THE CORPORATION

An incisive history of corporations coupled with a prognosis of their future.

According to authors Sarokin and Schulkin, corporations tend to be viewed contradictorily, both as catalysts of economic growth and ingenuity as well as corrupt drivers of inequality and wielders of undemocratic political influence. In order to properly understand the vices and virtues of corporations, the authors synoptically but rigorously reconstruct their long history, which dates back, at least in embryonic form, to the Roman Empire. However, the corporation as we now understand it, a “group of individuals acting as a single entity, and recognized as such under the law,” begins to emerge in 16th- and 17th-century Europe in the form of massive trading companies like the Dutch West India Company. Everything changed, though, when the United States was founded since its unique constitutional structure and entrepreneurial energy contributed to the explosive proliferation of the corporation through the 19th and 20th centuries. The authors deftly chronicle not only the evolving character of the American corporation, but also the nation’s shifting sentiments regarding it, including a thoughtful account of the regulatory backlash against the corporation during the Progressive Era and the tumultuous 1970s. Sarokin and Schulkin also furnish a convincing vision of the future corporation’s challenges, including globalization and the profound transformations wrought by the unstoppable march of technological innovation. Their prose is unfailingly lucid, and they avoid any peremptory dogmatism, carefully assessing the corporation’s pros and cons. “None of these institutions are perfectly angelic and none of them are unredeemably evil. Nor should we expect them to be. Corporations—like governments, like organized religion—are composed of human beings who bring to them all the promise and all the foibles that humanity possesses.” This is a timely contribution to an important issue, as philosophically attentive to the big picture as it is to the granular details of law and policy.

A remarkably concise, perspicacious introduction to the corporation’s past and future.