Politics and corporate money

Friday, September 24, 2010

CAMBRIDGE - A recent decision issued by the United States Supreme Court expanded the freedom of corporations to spend money on political campaigns and candidates - a freedom enjoyed by corporations in other countries around the world.

This raises well-known questions about democracy and private power, but another important question is often overlooked: who should decide for a publicly traded corporation whether to spend funds on politics, how much, and to what ends?

Under traditional corporate-law rules, the political-speech decisions of public companies are subject to the same rules as ordinary business decisions.

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