For a moment, imagine that sovereign states were large corporations. Now imagine, suddenly, one of the world largest corporations (let’s name it A) claims that caught an agent from a semi bankrupt company with poor reputation (Let’s name it B) in their headquarters, while he was trying to throwing a big cake, (not a yellow one) to the face of a visiting CFO of another company (C corporation).
Well, obviously, both An and C companies, become really upset for different reasons. A will be angry of the infiltration into it’s headquarters. C will be angry because one of it’s high ranking officers were in danger. In the meantime B, which-according to An and some of it’s business partners — has a poor reputation of dealing with it’s own staff as well as costumers, denies everything.
Now let’s take a look at how two corporations rank:
- Gross profit per shareholder: $14.12 Trillion
- Number of staff in legal department for settling “disputes”: 1,477,896
- Annual spending on maintaining legal department: $549.1 billion
- Gross profit per shareholder: $331.01 Billion
- Number of staff in legal department: 545,000
- Annual spending on maintaining legal department:$9.174 billion
Now let’s anticipate the steps that A will take:
- Public condemnation of the act
- Asking it’s legal department to prepare a plan in case the have to fight in the court
- Using it’s vast influence, ask its business partners not to supply any product to B corporation and, refrain from buying any goods from it, providing technical, financing assistance or trading it’s shares.
- Use it’s influence on fuel stations not to provide B corp fuel for it’s cargo and staff cars.
And B… :
- Denies it’s involvement in cake incident.
- Does nothing else.
Which company will finally prevail?