Donald Trump: Social Media Ban Shows Corporate Responsibility Can Win Out Over Profit

Abstract

This Comment draws on Donald Trump's removal from several social media platforms following riots at the US Capitol on the 6th of January 2021. Against this background, this Comment argues that shareholder-wealth maximisation, the idea that management 'should' make decisions with a view to increasing shareholder wealth, is misleading. This is because most corporate law frameworks around the world including in the US state of Delaware where many social media companies are incorporated give management discretion to decide whose interests they will prioritise in decision-making. This means that if these companies reinstate Donald Trump having realised that his removal is hurting their bottom-line, it will be because management chose to prioritise their financial interests not because they are 'obliged' to do so on behalf of shareholders.

Keywords: Donald Trump, Facebook, Google, Microsoft, Twitter, Corporate Law, 2020 US Elections, Capitol Riots, US Politics, Shareholder Wealth Maximisation

JEL Classification: K2, K20