How can the 'Respect Campaign' - FIFA/CIES International ...

approach and was reflected in both court rulings and legislation. 38 However, Allen and otherscholars also state that in the upcoming years the ‘economic approach’ will be dominant in theU.S. and in most parts of the world.Hansmann & Kraakman argue that the economic-capitalistic approach is currently governingthe world of business. 39 Based on the ‘shareholder-oriented model’, it focuses onmaximization of shareholders profits. In their opinion, history clearly shows that differentmodels, including the state-oriented model, in which the state has the power and legitimacy toinfluence the corporate management to ensure the existence of public interests, have faileddue to the competitive market forces and the influence of different pressure groups. 40 Thelegal situation in the USA may best be reflected in the corporate law principles, which wereformulated by the American Law Institute. They state that the purpose of the corporation is tomanage a business activity and to increase the corporate profits and the shareholder return.Only as an exception, the corporation may devote a reasonable amount to philanthropicpurposes, considering the contribution of similar companies, the specific circumstances andthe volume of assets and profits made by the corporation, and the correlation between thecorporate and the social goals it tries to reach. 41In the European ‘social approach’, the corporation is not the private property of itsshareholders or members, it is a social institution designed to benefit the aggregate well-being(social-entity conception). Accordingly, this approach assumes that the corporation has anundetached social and moral responsibility for broader ‘communities‘ or ‘stakeholders’related to it, who are influenced by it, and therefore has to act to promote their interests.This approach differs from the ‘economic approach’ mainly because of different perceptionsabout the nature of society. Institutional framework of the European economy – in particularformal, mandatory and codified rules of law – define the responsibility of corporations andother societal actors for particular social issues. CSR in Europe may appear dispensable sincethese issues are not left to the free disposition of corporations because they are a part of the38 William T. Allen, "Our Schizophrenic Conception of the Business Corporation," 14 Cardozo L. Review (1992),261; Ruling - Paramount Communications, Inc. v. Time, Inc. 571 A. 2d. 1140, Del. (1989); Henry Hansmann andReinier Kraakman, “The End of History for Corporate Law,” Georgtown Law Journal (2001), 439-466.39 Henry Hansmann & Reinier Kraakman.(2001), 439.40 American Law Institute, Principles of Corporate Governance: Analysis and Recommendations, §2.01(a),§2.01(b).41 Matten and Moon (2004), 4.10