How Business Influenced by Law

Kris Johnson

MNGT 5990 OC SU 2017

July 17, 2017  

How Business Influenced by Law

        A corporation is defined as a company or group of people authorized to act as a single entity (legally a person) and is recognized as such in law. Corporations are owned by their stockholders (shareholders) who share in profits and losses generated through the firm's operations, and have three distinct characteristics; limited liability to the creditors and other obligors only up to the resources of the firm,  continuity of existence: a firm can live beyond the life spans and capacity of its owners, and most importantly legal existence: a firm can (like a person) is able to buy, sell, own, enter into a contract, and sue other firms, and be sued by them. Corporations also benefit from many of the privileges and responsibilities that an individual possesses including the ability to influence law. In recent years the U.S Supreme Court has ruled to give expanded right to corporations including the right to contribute or donate money to candidate elections, and for some for-profit corporations, on religious grounds, refuse to comply with a federal mandates .

Fairness is often questioned in a corporation’s ability to influence law and at the same time have no extra legal obligations. To me this means that the corporation isn’t above the law, but rather that the business itself should not be expected to go above and beyond what it is required to do so. This point is shared in the opinions of Fieser who feels as if “business is supposed to be unscrupulous and driven by the need for success.” In fact many of Fieser’s claims point to the obvious moral faults that are perfectly legal such as suggestive advertising and such that  would otherwise count as lying and be viewed as unethical. Other examples given include environmentally damaging business practices, companies maintaining unhealthy working conditions and even the off putting process of labor negotiations between labor unions and management. Fieser also suggests that two prevailing principles exist in business: the profit principle and the law principle.  Capitalism by nature should not be viewed as inherently immoral and that in the modern world business related laws are morally conscientious. From the Fieser perspective any concerns with right or wrong should be discussed at the time that laws are written rather than be left to the decisions of the corporations themselves.

Fiesers also refers to Friedman in the argument that efforts related social responsibility are counterproductive to good business because of the fact that dollars given away would otherwise come as a compromise to returns to stock holders, lower wages for employees and increased prices for customers. Fisers also discusses reasons why supra-legal moral obligations are unreasonable most notable is his point that, “moral obligations are only valid if they can reasonably be performed and that business people can’t be expected to perform obligations above what the law requires.” Although Fieser’s perspective is solid in that rules should govern actions, there is also thought that conscious thinking extends beyond legal requirement.