Why the corporate contract reflects a balance of power

Acorporation is a legal fiction that embodies the contract between shareholders, executives, employees and customers. Often these groups have conflicting interests: the more you pay your employees, the higher the price for your customers; or the dividends you pay your shareholders can come at the expense of your customers. The balance of power in the corporate contract depends in part on the institutional landscape shaped by the political influence of these groups. Thus the history of corporations can be told as the history of social and economic institutions…

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