Corporate-governmental networks in the Netherlands

Corporate networks studies have been restricted mainly to the private or business sectors. Network analyses involving both corporations and state or government agencies have been extremely rare. In this paper, the intercorporate network of interlocking directorates in the Netherlands, based on 86 large corporations and financial institutions, is studied in terms of a bipartite corporate—governmental network which arises from the interlocking memberships linking these corporations with major committees, agencies and similar centers of decision in the public sector or central state mechanisms in the Netherlands. The corporations, representing 27 industrial sectors, have been related to government and state agencies in 28 policy sectors. In this exploratory analysis the two heavy industries, metal/shipbuilding and chemicals/oil stand out clearly. With respect to the 17 central firms the results demonstrate consistent correspondence between their central position in the Dutch corporate network and the degree of their interlocks with policy sectors in the state. The results also show that the interlocks are overwhelmingly linked with the two policy sectors “economic affairs” and “education and sciences”. Hence a more detailed analysis of the interlocks with these two policy sectors is reported.     

The Political Economy of “Transnational Business Feminism”

This article traces the emergence of a politico-economic project of “transnational business feminism” (TBF) over the past decade. This project – which is being developed by a coalition of states, financial institutions, the UN, corporations, NGOs and others – stresses the “business case” for gender equality by arguing that investments made in women can (and should) be measured in terms of the cost savings to families and communities, as well as in terms of boosting corporate profitability and national competitiveness. This article uses a feminist historical materialist framework to argue that TBF is facilitating the further entrenchment of the power of corporations to create “expert” knowledges about both “gender” and “development.” Using the Nike-led “Girl Effect” campaign as an example, it is argued that TBF is promoting a naturalized and essentialized view of women and gender relations that ignores the historical and structural causes of poverty and gender-based inequality. It is also helping to reproduce the same neoliberal macroeconomic framework that has created and sustained gender-based and other forms of oppression via the global feminization of labor, the erosion of support for social reproduction and the splintering of feminist critiques of capitalism.     

Mind the Gap: The Commodification of Corporate Social Responsibility

This article, based on two years of participant observation, in‐depth interviews, and informal exchanges, offers an ethnographic account of a nonprofit organization that promotes the idea of corporate social responsibility. It follows the ways and means by which midlevel corporate executives are initiated into the universe of “corporate citizenship,” learning to deploy terms such as “stakeholders,” “brand loyalty,” “social investment,” and “community empowerment.” Through an analysis of workshops, lectures, and ceremonial events, I show how the idea of social responsibility is transformed into a managerial tool, designed to enhance employee loyalty and to improve brand loyalty. From a constructivist sociological perspective, I also show that the idea of corporate social responsibility, when framed and advocated by a corporate‐friendly organization, fits the neoliberal emphasis on corporate self‐regulation.     

What Is a Good Corporate Citizen?*

Au caeur du débat sur les corporations multinationales se trouve la question de déterminer si ces corporations agissent en « bons citoyens » Cependant, les critères à utiliser dans une telle analyse n'ont pas retenu l'attention des politicologues, économistes, sociologues et théoriciens en organisation. Certains des critères rencontrés dans les débats actuels et la situation de divers types de corporations par rapport à ces critères font l'objet de cette étude. Les donnés révèlent que, pour certain critères, la nationalité des propiétaires est importante mais que, pour d'autres critères, on observe davantage de variation entre types de corporation qu'entre propriétaires de différentes nationalités. Un nombre de questions sont soulevés au sujet de l'identification du critère le plus important et au sujet de la configuration de critères necessaires pour definir le « bon citoyen corporatif » Il s'agit d'une étude d'exploration visant à soulever des questions concernant un problème relativement peu travaillé en théorie de l'organisation. The question of what is “good corporate citizenship” is presently a central issue in the national debate regarding multinational corporations. However, the criteria used to answer this question have not been dealt with in detail by political scientists, economists, sociologists, or organizational theorists. Some of the criteria which have been raised in the current debate and the extent to which various types of corporations perform in terms of each criterion are examined. The data show that for some criteria the nationality of the corporate owners is important, but for other criteria variations occur between types of corporations rather than between the nationality of the owners. A number of questions are raised regarding which criterion is the most important and which combinations of criteria are necessary in order to determine “good corporate citizenship” in Canada. The paper is exploratory and intended to raise questions for discussion on this relatively unexplored problem in organizational theory.     

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.     

