Final answer:
Many corporations have scrapped preemptive rights due to the need for greater capital raising flexibility and to avoid shareholder conflicts, while the historical context indicates continuous negotiation between corporate self-interest, regulatory compliance, and society's ethical expectations.
Step-by-step explanation:
Many corporations have eliminated the preemptive right for various reasons, including increased flexibility in raising capital and reducing the potential for conflicts among shareholders. Preemptive rights allow existing shareholders to purchase additional shares before the company offers them to the public, ensuring their ownership percentage is not diluted. However, the administration and management of preemptive rights can be cumbersome and may slow down the process of raising funds.
Corporations have faced numerous challenges and criticisms, especially concerning antitrust laws like the Sherman Anti-Trust Act, which empowered the federal government to break up companies that restrained trade. Historical context shows us that businesses have often lobbied for policies that serve their interests, sometimes at the cost of competition and workers' rights. Understanding the balance between corporate rights and responsibilities has remained a significant debate, particularly regarding the interests of shareholders and stakeholders, and how corporations interact with government regulations and society's ethical expectations.