Capitalism and the Corporation Essay

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Capitalism and the Corporation The problem to be investigated is what role business has within society with regard to social democracy, corporations and capitalism. In the book, Business Ethics, Case Studies and Selected Readings, case study 3.5 Michael Novak on Capitalism and the Corporation, Michael Novak states that, “Business corporations have transformed the world. They were indispensable in making it free and prosperous.” (Jennings, 2012, p. 105)
Britain vs. America
Business corporations have existed since the middle ages. The initial corporations were burial societies; then monasteries, towns and universities emerged as new corporations. With the birth of America, the older British world and the new world were at variance. The
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The railroad was invented in Britain yet by 1890 the United States had more miles of railroad than all of Europe.
The first manufacturing corporations in the World started in the United States.
Dr. Novak indicated that British corporations were modeled on a privileged class, and that in order for the corporate environment to thrive, the Americans had to eliminate that dependency. The modern business corporation is an original creation of the American independent spirit and imagination. Dr. Novak states that “business is a morally serious calling,” (Jennings, 2012, p. 106) therefore American corporations must take their new found marketplace seriously and create business enterprises that encourage individual liberty and freedom, instead of dependence on the government. In the new world, the goal of corporations is to meet the needs of its customers and the purposes of its investors. (Jennings, 2012, p. 106) American corporate endeavors helped free the United States from tyrannical Britain.
Another current example of the differences between British and American corporations is within the hospitality industry. Sebastian Escarrer took over his father’s company Sol Melia, a Spanish hotel chain; he recognized that he had to do many things in order to stay profitable. He tightened management controls then he created three brands instead of one. The he separated the management operations from the

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