Business Law, Public Responsibility, and Ethics Commons^™

The Modern Day Corporation: A Philosophical Analysis Of How Corporations Behave And How They Should Behave, Daniel Shane

CMC Senior Theses

We seem to hold corporations to an impossible standard. We call for profit maximization, but at the same time want to place strict limits on the methods corporations may use to obtain them. In this thesis, I explore two popular theories of the corporation: stakeholder theory and shareholder theory. I examine the degree to which each theory explains the corporation as it exists today, as defined in the law and through its behavior, but also the theories‘ normative appeal. I conclude by positing what I find to be the best normative account of the corporation: a theory of how we …

An Empirical Analysis Of Differences In Environmental Transparency Across Firms, Sean Robert Smith

CMC Senior Theses

In recent years, many firms have voluntarily taken actions to gradually increase the transparency of their corporate social responsibility (CSR) efforts. Using data on a sample of U.S. firms, this paper empirically examines the factors that encourage firms to choose different levels of CSR transparency. This adds to the previous literature that has focused only on the binary decision to engage or not to engage in CSR, as opposed to the extent and comprehensiveness of voluntary CSR reporting. Environmental transparency data are collected from the Roberts Environmental Center (REC) at Claremont McKenna College, while data for firm characteristics and toxic …

The High Cost And Value Of Patents: Finding The Appropriate Balance Between The Rights Of The Inventor And The Advancement Of Society, Andy Segal

CMC Senior Theses

Property rights are the backbone of Western Civilization. Capitalism can only be successful if individuals feel secure about the ownership of their assets. Patents are the property rights granted to the inventor by the government. Without these rights, inventors will find it extremely difficult monetizing their contributions to society. Thus, in an effort to incentivize innovation and commit society to human progress, our Founding Fathers built our country on a strong set of intellectual property rights.

At the same time, nothing impedes innovation like a monopoly and, in essence, all a patent amounts to is a monopoly, the right to …

The Impact Of The Foreign Corrupt Practices Act On American Business From 1977-2010, Ajani Harris

CMC Senior Theses

This paper seeks to present the moral and ethical frameworks in which to consider the effect of bribing on business and the great community; confront the cultural differences that lie between American businesses and its potential interest abroad, as well as the growing international move to implementation similar to that of the FCPA; analyze prior anti-bribery legislation and the historical events that prompted the need for a policy like the FCPA, discuss the basic elements of the policy’s two pronged approach of anti-bribery and disclosure regulation; examine several cases in the enforcement of the FCPA on American businesses; and consider …

Take Me Out Of The Ball Game: The Efficacy Of Public Subsidies In The Success Of Professional Sports Stadiums, Jonah Chodosh

CMC Senior Theses

This paper weights the relative advantages of multiple factors that lead to the success of professional sports stadiums in major markets, though a discussion of the arguments for and against public subsidies towards these projects. Using a logit statistical model, the paper determines that the two factors determining the highest likelihood of venue success include multiple tenants and access to mass transit. The analysis demonstrates that public subsidies towards stadiums don’t generate sufficient economic returns, and that successful stadiums can be created without using taxpayer funds.

Ethics In Accounting: Sustainability As A Predictor Of Financial Statement Usefulness, Kyle L. Shipley

CMC Senior Theses

This paper examines the impact of ethics on financial statement usefulness in 120 publicly traded companies. Because ethics are difficult, if not impossible, to quantify, Corporate Social Responsibility ratings are used as a proxy. The potential implications of this study are vast, though the main idea is that investors would be able to make better financial decisions should the hypothesis come to fruition. Contrarily, investors will also be able to avoid potentially bad investments if they can ascertain certain companies that lack ethical values. In this paper, I will discuss several facets of corporate ethics such as creative accounting in …

Corporate Sustainability And The Recession: Firms' Strategy Response In A Financial Crisis, Carolyn M. Campbell

CMC Senior Theses

As the modern world deals with an increasing number of environmental and social crises, corporate sustainability is becoming ever more imperative for business. There is broad agreement that profit maximization can no longer be the exclusive goal of a company, with firms working to align environmental, social, and financial performance. Companies have demonstrated a wide variety of experiences in regards to the financial crisis and its effects on corporate sustainability. While some firms experienced serious setbacks in achieving environmental and social goals others firms claimed to have been ramping up sustainability efforts during the recession. However, most firms report that …