“The corporation as an organizational form is an enormously productive social invention. Partly because of its success it is under increasing attack from various quarters, often under the guise of “protecting” investors from self-interested managers. Some of these attacks are successful simply because the corporation is a poorly understood entity. This paper discusses what the corporation is, what it is not, and how certain misconceptions about the corporate form are fostered by its critics as part of their attack.”

William H. Meckling and Michael C. Jensen, 'Reflections on the Corporation as a Social Invention,' in Controlling the Giant Corporation: A Symposium(Center for Research in Government Policy and Business, Graduate School of Management, University of Rochester, 1982

Adopted from Wikiquote. Last update June 3, 2021. History

Help us to complete the source, original and additional information

Do you have more details about the quote "The corporation as an organizational form is an enormously productive social invention. Partly because of its success i…" by Michael Jensen?
Michael Jensen photo
Michael Jensen 8
American economist 1939

Related quotes

Robert Grosseteste photo

“The first corporeal form, which some call corporeity, I hold to be light.”

Robert Grosseteste (1175–1253) English bishop and philosopher

De Luce seu de Inchoatione Formarum (c. 1215-1220)
Context: The first corporeal form, which some call corporeity, I hold to be light. For light of its own nature diffuses itself in all directions, so that from a point of light a sphere of light of any size may be instantly generated, provided an opaque body does not get in the way. Corporeity is what necessarily follows the extension of matter in three dimensions, since each of these, that is corporeity and matter, is a substance simple in itself and lacking all dimensions. But simple form in itself and in dimension lacking matter and dimension, it was impossible for it to become extended in every direction except by multiplying itself and suddenly diffusing itself in every direction and in its diffusion extending matter; since it is not possible for form to do without matter because it is not separable, nor can matter itself be purged of form. And, in fact, it is light, I suggest, of which this operation is part of the nature, namely, to multiply itself and instantaneously diffuse itself in every direction. Therefore, whatever it is that produces this operation is either light itself or something that produces this operation in so far as it participates in light, which produces it by its own nature. Corporeity is therefore either this light, or is what produces the operation in question and produces dimensions in matter in so far as it participates in this light itself and acts by virtue of this same light. But for the first form to produce dimensions in matter by virtue of a subsequent form is impossible. Therefore light is not the form succeeding this corporeity, but is this corporeity itself.

John Kenneth Galbraith photo

“If the state is the executive committee of the great corporation and the planning system, it is partly because neoclassical economics is its instrument for neutralizing the suspicion that this is so.”

John Kenneth Galbraith (1908–2006) American economist and diplomat

Power and the Useful Economist (1973)
Context: This is what economics now does. It tells the young and susceptible (and also the old and vulnerable) that economic life has no content of power and politics because the firm is safely subordinate to the market and the state and for this reason it is safely at the command of the consumer and citizen. Such an economics is not neutral. It is the influential and invaluable ally of those whose exercise of power depends on an acquiescent public. If the state is the executive committee of the great corporation and the planning system, it is partly because neoclassical economics is its instrument for neutralizing the suspicion that this is so.

Maimónides photo

“Far from it be the notion that the Supreme Being is corporeal, having a material form.”

Source: Guide for the Perplexed (c. 1190), Part I, p.33 (1881) Tr. Friedlander

Adolf A. Berle photo
Joel Bakan photo
C.G. Jung photo

“Because we cannot discover God's throne in the sky with a radiotelescope or establish (for certain) that a beloved father or mother is still about in a more or less corporeal form, people assume that such ideas are "not true."”

I would rather say that they are not "true" enough, for these are conceptions of a kind that have accompanied human life from prehistoric times, and that still break through into consciousness at any provocation.
Man and His Symbols (1964)

Herbert Spencer photo

“Influences of various kinds conspire to increase corporate action and decrease individual action.”

Herbert Spencer (1820–1903) English philosopher, biologist, sociologist, and prominent classical liberal political theorist

The Man versus the State (1884), The Coming Slavery
Context: Influences of various kinds conspire to increase corporate action and decrease individual action. And the change is being on all sides aided by schemers, each of whom thinks only of his pet plan and not at all of the general reorganization which his plan, joined with others such, are working out. It is said that the French Revolution devoured its own children. Here, an analogous catastrophe seems not unlikely. The numerous socialistic changes made by Act of Parliament, joined with the numerous others presently to be made, will by-and-by be all merged in State-socialism—swallowed in the vast wave which they have little by little raised.
"But why is this change described as 'the coming slavery'?," is a question which many will still ask. The reply is simple. All socialism involves slavery.

David Cay Johnston photo

Related topics