Defining The Corporate Veil & Its Legal And Ethical Boundaries Essay

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Defining the Corporate Veil & Its Legal and Ethical Boundaries Introduction What is a viable reason for the Courts to pierce the Corporate Veil? The economy improves as businesses expand and increase in revenue. Corporate Social Responsibility (CSR) dictates that corporations go above and beyond in taking responsibility for the effect the corporation on has on the environment and the social wellbeing. With as many people in production, the lower the employment rate can be expected and the better the economy. Through research, we will evaluate and define the Corporate Veil, identify legal and ethical dilemmas and explain legal and ethical business decisions within the business organization. What is the Corporate Veil? A Corporation or LLC allows the individual to become a separate entity from the Corporation. Many business owners and entrepreneur enter a partnership or corporation to protect their personal assets. This is especially important when you are in the business to expand the business and market the product/service. The corporate veil is defined as “a situation in which courts put aside limited liability and hold a corporation 's shareholders or directors personally liable for the corporation 's actions or debts” (LII, n.d.). There is an invisible shield that the “veil” separates the corporate entity and provides protection for the people (directors, shareholders, etc.) also known as the “alter ego”, and keeps them covered from personal liability behind the
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