A Test of Stakeholder Governance

Gadinis, Stavros; Miazad, Amelia

doi:10.2139/ssrn.3869176

Cited by 3 publications

(3 citation statements)

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“…Moreover, social contract theory highlights the importance of morality and ethics in corporate decision-making, advocating for moral leadership from corporate executives and the embodiment of integrity and fairness in management practices [22].…”

Section: Impact On Corporate Governance and Managementmentioning

confidence: 99%

Extending Social Contract Theory to Corporate Entities: Exploring Applicability and Implications

Shan

2024

AEMPS

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Amidst the accelerating pace of economic globalization, many corporations increasingly grapple with the challenge of effectively balancing economic gains against their broader social and ethical responsibilities. This research paper delves deep into the applicability of social contract theory within the corporate sphere, analyzing its foundational principles in conjunction with Plato's Theory of Ideal Forms. The comprehensive study posits that modern corporations can be integral and proactive actors within the broader social contract, bearing significant societal responsibilities and moral obligations. It thoroughly explores the theoretical grounding for corporate adherence to social ethics and proposes practical and actionable implementations of social contract theory in corporate management. Emphasis is strongly placed on the moral role and the weighty societal responsibilities of corporations in today's ever-changing world. The compelling findings indicate that social contract theory offers a robust theoretical basis for corporations to adhere to social ethics voluntarily. Additionally, it assists corporate managers in developing decision-making models that align closely with these ethics. This alignment helps harmonize the pursuit of economic objectives with broader societal responsibilities.

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Section: Impact On Corporate Governance and Managementmentioning

confidence: 99%

Extending Social Contract Theory to Corporate Entities: Exploring Applicability and Implications

Shan

2024

AEMPS

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“…By making business leaders formally accountable to stakeholders other than their shareholders, such forms of corporate organization have the potential to give those stakeholders some power to exercise constraint over the companies (although corporate law scholars of my acquaintance tell me that this has not been realized in practice) -or, we might say, to radically expand the group of people who are considered "owners," and hence have authority over the organization. More generally, forms of corporate organization like the benefit corporation or other ideas from the broad field of "stakeholder capitalism" (Freeman, Martin, and Parmar 2007;Gadinis and Miazad 2021) might be deployed in order to give outsiders nonexistential threats over platform companies. For example, such tools might be used to backstop neutral platform rule enforcement by giving organized groups of outsiders the legal power to enforce neutrality by filing lawsuits for money damages, the way shareholders in ordinary pure for-profit corporations can (theoretically) file lawsuits against corporate executives who are insufficiently attentive to their duty to maximize profits.…”

Section: User-generated Sanctions For Company Commitmentmentioning

confidence: 99%

The Networked Leviathan

Gowder

2023

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Governments and consumers expect internet platform companies to regulate their users to prevent fraud, stop misinformation, and avoid violence. Yet, so far, they've failed to do so. The inability of platforms like Facebook, Google, and Amazon to govern their users has led to stolen elections, refused vaccines, counterfeit N95s in a pandemic, and even genocide. Such failures stem from these companies' inability to manage the complexity of their userbases, products, and their own incentives under the eyes of internal and external constituencies. The Networked Leviathan argues that countries should adapt the institutional tools developed in political science for platform governance to democratize major platforms. Democratic institutions allow knowledgeable actors to freely share and apply their understanding of the problems they face while leaders more readily recruit third parties to help manage their decision-making capacity. This book is also available Open Access on Cambridge Core. For more information, visit https://networked-leviathan.com.

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“…From a research design standpoint, the COVID-19 crisis is an appropriate setting as the pandemic was imposed on firms in an exogenous manner. Proponents of stakeholder capitalism also believe that the recent pandemic provides a good setting to test corporate claims of stakeholder governance (Eccles, 2022b; see, e.g., Gadinis and Miazad, 2022). Management per se is not responsible for the difficulties imposed on their firms by the economic crisis.…”

Section: Introductionmentioning

confidence: 99%