the protection project regional conference on "corporate social responsibility in the arab...
TRANSCRIPT
The Protection Project Regional The Protection Project Regional Conference on "Corporate Social Conference on "Corporate Social
Responsibility in the Arab World" - Responsibility in the Arab World" - Istanbul, Turkey Istanbul, Turkey
Giovanni [email protected]
Wenqing Zhang
WarningsWarnings
Peculiarity of the Paper:Conference Topic and Idea itself
One Vote / One Share v. One One Vote / One Share v. One Vote / One PersonVote / One Person
Would it be “lawful” and efficient/effective to run a State
as a Business Corporation?
Identification of Shared Features
Theoretical FrameworkTheoretical Framework
Shareholders Theories
Corporate Interest
Stakeholders Theories
CSR Theories CSR Theories
Mele’ and Garriga (2004): 4 groups
Instrumental Theories (CSR as a means to achieve profits)
Political TheoriesIntegrative TheoriesEthics Theories
What is the real end of Corporation? 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 New Corporate Goals’ Hierarchy
Durability
Profitability CSR
Montesquieu, The Spirit of Laws.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 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”.
Locke, Second Treatise on Civil Locke, Second Treatise on Civil GovernmentGovernment
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 CorporationState – Business Corporation
Social Contract Article of Associations
Preservation Durability
Social Values Profitability
Productivity ? CSR
State Productivity State Productivity
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.
A Game Theoretical ModelA Game Theoretical Model
Assumptions:a)Two types of working classes in a society: Productive class (citizens) and unproductive class (citizens).b)Productive class, dominantc)Unproductive class, subordinated)Strategy set (for both players): Working Hard (WH) and Slacking Off (SO)
A Game Theoretical ModelA 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 ModelA Game Theoretical Model
One-Person-One-Vote Mechanism
A Game Theoretical ModelA Game Theoretical Model
One-Share-One-Vote Mechanism