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Corporate cowboys : Comments
By Colin Penter, published 24/6/2010The tenets of 'limited liability' and 'corporate personhood' make it possible for corporations to avoid criminal responsibility.
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Craft and industrial workers feared absentee corporate owners would turn them into “a commodity being as much an article of commerce as woollens, cotton, or yarn,” according to historian Louis Hartz.
Incorporated businesses were banned from taking any action that citizens and legislators did not specifically allow.
In 19th-century America, many citizens believed that it was society’s inalienable right to abolish an evil.
During the last third of the 19th century, “Corporations confronted the law at every turn,” according to Harvard law professor Lawrence M. Friedman.
Workers, the courts also ruled, were responsible for causing their own injuries on the job. Judges created the “right to contract” doctrine, which stipulates that the government cannot interfere with an individual’s “freedom” to negotiate with a corporation for wages and working conditions.
Judges established the “managerial prerogative” and “business judgement” doctrines.
The US Supreme Court ruled that a private corporation was a “natural person” under the US Constitution, sheltered by the 14th Amendment, which requires due process in the criminal prosecution of “persons.” Following this ruling, huge, wealthy corporations were allowed to compete on “equal terms” with individuals