Evolution of Corporate Governance

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The evolution of the culture of our corporations has evolved in many ways and for many reasons. There were many different factors that played an important role in developing the change in the evolution of corporations. Societal and cultural influences played a major role in the early development of the objectives and reason for existence of corporations. Political forces have and will continue to play an influential role in the structure of corporations and the responsibilities corporations have in the communities in which they exist. Economic forces were one of the early influences, but will also continually be a leading factor in how corporations are governed and operated. The changes to how corporations are operated in turn affect…show more content…
The buying and selling of such a large percentage of shares in a company signals and shapes the perception of the company whose shares are bought and sold. Just as the individuals themselves played a major role in the development of corporations, the transition of corporations also becoming an individual transformed the structure and role of corporations. Political influences and the laws that govern corporations perhaps have the most control over the changes in the existence and structure of corporations. When corporations were first formed, they were limited in the number of years they were allowed to be in existence. The purpose for the corporation was to be clear and to have a set date in which the corporation would cease to be in existence as the need for the corporation would be met. Early corporations also were not allowed ownership in other corporations. Corporations also made a monumental step when they took on the characteristic that they were a person. A corporation then had the rights of an individual, but these rights were infinite as corporations no longer were forced to cease in existence. The entire structure of corporations changed with this monumental change in being viewed as a person. Corporations used the make up of the law to their advantage as it was evident through the number of lawsuits that were brought about essentially by
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