We often talk about how corporations affect society, but what about the way society impacts corporations? Shareholders, customers, and employees are increasingly leveraging social media to influence corporate behavior. During this episode, we are joined by Dr. Akshaya Kamalnath, who is an expert in this arena, referring to the phenomenon as Hashtag Capitalism. She teaches Business Law, Corporate Governance, and Corporate Insolvency in her capacity as an Associate Professor at the Australian University College of Law. Defining key concepts like retail investment and rational apathy, we consider the problem of collective action and two ways in which social media interacts with it. The conversation also explores the way in which consumers engage with companies and government today, and what this means for our economy. We also discuss the emergence of ‘finfluencers’, distinguishing between those making a positive impact and those who are not, and how this can be regulated with existing law. To close, Akshaya shares the themes of her upcoming book: corporations, technology, and the law. Tune in today to hear all this and more!

Key Points From This Episode:

• The effect of corporations on society and vice versa.
• Defining retail investment, rational apathy, and the problem of collective action.
• Two ways in which social media influences retail engagement.  
• Unpacking the concept of ‘wireless investors’ and ‘finfluencers’. 
• The nostalgic resurgence of GameStop and the David versus Goliath story that unfolded. 
• Considering the shifting focus on social influence and whether or not this challenges Milton Friedman’s theory of shareholder wealth maximization. 
• How companies are responding to social media pressures and how this is changing the nature of corporate governance. 
• The evolving nature of how the public engages with companies, accountability, and government. 
• Regulating ‘finfluencers’ with existing law and distinguishing between financial advice and storytelling. 
• Incentivizing the voices prioritizing financial inclusion and financial literacy. 
• What Akshaya is currently working on: a book about the intersection between corporations, technology, and the law. 
• How she foresees the Hashtag Capitalism project unfolding.

Links Mentioned in Today’s Episode:

Dr Akshaya Kamalnath on LinkedIn
Dr Akshaya Kamalnath on X

Corporate Law Academic

ANU Law

GameStop

Fordham University School of Law Corporate Law Center