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 Tamburrinigiovanni@solbridge.ac.kr

Wenqing Zhang

wzhang@solbridge.ac.kr

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