Tuesday, October 19, 2010

Private Property and Laws

AKA – Do Corporates have Social Responsibility?

Private enterprises are able to do what they do because they are allowed to own things. If no private ownership was allowed we’d have (some form of) socialism. But not private enterprise.

So why is it that you can’t just walk into, say Walmart, and pick up what you want and walk away. It is because there are laws against stealing. And who makes these laws? Who enforces them? In most modern democracies, such laws would be made by an elected body and enforced by an administration deriving it’s power from this elected body. Thus private enterprise is able to own things only because laws allow it to own things. Going by the principle that democracy is people’s rule (true in theory but not in practice) one could say that people are allowing private enterprise to make profit by allowing it to own things. Could one then not say that private enterprise has social responsibility in return for this allowance that people are making for it?

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