Law Commons^™

The Dystopian Potential Of Corporate Law, D. Gordon Smith

Faculty Scholarship

The community of corporate law scholars in the United States is fragmented. One group, heavily influenced by economic analysis of corporations, is exploring the merits of increasing shareholder power vis-a-vis directors. Another group, animated by concern for social justice, is challenging the traditional, shareholder-centric view of corporate law, arguing instead for a model of stakeholder governance. The current disagreement within corporate law is as fundamental as in any area of law, and the debate is more heated than at any time since the New Deal. This paper is part of a debate on the audacious question, Can Corporate Law Save …

Judicial Activism V. Judicial Abdication: A Plea For A Return To The Lochner Era Substantive Due Process Methodology, Brandon S. Swider

Chicago-Kent Law Review

Amid the fierce battles that take place during the confirmation process of a Supreme Court justice, surprisingly little attention is given to the fact that both sides of the political spectrum generally agree on a matter of profound constitutional importance—namely, the proper level of scrutiny courts are to exact with respect to state and federal legislation. Presently, and for the better part of the last 70 years, the dominant attitude among judicial conservatives and liberals alike is that courts have no authority to strictly scrutinize the overwhelming majority of legislation enacted by state and federal legislatures.

This Comment argues that …

Implications Of The Uk Companies Act 2006 For Institutional Investors And The Corporate Social Responsibility Movement, Gordon L. Clark, Eric R. W. Knight

Eric R Knight

Non-governmental organisations, activists, and the public-at-large hold large firms accountable on many issues including their environmental footprints and the social standards of their suppliers around the world. For those coming from European social democratic traditions, stakeholders have a legitimate voice in the affairs of the corporation especially in two-tiered governance regimes that separate supervision from management. Notwithstanding attempts to re-write their proper roles and responsibilities, the Anglo-American corporation is widely believed to be the medium for the accumulation of shareholder value.

Recently, however, a counter-argument has emerged suggesting that the UK Companies Act 2006 broke with this tradition to embrace …

The 2008 Ruggie Report: A Framework For Business And Human Rights, Christiana Ochoa

Articles by Maurer Faculty

In June 2008, the Special Representative of the Secretary-General on the issue of human rights and transnational corporations and other business enterprises, John Ruggie, submitted the final report of his initial three-year mandate. The Report, titled Protect, Respect and Remedy: A Framework for Business and Human Rights, provides a governance-based set of findings and recommendations on the issue of business and human rights. This essay provides a concise description and brief analysis of the Report.

Environmentalists Help Manage Corporate Reputation: Changing Perceptions Not Behaviour, Sharon Beder

Sharon Beder

Environmentalists have traditionally drawn attention to environmental problems by highlighting corporate misdeeds and thereby damaged the good reputation of those companies. However, nowadays those very corporations are drawing on environmentalists to help repair their reputations. Nike and BP are two examples of companies that have adopted some environmental reforms as part of their reputation management strategies and received the praise of environmental groups for doing so. Yet both continue with the practices that earned them poor reputations in the first place. Clearly the role of environmentalists in working with such companies is misguided and ineffective in terms of long-term environmental …

Ownership, Limited: Reconciling Traditional And Progressive Corporate Law Via An Aristotelian Understanding Of Ownership, Ronald J. Colombo

Ronald J Colombo

Concern over issues of corporate social responsibility and corporate governance persists, fueled, in large part, by recent (and ongoing) corporate scandals of one sort or another. The debate over the nature of the corporation – and, consequently, the proper role of directors, shareholders, and other stakeholders – plays an important role in the consideration of such concerns. If one conceptualizes the corporation as an entity owned by the shareholders, then one would probably be more likely to view directors as mere agents, tasked with maximizing the wealth of their principals (the shareholders). On the other hand, rejecting such a conceptualization …

“Better The Devil You Know”: Home State Approaches To Promoting Transnational Corporate Accountability, Christen L. Broecker

Christen L Broecker

Liberal International Relations theory provides a dynamic account of lawmaking, implementation and enforcement at the individual, State, and international levels. In many respects, that account is reflected in the recent global effort to enhance business respect for human rights. However, in the area of State involvement and regulation, the business and human rights (BHR) effort has been extremely lacking. This article argues that while past efforts to enhance corporate respect for human rights at the individual and international levels have been absolutely critical and will continue to be so in the future, the era of State restraint must – and …

Multinational Enterprise Pursuit Of Minimized Liability: Law, Intemational Business Theory And The Prestige Oil Spill, Robin F. Hansen

Robin F. Hansen

Abstract: This Article examines the activities of various multinational enterprises (MNEs) involved in the Prestige oil spill of, 2002. The liability exposure of such enterprises is found to have been minimized by three legal phenomena which result from the current treatment of MNEs under national and international law. Review of the Prestige spill suggests that MNE liability exposure may be minimized by: (1) outsourcing, (2) reliance on renegade regime regulation, and (3) operation of the corporate veil. The reason for this observed minimized MNE liability is twofold. First, the current legal landscape which frames MNE activities is deficient to the …

No Good Deed Goes Unpunished: Is There A Need For A Safe Harbor For Aspirational Codes Of Conduct?, Elizabeth F. Brown

Elizabeth F Brown

Over the years, Congress and some state legislatures have enacted laws to encourage corporations to engage in self-policing by providing them with incentives to adopt codes of conduct and compliance programs. In the case of the Federal Organizational Sentencing Guidelines, Congress offered corporations lower penalties if they were found in violation of a federal law but had adopted codes of conduct and compliance programs to try to comply with the law. In the case of the Sarbanes-Oxley Act, Congress require public corporations to disclose if they had a code of ethic and if not, why not. Congress assumed that the …

From Odious Debt To Odious Finance: Avoiding The Externalities Of A Functional Odious Debt Doctrine, Christiana Ochoa

Articles by Maurer Faculty

This Article looks at the generally agreed upon characteristics of the odious debt doctrine and considers the unintended consequences and externalities that would ensue if this doctrine were ever made regularly operative. The enlivened scholarly debate surrounding the odious debt doctrine assumes that debt is the sole finance vehicle for despotic governments. This is simply not the case.

Debt is not the sole finance vehicle; despots are able to raise funds through a wide variety of other methods. These include the pillaging of the nation's natural resources, property, and other valuable asset as well as the exploitation of the nation's …

Human Freedom And Two Friedmen: Musings On The Implications Of Globalization For The Effective Regulation Of Corporate Behavior, Leo E. Strine Jr.

All Faculty Scholarship

In this essay, which was delivered as the Torys Lecture at the University of Toronto, Vice Chancellor Strine considers the implications of globalization for the effective regulation of corporate behavior affecting interests other than those of stockholders against the backdrop of the West’s political and economic experience. He concludes that consistent with prior experience, the globalization of corporate markets will require a corresponding expansion of the polity to protect those aspects of human freedom that are affected in important ways by corporate behavior. As a practical matter, this means that if the U.S. and other Western nations wish to limit …

Competitive Supragovernmental Regulation: How Could It Be Democratic?, Errol E. Meidinger

Journal Articles

This paper explores the possibility that a developing form of regulatory governance is also sketching out a new form of anticipatory regulatory democracy. 'Competitive supra-governmental regulation' is largely driven by non-state actors and is therefore commonly viewed as suffering a democracy deficit. However, because it stresses broad participation, intensive deliberative procedures, responsiveness to state law and widely accepted norms, and competition among regulatory programs to achieve effective implementation and widespread public acceptance, this form of regulation appears to stand up relatively well under generally understood criteria for democratic governance. Nonetheless, a more satisfactory evaluation will require a much better understanding …