The rise of multinational corporations - The Corporation

Summary:

One of the biggest changes that modern capitalism showed us was the creation of Corporations. At the beginning it was just a little project and an insignificant idea but then they became into a kind of giants enterprises worried about exporting and having any kind of participation into the market, then corporation was transformed into a “legal person”. According to the law, they are just like us and this was established in order to protect owners’ capital and limit their responsibility. And today in the 20^th century is the dominant institution.

When this was just inaugurated everyone thought that this was a great idea and it would help population by increasing the creation of jobs and the fluctuation of the economy, but step by step they have destroyed nature, human dignity and attacking in many ways the humanity. The main objective of a corporation is to have success and cover their customers’ necessities and wants, but they usually lose control over their scope and cross the line which divided the general well-being and the individual interest.

Some managers don’t have any kind of concern in the causes of their acts and the only thing they really mind is how to growth and internationalized themselves. They are using all kind of methods in order to reach their goals and they don’t think on what could happen tomorrow. They are like a monster who tries to get the biggest benefit taking advantage on the orders without minding if they have to destroy or build other society.

In this new millennium our minds are focused on environmental protection and the development of nature, but corporations have forgotten about this moral responsibility and they just arrive to a place, take what it has and when there is no other resource to “steal” they immediately run to other place to destroy.

Every time they think about increasing productivity they create a method to do it and here is where “Terminator Technology” appears. They develop chemicals and products how increase productivity and according to them “they don’t damage anyone” and a clear example of this is Monsanto Company, they are focused on creating chemicals to make that animals and seeds productions become faster produced and in a big quantity.

We have to create a conscience of helping our world and taking care of our future generation. We can’t just say: “when this world arrives to his end I won’t be here” because our future family is the one who is going to face our mistakes.

Some Concepts

·         Capitalism: It is an economic system which talks about the property privatization and is focused on the profit that you can get. It is related with supply, demand, price, distribution and investment.

·         Psychopath: This concept refers to a person who has a mental and personality disorder.

·         Legal institution: It is a company that in front of the law is seen as a person or individual.

·         Externalities: This is “the cost or benefit incurred by a party who did not agree to the action causing the cost or benefit”.

·         Limited liability: It is the financial ability in which a person limits his financial responsibility and with this he can protect some of his actives.

Question:

As a legal organizational model, how does the rise of corporations influence the aspects of culture in pursuing profit?

As we know corporations are just a kind of group of people working together in order to reach a main goal that most of the times is to make richer its owners. Corporations have had the power of change history and culture and we can see it reflected in how some years ago the main objective of a business man was to create goods and services to cover customer’s their principal necessities and now those goods are created in order to create more necessities, this is the best example of how those giants have changed culture to improve their profit.

We can say that nowadays is a requisite to have a luxurious car and cell phone when you arrive to do business because it gives you status and what the other part “read” is that you have enough money so they can trust on your success and professionalism.

Another example is the parallel between the past’s and the present’s ways of working on the land. When in the fists decades people worked for land and very time they had a harvest they thanked gods for the success of the month; but now land works for population and every time farmers have the chance, they put a chemic to increase the production and modify the process of nature.

Bibliography

1.    Community Development Corporations, Participation, and Accountability: The Harlem Urban Development Corporation and the Bedford-Stuyvesant Restoration Corporation. Kimberley Johnson. Annals of the American Academy of Political and Social Science. Vol. 594, Race, Politics, and Community Development in U.S. Cities (Jul., 2004), pp. 109-124. Published by: Sage Publications, Inc. in association with the American Academy of Political and Social Science. Stable URL: http://www.jstor.org/stable/4127697

2.    Real Options in Multinational Corporations: Organizational Challenges and Risk Implications. Tony W. Tong, Jeffrey J. Reuer. Journal of International Business Studies. Vol. 38, No. 2 (Mar., 2007), pp. 215-230. Published by: Palgrave Macmillan Journals. Stable URL: http://www.jstor.org/stable/4540417

3.    Environmental Reporting of Global Corporations: A Content Analysis Based on Website Disclosures. Anita Jose, Shang-Mei Lee. Journal of Business Ethics. Vol. 72, No. 4 (Jun., 2007), pp. 307-321. Published by: Springer. Stable URL: http://www.jstor.org/stable/25075385

4.    Images:http://realidad-infinita.blogspot.com/2010_02_01_archive.html and ·         http://prasetijo.wordpress.com/2010/07/27/capitalism-love-story-cerita-lain-michael-moore-tentang-negaranya/