Would Corporations Exist in a Coercion-Free Society?

A corporation in the U.S. is a government backed, or to be more precise, a coercion-backed entity designed to protect the people who are running it from liability. Without a group of people with the sanctioned right to initiate the use of force (government), there would be private conflict resolution organizations and insurance companies that would handle issues. It would be up to them and the people who contract with the companies as to how much accountability there would be. In other words it would be up to the market. And the great thing is, with your wallet, you would have a say in how it would work!

For example, if company A is negotiating a contract with company B, the issue of conflict resolution and/or contract insurance would come up. Let's say company B is structured in the style of a coercion-supported corporation designed to shield the people who run it from being responsible for its actions. If I were in the shoes of company A's resolution/insurance companies, I would probably charge a lot more to get involved in a contract that involves a company whose principles wanted to protect themselves from accountability.

So company A has an immediate financial incentive to seek market partners who are willing to accept accountability and shun ones who aren't. Company B has put itself in a market disadvantage. The market would immediately recognize this and provide organizations that have structures that enforce personal accountability of its principles. Not to mention company B would most likely be paying more to its conflict/insurance companies.

These are huge market disadvantages to coercively enforced liability shielding tactics.

Would you buy stock in company B? Would you purchase its products or services if you had a choice of a more responsible company?

I think it's a good exercise to ponder on how a free market can resolve virtually any issue and supply any need. With a little practice you can figure it out on your own. It's all about risks and incentives with built-in mandatory win-win outcomes.

A truly free market is a phenomenally beautiful thing. It really is a crying shame that smiley faced politicians scramble to continue crapping all over it.