Capitalism and corporations The problem to be investigated is what role business has within society compared to social democracy, corporations and capitalism. In the book Business Ethics, Case Studies and Selected Readings, Case Study 3.5 Michael Novak on Capitalism and Corporations, Michael Novak states that “business corporations have transformed the world. They were indispensable to make it free and prosperous." (Jennings, 2012, p. 105) Britain versus AmericaTrading companies have existed since the Middle Ages. The first guilds were burial societies; then monasteries, cities and universities emerged as new corporations. With the birth of America, the old British world and the new world were at odds. The main difference between British and US companies was the ability of Americans to create new companies without considering the tedious British laws that were undermining business activity throughout Europe. (Miller, 1998) With the creation of the English railways a movement towards limited liability was started. The UK regards each company within an affiliated group as a separate legal entity, subject to piercing of the corporate veil only in exceptional circumstances which generally involve intentional acts of deception or attempts to avoid a legal obligation. UK courts have proven reluctant to pierce the corporate veil. Under the UK's entity liability approach, the general rule is that the parent company is only liable for its own individual liabilities. (Miller, 1998, p. 80) In Britain, people within companies were seen as an exclusive group of privileged people but tightly controlled by the government. The strong desire to......middle of paper......reading (Seventh edition).Lavelle, A. (2008). Death of Social Democracy: Political Consequences in the 21st Century [Ebrary Reader]. Retrieved from: http://web.ebscohost.com.proxy1.ncu.edu http://site.ebrary.com.proxy1.ncu.edu/lib/ncent/docDetail.action?docID=10228274McCutchen, P. (2005 ). Three steps to improve your company's RQ (reputation quotient) for better profitability. Retrieved from http://phil-mccutchen.wrytestuff.com/swa8074.htmMiller, S. K. (1998). Piercing the Corporate Veil between Affiliates in the European Community and the United States: A Comparative Analysis of US, German and British Approaches. American Journal of Business Law, 36, 73-149. doi:10.1111/j.1744-1714.1998.tb01017.xTagliabue, J. (1997, October 3). Old world charm collides with the new world economy. New York Times. Retrieved from: http://web.ebscohost.com.proxy1.ncu.edu