Law Commons^™

The Political Economy Of Corporate Exit, Susan S. Kuo, Benjamin Means

Vanderbilt Law Review

Critics contend that corporations subvert democracy by using their economic resources to lobby for corporate-friendly policies and to elect accommodating politicians.' Those who take a more sanguine view-notably, a majority of the Supreme Court-reject the claim that corporate dollars corrupt the political process. Yet, there is general agreement that corporate political activity includes financial contributions, lobbying efforts, participation in trade groups, and political advertising, all of which give corporations a "voice" in public decisionmaking.

This Essay contends that the accepted definition of corporate political activity is too narrow and overlooks the importance of "exit." When faced with objectionable laws or …