From Corpo Economicus to Corpo Sapiens
40 Pages Posted: 30 May 2018
Date Written: 2017
One image of the corporation animates the fields of corporate law and corporate governance both discursively and practically: The corporation is an institution that exists to facilitate the pursuit of a reasonably simple objective—to maximize wealth (i.e. profits) through the correct means (i.e. efficient ones). By and large, the law reifies and perpetuates this image by creating strictures that facilitate its perceived advantages and mitigate its perceived dangers. However, practice has shown that this foundational principle is not always or necessarily consistent with real world experience. This article explores this disconnect.
Keywords: corporation, economics, homo economicus, neoclassical, law, profit maximization, hobby lobby, whole foods, toms, Lehman Brothers
JEL Classification: K22, K20, K0
Suggested Citation: Suggested Citation