Is the state-mandated private provision of public services compatible with concession theory? Insights from positive constitutionalism
Year: 2026
Type: article
Abstract: Among the political theories of the corporation, concession theory offers the strongest normative foundation for supporting state-mandated corporate social responsibility (CSR). However, this foundation is challenged when such CSR takes forms – like the state-mandated private provision of public services in developing countries – that raise doubts about their compatibility with the public interest. To clarify this tension, the article proposes integrating concession theory with the theory of positive constitutionalism, which emphasises the non-outsourceable nature of core state functions, including the provision of public services. Delegating such functions to corporations undermines the very public interest that concession theory requires. The article argues for a model of state-mandated CSR that enhances state capacity, instead of directly providing public services. This integrated approach offers a clearer normative framework for evaluating the role of corporations in developing contexts and ensures alignment with both the logic of concession theory and the constitutional purpose of the state.
Source: Transnational Legal Theory
Author: Francesco Pipicella
Institution: Uppsala University
Language: English
Subfield: Economics and Econometrics
Domain: Social Sciences
Open Access status: hybrid
OpenAlex ID: W7167017293
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