Values like solidarity, sustainability, inclusiveness and integrity are not always upheld by businesses and I believe our economies have suffered as a result.
László Andor, EU Commissioner 2011
Over a decade ago, Europe was hit by a financial crisis, followed by an economic crisis, the worst in almost a century. The impact of the crisis still affects European economies facing new challenges in the form of the COVID-19 pandemic and the Russian attack on Ukraine. The time of crisis is the time when Europeans ask: What role do corporations play in all of this? What do they contribute to society?
The words of EU Commissioner László Andor demonstrate how the role played by corporations during the financial and economic crisis of 2008−2014 was also questioned high up in the European Union. As it was essentially the ordinary taxpayers who paid the costs of the crisis, the financial and economic crisis was not merely a legitimacy crisis for business – it was a crisis of the very legitimacy of the European Union.
Ms Raskulla’s research focuses on the measures adopted by the European Union to tackle the various social challenges posed and perpetuated by the financial and economic crisis. For her study, she analysed a significant part of EU regulations adopted between 2008 and 2014 to determine the impact of crisis measures on the legal powers and legal relations of corporations. Her conclusion is that even though the EU adopted some significant intervention measures to stabilise the financial and banking sector, the impact on the legal powers and legal relations of corporations was far from radical. For example, the legal liabilities of corporations in relation to individuals did not extend to outside market relations. Ms Raskulla argues that the reasons for this were not principled but pragmatic. The protection of corporations from non-contractual liabilities originate from ideas of how to best achieve the economic objectives of the Union – not from the protection of the autonomy of corporate entities.
Raskulla’s research exposes the underlying assumptions of the role and power of corporations, including the assumption that corporations are autonomous but fundamentally artificial legal entities, empowered and legitimated by governments.
“The idea of corporations contributing to the public good is embedded in the constitution of the EU,” Raskulla states. She recommends that the EU make the fundamental ideas about corporations and their role in society visible in its legislation.
Ms Raskulla also urges that a clearer division between the rights of natural persons and the rights of corporate entities is provided.
“Like corporations, natural persons also play an instrumental role in the market economy. Still, unlike corporations, we enjoy rights outside this commercial life sphere. However, the distinction between individuals as market actors and as members of civil society is not sufficiently clear in the EU legislation.”
Ms Raskulla’s study on the European constitution of corporations aims to provide a legal vocabulary, laying the foundations for an unequivocal understanding of corporations as legal entities in Europe.
“Understanding the nature of corporations as legal persons is instrumental for constructive social discussion on the extent and limits of corporate social responsibilities. Such discussion is crucial in a time of crisis, be that an economic crisis, pandemic or war, but we lack a common vocabulary,” Ms Raskulla says.
Ms Raskulla also believes her study has implications for when deliberating the legal governance of autonomous intelligent systems, including whether artificial intelligence can be perceived as a legal person. She looks forward to continuing her research.
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The doctoral dissertation of Siina Raskulla M.Sc. (Admin.) in the field of public law titled European Constitution of Corporations: Legal Personhood, Legal Power & Legal Governance of Corporate Entities in the European Union, will be publicly examined at the Faculty of Management and Business of Tampere University at 12.15 on 10 June 2022, address: Kanslerinrinne 1, lecture room Pinni B1096. The Opponent will be Professor Jukka Mähönen from the University of Helsinki. The Custos will be Professor Jukka Viljanen from the Faculty of Management and Business
The dissertation is available online at
https://urn.fi/URN:ISBN:978-952-03-2418-6
The public examination will be conducted in English and can also be viewed online. The link will be updated to Twitter (Siina Raskulla’s Twitter).
Photo: Samu Kahila