Hail, Corporations: Empires of Commerce
Whether you work for one or you simply have a strong interest in the intersection of a large number of people for the same purpose, you will find that the corporation and its history is something that has a lot to interest you. At the most basic level, a corporation is a legal entity in its own right and as such, it is considered something separate from the people who work in it and even from those who own it. Although a corporate body can be formed for almost any reason, you will find that for the most part, the term refers to groups of people who band together and pool their resources for business reasons.
One of the big things you should remember when looking at corporations is the fact that they’re a product of corporate law. That means there’s a balance that needs to be struck between shareholders, who invest the capital needed by the company to function, and employees, who provide services and labor. As time goes on, more and more corporations appear in the business landscape. That’s because the size and large amount of revenue corporations tend to exhibit allow them to supply benefits that smaller businesses just can’t match.
The history of corporations can be traced back to the Roman era, and in fact, the term “corporation” comes from the Latin word “corpus” meaning a body, or in this case, a body of people who essentially act as one. During the time of the ancient Romans, there were groups of people who carried on business as a unit in this fashion, but they were far from alone. The Maurya Empire of ancient India did much the same. The medieval period of Europe saw churches becoming incorporated, and almost simultaneously, so did cities. There was a very strong interest in the creation of corporations as it formed a kind of support that was very necessary at the time. There was also the fact that it could promise security and even a form of immortality.
The essential goal of a corporation, in one sense, is to ensure that the institution would survive longer than the individual. As a matter of fact, the Stora Kopparberg mining company is thought to be the oldest corporation in the world, having gotten its start from a charter signed by King Magnus Eriksson of Sweden in 1347. Similar corporations which have since been dissolved or fell out of use inlclude the Hudson’s Bay Company and the Dutch East India Company. The Dutch East India company was similarly given a charter by the Dutch monarch and started taking over trade in the Moluccan Islands in order to capitalize on the European need for spices.
Though today we tend to see corporations as large institutions inside tall glass buildings, it is definitely worth remembering that they came from much humbler origins. All corporations will work towards a common goal, and despite the fact that the earlier corporations lacked the office chairs, copiers and computers that we see so often today, it all comes down to the same thing.
Filed under: Business