Commercial Law Commons^™

Adapting Corporate Governance For Sustainable Peace, Timothy L. Fort, Cindy A. Schipani

Vanderbilt Journal of Transnational Law

Acts of violence toward multinational corporations have important consequences for the way these companies will need to structure their approach to international business. This Article proposes four contributions that corporations can make to sustainable peace. By incorporating sustainable peace as a business objective, multinational corporations may be able to blend extant corporate governance principles with a goal that can significantly contribute to the reduction of violence in society.

Nationbuilding 101: Reductionism In Property, Liberty, And Corporate Governance, O. L. Reed

Vanderbilt Journal of Transnational Law

In this Article, Professor Reed re-examines the importance of property as a formal legal institution. He continues by arguing that central to creating property is the right to exclude others from resources acquired without force, theft, or fraud. In countries where this right has been firmly established, per capita income far exceeds that of countries lacking a strong right to exclude. Professor Reed then asserts the importance to nation builders of appreciating the virtual semantic equivalence of the terms "property" and "liberty." Finally, he argues that both the specific and broad senses of corporate governance can be reduced to property …

Corporate Governance And Sustainable Peace: An Insider's View, Marina N. Whitman

Vanderbilt Journal of Transnational Law

The Author brings her 30 years of experience as a member of numerous corporate boards of directors to bear on the relationship between corporate governance and sustainable peace. In the Author's experience, over the last three decades corporate boards have become more diverse not only in terms of race and gender, but also through a greater focus on international participation. This diversity has led to concern for a broader set of stakeholders and, in many cases, these boards are presently conducting the affairs of their corporations in a more socially-responsible fashion. Despite these gains, however, the Author concedes that recent …

The Role Of The Corporation In Fostering Sustainable Peace, Timothy L. Fort, Cindy A. Schipani

Vanderbilt Journal of Transnational Law

This Article demonstrates that there is a plausible, conceptual relationship among corporate governance, business ethics, and sustainable peace. First, the Authors begin by outlining the benefits of and protests against globalization and the reciprocal benefits between geopolitical entities and economic activity. The Article then details specific historical events that foreshadow patterns in the relationship between business and sustainable peace. In looking more closely at those patterns, the Authors argue that through economic progress and mitigation of rivalries in the workplace, multinational corporations can contribute to sustainable peace. Thus, if this argument is correct, the stakes increase dramatically for corporations to …

Interview: The Business Of Peace, Madeleine Albright, B. Joseph White

Vanderbilt Journal of Transnational Law

I think the thing that we have really seen, Joe, recently, is the fact that we have global companies that are situated everywhere and are very much a part of the societies in which they operate. The way that they can contribute is by really embedding themselves in the local communities and by providing economic support within those communities to help mitigate some of the aspects of poverty within that particular milieu where they are operating. They can contribute by basically making it clear to people that we are all part of the same story. Just because you may be …

Corporate Governance In The Cause Of Peace: An Environmental Perspective, Donald O. Mayer

Vanderbilt Journal of Transnational Law

This Article examines the role of multinational corporations in creating global peace. Part I discusses the role of multinational corporations in the global economy, emphasizing the relationship between multinational corporations, governments, and the environment. Part II explores whether corporations have a moral duty to oppose ill-conceived laws and policy proposals and to support well-conceived laws that encourage efficiency and sustainability, but may hinder short-term profitability. Part III expands and further explores the argument set forth in Part II by examining the continuing dependency of the United States and other industrialized democracies on oil from the Middle East. Part IV concludes …

Corporate Governance And The Global Social Void, Lee A. Tavis

Vanderbilt Journal of Transnational Law

This Article argues that the components of globalization--economic integration, democratization, and global governance networks--are changing the nature of corporate governance and the prospects for peace. Multinational enterprises are the instruments of economic integration. As such, multinationals as a group deserve credit for the positive productivity-related wealth effects of the process. As the implementing institutions, these enterprises are also inextricably related to the inequality--the social void--resulting from globalization that threatens peace.

Hyper competition in the global product markets and the demands of the financial markets determine, to a large extent, the activities of the multinational. Alternatively, there is an evolving opportunity …

Persuasion And Resistance: The Use Of Psychology By Anglo-American Corporate Governance Advocates In France, James A. Fanto

Vanderbilt Journal of Transnational Law

The Author argues that in the 1990s Anglo-American corporate governance became the dominant model for large, public firms in the international business world, and that corporate governance professionals relentlessly promoted and exported Anglo-American corporate governance throughout the developed and developing world. Contending that it is an appropriate time--if only because the U.S. recession and international hostilities have tempered the "irrational exuberance" of capital market proponents--to examine critically the advocacy of Anglo-American corporate governance, the Author proposes that an important part of the critical assessment is to explain the momentum of the dominant model: to understand why Anglo-American corporate governance appeared …

The Statutory Derivative Action In Singapore: A Critical And Comparative Examination, Pearlie Koh

Research Collection Yong Pung How School Of Law

As a mechanism for shareholder control of corporate wrongs and thus as a tool of corporate governance, the statutory derivative action has had much international attention given to it, particularly in the last 10 years. Singapore introduced its statutory derivative action in 1993 and since then, there have been two reported cases in which the action was invoked. In this paper, I consider the Singapore derivative action as contained in sections 216A and 216B of the Singapore Companies Act. The approach taken is a comparative one as I also look at the statutory derivative actions in Australia and other common …

Corporate Governance In A Global Environment: The Search For The Best Of All Worlds, Timothy L. Fort, Cindy A. Schipani

Vanderbilt Journal of Transnational Law

This Article reflects on the various visions of corporate governance. Initially, the Article reviews the contractarian and communitarian theories of the corporation. The communitarian theory views the corporation as a separate entity, with social responsibilities not only to the shareholders but to the firm's other stakeholders and society at large. On the other hand, the contractarian approach considers the firm's shareholders as the primary constituency to whom management is accountable. Voluntary contracting and market forces align the interests of management and shareholders. The Article next analyzes salient features of corporate governance in the United States, Japan, and Germany. The United …

The Effect Of Shareholder Proposals On Executive Compensation, Randall Thomas, Kenneth J. Martin

Vanderbilt Law School Faculty Publications

During the last decade, the stratospheric increases in Chief Executive Officer (CEO) pay levels have made executive compensation a popular target for shareholder activism, particularly when high pay is accompanied by poor corporate performance. Outraged investors have made their views know to corporate boards of directors using shareholder proposals, binding bylaw amendments, "Just Vote No" campaigns, and other activist efforts. As institutional and other shareholders have attempted to monitor board decisions, the question remains: Have their efforts been successful in influencing executive compensation?

Untenable Status Of Corporate Governance Listing Standards Under The Securities Exchange Act, Douglas C. Michael

Law Faculty Scholarly Articles

United States securities markets operate under a system of supervised self-regulation created by the Securities Exchange Act of 1934 (Exchange Act). That system includes substantive regulation of the traders and the issuers of securities traded in those markets through the use of listing standards.

These listing standards have a unique status. They are part of a self-regulatory system, but are not classic self-regulation. The markets do not govern the traders of which it consists; rather, it governs outsiders—the issuers. The markets and the Securities and Exchange Commissions have sought to control issuers in ways not clearly related to trading in …