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In social science and economics, corporate capitalism is a capitalist marketplace characterized by the dominance of hierarchical and bureaucratic corporations.
Overview
In the developed world, corporations dominate the marketplace, comprising 50%[citation needed] or more of all businesses. Those businesses which are not corporations contain the same bureaucratic structure of corporations, but there is usually a sole owner or group of owners who are liable to bankruptcy and criminal charges relating to their business. Corporations have limited liability.[citation needed]
Corporations are usually called public entities or publicly traded entities when parts of their business can be bought in the form of shares on the stock market. This is done as a way of raising capital to finance the investments of the corporation. The shareholders appoint the executives of the corporation, who are the ones running the corporation via a hierarchical chain of power, where the bulk of investor decisions are made at the top and have effects on those beneath them.
Criticisms
Corporate capitalism has been criticized for the amount of power and influence corporations and large business interest groups have over government policy, including the policies of regulatory agencies and influencing political campaigns. Many social scientists have criticized corporations for failing to act in the interests of the people, and their existence seems to circumvent the principles of democracy, which assumes equal power relations between individuals in a society.[1]
Dwight D. Eisenhower criticized the notion of the confluence of corporate power and de facto fascism,[2] but nevertheless brought attention to the "conjunction of an immense military establishment and a large arms industry"[3] (the military–industrial complex) in his 1961 Farewell Address to the Nation, and stressed "the need to maintain balance in and among national programs—balance between the private and the public economy, balance between cost and hoped for advantage".[3]
See also
References
- ^ Bakan, Joel (writer). "The Corporation (2003)" (documentary).
- ^ Ira Chernus (1997). "Eisenhower's Ideology in World War II". Armed Forces & Society. 23(4): 595–613.
- ^ a b "Military-Industrial Complex Speech, Dwight D. Eisenhower, 1961". coursesa.matrix.msu.edu. Archived from the original on August 12, 2013. Retrieved September 3, 2015.
External links
- Vitali, Stefania; Glattfelder, James B.; Battiston, Stefano (October 26, 2011). Montoya, Alejandro Raul Hernandez (ed.). "The Network of Global Corporate Control". PLOS ONE. 6 (10). Public Library of Science (PLoS): e25995. arXiv:1107.5728. Bibcode:2011PLoSO...625995V. doi:10.1371/journal.pone.0025995. ISSN 1932-6203. PMC 3202517. PMID 22046252.
- "Revealed – the capitalist network that runs the world". New Scientist. Retrieved August 17, 2017.
