Skip to main content Accessibility help
×
Hostname: page-component-76fb5796d-5g6vh Total loading time: 0 Render date: 2024-04-26T06:53:31.706Z Has data issue: false hasContentIssue false

9 - Corporations Law

Biased Corporate Decision-Making?

Published online by Cambridge University Press:  05 June 2012

Justin D. Levinson
Affiliation:
University of Hawaii, School of Law
Robert J. Smith
Affiliation:
University of North Carolina, School of Law
Get access

Summary

Despite the high stakes of today's global economic climate, corporations have not lived up to the challenge of operating in a manner that recognizes their vast impact on people's lives. Instead, they have been accused of making decisions that disregard the welfare of workers, denigrate the environment, and ignore other social responsibilities. Yet what drives corporate decisions that seem to further disadvantage already challenged groups? Is it always a rational pursuit of profit and corporate growth? Or might there be a more nuanced explanation that explains why corporations, for example, hire a particular executive, select an employee benefit plan, build a plant in a certain neighborhood, or donate to a specific charity? Research on implicit bias provides one potential explanation: corporate “persons,” like real people, make decisions in automatically biased ways, often without their awareness. In turn, these decisions adversely affect already disadvantaged groups within society.

Corporate laws have yet to grapple with the problem of implicit bias. This chapter begins an implicit bias based exploration of corporate law in two ways. First, in recognition of the early state of knowledge of implicit bias in corporate decision-making, the chapter proposes that the same empirical methods that have taught scholars about implicit bias in other areas can be implemented to learn more about bias in the corporate law setting. To that end, it presents an empirical study that investigated the following question: If a corporation is truly a legal person, what kind of person is it? Moreover, is it the kind of person particularly likely to discriminate? The chapter then turns to two broader questions that help define the relationship between corporations and implicit bias: First, how might implicit bias infect corporate decision-making in unintentional yet powerful ways, and second, how can the law minimize the continuing harm of implicit bias without straying from needed corporate protections?

Type
Chapter
Information
Publisher: Cambridge University Press
Print publication year: 2012

Access options

Get access to the full version of this content by using one of the access options below. (Log in options will check for institutional or personal access. Content may require purchase if you do not have access.)

References

Greenfield, KentThe Place of Workers in Corporate Law 39 1998
Greenwood, Dan 2008
Wade, Cheryl L.For-Profit Corporations That Perform Public Functions: Politics, Profit, and Poverty 51 1999
Page, Antony 2009
2003
Karpinski, AndrewSteinman, Ross B.The Single Category Implicit Association Test as a Measure of Implicit Social Cognition 91 2006
Greenwald, Anthony G.Understanding and Using the Implicit Association Test: I. An Improved Scoring Algorithm 85 2003
Wilson, GeorgeMcBrier, Debra BranchRace and Loss of Privilege: African American/White Differences in the Determinants of Job Layoffs from Upper-Tier Occupations 20 2005
Henry, Brent L.Russell, E. Macey 2010
Cunningham, Lawrence A.A New Legal Theory to Test Executive Pay: Contractual Unconscionability 94 2011
Bertrand, MarianneMullainathan, SendhilAre Emily and Greg More Employable than Lakisha and Jamal? A Field Experiment on Labor Market Discrimination 94 2004
Rooth, Dan-Olof 2007
Agerstrom, JensRooth, Dan-OlofThe Role of Automatic Obesity Stereotypes in Real Hiring Discrimination 96 2011
Latu, Ioana M.What We “Say” and What We “Think” About Female Managers: Explicit Versus Implicit Associations of Women with Success 35 2011
Levinson, Justin D.Young, DanielleImplicit Gender Bias in the Legal Profession: An Empirical Study 18 2010
Fong, Christina M.Luttmer, Erzo F. P. 2011
Rudman, Laurie A.Ashmore, Richard D.Discrimination and the Implicit Association Test 10 2007
Rachlinski, Jeffrey J.A Positive Psychological Theory of Judging in Hindsight 65 1998
1953
Jost, John T.A Decade of System Justification Theory: Accumulated Evidence of Conscious and Unconscious Bolstering of the Status Quo 6 2004
Levinson 2012
Dasgupta, NilanjanaAsgari, ShakiSeeing Is Believing: Exposure to Counterstereotypic Women Leaders and Its Effect on the Malleability of Automatic Gender Stereotyping 40 2004
Lebrecht, SophiePerceptual Other-Race Training Reduces Implicit Racial Bias 4 2009
Dasgupta, NilanjanaGreenwald, Anthony G.On the Malleability of Automatic Attitudes: Combating Automatic Prejudice with Images of Admired and Disliked Individuals 81 2001
Dasgupta, NilanjanaRivera, LuisFrom Automatic Antigay Prejudice to Behavior: The Moderating Role of Conscious Beliefs About Gender and Behavioral Control 91 2006
Gonsalkorale, Karen 2011
Levinson, Justin D.Forgotten Racial Equality: Implicit Bias, Decisionmaking, and Misremembering 57 2007
Kang, JerryBanaji, Mahzarin R.Fair Measures: A Behavioral Realist Revision of “Affirmative Action,” 94 2006

Save book to Kindle

To save this book to your Kindle, first ensure coreplatform@cambridge.org is added to your Approved Personal Document E-mail List under your Personal Document Settings on the Manage Your Content and Devices page of your Amazon account. Then enter the ‘name’ part of your Kindle email address below. Find out more about saving to your Kindle.

Note you can select to save to either the @free.kindle.com or @kindle.com variations. ‘@free.kindle.com’ emails are free but can only be saved to your device when it is connected to wi-fi. ‘@kindle.com’ emails can be delivered even when you are not connected to wi-fi, but note that service fees apply.

Find out more about the Kindle Personal Document Service.

Available formats
×

Save book to Dropbox

To save content items to your account, please confirm that you agree to abide by our usage policies. If this is the first time you use this feature, you will be asked to authorise Cambridge Core to connect with your account. Find out more about saving content to Dropbox.

Available formats
×

Save book to Google Drive

To save content items to your account, please confirm that you agree to abide by our usage policies. If this is the first time you use this feature, you will be asked to authorise Cambridge Core to connect with your account. Find out more about saving content to Google Drive.

Available formats
×