Lecture 10 - sustainability Flashcards
What is the Companies act and what does it say about a corporation’s purpose?
It is the standard contract for financing of a corporation. The purpose is to create profit for the shareholders, since they are the risk-takers. If this is not the purpose, it must be stated in the by-laws of the corporation.
How can the law today be used in operations?
Profit is a way to complete a contract between shareholders and board/CEO because of a principal-agent problem. In operations, all investments with a positive NPV should be undertaken. De legs lata, all interest should be taken into account as long as they have an effect on the value of the company. Can be social/environmental. Board/CEO can decide what components to consider and over what time-span
What are two objections of a new definition of corporation purpose that takes sustainability into account?
- It sets aside political democracy
- It makes it impossible to evaluate the board/management (many metrics to consider)
Why is the Paris Agreement more successful than its earlier versions?
Countries decide on their own national goals for how to reach the main common goal. Transparency creates competition between countries.
What is the German Supply Chain Due Diligence Act?
Over time, companies have started to be more liable for their entire supply chain. Companies must implement diligence procedures to assess compliance with certain fundamental human rights and environmental standards in supply chains.
What are two special cases of US federal jurisdiction?
- Alien tort statute. The US is a beneficial forum for certain types of claims. Violations of international law can be brought to action in the US even if it happens somewhere else, if there can be a connection to the US found. Claimants must serve in the US and be physically present during the process.
- Foreign sovereign immunities act. Foreign sovereign/supreme nations are immune and can’t be used in US courts unless they engage in a commercial activity, commits a tort in the US or expropriates property in violation of international law.
