Corporate Virtue and the Joint-Stock Company

Abstract

This article traces the historical evolution of the notion of the “virtuous corporation,” from its origins as a public-spirited fellowship to the modern joint-stock company kept in check by the market for corporate control. We suggest that this change in the legal personality of the firm has resulted in a minimalist and extrinsic view of corporate virtue. A more intrinsic and intentional virtue can come from within the enterprise. Employing the language of principal-agent analysis, we argue that “agents” who reflect theologically on the corporation can help create a renewed vision of the virtuous enterprise.