Warnings Peculiarity of the Paper: Conference Topic and Idea itself - - PowerPoint PPT Presentation

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

Theoretical Framework

Shareholders Theories Corporate Interest Stakeholders Theories

CSR Theories

Mele’ and Garriga (2004): 4 groups Instrumental Theories (CSR as a means to achieve profits) Political Theories Integrative Theories Ethics Theories

What is the real end of Corporation?

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)

New Corporate Goals’ Hierarchy

Durability Profitability CSR

Montesquieu, The Spirit of Laws.

 “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

• f 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”.

Locke, Second Treatise on Civil Government

• 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.

State – Business Corporation

Social Contract Article of Associations Preservation Durability Social Values Profitability Productivity ? CSR

State Productivity

 Only in the last decade State, following up

• n 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.

A Game Theoretical Model

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-

• ne-share case.

A Game Theoretical Model

WH 10 4 5 5 SO 5

• 1

Productivity from Productive Citizens 10 Productivity from Unproductive Citizens 4 Social Welfare Level 5

WH SO Unp Pro

 One-Person-One-Vote Mechanism

A Game Theoretical Model

 One-Share-One-Vote Mechanism

WH 10 4 10 SO 4

Productivity from Productive Citizens 10 Productivity from Unproductive Citizens 4 Social Welfare Level

WH SO Unp Pro