Are Latin America's corporate elites transnationally interconnected? A network analysis of interlocking directorates

Conflicting perspectives appear when thinking about the emergence of a cohesive transnational corporate network in Latin America. On the one hand, regional political integration, foreign investment growth, increased cross‐border mergers and acquisitions, and cultural and linguistic homogeneity may have fostered transnational networks among Latin America's corporate elites. On the other hand, domestic‐based business groups, family control and trade orientation to the USA may have hindered the emergence of a cohesive transnational corporate network in Latin America. Based on a network analysis of interlocking directorates among the 300 largest corporations in Latin America, I ask whether the region's corporate elites interconnect at the transnational level and form a cohesive transnational corporate network. I found few transnational interlocks, a lack of cohesion in the transnational corporate network and no regional leaders. Corporate elites in Latin America are not transnationally interconnected and so a cohesive transnational corporate network has not emerged. I discuss implications and avenues of future research.     

Do organizational and political–legal arrangements explain financial wrongdoing?

The 2008 financial crisis was a systemic problem with deep‐rooted structural causes that created opportunities to engage in financial malfeasance, a form of corporate wrongdoing. However, few quantitative studies exist on the effects of organizational and political–legal arrangements on financial malfeasance. In this paper, we examine the effects of organizational and political–legal arrangements that emerged in the 1990s in the FIRE sector (i.e., financial, insurance, and real estate) on financial malfeasance. Our historical contextualization demonstrates how changes in the political–legal arrangements facilitate the emergence of new corporate structures and opportunities for financial malfeasance. Our longitudinal quantitative analysis demonstrates that US FIRE sector corporations with a more complex organizational structure, larger size, lower dividend payment, and higher executive compensation are more prone to commit financial malfeasance.     

Evidence of a transnational capitalist class‐for‐itself: the determinants of PAC activity among foreign firms in the Global Fortune 500, 2000–2006

Transnational capitalist class (TCC) theory is rooted in the claim that the globalization of the economy has led to a globalization of economic interests and of class formation. However, systematic evidence linking the indicators of transnational class formation with political behaviour is largely missing. In this article, I combine data on board of director interlocks among the 500 largest business firms in the world between 2000 and 2006 with data on the political donations to US elections of foreign corporations via the corporate political action committees (PACs) of their subsidiaries, divisions or affiliates. Controlling for the various interests of individual firms, I find that foreign firms that are highly central in the transnational intercorporate network contribute more money to US elections than do the less central foreign firms. Given prior research on board of director interlocks, this finding suggests that a segment of the transnational business community has emerged as a class‐for‐itself.     

Board interlocking network and the design of executive compensation packages

The standard approach used to model interlocks in the business and management literature is to treat each interlock of a network as an independent data point. However, such an approach ignores the complex inter-dependencies among the common director interlocks. We propose that an interlocking board network is an important inter-corporate setting that has bearing on how company boards make corporate decisions. Using a sample of 725 large U.S.-based public companies over the period 2007–2010, board member information, executive compensation information, and exponential random graph modeling (ERGM) techniques for social networks, we present evidence that board interlocks are positively linked with similarities in the design of executive compensation packages in interlocked firms, particularly the proportions of the options component. We also find evidence that board interlocks are positively linked with similarities in a number of board characteristics.     

Networked audiences and cultural globalization

Most research approaches globalization from a top‐down perspective that looks at how past economic, political, and cultural arrangements influence non‐Western cultures. This essay instead uses the concept of the networked audience as an entry point to understand the dynamics of cultural globalization. We first discuss the mass audience in relation to cultural imperialism/homogenization. We then examine the recent shift to the networked audience in the context of digital globalization, computer networking, and social media. Afterwards, we investigate how the conceptualization of global networked audiences contributes to new understandings of global cultures and exchanges. The network perspective suggests that the traditional conceptualization of globalization via the center‐periphery model no longer works, but rather that cultural flows through networks enable individuals to have some, but limited, agency and power to resist corporate and elite controls.     

