The age-old debate over the purpose of for-profit corporations has reignited, with two rival theories on offer: shareholder primacy and stakeholder parity. The first posits that the primary purpose of corporations is to maximize shareholder value, while the second urges the equal interests of all other constituents, especially employees, customers, and communities.

While the debate

In a timely episode of Tools of the Trade, Mayer Brown Chair Jon Van Gorp and Management Committee member Sally Davies take on a topic of increasing importance: environmental, social and governance principles, commonly referred to as ESG. Their primary guest, David Carpenter, is one of three co-leaders (with Mark Uhrynuk and James Whitaker) of

In a recent Legal Update[1], we discussed the emerging intersection between Tax and ESG and highlighted the various external stakeholders pressuring for greater visibility into the global tax positions of multinational companies (MNEs).  One increasingly vocal stakeholder group is activist shareholders.  Recently, a group of institutional investors of a Fortune 50 company initiated a shareholder proposal calling for the company to publicly disclose where and how much tax it pays around the world.  This is only the latest in what is becoming a regular request by activist shareholders.
Continue Reading Tax Meets ESG: Shareholder Activism Expanding to Tax Transparency

In a recent Legal Update[1], we discussed the intersection between Tax and ESG and the challenges companies will face responding to external pressures for greater transparency into a company’s global tax position.  We predicted that once the SEC reporting season began this month, the press would focus on the effective tax rates of high-profile companies.  That is exactly what happened recently when a leading national news outlet reported on the tax position of a well-known multinational.  The article paints an unflattering picture of the multinational’s global tax position and makes generalized observations on structures it might have used to achieve its tax results.  In this blog post, we discuss how companies can prepare for similar reporting.
Continue Reading Tax Meets ESG: Preparing for Bad Press