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- W41558713 abstract "Corporations should make charitable contributions, as long as they are designed to benefit the community in a way that benefits the company. One good example is the grocery store that exchanges customer's register tapes for computers and other contributions to local schools. Charitable contributions that contribute to the visibility and reputation of the company are very much in the interests of the shareholders as well as in the interests of the community. But there is a great potential for abuse in corporate charitable donations, as we have seen in too many cases in the past. CEOs use corporate funds to benefit their own pet causes, or to benefit the causes of directors who are then beholden to the CEO. Perhaps the most outrageous example of abuse was the Armand Hammer museum, a $120 million charitable contribution from Occidental Petroleum to build a museum for the CEO's art collection. The Occidental shareholders were then abused again by the court system, which permitted strike suit plaintiffs and their lawyers to enter into a quick settlement with substantial attorney's fees but no discernable benefit to the shareholders. Shareholders must be very careful to assure that conflicts of interest do not result in the diversion of corporate assets for improper purposes." @default.
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- W41558713 date "1998-04-01" @default.
- W41558713 modified "2023-09-23" @default.
- W41558713 title "Corporate Charity: Shareholder Boom or Bust?" @default.
- W41558713 hasPublicationYear "1998" @default.
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