Journal of Scientific Papers

ECONOMICS & SOCIOLOGY


© CSR, 2008-2015
ISSN 2071-789X



Directory of Open Access Journals (DOAJ)


Strike Plagiarism

Partners
  • General Founder and Publisher:


    Centre of Sociological Research

  • Publishing Partners:

     
     
    University of Szczecin (Poland)


    Mykolas Romeris University (Lithuania)

     

     
     
    Alexander Dubcek University of Trencín, Faculty of Social and Economic Relations (Slovak Republic)



     
    University of Entrepreneurship and Law, (Czech Republic)

     

  • Membership:


    American Sociological Association


    European Sociological Association


    World Economics Association (WEA)

     


    CrossRef

     


The Morally Hazardous Modern Corporate World – a Free Market Distinction Between Vicious and Vitiated Corporations

Vol. 5, No 2a, 2012

Octavian-Dragomir Jora, Assistant Professor, Ph.D.

Department of International Business and Economics

Faculty of International Business and Economics

The Bucharest University of Economic Studies

 

THE MORALLY HAZARDOUS MODERN CORPORATE WORLD – A FREE MARKET DISTINCTION BETWEEN VICIOUS AND VITIATED CORPORATIONS

 

Bucharest, Romania

Address: 6, Piata Romana, 1st district, 010374, Romania

+4.021.319.19.00

E-mail: octavian.jora@yahoo.com

 

Mihaela Iacob, Assistant, Ph.D.

Department of Finance

Faculty of Finance, Insurance

Banking and Stock Exchange

The Bucharest University of Economic Studies

Bucharest, Romania

Address: 6, Piata Romana, 1st district, 010374, Romania

+4.021.319.19.00

E-mail: miuiacob@yahoo.com

 

ABSTRACT. In the present paper, we identify the corporation in its ultimate, proprietary meaning (as an expression of an aggregate of resources owned by shareholders and used according to their allocating-entrepreneurial vision), homogenizing, in some way, the entrepreneurial-capitalistic-managerial “interests” from within itself and, this time, treating the “shareholders vs. managers” tension as irrelevant. We distinguish, within this simplified framework, situations where corporate actors (the “shareholding-managerial aggregate”) gain together social privileges, undue rights on third party resources or, on the contrary, are prejudiced, together, by third parties. Either way, the “key character” is the State, which institutionalizes aggression and incites to free riding. We consider, in this logic, by “vicious-corporation” that which succeeds (while tolerated / encouraged by the public authorities) in acquiring resources from the rest of the society, without the righteous owners’ prior consent. It does this either by “material” redistribution – explicit transfer of expropriated resources – or by “virtual” redistribution – implicit rents from dedicated regulations –, internalizing this behaviour (moral hazard) in its day to day routine. We symmetrically define by “vitiated-corporation” that which is expropriated (materially, virtually) by third parties (mainly the rival corporations) which take comfort from this habit, rather than simply serving consumers.

 

Received: June, 2012

1st Revision: September, 2012

Accepted: December, 2012

 

 

JEL Classification:B53, K20, L20, M20

 

Keywords: business corporation, private property rights, free market, interventionism, financial regulations, antitrust regulations, moral hazard, praxeological ethics and economics