3. Should individuals (directors, employees, shareholders) bear any responsibility for the actions of a corporation? If so, to what degree?
A corporation is a legal entity separated from its owners, who become shareholders. It can act in its own name and can enter into contracts, pay taxes, sue and be sued, among other things. The corporation is liable for its own debts and obligations whereas the shareholders enjoy limited liability.
Nowadays, corporation’s liability for actions becomes diffused and individuals frequently become disconnected from the consequences of their actions and don’t feel responsible for them. Since the corporation can’t make decisions by itself, those individuals engaged in irresponsible actions should bear any responsibility. That limited liability often hides irresponsible people that threaten the stability of the corporation. There should be a more rigid legislation regarding responsibilities within corporations.
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Hi Dani,
ResponderEliminarI agree with you, the legislation should be stronger to them, because, we can deny that a corporation does not have an imperial power over all the world, that is hard to control and in many cases it makes imposible to definy which acts are according to law and which ones are against it.
Best regards,
Manu.
I totally agree with Daniels answer, and I want to congratulated him because this is an excellent answer for this question, and it really matched with my answer of this same question. GOOD WORK DANIEL!
ResponderEliminarHi dani!! I think in same way than you, because if it isnt a legislation that controls the actions of the corporations they will have the power to take the decisions that they want without considering the damage they can cause and only thinking in the profits and in increase the size of the corporation
ResponderEliminar