Corporate Governance

How Companies Spin Off Environmental Liabilities to Avoid Legal Obligations

Environmental externalities are vexing for corporate decision makers, but some companies have figured out a way to deal with them: a spinoff....

Corporate Responsibility and The Two Minds of Milton Friedman

Milton Friedman had two inconsistent minds: That of an economist and an ideologue. The view that maximizing profits without constraint is a...

We Need More Research on Corporate Corruption

The last decade has seen a continuous drumbeat of revelations of corporate corruption and the current economic crisis is sure to reveal...

The Social Voice of CEOs

A new working paper examines the phenomenon of CEO activism and finds that while statements by activist CEOs are more likely to...

The Purpose of Business is to Solve Problems of Society, Not to Cause Them

Claims that a stakeholder-focused system of corporate governance cannot succeed in the US are perverse because they take as given that corporations...

Bringing Ethics Back to Friedman’s Call to Purpose for the Next 50 Years

Fifty years ago, Friedman compellingly presented his argument for shareholder primacy. But as currently implemented, shareholder primacy threatens the unifying purposes that...

A Challenge for Stakeholder Capitalism: Solving the Paradoxes of Voting

If corporations are to maximize shareholder welfare, managers need to discover what shareholders value; political theory shows how difficult this can be.

Corporations Are Governance Mechanisms, Not Shareholder Toys

Milton Friedman’s shareholder credo is simple and catchy but has shaky foundations. Corporate directors and officers are not agents of shareholders and...

Missing in Today’s Shareholder Value Maximization Credo: The Shareholders

Today’s corporate world is very different from the one Milton Friedman wrote in. In a world where the question of whether managers...

Corporations Are Already Plenty Powerful. Stakeholder Capitalism Could Make Them More So

Encouraging corporations to further step into the role of governments and civil society groups by becoming more "socially focused" risks greater depreciation...

LATEST NEWS

Reversing the “Resource Curse” with Foreign Corruption Regulation

Anti-corruption regulation originating in developed countries is effective in changing corporate behavior and has a positive economic impact on developing countries.

The Death of Hong Kong’s Rule of Law

Hong Kong's rule of law has suffered a fatal blow. With the national security law, the authoritarian regime has all that it...

President-Elect Joe Biden and the Real Lessons of DuPont

Simply talking corporate America into being more responsible is not enough. It may get corporations to talk the talk, but not to...

How Companies Spin Off Environmental Liabilities to Avoid Legal Obligations

Environmental externalities are vexing for corporate decision makers, but some companies have figured out a way to deal with them: a spinoff....

How Pfizer’s Vaccine Announcement Demonstrates the Political Power of Firms

By timing the disclosure of the results of its vaccine trial, Pfizer could have influenced the 2020 presidential election. This is worrisome...