The Morally Hazardous Modern Corporate World – a Free Market Distinction Between Vicious and Vitiated Corporations
Year: 2012
Type: article
Abstract: In the present paper, we identify the corporation in its ultimate, proprietary meaning (as an expression of an aggregate of resources owned by shareholders and used according to their allocatingentrepreneurial vision), homogenizing, in some way, the entrepreneurial-capitalistic-managerial "interests" from within itself and, this time, treating the "shareholders vs. managers" tension as irrelevant.We distinguish, within this simplified framework, situations where corporate actors (the "shareholding-managerial aggregate") gain together social privileges, undue rights on third party resources or, on the contrary, are prejudiced, together, by third parties.Either way, the "key character" is the State, which institutionalizes aggression and incites to free riding.We consider, in this logic, by "vicious-corporation" that which succeeds (while tolerated / encouraged by the public authorities) in acquiring resources from the rest of the society, without the righteous owners' prior consent.It does this either by "material" redistribution -explicit transfer of expropriated resources -or by "virtual" redistributionimplicit rents from dedicated regulations -, internalizing this behaviour (moral hazard) in its day to day routine.We symmetrically define by "vitiated-corporation" that which is expropriated (materially, virtually) by third parties (mainly the rival corporations) which take comfort from this habit, rather than simply serving consumers.
Source: Economics & Sociology
Authors: Octavian-Dragomir Jora, Mihaela Iacob
Institution: Bucharest University of Economic Studies
Language: English
Subfield: Economics and Econometrics
Domain: Social Sciences
Open Access status: bronze
OpenAlex ID: W2075438811