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-onevote mechanism because the return won’t
be discounted as much as in one-personone-share case.
A Game Theoretical Model

One-Person-One-Vote Mechanism
Unp
Pro
WH
SO
WH
10
5
4
-1
Productivity from Productive Citizens
Productivity from Unproductive Citizens
Social Welfare Level
SO
5
0
5
0
10
4
5
A Game Theoretical Model

One-Share-One-Vote Mechanism
Unp
Pro
WH
SO
WH
10
0
4
4
Productivity from Productive Citizens
Productivity from Unproductive Citizens
Social Welfare Level
SO
10
0
0
0
10
4
0
A Game Theoretical Model