Giving at the Office: a Reappraisal of Charitable Contributions by Corporations

Abstract

In the flush of a booming economy, the recurring question of individual and corporate philanthropy has reemerged as an issue of public policy, academic debate and corporate practice. Altruistic corporate charitable giving is permitted under the current law of most, if not all, jurisdictions. This legal rule is supported by national social policy and accepted social norms. This Article suggests a method of reconciling such a rule with traditional profit-maximization rules and also suggest rules for dealing with charitable contributions that provide some benefit to the corporation as well as charitable contributions to a pet charity of a corporate manager or that personally aggrandize the manager.