The Paradox of Corporate Entrepreneurship Free Essay Example, 2000 words

Corporations based on entrepreneurship blur the line between what is an acceptable practice and what is not, taking advantage of grey areas and loopholes in the legislation. The pursuit of profits inspired by entrepreneurial leaning by corporations influences them to identify grey opportunities for operations. In a capitalist manner, such undertakings can be justified as they may not directly breach any laws. However, this may be due to an oversight in legislative processes or ignorance on such loopholes. The lack of legislation guiding certain practices or outlawing certain acts does not make them moral or acceptable to society (Philips 2003, pp. 36-38). This, however, makes them acceptable practices to an entrepreneurial corporate venture. For instance, multinational corporations may sell products with carcinogenic or mutagenic risks in third world markets. Such products may be outlawed in the countries of origin, but not legislated upon in the foreign markets in developing countr ies. Whereas no legal mechanism may pin down corporations behaving in this manner, there exists no moral justification for such practices. Here, the firms are engaging in business that may be harmful to the perhaps oblivious consumers while taking advantage of failure in legislative capabilities. We will write a custom essay sample on The Paradox of Corporate Entrepreneurship or any topic specifically for you Only $17.96 $11.86/pageorder now This is a result of uncontrolled entrepreneurial action where such business opportunities are spotted, noted as illegal and exploited by the corporations. Entrepreneurship also leads to various aspects of corporations becoming defunct and disposed of. The much-maligned bureaucracy in corporations serves several essential functions for the corporation. According to Down (2010, p. 116), bureaucracy is commonly equated with red tape and blamed for inhibiting effectiveness due to complex and rigid procedures. However, a closer look at the issue opens up a number of positives brought to a corporation due to bureaucracy. Bureaucracy provides for control mechanisms within corporations and thus protects the firm from chaotic operations and ultimate falls.