The Nature of the Corporation: Implications for Ethical Governance

The nature of the corporation has been a prolonged debate since the 19th century. The question is whether the corporation is a private entity or a public institution by nature. This paper argues that the corporation is not a purely private body, nor a purely public institution. It is a unique entity with some combined features of both private and public institutions. The corporation as a quasi-public business entity by nature has significant implications for corporate ethical governance. If nobody is actually responsible for corporate failures under the current institutional arrangements for governance, how do we ensure that the corporation is accountable, responsible and sustainable? Should the public gain some control over the corporation? The paper will discuss about public engagement in corporate governance to answer the above questions.