Business Ethics and Corporate Governance, Second Edition

ROLE OF GOVERNMENTS IN LIMITING CORPORATE POWER

Modern corporations have grown so huge in size and so powerful in influence that these mega corporations, if unrestrained by political authority, might over-reach all the segments of the society with their mercenary and baneful influence. Unrestricted and unregulated corporations could overwhelm governments if proper checks and balances are not worked out and put in place, as Enron and WorldCom tried to do. Ralph Nader, the consumer advocate, and Mark Green, Director of Public Citizens’ Congress Watch, were almost prophetic as early as in 1979, when they articulated this view as follows: ‘We must redesign the law to keep up with economic and political evolution of giant corporations, which are tantamount ...