Broker Analysis

3. A growing number of firms, for instance soft drink producers, the car companies, fast food restaurants, cigarette companies and so on are under pressure from the government, the media institutions, the environment, the community and society in general for encouraging harmful habits of consumer. However, in the free market economy, individual including consumer and the general public are free to choose the goods they may want to consume (within legal boundaries to emphasize). The questions are: where do you think personal responsibility end and corporate social responsibility begin? How does your personal response change across specific firms? in your own view, what is the role and responsibility federal and states government might play?

Q1: List the stakeholders involved and their influence. Identify any fundamentals of business or capitalism involved.

“The idea that a corporation is a legal person with constitutional rights is, of course, a controversial one. Some commentators argue that it's bad policy. In my view, however, it is a well-settled principle of US constitutional law and justifiably so. The legislative history of the Fourteenth Amendment suggests that Congress substituted the word ''person'' for the word ''citizen'' precisely so that the provisions so affected would protect not just natural persons but also legal persons, such as corporations, from oppressive legislation.”

Corporations Law can be described as the interaction between directors, employees, financier, consumers and the community. Corporations law can be implied to this case as Water Corporations, a government owned company had a responsibility upon entering into a contract with Norvik Industries to provide an attention to skill when connecting the water line. To provide fully trained employees to undertake this job. This involved double checking there work.

4. Who are the stakeholders in this situation and what, if any, obligations do they have?

It seems understandable that a business should exist as a separate legal personality as it would be impossible for an individual’s motives and goals to be perfectly in line with that of the company as is demonstrated above in Salomon. Following this theory the idea that the rights and duties of a company are not that of its members and shareholders as demonstrated in the case of Lee v Lee Air Farming .

both a and b (Yes.  The corporate structure provides for limited liability and ease of transferring ownership.)

Many believe that business entities should have an ethical duty to be socially responsible, to work towards increasing its positive effects on society while decreasing its negative effects. Many organizations look for opportunities to be socially responsible while also creating shareholder wealth.

2. Is it possible to lift or pierce the corporate veil of corporate groups on the basis that:

5. Social responsibility varies with company characteristics such as size, industry, products, strategies, marketing techniques, locations, internal cultures, and external demands. GE’s line of businesses mostly consisted of 85% manufacturing in the 80’s and eventually grew into 70% services driven. Thus, GE has a greater social obligation to protect the environment because of the pollutants from its manufacturing plants then say a company such

Corporations can be large or small but they all have some sort of ethical impact on their employees, shareholders, customers, community, and surrounding environments. Richard DeGeorge writes, “We can speak of corporations having moral responsibilities to act in certain ways, and they are morally responsible for the consequences of their actions on people.” (p. 200). Large corporations are comprised of the board of directors, management, and their workers. They also deal with suppliers, customers, and have competitors. This essay will examine the moral responsibilities within a corporation.

Issue 1: I do believe that corporations have a responsibility to society as a whole, not only to maximize their own profits and benefit the economy but also to respect the community that they reside in. They achieve this by not only providing employment, but also upholding an image. It is up to

3.Business to External Environment. Because businesses exist within a community from which they take resources, businesses have ethical responsibilities to the community. This obligation to protect and enhance the society is called Social Responsibility. This also includes responsibilities to the customers from which they earn profits. The main areas of Social Responsibility are:

The concept of a company being a separate legal entity is the most striking illustration in separating the company from its owners. A paramount principle of corporate law is that no shareholder or member of a company is made liable for the obligations incurred by such incorporations A company is different from its members in the eyes of law. In continuations to this the opposite also holds true in the sense that neither can the company be held liable for the acts of its members. It is a fundamental distinction that a company is distinct from its members.

(63)” Limited liability is another thing that is not inherently bad. If shareholders were completely held responsible for the debts of a corporation, then nobody would want to invest in any company. Limited liability helps boost the economy by encouraging people to invest money in companies which then make products for consumers to buy. Limited liability can also be used in a bad way such as when the owners of BP were not able to be held accountable for the environmental damage and the loss of 11 lives because they ignored safety regulations to make a bigger profit. The BP oil spill is another example of corporation privatizing profits and socializing cost. BP cut costs by getting around safety regulations on their oil rig. They Saved money and increased their profit by doing this but all of that profit stayed among the BP shareholders, however when the oil rig exploded the shareholders were not forced to pay for the damages and reparations. The public was forced to pay the cost of cleaning up the gulf. The shareholders made a profit by cutting corners, but when it finally caught up with them and disaster struck, they passed the cost of it on to everyone