The Corporate Elite and the Architecture of Climate Change Denial: A Network Analysis of Carbon Capital's Reach into Civil Society

This study employs social network analysis to map the Canadian network of carbon‐capital corporations whose boards interlock with key knowledge‐producing civil society organizations, including think tanks, industry associations, business advocacy organizations, universities, and research institutes. We find a pervasive pattern of carbon‐sector reach into these domains of civil society, forming a single, connected network that is centered in Alberta yet linked to the central‐Canadian corporate elite through hegemonic capitalist organizations, including major financial companies. This structure provides the architecture for a “soft” denial regime that acknowledges climate change while protecting the continued flow of profit to fossil fuel and related companies.     

A structural theory of interlocking corporate directorates

A theory is proposed that explains where interlocking corporate directorates should appear between sectors of an economy, where they should not appear, and the profitability of efficient corporate interlocking. Taking the sector of an economy as the unit of analysis, interlocking directorates are cast as strategically created constraints on those sectors of the economy most “problematic” for obtaining profits in a given industry of firms. The extent to which each sector of the American economy is problematic for obtaining profits in two-digit and four-digit manufacturing industries is estimated from research linking industry profits with the form of the pattern of relations defining the industry as a position in the network of dollar flow transactions given in the 1967 Input-Output Study for the United States. A two-stage process is described for sampling firms representative of large corporations involved in American manufacturing. Measures of alternative strategies for interlocking across sectors are described. Two classes of hypotheses are derived: (1) Firms in an industry should interlock with firms in some other sector in proportion to the extent to which the sector constrains the industry's profits. (2) Controlling for production and market differences, the ability of firms in an industry to obtain unusually high profits reflects their success in creating interlocks with those sectors most problematic for their industry's profits.     

The Color of Neoliberalism: The “Modern Southern Businessman” and Postwar Alabama’s Challenge to Racial Desegregation1

Prior research on the origins and diffusion of the neoliberal project have emphasized the role of elite economists, yet no explanations have been provided as to why neoliberal reforms were attractive to the broader U.S. population. To fill this gap in the literature, this article focuses on the voluntary sector struggles against desegregation and corporate taxation in postwar Alabama. I examine the emergence of a language of privatization that degraded all things public as “black” and inferior and all things private as “white” and superior, which provided the pretext to attract national white support for the neoliberal turn. Empirically, the article focuses on the construction of the modern southern businessman that emerged from struggles to economically modernize the South, and the construction of a publicly financed private school system that emerged from the struggles to fight school desegregation. These two struggles fused under the George Wallace political umbrella, whose regional and national political career diffused the racial language from its origins in 1950s Alabama to the national level in the 1960s and early 1970s.     

Corporate interests within transnational advocacy networks: The International Coalition Against Plain Packaging

Most of the research on transnational advocacy networks documents progressive, voluntary movements, motivated by values associate with human rights and public goods. There is little critical reflection on the role of corporations within such networks or on the material motivations behind movements. Meanwhile literature on corporate political strategies related to partnerships with civil society is limited to national level analysis. This article presents a case study of the International Coalition Against Plain Packaging, which is conceptualized as a transnational advocacy network, and documents its links to the tobacco industry. We find that, not only have tobacco companies provided network members – publicly presented and perceived as independent – with financial resources, but they have also been involved in producing the information used by the network to debate the benefits of plain packaging. In return, the tobacco industry is able to propagate ideas favorable to its interests through organizations perceived as legitimate experts, and to maintain a network of allies ready to counter tobacco control regulations when and where they arise. Considering the multiple benefits corporations might derive from engaging with transnational advocacy networks, there is need for greater research on private actors’ influence within advocacy networks and on those networks that aim to counter or advance alternatives to progressive ideals.     

The political network in Mexico

The most important political processes in Mexican politics including presidential succession since the 1920s have been conducted within a network whose political rationale has been political stability. All presidential elections have been won by a single political party.We analyzed the role of the network and presidential successions measuring significant relationships using the system UCINET IV. We contrasted computer distributions with historical facts. Applying the structural block model algorithm we found two well differentiated sub-networks, one representing a military-based group and the second a financial-based group.Measuring the network's centrality is one of the main objectives of network analysis for understanding concentrations of power and the distribution of influence in the political system. In this article we evaluate the maximum node and clique network index value concentration for the core of the Mexican network of power.Centrality and power indexes in the network are presented and their results are discussed in connection with cohesiveness.     

