Journal of International Business and Law


Lior Frank


ESG (environmental, social, and governance) considerations are on the rise, and corporations that fail to adequately address and implement them in their business agenda are exposed to legal risks and liabilities. Such social considerations weaken the prevalent notion that the paramount purpose of the corporation is to maximize its shareholders’ wealth, even at the expense of the stakeholders’ (e.g., consumers) interests. In this ‘new era’ of ESG, corporations are compelled to take stakeholders’ interests into account, otherwise, they might face legal action. Accordingly, this article contends that monopolistic excessive pricing, which is currently deemed lawful under U.S. antitrust law, should be regarded as an “ESG violation”, as this pricing practice entirely disregards the stakeholders’ interests and primarily promotes the wealth of the shareholders. A proper ESG duty should prohibit monopolistic firms from causing harm to stakeholders by way of charging unfair high prices which have no correlation to the product’s production costs.

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