Why Isn't Every Corporation in America Accountable to People and the Planet?

In this episode of All American Why, Michael begins by sharing why this question matters to him as a business attorney who believes business can be a powerful force for good. He then talks with Tom Hering and Kim Allchurch-Flick about the evolution of corporations, the purpose of business, and how different approaches to corporate governance can shape our economy and society. Together, they explore whether we have designed capitalism in a way that reflects the values and outcomes we want to encourage. 

Guest Information
Tom Hering, Co-Founder & Managing Partner ofBenefit Corporations for Good
https://www.linkedin.com/in/tom-hering-9829727/

Kim Allchurch-Flick, Founder of Mighty Measure
https://www.linkedin.com/in/kimallchurchflick/

Leaders and advocates in the Benefit Company and Certified B Corporation movement, helping businesses align profit with purpose, accountability, and long-term impact.

Recording and Production
Recorded at: Michael’s Office in SE Portland, Oregon
Original Music: Rainezra (@rainezra) and Vews (@pointofvews)
Audio Editing by: Kye Gilmer (@residual_audio)

Learn More / Sources
The following materials were referenced or informed this episode. Links are provided for transparency and further reading.

The Social Responsibility of Business Is to Increase Its Profits (Milton Friedman, 1970)
The landmark essay that helped popularize shareholder primacy and influenced modern corporate governance.
https://www.nytimes.com/1970/09/13/archives/a-friedman-doctrine-the-social-responsibility-of-business-is-to.html

Dodge v. Ford Motor Co. (1919)
The Michigan Supreme Court decision frequently cited in discussions of shareholder primacy and corporate purpose. https://law.justia.com/cases/michigan/supreme-court/1919/170-n-w-668-2.html

The Shareholder Value Myth – Lynn Stout
 Examines the legal and economic misconceptions surrounding shareholder primacy.
 https://www.bkconnection.com/books/title/the-shareholder-value-myth

Cannibals with Forks – John Elkington
Introduced and popularized the Triple Bottom Line framework of People, Planet, and Profit.
 https://www.johnelkington.com/archive/TBL-elkington-chapter.pdf

B Lab
The nonprofit organization that administers the Certified B Corporation certification.
 https://www.bcorporation.net/

Model Benefit Corporation Legislation
The model legislation used as the basis for benefit corporation statutes across the United States.
 https://benefitcorp.net/

Oregon Benefit Company Statutes
Oregon's laws governing Benefit Companies.
 https://www.oregonlegislature.gov/bills_laws/ors/ors060.html

Washington Benefit Corporation Act
Washington's statutes governing Benefit Corporations.
 https://app.leg.wa.gov/rcw/default.aspx?cite=23B.25

Citizens United v. Federal Election Commission (2010)
The U.S. Supreme Court decision expanding protections for independent political expenditures.
 https://supreme.justia.com/cases/federal/us/558/310/

Federal Election Commission: Independent Expenditures
Explains campaign finance rules governing independent political spending.
 https://www.fec.gov/help-candidates-and-committees/making-independent-expenditures/

OpenSecrets
Tracks lobbying, campaign finance, Super PAC spending, and political influence.
https://www.opensecrets.org/

Economic Policy Institute: CEO Compensation
Research documenting long-term trends in CEO pay relative to typical worker compensation.
 https://www.epi.org/publication/ceo-pay-in-2023/

Congressional Budget Office
Independent analyses of federal tax policy, deficits, and economic trends.
 https://www.cbo.gov/

Congressional Research Service
Nonpartisan reports on tax policy, corporate governance, and economic issues.
https://crsreports.congress.gov/

Federal Reserve Distributional Financial Accounts
Data on wealth distribution and household balance sheets in the United States.
 https://www.federalreserve.gov/releases/z1/dataviz/dfa/

Bureau of Economic Analysis
Official U.S. economic statistics including GDP, corporate profits, and national income.
 https://www.bea.gov/

OECD Corporate Governance Resources
International comparisons of corporate governance and economic policy.
 https://www.oecd.org/corporate/

Germany's Codetermination System
Overview of employee representation on corporate supervisory boards.
https://www.boeckler.de/en/codetermination-3494.htm

France's "Entreprise à Mission"
Overview of France's legal framework allowing companies to adopt a public-purpose mission.
https://www.economie.gouv.fr/entreprises/entreprise-mission

European Union Corporate Sustainability Due Diligence Directive
European rules requiring large companies to address human rights and environmental impacts throughout their supply chains.  https://commission.europa.eu/business-economy-euro/doing-business-eu/corporate-sustainability-due-diligence_en

The Anarchy – William Dalrymple
History of the British East India Company and its role in colonialism and corporate power.  https://www.bloomsbury.com/us/anarchy-9781635573954/

The Corporation That Changed the World – Nick Robins
A history of the British East India Company and its lasting influence on global commerce.
https://yalebooks.yale.edu/book/9780300240986/the-corporation-that-changed-the-world/