Corporate Charity: An Oxymoron?
Posted: 15 Sep 1999
Abstract
The business judgment rule gives corporate managers and directors a great deal of deference in making business decisions, as long as they are made in a good faith effort to create shareholder value. But this standard may be too forgiving when it comes to charitable contributions, which have a greater potential for conflicts of interest and a smaller capacity to measure results. Corporate charitable contributions should be evaluated as marketing or advertising expenditures and should be fully disclosed to shareholders to minimize the potential for conflicts of interest.
Suggested Citation: Suggested Citation
Minow, Nell, Corporate Charity: An Oxymoron?. Available at SSRN: https://ssrn.com/abstract=177620
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