Corporate Responsibilityby

Dr. William J. Frey

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CR Vocabulary

History of the Corporation

CIDS Pirate INC.

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Row 1, Col 1

Literally “beyond the power”. If a corporate charter designates an activity

using this term, then this activity is outside the scope of the legitimate

powers of the corporation.

What is Ultra Vires?

1,2

The emergence of the corporation as a “passive device” to hold property solved this historical

problem.

To whom would the monastery pass when the abbot dies?

1,3

Corporate Charter (formal and informal), Mission Statement,

and Core Values

What provides insights into the corporate goals in the corporation’s in

internal decision-making structure?

1,4

Pirates sign this document before embarking on their voyage of plunderand looting. It serves as their charter.

What are the Articles of Agreement?

2,1

These proto corporations were formed to pool capital and coordinate complex business activities. Investors

provided money and managers oversaw day-to-day operations. These proto corporations failed

because of unlimited liability

What are Joint Stock Companies?

2,2

These proto corporations regulated theexercise of a craft or skill. They re-stricted who could practice the skill

and set standards to which the public could hold them accountable in the ex-

ercise of the craft or skill.

What are trade guilds?

2,3

These help us classify actions per-formed by individuals as performing

certain corporate functions

What are decision recognition rules?

2,4

Every Man has a Vote in thein the Affairs of Moment; has

equal Title to the fresh Provisions, or strong Liquors, at any Time

seized, and may use them at Pleasure, unless a Scarcity make

it necessary, for the Good of all, to vote a Retrenchment.”

What is an example of a Pirate Corporation Decision Recognition Rule?

3,1

Originally this device was used tocontrol the corporation by limiting the scope of its legitimate activities.

If an activity was not included in the charter it was called ultra vires or beyond the power of the

corporation.

What is the corporate charter?

3,2

These proto corporations success-fully pooled capital and coor-

dinated activity but suffered fromthe problem of unlimited

liability.

What are Joint Stock Companies?

3,3

Stations that human individuals take up within a corporation that

come with tasks and duties attached.

What are Corporate Roles?

3,4

Directors (Voting Crew who elect a captain and quartermaster)

Managers: Captain and Quartermaster (oversee daily operations)

Surgeon, Carpenter, Caulker, Armorer (Professional Staff Personnel)Line Employees (Deck Swabbers and

Draftees)

What are the roles that are found in the Pirate Corporation?

4,1

Holding corporations legally and morally accountable for actions

performed in their name. Creates philosophical problems concerning the meaning of “personhood” and

“agency.”

What is corporate legal and moral responsibility?

4,2

Corporations began to shield investors from liability beyondinvestment. They were initiallycontrolled by these devices but

competition between states led to its weakening.

What is the corporate charter?

4,3

This structure spells out how different corporate roles arerelated to and coordinated

with one another.

What is the Organizational Flow Chart?

4,4

What is the Organizational Flow Chart of the Pirate Corporation?

Directors

Captain

Professional Crew

Deck Swabbers

Quartermaster

Draftees

5,1

Moral agents have an obligation to adjust their actions and

habits to respond to lessons learned from the past.

What is the Principle of Responsive Adjustment?

5,2

In the 20th Century, corporations become this.

What are legal persons?

5,3

This device allows (or licenses) theredescription of the actions anddecisions of human individuals

as corporate actions and decisions.

What is the Corporation Internal Decision Structure (or CIDS)?

5,4

When the crew of the PirateCorporation do this they become elevated into Corporate Directors

What is elect by democratic vote the Captain and Quartermaster?