Women Working Worldwide: transnational networks,corporate social responsibility and action research

In this article we trace the history of a new form of labour internationalism that emerged in support of women workers’ organizations, in particular in the garment industry, from the 1980s. We tell the story of the emergence of Women Working Worldwide (WWW), a small UK‐based NGO that provides solidarity and support for a network of women workers’ organizations in the commodity producing zones of the global South. WWW grew along with other organizations that have succeeded in forcing global corporations to take some responsibility for the employment conditions along their supply chains. In what has become corporate social responsibility (CSR), companies now establish codes of conduct and workplace audits of employment conditions in those factories to which they subcontract manufacturing work. WWW played a key part in the establishment of the Clean Clothes Campaign, Labour Behind the Label and the Ethical Trading Initiative that continue to develop such practices today. WWW used the power of transnational networks to ensure that the needs and voices of women workers were put on the agenda for action. The story of WWW demonstrates the potential to effect change through transnational networking, the extent to which different local organizations can find common cause with each other and the benefits of engaging in locally‐focused but transnationally coordinated educational and action research projects.     

The Urge to Merge: A Multiple‐Case Study

The authors undertook a comparative study of three recent mergers of nonprofit organizations in a Midwestern urban center, within the context of political‐economy theory. The research explored the impact of the same environmental factor, managed care, on the initial decisions by organizational leaders and the effects of these early decisions on subsequent actions taken to implement the merger. The study tested the authors' model of the motivations for merging, which proposes that the relationship between the decision‐making style of the leadership and the internal and external resources of the prospective partners determines whether the merger is driven primarily by mission, practicality, stability, or fear. Although the findings provide initial support for the hypotheses derived from the model, a demonstration of the differences in the approach to the merger by each organization indicated that other factors emerged as important driving forces during the various phases of the process.     

Hierarchy and Partnership in New Orleans

Recently, increasing numbers of partnerships have emerged in which universities work to address economic, social, and political problems within troubled communities. Such experiences have led to careful discussion of the model such efforts should follow, and a literature which has assessed such activity as overwhelmingly positive. Based on team ethnographic research, this case study discusses the emergence of one such partnership that was forged at high levels of government and university administration. Such an emergence, we argue, impacted the partnership in such a way that the interests of more powerful members outweighed those of members with less power. Unequal interests influenced the structure of the partnership, its ability to carry out its mission, the participation of community residents, and intentions for the future of the partnership.     

Buying a Voice: Gendered Contribution Careers among Affluent Political Donors to Federal Elections, 1980–2008

Early work in feminist theory hypothesized that differences in women and men's social and institutional roles might be reflected in the ways they participate in the political sphere. However, past empirical research has found scant evidence of a gender gap in the participatory strategies or motivations of women and men who become active in politics. But significantly less is known about the gender gap among a more select and increasingly significant player in American politics—political donors. In this article, we utilize a novel big data set—called the Longitudinal Elite Contributor Database (LECD)—that contains the population of all itemized donations made in federal elections between 1980 and 2008. Using this novel big data set supplemented with Social Security Administration (SSA) data on the gender of first names, we provide original estimates of the long‐term evolution of gender representation in the donor pool, vis‐à‐vis when, how often, and to whom affluent men and women have made political contributions over nearly 30 years. We find that large and persistent gendered inequalities of political voice continue to characterize this significant form of political influence. We theorize the potential implications of these findings for the representation of women's interests in the political sphere.     

The identification of interlock groups in large corporate networks: convergent validation using divergent techniques

The present study attempts to assess the substantive and theoretical implications of using different analytical techniques to identify groups of highly interlocked corporations within large corporate networks. Specifically, it compares the interlock groups identified using direct factor analysis with those identified using hierarchical cluster analysis. A comparison of these two sets of empirical results suggests that these two analytical techniques yield surprisingly similar findings even though they employ disparate methodological rationales and computational algorithms. Nevertheless, some minor but significant differences in the results provided by these two techniques arise as a consequence of different assumptions implicit in these techniques concerning the possibility of overlap between interlock groups. Finally, the convergence of these two analyses confirms that interlock groups are concrete empirical aggregations within corporate networks which cannot be dismissed as the artifacts of particular analytical methodologies.     

