> I think this is exactly backwards.
No it is not. States and corporations are bound by law and to a great extent by public opinion while smaller communities are much freer to tyrannize their members.
Being part of the same "community" didn't stop school segregation in the south, the federal government did.
In theory. In practice, corporations do risk analysis and compute liabilities and flout the law all the time. Particularly environmental laws. One disaster after another. Coverups, bribery, corruption, evading accountability. You're living in an alternate universe, because this one is full of malfeasance and screwups from huge organizations with zero consequences.
With your reasoning, feudalism is the most accountable form of government, safest for minorities.
It's not clear why you brought up feudalism but systems in which a local lord is responsible for dispensing justice allow for far more abuse that those with centralized legal systems. It is always better for judges to be as far removed from the outcome of the case as possible.