It is the charmed season of the Strawberry Social where community charity drives fund raising for social good, social charity that is also model that empowers the modern corporation. The Corporate Social as charity not distinguished by shortcake but by its attitudes, which may be in short measure.

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The author does not provide investment advice. In order to use reproduce or convey the material herein,
in any way, written agreement must be obtained from the author or its agent Architypes Inc.
StockTakers Limited is an Alberta corporation providing information on “likeables” equities.
StockTakers Limited encourages your seeking tax law advisor for capital gains tax dispositions.
Our Wealth of Nations:
The Corporate Social at Our Best
It is the season of the Strawberry Social where community charity drives
fund raising for social good as we throng to enjoy these workings for the
community benefit and share in this brief bounty summer brings. Effort
is celebrated in reward and the cash trickles into social benefice. We do
not often reflect how close that summer heralding institution run from
church basement boiler rooms and kitchens in sincere charity presages
the corporate share model stock markets engage.
Corporations gain their financing as a social production of equity markets. They are a production of
the community that can and are willing to afford the risks and engage in valiant business ideas,
potentials and productions letting it use shareholders’ cash to aid in the flotation of these
realizations. Anonymous share purchasers are donating their cash to the cause not in exchange; for
cakes and the raffle ticket, but a share which they hope will at least hold its cash value equivalence
should they need to sell but also hopeful of a positive return. The shareholders’ charity is vested in
floating the opportunity that hopefully creates jobs in a process that generates cash flow. The share
is a contract like later bonds or working capital bank loans are contracts for ongoing financing.
Those who cannot afford to put up ready cash but have ready goods to supply or labour to
contribute are invested also into floating the enterprise at all times accepting of a range of payment
terms, but no less ‘float-creating’ as they engage in and promote the real process of the firm. These
unsecured creditors must suffer the loss beyond that ventured cash of secured creditors when the
corporation fails and its unsecured creditors emerge to acknowledge their wounds for floating the
ongoing enterprise. Society carries costs of both real persons and fictitious persons in demise.
Corporations are the creatures of democratic society from early days of the thought experiment;
trading connections put-up altruism with their cash risked. But all democracy’s corporate children
are not of the same mind or attitude regarding its parentage. We may indeed rationalize those flaws
to account only the good. Often that is not more than mask for realities surrounding these
children’s’ misdemeanours, lack of social graces and absent gratitude for the helping hand society
has given them. Many would be willing palace tyrant, seeing shareholder debt and unsecured
trading connections’ altruism as their fungible resource serving their ends. We tolerate much until
outraged when our altruism is openly abused by agent managers, whether politic or corporate.
Corporations arise from real social need to invoke prove and improve ideas of broad social benefit,
creating new enterprises engaged in productions and innovations we need. Corporations are one
consequence brought with democracy. Broad based investment in corporations as society’s risk
allows invokes jobs raising common wealth and quality of living. That is the benefit society hopes
to obtain by this ‘charity’ enabling new business processes to arise. See volunteered labour and cash
“If virtue had led the way to fortune, I would either have been virtuous or pretended to be so like others; I
was expected to play the fool, and a fool I turned myself into.” Neveu de Rameau – Denis Diderot 1761
"for the value of money is also perishable." Jean-Baptiste Say , 1803
"there is risk in what you do not or cannot know." Thomas Tooke, 1844

