cited in many works. French argues that a corporation possesses functioning internal processes that make corporate decisions and actions possible by coordinating, subordinating, and synthesizing the actions of individual human members. He agrees with the argument that this transforms individual decisions into a corporate action that is solely for the benefit of the corporation rather than the individuals. French's argument would allow for the existence of corporate moral responsibility.
Arguments on the individualist extreme include Donaldson (1982) and Risser (1996). Donaldson believes that corporations are moral agents which are capable of bearing responsibility. However, he specifies two conditions that the corporation must meet in order to qualify as a moral agent. The first is the capacity to include moral considerations in its decision-making and the second is the capacity to maintain and modify its system in order to increase the probability that it will achieve its goals. In other words, the corporation must be able to respond to changes that may necessitate structural changes in order to achieve group goals. Risser went as far as to call this ability "moral responsibility."
Moral responsibility implies the ability to engage in responsive behavior. Therefore it implies liability for the results of one's actions. The court system in the United States can impose punishments to the corporation such as fines and restrictions on business. Stone (1975) feels that these sanctions do not address the inner processes of the corporation that will result in the necessary change. Because the responsibility is distributed over the group, each individual portion of the responsibility is less than if an individual committed the act. A corporation has no conscience and unlike the individual, cannot feel guilt or remorse for their actions.
Wolgast (1992) argued that accountability is an important element of the moral responsibility of the corporation. Enforcement is the most challenging aspect of accountability. Each corporation has a right to their own secrets and advantages. It is not required to make all of its secrets public, but there is a line where accountability is required.
Stakeholders have a right to review the quarterly and yearly financial statements to make certain that they continue to receive value for their investments. If the stakeholder does not feel that the investment is still a good decision they have the right to knowledge that allows them to make an informed decision. The corporation has a moral responsibility to provide accurate information to stakeholders for this purpose. Corporations have a responsibility to provide information that is accurate and true. Corporations that failed in this responsibility are often punished collectively by stakeholders that refuse to support their organization in the future.