Who Should Control a Corporation? Toward a Contingency Stakeholder Model for Allocating Ownership Rights
David Bourget (Western Ontario)
David Chalmers (ANU, NYU)
Rafael De Clercq
Ezio Di Nucci
Jack Alan Reynolds
Learn more about PhilPapers
Journal of Business Ethics 103 (2):255-274 (2011)
A number of companies allocate ownership rights to stakeholders different from shareholders, despite the fact that the law attributes these rights to the equity holders. This article contributes to an understanding of this evidence by developing a contingency model for the allocation of ownership rights. The model sheds light on why companies, despite pressures from the law, vary in their allocation of ownership rights. The model is based on the assumption that corporations increase their chance to survive and prosper if the stakeholders supplying “critical contributions” receive the ownership rights. According to the model, “critical” contributions involve (1) contractual problems due to specific investments, long-term relationships, and low measurability; (2) the assumption of the uncertainty resting on the company; and (3) the supply of scarce and valuable resources. The model is dynamic because it also provides a basis for understanding why the allocation of ownership rights changes with time. Finally, the article presents the strategies companies can use to realize an efficient distribution of ownership rights among their stakeholders
|Keywords||corporate governance ownership rights shareholder theory stakeholder theory|
|Categories||categorize this paper)|
Setup an account with your affiliations in order to access resources via your University's proxy server
Configure custom proxy (use this if your affiliation does not provide a proxy)
|Through your library|
References found in this work BETA
Michael C. Jensen (2002). Value Maximization, Stakeholder Theory, and the Corporate Objective Function. Business Ethics Quarterly 12 (2):235-256.
Kenneth E. Goodpaster (1991). Business Ethics and Stakeholder Analysis. Business Ethics Quarterly 1 (1):53-73.
Lorenzo Sacconi (2006). A Social Contract Account for CSR as an Extended Model of Corporate Governance (I): Rational Bargaining and Justification. [REVIEW] Journal of Business Ethics 68 (3):259 - 281.
Bryan W. Husted (2000). A Contingency Theory of Corporate Social Performance. Business and Society 39 (1):24-48.
Armen Alchian, Harold Demsetz, Kenneth Arrow, Richard Edwards, Herbert Gintis & Michael C. Jensen (1983). Production, Information Costs, and Economic Organization. Philosophy and Public Affairs 12 (4):354-368.
Citations of this work BETA
Caleb Bernacchio & Robert Couch (2015). The Virtue of Participatory Governance: A MacIntyrean Alternative to Shareholder Maximization. Business Ethics: A European Review 24 (S2):130-143.
Christine Mallin, Giovanna Michelon & Davide Raggi (2013). Monitoring Intensity and Stakeholders' Orientation: How Does Governance Affect Social and Environmental Disclosure? [REVIEW] Journal of Business Ethics 114 (1):29-43.
Francesco Perrini, Angeloantonio Russo, Antonio Tencati & Clodia Vurro (2011). Deconstructing the Relationship Between Corporate Social and Financial Performance. Journal of Business Ethics 102 (S1):59-76.
Rae André (2012). Assessing the Accountability of the Benefit Corporation: Will This New Gray Sector Organization Enhance Corporate Social Responsibility? [REVIEW] Journal of Business Ethics 110 (1):133-150.
John A. Parnell, Gregory J. Scott & Georgios Angelopoulos (2013). Benchmarking Tendencies in Managerial Mindsets: Prioritizing Stockholders and Stakeholders in Peru, South Africa, and the United States. Journal of Business Ethics 118 (3):589-605.
Similar books and articles
E. Jansson (2005). The Stakeholder Model: The Influence of the Ownership and Governance Structures. [REVIEW] Journal of Business Ethics 56 (1):1 - 13.
Peter Vallentyne (2001). Self-Ownership. In Laurence Becker & Charlotte Becker (eds.), Encyclopedia of Ethics, 2nd edition. Garland Publishing
Daniel Moseley (2011). A Lockean Argument for Basic Income. Basic Income Studies 6 (2):11.
Per Bylund (2012). Man and Matter: How the Former Gains Ownership of the Latter. Libertarian Papers 4.
Thierry Poulain-Rehm & Xavier Lepers (2013). Does Employee Ownership Benefit Value Creation? The Case of France (2001–2005). Journal of Business Ethics 112 (2):325-340.
Vincent Norcia (1988). Mergers, Takeovers, and a Property Ethic. Journal of Business Ethics 7 (1-2):109 - 116.
J. M. Elegido (1995). Intrinsic Limitations of Property Rights. Journal of Business Ethics 14 (5):411 - 416.
Am Feallsanach (1998). Locke and Libertarian Property Rights: Reply to Weinberg. Critical Review 12 (3):319-323.
Mathias Risse (2012). On Global Justice. Princeton University Press.
John R. Boatright (2004). Employee Governance and the Ownership of the Firm. Business Ethics Quarterly 14 (1):1-21.
Roberta Rosenthal Kwall, The Author as Steward 'for Limited Times': A Review of 'the Idea of Authorship in Copyright'. [REVIEW]
J. E. Penner (2006). Ownership, Co-Ownership, and the Justification of Property Rights. In J. W. Harris, Timothy Andrew Orville Endicott, Joshua Getzler & Edwin Peel (eds.), Properties of Law: Essays in Honour of Jim Harris. Oxford University Press
Kasper Lippert-rasmussen (2008). Against Self-Ownership: There Are No Fact-Insensitive Ownership Rights Over One's Body. Philosophy and Public Affairs 36 (1):86–118.
Anders Eriksson & Kalle Grill, Who Owns My Avatar? -Rights in Virtual Property. Proceedings of DiGRA 2005 Conference: Changing Views – Worlds in Play.
Karl Widerquist (2009). A Dilemma for Libertarianism. Politics, Philosophy and Economics 8 (1):43-72.
Added to index2011-09-07
Total downloads21 ( #169,345 of 1,789,728 )
Recent downloads (6 months)2 ( #313,929 of 1,789,728 )
How can I increase my downloads?