Transnational Corporate Investment and Food the Third World: A Cross-National Analysis1

Abstract World-system theory, dependency theory, and other critical perspectives indicate that activities of transnational corporations (TNCs) promote hunger in the Third World. However, cross-national research on effects of dependence has largely ignored this fundamental manifestation of underdevelopment. This study examines the impact of transnational corporate investment on food consumption in 60 countries. Per capita consumption of calories and protein from 1970 to 1985 is regressed on 1967 transnational corporate investment penetration (investment stocks), 1967 consumption, and appropriate controls. The results strongly support perspectives critical of TNCs. Transnational corporate penetration has a substantial detrimental effect on food consumption which grows with the length of the lag between penetration and the dependent variables. This finding is confirmed by robust regression analysis. Over the 1967–1985 period, countries with minimal transnational corporate penetration are estimated to have gained approximately 700 more calories and 20 more grams of protein consumption per person per day than countries with maximal transnational corporate penetration.     

Transformation des deutschen Unternehmenskontroll-Systems?

This study contributes empirically to the corporate governance debate that has been revived since Mannesmann was taken over by Vodafone Airtouch. Whereas the German corporate governance system has long been described as a network arrangement of mutually interlinked large companies and banks, its British counterpart is a market for corporate control. Against this background, Mannesmann can be either regarded as an anomaly that contradicts previous evidence, or as an indicator of a major systemic shift. Examination of these two hypotheses on the micro and meso level reveals that the German corporate governance-system is in a hybrid state: while most large German companies are seemingly not affected by institutional changes since the mid 1990s, a few, highly internationalized corporations can be said to be exposed to conditions similar to that of the British market for corporate control. In 1999 Mannesmann was one of them. Thus, there has been a segmentation of large German companies with respect to corporate governance on the aggregate level. However, an active market for corporate control — such as the British one — is not in sight.     

CEOs'Career Backgrounds and Corporate Long-Term Strategic Planning*

CEOs affect corporate outcomes along various dimensions, including the emphasis placed on long-term strategic planning. This study assesses the impact of CEOs’functional and industry specializations on R&D and capital spending in four manufacturing industries. We found only limited support for our position that CEOs with more professional-type careers are less willing than other CEOs to have their firms make long-term investments. “A critical theme of… the modem industrial enterprise is that creating and maintaining such capabilities is a continuing, long-term process–a process that requires sound, long-term perspectives from the decision makers responsible for the health and growth of their enterprise.” (Chandler 1991, p. 627)     

The origins and early diffusion of “shareholder value” in the United States

The shareholder value conception of the firm and its consequences for the functioning of corporations have been studied from a variety of disciplinary and theoretical perspectives. In this article we examine in more detail than has been done sofar the origins and early adoption of this particular conception. By investigating public business sources from the perspective of field theory, we argue that the rise and early diffusion of “shareholder value” are best understood as a function of the changing power relations in the economic field during the first half of the 1980s. The deep economic recession at the end of the 1970s and early 1980s led to a crisis in the prevailing management beliefs, offering newcomers the opportunity to promote alternative business strategies, among which the shareholder value conception became dominant. The sources studied indicate that the spokespersons of the new business conception were initially wealthy outsiders, corporate “raiders,” who used the economic crisis to oppose management and acquire shares in undervalued firms with the threat of restructuring and selling parts of them in the name of shareholders’ interests. Although these hostile take-overs, or threats of take-overs, were widely contested, the Reagan administration blocked regulation and stimulated the take-over market. The rivalry between “raiders” and public pension funds over the profits of these takeovers led to the founding the Council of Institutional Investors (1985), which adopted the shareholder value doctrine inaugurating the organized activism of public pension funds with regard to the management of firms. It was thus in all likelihood the competition and conflict among different groups of shareholders, primarily corporate raiders and pension funds, that triggered the shift in the balance of power between managers and shareholders. Since managers found profitable ways to adapt to the new balance of power, the shareholder value ideology spread rapidly through the economic field, becoming the dominant business model of North American firms in the second half of the 1980s.     

Corporate involvement in Canadian hospital and university boards, 1946–1977

Les liens ?entrecroisement entre les conseils ?administration des 100 plus grandes corporations canadiennes et ceux ?hôpitaux et ?universités entre 1946 et 1977 font ?objet de cet article. Les liens entre corporations et universités se sont considérablement affaiblis au cours des années soixante, alors qu'un déclin similaire mais plus limité s'est produit entre corporations et hôpitaux. Pour ?essentiel, ces liens sont ?apanage, ?abord, de corporations sous contrôle canadien, dans les secteurs financier et du transport, et dans les services publiques; ensuite, ?universités québécoises, ontariennes et maritimes, vieilles et établies, qui ont plus de liens avec des corporations que les universités de ?Ouest. Le réseau pan-canadien de liens inter-entreprises est renforcé par des liens indirects, entre corporations, résultant de la présence de plusieurs corporations au conseil ?administration ?un hôpital ou ?une université. Sont aussi renforcés les sousréseaux régionaux et locaux de ce réseau national. This paper examines interlocking between the boards of the 100 largest Canadian corporations and the boards of major hospitals and universities, between 1946 and 1977. Interlocking between corporations and universities declined dramatically in the 1960s and there was a similar but weaker decline in interlocking with hospitals. Interlocks with hospitals and universities are concentrated among the Canadian-controlled corporations in the financial, utility, and transportation sectors which are generally viewed as central to the Canadian capitalist class. Long established, major universities in Atlantic Canada, Quebec and Ontario are found to have more interlocks with corporations than universities in Western Canada. Indirect ties between corporations, which result from two or more corporations being represented on the board of a hospital or university, reinforce the national network of intercorporate ties and strengthen its regional and city-based subnetworks.     

