Joining us today is William Moon, a Professor of Business Law at the University of Maryland School of Law, to discuss his essay ‘Beyond Profit Motives’ which he wrote in response to Stephen Bainbridge’s book The Profit Motive. Will reviews Bainbridge’s work, offering an alternative theory of corporate purpose beyond what Will refers to as “ruthless profit maximization for shareholders.” With expertise in business law, corporate governance, offshore finance, and private international law, Will brings a wealth of knowledge to our discussion. Tuning in you’ll learn about Will’s new concession theory, how it differs from the ideas laid out by Bainbridge, and the relationship between the ESG movement and profit maximization. Our conversation covers key areas, including the mechanics of stakeholder capitalism, why ESG goals can be accomplished through enhanced legal compliance and obedience, and how to better align the interests of corporations with societal interests. Listeners should check out our interview of Bainbridge back in May 2023 to help them understand Will’s critiques. To hear all of Will’s insights on his new concession theory and The Profit Motive be sure to tune in today!

Key Points From This Episode:

•Professor William Moon’s review of Stephen Bainbridge’s book, The Profit Motive.

•What inspired him to write ‘Beyond Profit Motives’ in response to The Profit Motive.

•An overview of Milton Friedman’s article from 1970 entitled ‘A Friedman Doctrine ‐- The Social Responsibility of Business Is to Increase Its Profits’.

•Examining whether there is a true conflict between long-term shareholder profit maximization and achieving environmental, social, and governance (ESG) goals.

•Will’s argument against Professor Bainbridge’s conviction that stakeholder capitalism is fundamentally anti-democratic.

•An outline of stakeholder capitalism and the different versions of it.

•Will’s new concession theory as laid out in his article.

•How the new concession theory can support ESG goals.

•Why ESG goals can be accomplished through enhanced legal compliance and obedience.

•Corporations’ ability to evade laws and the state’s ability to enact laws in response.

•Blockchain-based business entities; what types of laws and regulations they are asking for.

•Why the new concession theory mostly applies to large business enterprises.

•Takeaways from the McDonald’s Caremark case and verdict.

•Unpacking the ESG movement’s biggest accomplishments and areas for improvement.

•A rundown of the topics to be explored in conversation with the new concession theory.

Links Mentioned in Today’s Episode:

William Moon

‘Beyond Profit Motives’

A Friedman doctrine‐- The Social Responsibility of Business Is to Increase Its Profits

Professor Elizabeth Pollman

Elizabeth Warren
Business Roundtable

Stephen Bainbridge

Stephen Bainbridge on LinkedIn

The Profit Motive

Fordham University School of Law Corporate Law Center