Business Ethics and Corporate Governance, Second Edition

WHAT IS A CORPORATE?

In the capitalist economy, the process of capital accumulation that facilitates development of economies by fuelling growth of its various sectors such as industry, agriculture, infrastructure, trade and commerce has become institutionalized by the corporation. The corporation of today has come to replace the sole proprietor of earlier times and tries to maximise its profits and accumulate capital as he did. However, it differs from individual capitalist in two important aspects: (i) The life span of the corporation is much longer; and (ii) it is more rational in decision making by virtue of the fact that it has the benefit of the collective wisdom of the board of directors, and besides, they take decisions using the principles ...