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The Law Says Corporations are Persons, but Psychology Knows Better
Author(s) -
Fox Dennis R.
Publication year - 1996
Publication title -
behavioral sciences and the law
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.649
H-Index - 74
eISSN - 1099-0798
pISSN - 0735-3936
DOI - 10.1002/(sici)1099-0798(199622)14:3<339::aid-bsl246>3.0.co;2-7
Subject(s) - restructuring , political science , corporate law , law , law and economics , psychology , corporate governance , sociology , economics , management
Abstract Psychologists interested in law and public policy have begun to examine the nature of corporations in American society and the serious consequences of corporate irresponsibility. The dominant trend identifies areas where corporate behavior falls short of ethical standards or leads to unacceptably risky decisions and suggests ways to reform corporations or the laws that regulate them. This well‐intentioned approach is consistent with psychology's liberal reformist tendency. Unfortunately, it neither challenges the flawed psychological underpinnings of the legal fiction that corporations are legal persons nor compensates sufficiently for the dynamics of individual behavior in corporate settings. Instead, psychologists should advocate fundamental restructuring of our corporate society.