Charters of the 17 hundreds. The king or queen would grant
    > these charters to entrepreneurs for the purpose of monopolizing a particular
    > business in a specific geographical area. Royal charters stipulated what was
    > permitted in general terms and what was expected in return.
    >
    > Modern corporations became the legal mechanism of limited liability for
    > shareholders and their agents (employees).
    >
    > Moving quickly to the present, the corporation has become the unregulated
    > instrument of top management almost completely independent of shareholders,
    > governments, citizens, employees, suppliers. and customers. They must obey
    > laws
    > that they cannot escape through their lawmaker connections. But today,
    > corporations are out of control mechanisms of executive greed. They need to be
    > brought back under control by stakeholders. They have violated their social
    > contract with their owners, country, community, environment, customers and
    > employees. How do we regain compliance with the social contract? Please give
    > me your suggestions and I'll send them to President Obama. We need to discuss
    > this issue with more than those beholden to corporate lobbyists. Too long
    > have corporation executives gone much too far for their own edification and
    > comfort because they could do so without negative consequences. Executive
    > greed is a byproduct of corporate executives "me culture": "I want what I want,
    > when I want it". These corporate executives are role models for generations
    > X and Y. We need to change the game for corporate executives or let them
    > control our countries.
    >
    > George Graen
    > /jag
    > **************A Good Credit Score is 700 or Above. See yours in just 2 easy
    > steps!
    > (http://pr.atwola.com/promoclk/100126575x1221421323x1201417385/aol?redir=http:%2
    > F%2Fwww.freecreditreport.com%2Fpm%2Fdefault.aspx%3Fsc%3D668072%26hmpgID
    > %3D62%26bcd%3DAprilfooterNO62)


  • 3.  Corporation Gone Wild

    Posted 04-07-2009 23:21
    George,

    I suggest that the social contract be embodied in the purpose of the corporation when incorporated.  George Goyder, in "The Just Enterprise (1987)", proposed the following General Purposes Clause which I offer for consideration:

    • To make the company economically and financially strong in order to ensure its continued growth and future development as a means of providing good service, secure employment and a fair return to its investors and shareholders.
    • To provide goods and services of the best quality and the most reasonable prices consistent with its other objectives.
    • To give its employees every reasonable opportunity for their interests to be heard within the company and for their promotion and development in skill and to allow reasonable time off for attention to public duties.
    • To act towards the community of which it is a member in as responsible a manner as would be expected from a responsible citizen in like circumstances.
    I think this will change the game for executives and business schools can support it.

    Ben

    -------------------------------
    Benito L. Teehankee, DBA
    Sen. Benigno S. Aquino Jr. associate professor in business and governance
    Ramon V. del Rosario Sr. Graduate School of Business
    De La Salle University
    Manila, Philippines
    Office: +632-5234295


    From: George Graen <Lmxlotus@AOL.COM>
    To: MG-ED-DV@AOMLISTS.PACE.EDU
    Sent: Tuesday, April 7, 2009 11:11:14 PM
    Subject: Corporation Gone Wild

    If my history studies serve me correctly, modern corporations were derived from the Royal Charters of the 17 hundreds.  The king or queen would grant these charters to entrepreneurs for the purpose of monopolizing a particular business in a specific geographical area.  Royal charters stipulated what was permitted in general terms and what was expected in return.
     
    Modern corporations became the legal mechanism of limited liability for shareholders and their agents (employees).
     
    Moving quickly to the present, the corporation has become the unregulated instrument of top management almost completely independent of shareholders, governments, citizens, employees, suppliers. and customers.  They must obey laws that they cannot escape through their lawmaker connections.  But today, corporations are out of control mechanisms of executive greed.  They need to be brought back under control by stakeholders.  They have violated their social contract with their owners, country, community, environment, customers and employees.  How do we regain compliance with the social contract?  Please give me your suggestions and I'll send them to President Obama.  We need to discuss this issue with more than those beholden to corporate lobbyists.  Too long have corporation executives gone much too far for their own edification and comfort because they could do so without negative consequences.  Executive greed is a byproduct of corporate executives "me culture": "I want what I want, when I want it".   These corporate executives are role models for generations X and Y.  We need to change the game for corporate executives or let them control our countries.
     
    George Graen
    /jag

    A Good Credit Score is 700 or Above. See yours in just 2 easy steps!