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Claassen, R.J.G.
Polity, 01/2021, Letnik: 53, Številka: 1Journal Article
Political theory today has expanded its scope to debate business corporations, conceiving of them as political actors, not (just) private actors in the market place. This article shows the continuing relevance of Thomas Hobbes’s work for this debate. Hobbes is commonly treated as a defender of the so-called concession theory, which traces the legitimacy of corporations to their being chartered by sovereign state authorities for public purposes. This theory is widely judged to be anachronistic for contemporary business corporations, because these can now be freely formed, on the basis of private initiative. However, a close reading of the crucial passages in Hobbes’s work reveals a more subtle view, which rejects this private/public dualism. Hobbes’s reflections on the companies of merchants of his day provide room for business corporations’ pursuit of private purposes, while keeping them embedded in a public framework of authority. Moreover, by criticizing the monopoly status of these companies, he opens up a way to integrate market failure arguments from modern economics into concession theory. The “neo-Hobbesian concession theory” emerging from this analysis shows how concession theory can accommodate private initiative and economic analysis, and thus be a relevant position in the debate about the modern business corporation.
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