Business Ethics and Corporate Governance, Second Edition

THE CONCEPT OF CORPORATION

No other institution has contributed so much to the growth of market-driven capitalist economies of the world as modern corporations. A Joint Stock Company, which is also known as a ‘Corporation’ is the nucleus of all business activities in modern economies. Such a company can be easily set up under the Companies Act. The corporation has become the most important industrial unit or business enterprise or a commercial venture. But it is also a fact that all corporations do not enjoy equal measure of power nor are they equal in terms of size and degree of operations. Be it in a developed country such as the US or a developing country such as India, the major portion of capital is in the hands of few giant corporations ...