Question
The modern corporation is a remarkable form of economic organization that enables everyone in society to interact for mutual gain. Ideally, everyone should benefit from
The modern corporation is a remarkable form of economic organization that enables everyone in society to interact for mutual gain. Ideally, everyone should benefit from the wealth-creating power of business corporations. For corporations to function and provide their benefits, several problems must be solved. First, corporations must be controlled so that investors, employees, customers, suppliers, and other groups that participate in productive activity are protected. This is the task of corporate governance. Second, there must be a control environment within the corporation to detect and deter employee misconduct. This is the task of corporate ethics. Third, corporations must be held accountable so that corporate executives do not engage in fraud or other wrongdoing. In addition to corporate governance, this task is addressed by accounting and auditing, a corporations board of directors, and the criminal law. When an economic system combines all of these elements togethercorporate governance, corporate ethics, and corporate accountabilitythe results can be a prosperous society. Where one or more of the elements is absent, the corporation cannot achieve its full potential.
In approx. 20 sentences, how would you respond--is a corporations charitable giving a corporate function, or is it something extra? **
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