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Corporate harm: Measurement and impact - Essay Example
A widely quoted definition of a corporation was that made by Chief Justice Marshall of the United States in 1819. He referred to corporation as "an artificial being, invisible, intangible, and existing only in contemplation of the law."(Grossman & Adams, 1993, p.11-12) In other words, a corporation is a powerful, untouchable, artificial being endowed by law with the rights, powers, and 'duties' of a natural person…
Legally it is the corporation, and not its representatives that engage in business activity. However, natural persons, usually own a corporation and do determine and carry out its policies. At the same time these natural persons, individually, own none of the property of the corporation (Koontz & Fulmer, 2000, pp. 136). Such companies generate capital for the economy and their investors whilst creating job opportunities for the masses however, this power is seldom coupled with uniformed responsibility. With the increasing giant corporations in the world the trend of corporate harm and corporate crime are also increasing. There is a fine line between both the notions.
Corporate harm is defined as all the activities of the corporations, which do not come under legislation but create adverse effects on employees, stakeholders and environment. For Example the increasing workload on the employees of corporations are causing numerous health problems to the employees such as high blood pressure and heart diseases (Health and Safety Executive, 1993). Examples of Corporate harm include:
It involves many variables. The situations in which the corporate harm takes place vary to great extent. ...