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Rights and duties are involved in every area of business and markets, and society and governments. Most often, rights and duties involve serious ethical and moral issues of conflict. A good theory of the ethics of rights and duties, obligations, and responsibilities will empower us to understand the impact of our actions on various stakeholders. Additionally, a deep understanding of rights and duties could help us to analyze better the impact of our executive actions on various stakeholders and, in particular, to fathom the damaging effects of rights and duties violated by the man-made current financial crisis when seen from an ethical and moral point of view. Our coverage on the ethics of corporate rights and duties will comprise of two parts: Part 1: The Nature of Corporate Business Rights and Duties, and Part 2: Respecting Corporate Rights and Duties. The chapter will feature Newcomb Wellesley Hohfeld’s framework of legal interests such as claims, privileges, power, and immunity and its various applications to contemporary market and corporate executive situations. We illustrate the theory of rights and duties using several cases from the current turbulent markets.

This chapter provides an introduction to the world of family companies and family constitutions from a legal perspective. It first studies the legal types of business organizations that family firms have chosen across time and jurisdictions. It then illustrates how early predecessors of family constitutions evolved in the late Middle Ages and what modern family constitutions look like in different countries today. Further considerations are devoted to the governance framework of family firms. The chapter concludes by exploring the potential legal effects of family constitutions under German company and contract law.

When ownership starts getting dispersed among several individuals, families, branches, and generations, a need for organizing communications and decision-making usually arises to ensure functional relationships within the family. The need for a shared vision and mutually agreed ways of handling the shared ownership emerges, and a process for developing a family governance structure is often initiated. Family governance, hence, appears to be a central topic in family business research, but we still lack a more profound and specific understanding of how the owner family uses different family governance mechanisms to manage specific situations with possible conflicting goals, interests, and opinions, or just to develop the shared ownership further for or together with the next generation. The aim of this chapter is to give an overview and highlight different processes developed by the family within owner families with dispersed ownership to identify and align governance goals. This overview intends to broaden the understanding of what the role of family governance, as a family internal mechanism, can be in owner families with dispersed ownership among several family members.

This first chapter explores the basic foundation of corporate ethics: the human person in all its dignity and mystery, its corporeality and emotionality, and its cognitive and volitive capacities of moral development. Four fundamental characteristics of the human person, namely individuality, sociality, immanence, and transcendence, will be examined for their potential to understand, live, experience, and witness corporate ethics and morals. We explore the profound meaning and mystery of human personhood invoking several philosophies of the good and human dignity as exposed by Aristotle and Thomas Aquinas in the West, by the doctrine of Dharma in the East as expounded by Gautama Buddha, Mahabharata, and Bhagavad Gita, and by Prophets Confucius and Tao, in the East. Several contemporary cases of great human personhood are analyzed: for example, Peace Nobel Laureate Nelson Mandela from South Africa (1993) and Peace Nobel Laureate Liu Xiaobo from China (2017) – cases of human abuse that turned into triumphs of human dignity.