The evolution of the board interlock network following Sarbanes-Oxley

We examine the impact of the passage of Sarbanes-Oxley (SOX) on the evolution of the board interlock network for Fortune 300 firms during the 1998–2006 period using a stochastic actor-oriented model. Placing particular emphasis on director accountability and board independence, SOX created considerable disparity in demand and supply in the labor market for corporate directors. We examine whether the regulatory change may have led firms to draw more on socially embedded processes of board interlock partner selection such as reciprocity, transitivity, and multiplexity after SOX. We find that after the passage of SOX, a firm’s tendency to reciprocate board interlock ties has been reinforced. Similarly, firms appear to have relied more on their existing alliance partners to fill their board seats in the post-SOX period.     

Caregiver perceptions of children in their care and motivations for the care work in children's homes in Ghana: Children of God or children of white men?

The perceptions and motivations that workers have in their work and work environment are important determinants of the quality of work they do. For people who work in residential institutions where children who have lost the care of their parents receive care, these perceptions and motivations become a crucial part in determining the quality of services or care the children are given. This study set out to explore the perceptions and motivations of caregivers in the institutional context in Ghana. Adopting a qualitative, phenomenological approach, data were collected from 35 caregivers in two children's homes in Ghana through participant observations, focus group discussions and in-depth interviews. It emerged that caregivers perceived the children in their care first as children of God and then as children of white men and were predominantly motivated by their religious convictions to keep doing ‘the work of God’. Other motivations included personal life situations and economic aspects of the job. Implications for the workers and children in this environment are discussed.     

Globalizing ‘Girl Power’: Corporate Social Responsibility and Transnational Business Initiatives for Gender Equality

The recent emergence of ‘transnational business feminism’ [Roberts, A. (2014). The political economy of ‘transnational business feminism’. International Feminist Journal of Politics, 17(2), 209–231] accompanied by numerous ‘transnational business initiatives for the governance of gender’ [Prügl, E., &; True, J. (2014). Equality means business? Governing gender through transnational public–private partnerships. Review of International Political Economy, 21(6), 1137–1169] constitutes a significant area of debate in the feminist political economy literature. In this paper I focus on the confluence of the corporate social responsibility (CSR) agenda with the visibility of gender issues in development and the resultant corporate agenda for the promotion of women and girls’ empowerment. The paper draws on two gender-focused World Bank collaborations with private sector actors: the Global Private Sector Leaders Forum and the Girl Effect campaign. The paper argues that the dominant model of corporate citizenship inscribed within the discourse of transnational business initiatives is framed in terms of capitalizing on the potential power of girls and women, achieving an easy convergence between gender equality and corporate profit. I suggest that the construction of an unproblematic synergy between these goals serves to moralize corporate-led development interventions and therefore does not challenge corporate power in the development process, but instead allows corporations to subscribe to voluntary, non-binding codes and cultivate a socially conscious brand image.     

AUSTRIFYING EUROPE: ULTRARIGHT POPULISM AND THE NEW CULTURE OF RESISTANCE

The article investigates the political and cultural causes of the emergence of right-wing coalitions throughout the European Union, taking Austria as a symptomatic case of this return of political antagonism within a culture of consensus. It is argued that, methodologically and theoretically, a valid analysis of the phenomenon of xenophobic populism can only be achieved with the combined effort of both political and cultural theory,respectively of both political discourse analysis and cultural studies. Two axes of analysis have to be taken into account: the first being the relation between culture (or the popular) and politics (or the ‘people’), and the second concerning the even more fundamental relation or difference between politics and the political.     

The Shareholder Value Principle: The Governance and Control of Corporations in the United States

In recent decades, maximization of shareholder value has been a dominant business principle in the United States. This article reviews sociological accounts about the emergence, diffusion, and reality of the shareholder value principle. Although mainstream research in law and economics on corporate governance embraces the shareholder value principle and provides theoretical justifications for it, sociologists consider the shareholder value principle to be a product of specific economic, political, and ideological environments. Based on sociological research that reveals normative and political foundations of the shareholder value principle, I argue that the shareholder value principle is far from hegemonic in the contemporary United States. Indeed, faced with shareholder primacy, corporations and top executives have adopted various strategies, such as perfunctory conformity and symbolic acquiescence. The result is a highly volatile and contested system of corporate governance today.