Corporate Transformation to the Multilayered Subsidiary Form: Changing Economic Conditions and State Business Policy

Despite the prevalence of corporate change in the last decade, researchers have not examined whether a change occurred in the corporate form. The analysis here presents a historical case study of a large U.S. corporation and quantitative data on the largest 100 U.S. industrial corporations. The case study examines the effects of changing economic conditions and state business policy on the corporate form. This study demonstrates that the corporation changed to a multilayered subsidiary form (MLSF): a corporation with a hierarchy of two or more levels of subsidiary corporations with a parent company at the top of the hierarchy operating as a management company. Whereas rising debt and increasing competition in the 1970s and 1980s undermined corporations' capacity to accumulate capital, changes in state business policy in the mid-1980s provided the political-legal structure for corporations to restructure their assets as subsidiary corporations tax free. Changes in state business policy also provided a means for corporations to merge, acquire, and spin-off subsidiary corporations tax free. Quantitative data on the 100 largest U.S. industrial corporations show that while the multidivisional form decreased, the MLSF increased between 1981 and 1993. Findings support a capital dependence framework. The MLSF constructs liability firewalls among corporate entities and creates internal capital markets, reducing dependence on external capital markets.     

Flexible design for a large-scale corporate data base

This paper describes the design and implementation of a “pre-structured multi-purpose data base” for information about the Canadian corporate structure. This system includes data on directorship, officcrship, executive board membership, and ownership ties among approximately 10,000 Canadian and other financial and industrial corporations and about 6,000 organizations (law firms, brokerage houses, public institutions, etc.) with which directors resident in Canada were affiliated. In addition, it contains data on the operating accounts, and standard industrial classification codes, for a large subset of these. Here we summarize its capabilities and analytic uses.     

Updating the Critical Perspective on Corporate Social Responsibility

This paper argues that Corporate Social Responsibility (CSR) is a key element of the new neo‐liberalism as it searches for both legitimacy and new sources of innovation. Rather than simply being a fraud or a drain on resources as CSR is often portrayed, we argue that it is one of a suite of practices that corporations are deploying as they seek to shift the nature of social regulation away from collective to more individual solutions. While the criticism that CSR is corporate propaganda has purchase, we explore a deeper development. This development is one wherein as the old ways of capitalist regulation were surpassed in the 1970s and 1980s new social practices such as CSR, Human Resource Management, ethical marketing etc. were deployed as a way of engineering new forms of identity, new expectations of individuals and institutions and new sources of legitimacy and social value. Social criticism needs to take this development more seriously (than the propaganda view) since it frames CSR as a predatory facet of this new neo‐liberalist tendency.     

Silence,Death, and D/discourse: Critical Literary Practices With Lesbian Seniors

This article reports on a federally funded research project in which old lesbians were invited to separate out and examine the complicated strands of lives lived through times of great social change—times in which notions of “woman,” “sexuality,” and “subjectivity” have been both over- and under-determined by dominant discourse (Stein, 1997). We argue, with Haug (1992), that close attention to the personal is central to critical feminist perspectives and that writers can become more aware of normalizing cultural influences when they pay close attention to language. In this article, we support our position with a case study of one participant in our “language school” (Haug, 1992). As we analyzed her written life narratives and oral testimony, we conclude that she was able to reconsider comfortable “coming out” narratives in order to construct new meaning and to challenge her understandings of the past.     

Corporate Quotas and Symbolic Politics in Advanced Democracies

ABSTRACT

This article identifies trends in the adoption and implementation of quotas for corporate boards, an underresearched topic in political science. Corporate quotas—like legislative quotas—constitute the “fast track” to gender equality but appear more commonly in advanced democracies. These corporate quotas fall into three categories: laws covering all companies; laws covering state-owned companies only; and nonbinding (voluntary) measures in corporate governance codes. Despite on-paper differences, these corporate quotas are largely toothless. First generation corporate quotas, like first generation legislative quotas, operate symbolically. By raising the specter of stringent legislation in the long run, corporate quotas induce firms into voluntary compliance in the short run.     

