Law and Economics of Corporate Governance: Shareholders, Stakeholders, and Beyond

This book examines corporate social responsibility (CSR) and environmental, social, and governance (ESG) frameworks through a law and economics lens. Traditionally, corporate governance has focused on profit maximization and shareholder interests, as championed by Milton Friedman. However, growing attention to stakeholders such as employees, consumers, and communities has brought CSR and ESG to the forefront. CSR, once largely voluntary, is increasingly supported by regulatory measures aimed at promoting social accountability. ESG criteria now significantly influence corporate behavior, investment decisions, and reputation management. Yet, critics question their effectiveness, citing high costs, limited stakeholder benefits, and the risk of misuse by corporate leadership.