Reflecting on corporate legitimacy

Corporate ethical behaviour has long been debated, and some observers have been questioning the legitimacy of the corporation. While capitalism is credited with propelling the wellbeing of many economies, repeated instances of corporate wrong-doing fuel a deep distrust in the corporation. Corporate misbehaviour during the last two decades has prompted the suggestion that there is a crisis of confidence in the corporation. Nevertheless, the corporate model of business organisation has proved profoundly influential, and now pervades every aspect of social organisation, in particular the public services.One way of making sense of this apparent contradiction is to see legitimate corporate behaviour as unfolding with the evolution of social preferences. Tensions and conflicts within the relationship between capitalism and evolving social preferences drive the movement of capitalism and social preferences. Where is this evolving relationship leading?