Earthquake Culture and Corporate Action

In this paper we examine the effects of different components of corporate culture on two different categories of action in both routine and jolted environments. Data were collected on a heterogeneous sample of 54 corporations in the San Francisco Bay Area. We examined how the values, knowledge, and practices dimensions of corporate culture influenced actions to prepare for responding to future earthquake disasters and actions to mitigate or reduce future physical and associated earthquake losses. The findings show that corporate earthquake culture is a multidimensional concept, that varied elements of culture function to impact corporate action differently is distinct organizational environments, and that culture's impact on organizational action is contingent on the type of action being considered.     

THE TRANSFORMATION FROM MULTIDIVISIONAL FORM TO CORPORATE GROUPS OF SUBSIDIARIES IN THE 1980s:

In the 1980s, the corporate form shifted from multidivisional forms to corporate groups of subsidiaries. Although many aspects of corporate change during the 1980s have been examined, the magnitude and nature of changes in corporate form have received relatively little attention. Moreover, this transformation of corporate form has been inadequately explained by the dominant theoretical perspectives on corporate form—managerialism, institutionalism, and agency theory. A new theory that incorporates dimensions of the existing perspectives is presented. This perspective maintains that corporate change occurs as a dialectical process, which in the 1980s involved a shift of corporate control from managers to owners, resulting from a crisis in the accumulation of capital in the corporation. After gaining control through institutional investments, owners insisted on greater return on their investments. Mergers and acquisitions transferred corporate capital from corporations, controlled by managers, to shareholders. The relative utility of this perspective compared to existing perspectives for explaining the transformation of corporate form in the 1980s is demonstrated, and hypotheses for understanding changes in corporate form in the 1990s are proposed.     

Trading Diamonds Responsibly: Institutional Explanations for Corporate Social Responsibility

This article identifies factors that led to a comprehensive regulatory regime for the global diamond trade, the Kimberley Process Certification Scheme (KPCS), established through negotiations among NGOs, states, and the industry. The conflict diamonds case provides important insights into the processes by which global norms redefine how corporations are expected to conduct business. First, we show that global corporate social responsibility (CSR) norms rooted in the construct of world citizenship facilitated the rapid progress of the conflict diamonds campaign. Second, we detail how these norms became institutionalized in the KPCS, stressing the importance of the legitimacy of NGOs as bearers of corporate world citizenship models and the role of moral leaders within the diamond industry itself. We consider two theoretical perspectives on CSR development: management theories, which are strong on practitioner issues but mute regarding the content and authority of CSR ideology, and institutional theories, which offer better frameworks for understanding the impact of cultural and institutional environments on company responses to the moral claims advanced by NGOs. We use the conflict diamonds case to draw conclusions about how NGOs can effectively define new social responsibilities that companies come to see as obligations they must heed as responsible world citizens.     

Continuity and Change Within the Core Corporate Elite

This study examines the core corporate elite in both 1935 and 1970 in order to assess three alternative theoretical explanations of the composition of this elite. The elite members are identified as those 83 individuals in 1935 and those 70 individuals in 1970 who served as directors of four or more of the 200 largest nonfinancial and the 50 largest financial corporations. The three explanations of the social characteristics and institutional affiliations of the members of the core corporate elite are derived from the alternative theories of corporate control: family control theory, financial control theory, and management control theory. From the results of this analysis, it is apparent that individuals affiliated with financial institutions represent a disproportionately large and relatively constant share of the core corporate elite. Individuals who possess super-wealth or who are members of the upper class represent a significant but somewhat declining share of this elite. Finally, most of the members of the core corporate elite are managers rather than entrepreneurs or inheritors. Moreover, the proportion of elite members who are managers has increased whereas the proportion of elite members who are entrepreneurs has decreased over time. In general, the core corporate elite is remarkably stable, in terms of its composition, even over a period of several decades.     

The International Mobility of Highly Skilled Workers in Transnational Corporations: The Macro and Micro Factors of the Organizational Migration of Cadres1

The worldwide movement of highly skilled workers (cadres) in transnational corporations has long been known to literature in the field, yet has not been thoroughly researched. The mechanisms governing their international circulation are, in themselves, somewhat specific. The fact that they use an organizational “channel” for migration means that the constraints differ from those that act on “independent” economic migrants with either low or high levels of skill (the so‐called brain drain). This article focuses on some of the manifestations of this mobility. Its dependence on a set of variables can be considerable: the firm's development phase, investment target choice, leading activity (manufacturing or services), form of technology, type of firm (using greenfield or brownfield investment), whether a firm acquired is healthy or undergoing an economic crisis, and nationality or corporate culture. The occupational insertion of cadres leads to further constraints: while the strictly “technical” assignments generally stem from skill shortages, the general “management” appointments mainly result from questions arising from control and trust. As a whole, the flows of highly skilled workers seem to be related to multiple variables – either social, organizational or individual – which make it difficult to predict future trends.