SOSC 1341 Lecture Notes - Lecture 2: Joel Bakan, Corporate Social Responsibility, Adrian Wooldridge

• School: York University
• Department: Social Science
• Course: SOSC 1341
• Professor: Stephan Dobson

Document Summary

Limited liability can be deined as a shareholder never losing more than what they had invested into a corporaion. If the company ends up going into millions of dollars in debt, that shareholder will not have to pay more than a penny they invested into that company. Corporaions had introduced limited liability because investors were scared to risk all of their money into that company; their houses would be at risk if that corporaion was doom to failure. The corporaions needed investments for their company, which is why they had a new way of investment. Limited loss but an unlimited gain for the shareholders! This atracted even the middle class to invest in companies. This was also the start to corporate dominaion. In the readings, the company: a short history of a revoluionary idea and the. Corporaion, they had similar ideas about limited liability and the start to a whole new revoluion.