CORPORATE LAW

Corporate Law



Table of Contents

Introduction3

Capitalism System3

Critical Evaluation of the capitalism system and the social responsibility4

Development of a socially responsible system5

The Corporate Law's three perspectives6

Importance of corporate Law7

Source models of government7

Corporate Law: principles and characteristics8

Stakeholders and society9

Legal Analysis of corporate social responsibility and stakeholder10

Legal basis of corporate social responsibility12

The Value of corporate social responsibility13

Conclusion14

End Notes16

Introduction

The theory of capitalism assumes that entrepreneurs are one-dimensional human beings, dedicated to one mission that is to maximize profits in their working lives. This interpretation of capitalism insulates the entrepreneurs from all political, emotional, social, spiritual and environmental aspects of their lives. It is also said that the individual search for personal gain will lead to a result in collective optimum.

I believe that the social business is a new business introduced in the market with the objective of making the difference in the world. Investors in the social business can recover the money invested, but not the dividend of the company. The profit will be reinvested to expand and improve the quality of the desired product or service. A social enterprise consists of a no-loss and no dividends situation. Once social business is recognized by law, many existing companies will come forward to create social business, in addition to their core activities. Many activists of nonprofit sector will find this option attractive.

Capitalism System

I believe that capitalism is a story told in half. By defining the entrepreneur in a larger, we can change the character of capitalism radically and solve many problems unresolved social and economic context of the free market. Imagine that the entrepreneur, instead of having a single source of motivation (such as, maximizing profit), it has two, mutually exclusive, but equally compelling.

a) Maximization of profit and

b) Doing good to people and the world.

Each of the two reasons led to a different business. We call the first type "Business to profit maximization" and the second "social business".

In my opinion, the social enterprise can enter into a dedicated capital market to raise capital. Young people from around the world, particularly in rich countries, will find the concept of social business very attractive because it gives them the opportunity to make a difference by using their talents.

Critical Evaluation of the capitalism system and the social responsibility

Almost all social and economic problems of the world will be processed through the social business. The challenge is to apply innovation in the business models and apply them with cost-effective and efficient production of desired social outcomes. The business office is important because it deals with very vital aspects of humanity. According to a research the social businesses could change lives of 60 percent of world population. Third World governments are working to manage the business of health, education and welfare of their countries.

Development of a socially responsible system

This type of social business could easily be created by donors' bi-or multilateral. In case a donor wants to make a loan or a donation for the construction of a bridge in a recipient country, could create a "society for the bridge," of ownership of the local ...