[Crm-sig] CRMsoc

Martin Doerr martin at ics.forth.gr
Sat Jun 8 22:59:15 EEST 2019

Dear All,

Here my proposal for a core model of business.

I might be wrong, but all economic models I have seen so far try to 
describe the mathematically defined accountable exchange of goods and 
provisions. This is both inedaquate for our current society, as the 
financial crises regurlarly demonstrate, and even more for societies 
back in past to Bronze Age, an alternative societies around the world at 
any time. It is further not our aim to automate accounting, but to 
document social relations and their influence on the actions of people. 
Therefore, the question if someone payed at the supermarket precisely 
the last cent is not our concern.

I would however be very much interested if someone has seen a business 
model that could describe a Babylonian temple economy as well as ours, 
Anyway here my first thoughts:

SOxxx Provision

Subclass of E7 Activity

Scope Note: This class comprises activities of one Actor, the 
“provider”, providing to another Actor, the “receiver”, some particular 
entity of identifiable social value that is generally regarded to imply 
a formal obligation for compensation. The provided entity may be a 
material service, such as handing out a kilo of potatoes, repairing a 
car, a payment or loan of a monetary amount, or the granting of rights 
of ownership or use, etc., and should constitute a well-defined unit. 
Except for the case of being a gift in the proper sense or an act of 
bribery, a Provision may initialize an obligation of the receiver to the 
provider, increase an existing obligation or being itself a compensation 
already and decrease or terminate an existing obligation of the provider 
to the receiver. A Provision may or may not be associated with a precise 
monetary counter-value, agreed or demanded beforehand or afterwards. Be 
it with or without a defined monetary value, the units of mutual 
provisions should such that the involved parties should be able to 
decide when provisions have terminated mutual obligations, different 
opinions of partners nonwithstanding. In societies maintaining a 
currency, in a typical market purchase partners would exchange some 
goods against immediate payment. Such cases should be modelled by 
specializing this class to the typical, simplified forms of accountable 
exchange business in a society. But even in such societies, economic 
difficulties of partners regularly lead to agreements overriding the 
specified formal monetary equivalents of provisions, which a 
historically correct model must be able to represent adequately.

SOxxx Business Obligation

Subclass of SO1 Social Bond

Scope Note: This class comprises a temporary relationship of a socially 
accepted form between two business partners consisting of an obligation 
to make compensating provisions to each other, normally with the goal to 
terminate the obligation immediately or within some agreed time-span. An 
instance of SOxxx Business Obligation may implicitly come into being by 
an agreed-on initial provision of one partner, or by a formal contract. 
It ends with an agreement of the partners about completed compensation 
or the arbitration by a responsible social institution. The obligation 
may be accountable, i.e., quantifiable in terms of a currency, and 
compensation may be agreed to be defined arithmetically based on 
monetary values and counter-values, such as when paying for a purchase 
in a supermarket, but also when paying back a loan with interest rates 
for years. In other cases, partner may agree to define the compensation 
of obligations by a set of particular material provisions, or by a 
combination of monetary exchange and provisions without a defined 
monetary counter-value, as characteristically in small communities, 
earlier societies but also in exchanges between cultural heritage 
institutions. Even in a modern industrialized society, business 
obligations may be supported by but are not defined by mathematical 
accounting. Economic difficulties of partners regularly lead to 
agreements overriding the defined monetary counter-values. Even if the 
units of provisions made are well-defined, partners may not agree on the 
termination of the obligation and appeal to an arbiter.

Informal obligations, such as those initiated by gifts or attempts of 
bribery, and obligations by other social interactions that cannot be 
formally compensated or terminated, in whatever form of community or 
society, *do not fall* under this class and may be modelled as other 
forms of obligation sharing more general traits with this class.

  Dr. Martin Doerr
  Honorary Head of the
  Center for Cultural Informatics
  Information Systems Laboratory
  Institute of Computer Science
  Foundation for Research and Technology - Hellas (FORTH)
  N.Plastira 100, Vassilika Vouton,
  GR70013 Heraklion,Crete,Greece
  Email: martin at ics.forth.gr
  Web-site: http://www.ics.forth.gr/isl

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