BESR | L1 | NATURE OF CORPORATIONS

Corporations

An entity recognised by law that ensures a company continues beyond the natural lives of its members

SEC

The Securities and Exchange Commission where a company must register to incorporate

Barangay

The local administrative division from which a corporation must obtain clearance

BIR

The Bureau of Internal Revenue where a corporation must register for tax purposes

C Corporation

The most common type of corporation in the Philippines where both owners and the entity are taxed individually through double taxation

S Corporation

A type for smaller corporations where only shareholders are taxed through single taxation

Non-Profit Corporation

Corporations that provide charitable services and do not aim to gain a profit

Publicly Held

Corporations listed on the Philippine Stock Exchange that sell shares to the public without needing permission

Privately Held

Corporations that are not open to the public and have immediate members as shareholders

Limited Liability Company

A setup where members are financially liable for debts only up to the amount of their individual investments

Double Taxation

A disadvantage of C Corporations where members pay taxes for both themselves and the corporation

Corporate Internal Decision & Moral Agency

The idea that an individual's personal actions become corporate actions because they always represent the company

Corporate Punishment

The consequences that employees face for negative or rebellious actions

Corporate Responsibility

The specific tasks and duties that employees are expected to perform

Diffusion of Responsibility

The act of blaming others for mistakes or claiming one was only following orders

Corporate Accountability

The willingness to take criticism and admit faults in any situation

Narrow View

A profit-focused perspective where corporations use resources only to increase profit

Broader View

A view where businesses aim for profit while fulfilling social and environmental obligations

Invisible Hand

The result of self-pursuit where profit is maximised without external direction

Utilitarianism

An ethical framework focused on maximising utility or happiness to achieve the best results

Deontology

An ethical framework based on adhering to moral laws and rules because it is the right thing to do

Virtue Ethics

A framework emphasising moral character and hiring people with good values to foster a healthy work culture.

Institutionalizing Ethics

1. Acknowledging the importance of good morals in businesses

2. Encourage members to take responsibilities seriously

3. Growing maturity and handling criticism

4. Recognizing pluralistic/diverse environments of social systems