Corporate Power Discussion Questions

Corporate Power Discussion Questions

Power can be described as the capability, capacity, or ability to carry out a task. In business terms, corporate power is said to be the power and authority of business entities as per the governing and applicable laws entered into forming terms of the documents and agreements of a particular transaction. The supra vires theory is applicable to companies. Corporations are not allowed to operate outside of their authority (Seymour, 2022). The state laws, acts, case law, their articles of incorporation, and other legislation and bye-laws that are specified must be followed by them. 

A company has two types of power, namely express and implied power. Express power includes corporate being sued and sued in its name, power to sell, purchase, enter into an agreement, and so on. In contrast, implied power includes hiring employees to operate and run its business, these include the ability to set up businesses and engage in authorised corporate activities such as advertising, special offers, leasing cars and more (Ba, 2022). 

There are certain limitations also placed on the actions taken by the corporates. The power and control of a corporation confer upon the directors, officers, and shareholders. The directors manage the corporation; the officers oversee the corporation's day-to-day administration and work closely with the employees. However, shareholders are the owners of the corporation but have minor decision-making authority. 

According to the dominance thesis of corporate power, companies are the most powerful force in society (Seymour, 2022). The dominance of corporate power, according to the thesis, is the outcome of firms' control over practically every aspect of life, including the creation of employment, the management of resources, and political choices. A corporation has control over business when it makes decisions about significant investments and employment issues that have a significant influence on any economy. For instance, a corporate power elite may choose to close a manufacturing facility in New York and move it to Mexico in order to avoid providing the facility's employees with union salaries and health care. This is why the society, through unions, claims for their due rights and pleads for regulation of corporate power through the law. 

References

Ba, Y. (2022). Power Dynamics and Corporate Power in Governance Processes: Evidence From US Environmental Governance Systems. The American Review of Public Administration, 52(3), 206-220. 

Seymour, B. (2022). Corporate Politics: ESG and the First Amendment. Available at SSRN 4169280.