The Protection Project Regional Conference on "Corporate Social Responsibility in the Arab World" - Istanbul, Turkey Giovanni Tamburrini giovanni@solbridge.ac.kr Wenqing Zhang wzhang@solbridge.ac.kr
Warnings Peculiarity of the Paper: Conference Topic and Idea itself
One Vote / One Share v. One Vote / One Person Would it be “ lawful ” and efficient/effective to run a State as a Business Corporation? Identification of Shared Features
Shareholders Theories Corporate Interest Stakeholders Theories Theoretical Framework
Mele ’ and Garriga (2004): 4 groups Instrumental Theories (CSR as a means to achieve profits) Political Theories Integrative Theories Ethics Theories CSR Theories
Kuran (2006): Durability. The current legal structure of corporation was conceived to overcome problems related to the easy dissolution of partnerships (in both Islamic Law and Ius Commune ) What is the real end of Corporation?
Durability Profitability CSR New Corporate Goals’ Hierarchy
“ Though all governments have the same general end, which is that of preservation, yet each has another particular object. Increase of dominion was the object of Rome; war, that of Sparta; religion, that of the Jewish laws; commerce, that of Marseilles; public tranquillity, that of the laws of China: navigation, that of the laws of Rhodes; natural liberty, that of the policy of the Savages; in general, the pleasures of the prince, that of despotic states; that of monarchies, the prince's and the kingdom's glory; the independence of individuals is the end aimed at by the laws of Poland, thence results the oppression of the whole ” . Montesquieu, The Spirit of Laws.
Sec. 124. The great and chief end, therefore, of men's uniting into commonwealths, and putting themselves under government, is the preservation of their property. To which in the state of nature there are many things wanting. Locke, Second Treatise on Civil Government
Social Contract Article of Associations Preservation Durability Social Values Profitability Productivity ? CSR State – Business Corporation
Only in the last decade State, following up on the economic crisis, Constitutions have been provided with the balanced-budget amendment clause. Financial resources are a necessary means to implement the social values upon which people have agreed. State Productivity
Assumptions: a) Two types of working classes in a society: Productive class (citizens) and unproductive class (citizens). b) Productive class, dominant c) Unproductive class, subordinate d) Strategy set (for both players): Working Hard (WH) and Slacking Off (SO) A Game Theoretical Model
Assumption (ctd) Productive class prefers one-share-one- vote mechanism because the return won ’ t be discounted as much as in one-person- one-share case. A Game Theoretical Model
One-Person-One-Vote Mechanism Unp WH SO WH 10 4 5 5 Pro SO 5 -1 0 0 Productivity� from� Productive� Citizens 10 Productivity� from� Unproductive� Citizens 4 Social� Welfare� Level 5 A Game Theoretical Model
One-Share-One-Vote Mechanism Unp WH SO WH 10 4 10 0 Pro SO 0 4 0 0 Productivity� from� Productive� Citizens 10 Productivity� from� Unproductive� Citizens 4 Social� Welfare� Level 0 A Game Theoretical Model
Recommend
More recommend
