Why and how Sen’s capability approach should deal with corporate governance

The hierarchical nature of the firm affects stakeholders’ well-being. This is our main motivation in analysing through perspective Sen’s capability approach—a social justice theory for evaluation any institution, organization or policy aimed at providing well-beings. In order to work out inherent relation between approach and economic analysis law, we show strict link capabilities entitlements, which call capabilities-as-entitlements, investigate if how corporate governance, i.e., configuration entitlements a firm, enhances diminishes stakeholders. We underline role that public use reason sufficientarian criterion play mitigating conflicts among stakeholders, permitting reach balance amongst all them identification allow stakeholders exercise democratic citizenship corporation. build several indexes are able measure compare developed within governance regimes.