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Page 2 of 3 June 2013 © Copyright StockTakers Limited, All Rights Reserved. Copying Prohibited.
The author does not provide investment advice. In order to use reproduce or convey the material herein,
in any way, written agreement must be obtained from the author or its agent Architypes Inc.
StockTakers Limited is an Alberta corporation providing information on “likeables” equities.
StockTakers Limited encourages your seeking tax law advisor for capital gains tax dispositions.
Our Wealth of Nations:
The Corporate Social at Our Best
donated in the Strawberry Social as people clean-up after disasters in the same vein. Floods as have
recently occurred around the world occasion the same altruistic response. We help with joined
hands apply our forces to keep our neighbour afloat and not sink. Our neighbours are most often
also our immediate trading partners. This is not a trivial issue. We have most often advanced our
self-interest through community, as with the deep cultural lessons from our dining on mastodons.
Society carries those risks as the highest charity Maimonides prescribes is our social due. Society
needs corporations to stand and generate cash flows, hopefully in
equitable distribution. The corporate boat may be sunk by
misfortune, bad times, timing to early or too late to market for its
ideas, poor branding, poor advertising, just ineffective process
management or by degree all or any in combination. However,
then obligations of the corporation are no longer viably met. A go
forward cannot be seen usefully resolvable. Disappointment is all
that remains. Society bears the pains of the unsecured creditors
together with the secured and the loss of cash flow foregone by failed corporations’ demise.
But the Enlightenment has slowly prevailed against the self-interested oligarch cloaked in his flag
of religious or republic dominion and call to conformity. The Open Society is the tyrants’ enemy.
Plunder economics ethos steals another’s value-added output in self interest substituted for ethic.
Spencerian survivalists pride their armoury in ambush over level fields. The victim or vanquished is
deemed irrelevant to opportunist gain. Guilds cartels and slavery exploit are enemies of democracy.
Corporate invention prefers peaceful enterprise financed by social ‘charity’ turning away from
plunder economics, high stakes ancient ethos stalking our lives still in so many nuanced forms.
High performing sociopaths’ palace war continues throughout the lands known to Lot whose story
has cultural importance to 2/3rds of world religions though peoples’ poetry still claims relevance of
Urukagina as democratic archetype those palace wars vanquished. Lot’s surviving family sought
peaceful lands. Many sociopaths occupy chairs of politic and corporate power society must shun.
Glib trope threads through political economics debate noisily claiming time and space not its due;
private enterprise drives our economy. That not only has its limitations ignored but is purposely
inflated to non-sense. Corporations are not private enterprises but
social institutions. The consistent inability of private company
organization for financing the needs for industrial innovations arising
in the 18th
century predicated creation of the modern limited liability
corporation. The agency problem remained the sticking point then as
still today we find corruption and fraud or bloated management
compensation models at the centre of representative company and
constitutional politic and corporate agency. If a monarch would
corrupt rule of both common law and religion encouraged by court physicians and courtiers
exploitations the ‘Invisible Hand’ of moral restraint guiding ethical behaviour in markets from days
of pied-de-poudre courts upholding common interests could not turn in trade where contract
interests and incentives were not shared. Moral sentiment is necessary as empathy restrains self-

3. “
Page 3 of 3 June 2013 © Copyright StockTakers Limited, All Rights Reserved. Copying Prohibited.
The author does not provide investment advice. In order to use reproduce or convey the material herein,
in any way, written agreement must be obtained from the author or its agent Architypes Inc.
StockTakers Limited is an Alberta corporation providing information on “likeables” equities.
StockTakers Limited encourages your seeking tax law advisor for capital gains tax dispositions.
Our Wealth of Nations:
The Corporate Social at Our Best
interest from breaking community interests supporting trade. Peace builds. Plunder destroys. By
plunder we lose so much value-added created in social artifice. Philanthropy with plundered goods
seeks misdemeanours absolution. Morgan Library beauties are at expense of mercenary abuses.
The corporation defined by legal permission as fictitious person is socially financed, fictitious child
of its founders. It can be made to function as a type of alter ego, doppelgänger. It is not a privately
financed business run by sole proprietor, partnership or chartered company of adventurers business
directly tying their personal consequences to their self-interest. As hollow avatar can be made to
suffer the blow after booty is long removed.
Either way the Physiocrats consistent with their patrimony would malign such ideas of the merchant
or factor as pretense. Both company and corporation were alien beasts, fictions of a world that could
invade over their hegemony of field craft. They saw landholding as prime and serfdom their right to
exercise by overwhelming force. Both slackard and opportunist are sociopath attitudes. Feudalism
works for the tyrant and validates his plunder of others domains by vassals.
Pick-pocket and plutocrat lighten their victims’ treasure aware law-given reciprocal safeguards
democracy requires protect the individual from leviathan state are inexpedient restraint. “So, sue
me,” becomes the modern tyrant’s taunt. Moral sentiment is necessary ethical foundation of Adam
Smith’s outline for trading. The articled incorporation is as society’s fictitious child wherever
found. What its agent managers do as alter ego for this child does matter as we all in society will be
liable for absorbing the losses they incur or treasure they take away.
The corporation is a hybrid social institution, neither private nor government, society brings it to
life as fictitious person saddled with societal aspirations that complex and large scaled capital
intense business process can be financed enterprise by investors who have no role in daily business
of the firm and are limited in liability to the share purchase value they bought in contributing their
ready cash. They share in hope the value will be sustained by the business cash flow and hopeful
further of a positive real return exceeding inflation. Many social hands are stretched out to gather
some of the business cash flow as supplier and employee or as taxed. The Corporate Social is with
us in all seasons in all markets. It is society’s child, dependant on good behaviour or it is our ruin.
Our reasons for having any equity in our portfolios are clear, concise and consistent, buy and hold
the stock at prices above the price of risk. Know What You Have. Have What You Know. Mail
us for our help, because we can.
Hans Goetze,
Architypes Inc and StockTakers Limited
Head Office
76 Midridge Close SE
Calgary, AB
T2X 1G1
351 Chemin Boulanger
Sutton, PQ
J0E 2K0
450 538-1270