Ronald Dore
- Published in print:
- 2009
- Published Online:
- February 2010
- ISBN:
- 9780199563630
- eISBN:
- 9780191721359
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/acprof:oso/9780199563630.003.0005
- Subject:
- Business and Management, Corporate Governance and Accountability, HRM / IR
In this chapter, Ronald Dore contrasts the rhetoric about the Japanese corporation's duties to multiple stakeholders, and the absence of proposals to modify the extent to which the law makes ...
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In this chapter, Ronald Dore contrasts the rhetoric about the Japanese corporation's duties to multiple stakeholders, and the absence of proposals to modify the extent to which the law makes shareholders the sole sovereign controller of the fate of companies. Under the “new orthodoxy” it has become difficult to publicly defend practices such as reciprocal shareholding, which shielded companies from hostile takeovers in the past, and strong constraints are applied to the use of new defensive measures. He cites the evolution of the Corporate Value Study Group, and its position on the primacy of shareholder interests, and argues that a strong lever for change has been wish to avoid charges of being heisateki (clannishly exclusive) from the foreign investment community and its Japanese allies. He concludes that, despite some management mutterings, Japan's conversion to shareholder capitalism may be unstoppable.Less
In this chapter, Ronald Dore contrasts the rhetoric about the Japanese corporation's duties to multiple stakeholders, and the absence of proposals to modify the extent to which the law makes shareholders the sole sovereign controller of the fate of companies. Under the “new orthodoxy” it has become difficult to publicly defend practices such as reciprocal shareholding, which shielded companies from hostile takeovers in the past, and strong constraints are applied to the use of new defensive measures. He cites the evolution of the Corporate Value Study Group, and its position on the primacy of shareholder interests, and argues that a strong lever for change has been wish to avoid charges of being heisateki (clannishly exclusive) from the foreign investment community and its Japanese allies. He concludes that, despite some management mutterings, Japan's conversion to shareholder capitalism may be unstoppable.
Lawrence E. Mitchell
- Published in print:
- 2001
- Published Online:
- October 2013
- ISBN:
- 9780300090239
- eISBN:
- 9780300137767
- Item type:
- book
- Publisher:
- Yale University Press
- DOI:
- 10.12987/yale/9780300090239.001.0001
- Subject:
- Economics and Finance, Development, Growth, and Environmental
This book explores the philosophical and social environment in which the modern American corporation is grounded, and explains why, from a cultural perspective, the people should not expect the ...
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This book explores the philosophical and social environment in which the modern American corporation is grounded, and explains why, from a cultural perspective, the people should not expect the corporations to behave responsibly and accountably. The American corporation is a subject of wonder for the fabulous wealth that this protected capital has produced, freeing so many people to pursue other dreams and lead lives of greater meaning than merely making a living. It is a wonder, because, in these ways, modern American business corporations have created material well-being that allows so many people to live the eighteenth-century liberal ideal on which America was founded, an ideal of individual freedom, autonomy, and choice. However, the American corporation is also a subject of horror for the way its limited liability permits it to dump the costs of production onto those who are powerless to affect its conduct. The book examines the legal structure of the corporation in finer detail, demonstrating how each aspect of that structure contributes to some problems identified and suggesting ways in which an environment might be created in which managers, stockholders, and workers can use the best aspects of the structure to more likely assure responsible, long-term management. It also presents a brief examination of the nature of capitalism and its various forms.Less
This book explores the philosophical and social environment in which the modern American corporation is grounded, and explains why, from a cultural perspective, the people should not expect the corporations to behave responsibly and accountably. The American corporation is a subject of wonder for the fabulous wealth that this protected capital has produced, freeing so many people to pursue other dreams and lead lives of greater meaning than merely making a living. It is a wonder, because, in these ways, modern American business corporations have created material well-being that allows so many people to live the eighteenth-century liberal ideal on which America was founded, an ideal of individual freedom, autonomy, and choice. However, the American corporation is also a subject of horror for the way its limited liability permits it to dump the costs of production onto those who are powerless to affect its conduct. The book examines the legal structure of the corporation in finer detail, demonstrating how each aspect of that structure contributes to some problems identified and suggesting ways in which an environment might be created in which managers, stockholders, and workers can use the best aspects of the structure to more likely assure responsible, long-term management. It also presents a brief examination of the nature of capitalism and its various forms.
Lawrence E. Mitchell
- Published in print:
- 2001
- Published Online:
- October 2013
- ISBN:
- 9780300090239
- eISBN:
- 9780300137767
- Item type:
- chapter
- Publisher:
- Yale University Press
- DOI:
- 10.12987/yale/9780300090239.003.0010
- Subject:
- Economics and Finance, Development, Growth, and Environmental
This chapter argues that the mandate of stockholder profit maximization encourages managers to treat workers poorly, both to the disadvantage of the workers and the corporation as a whole. It looks ...
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This chapter argues that the mandate of stockholder profit maximization encourages managers to treat workers poorly, both to the disadvantage of the workers and the corporation as a whole. It looks at two essential components of the problem: worker treatment and its effect not only on the individual worker but on social and political structures as well; and the possibilities of worker ownership as a solution. The chapter reveals that worker treatment and its consequent social ills can be significantly ameliorated, even within the current system of investor capitalism. It discusses how workers who are made to feel responsible and accountable, who identify with the goals of their employer, and who are made to feel like important contributors with independent ideas are far more likely to care about the corporation than workers who are treated as nothing more than living machines designed for the production of profit.Less
This chapter argues that the mandate of stockholder profit maximization encourages managers to treat workers poorly, both to the disadvantage of the workers and the corporation as a whole. It looks at two essential components of the problem: worker treatment and its effect not only on the individual worker but on social and political structures as well; and the possibilities of worker ownership as a solution. The chapter reveals that worker treatment and its consequent social ills can be significantly ameliorated, even within the current system of investor capitalism. It discusses how workers who are made to feel responsible and accountable, who identify with the goals of their employer, and who are made to feel like important contributors with independent ideas are far more likely to care about the corporation than workers who are treated as nothing more than living machines designed for the production of profit.
