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.     

The cosmopolitan organization — an essay on corporate accountability

Abstract Transnational corporations increasingly seek to present a vision of social responsibility alongside the business vision. This reflects greater awareness of ‘the world as one single place’, of global risk scenarios, and the politics of doing business. There are also demands for greater transparency and accountability in corporate actions by state representatives, grassroots movements and organized consumers. Transnational corporations now aim to be socially responsible and to engage in ‘corporate citizenship’ by adhering to voluntary codes of conduct, social accountability standards, etc. This discourse of corporate accountability is part of a discourse of globality, or ‘globe talk’, a vital component of contemporary world culture, largely produced, diffused, and sustained by organizations with expansive ambitions of regulating global business; transnational corporations, business associations, international organizations, NGOs and INGOs. Awareness of the global nature of trade and capitalism, the associated risk scenarios, and the attempts at approaching something like a humane globalization by the setting up of ethics standards and codes of conduct, may be understood as a particular case of ‘worldism’. This ‘worldism’ is foundational, with universalizing and homogenizing claims. ‘Corporate citizenship’ and ‘accountability’ are therefore treated as a form of organizational culture that involves a particular kind of moral cosmopolitanism.     

Network,exposure and rhetoric: Italian occupational fields and heterogeneity in constructing the globalized self

Drawing on the findings of a broad inter‐university research programme conducted in Italy, in this article we explore how individuals' transnational networks combine with other dimensions of their social experience in the production of a self‐perception of their own ‘global identity’. In particular, attention is focused on the structures and social spaces of everyday life in five crucial occupations (corporate managers, financial services workers, artists, media professionals and schoolteachers) where people's professional action is performed simultaneously along local and global axes. Within these groups the globalized self does not merely reflect individuals' engagement in transnational networks, but is also the outcome of a complex process including two added dimensions of social life in the job setting: (1) the degree and type of non‐filtered exposure to pressures stemming from the global environment, which both constrain and enable subjective practices of coping with change and ambiguity; and (2) the degree and type of competence in the rhetorics of globalization, namely the level of access to well‐known repertoires of interpretive resources for making sense of global trends. This analysis is consistent with social science conceptualizations arguing for a more nuanced understanding of globalization. In this light, not only is globalization a multidimensional process but it also produces a variety of responses and meanings by differently positioned actors.     

Globalizations and the Transformation of Environmental Activism: Turkey since the 1980s

Social scientists have developed two main arguments regarding the impacts of globalization on environmental activism and politics. Environmental activism is thought to be associated with instances of local resistance to transnational corporations, and also with a diffusion of environmentalist ideas, practices, and regulations from global core to periphery. Alternatively, this paper argues that by eroding states' sovereignty and supporting ethnic and religious minority groups within and across nations, globalization processes have fused environmental politics with ethnic and religious identity politics worldwide. The environmentalist discourses and activities of Islamist intellectuals and Alevis (a large religious minority) in Turkey since the 1980s illustrate the limited applicability of center–periphery models of globalization, and the complexity of globalizations' impacts on environmental activism and politics.     

The network of global corporations and elite policy groups: a structure for transnational capitalist class formation?

This study situates five top transnational policy–planning groups within the larger structure of corporate power that is constituted through interlocking directorates among the world's largest companies. Each group makes a distinct contribution towards transnational capitalist hegemony both by building consensus within the global corporate elite and by educating publics and states on the virtues of one or another variant of the neo–liberal paradigm. Analysis of corporate–policy interlocks reveals that a few dozen cosmopolitans – primarily men based in Europe and North America and actively engaged in corporate management – knit the network together via participation in transnational interlocking and/or multiple policy groups. As a structure underwriting transnational business activism, the network is highly centralized, yet from its core it extends unevenly to corporations and individuals positioned on its fringes. The policy groups pull the directorates of the world's major corporations together, and collaterally integrate the lifeworld of the global corporate elite, but they do so selectively, reproducing regional differences in participation. These findings support the claim that a well–integrated global corporate elite has formed, and that global policy groups have contributed to its formation. Whether this elite confirms the arrival of a transnational capitalist class is a matter partly of semantics and partly of substance.     

Transnationalists and national networkers in the global corporate elite

Through a longitudinal network analysis of the interlocking directors of the world's 500 largest corporations (1996–2006), in this article I map continuities and changes in the social organization of the global corporate elite. I pursue two questions: (1) Can we trace the formation, within the elite, of a set of directors whose transnational interlocks form an inner circle of cosmopolitans? And (2) How does the regionalized character of global capitalism structure the global corporate elite in its national and transnational segments? Findings show that transnationalists have gained prominence within the global corporate elite and are firmly embedded in the network, through extensive ties to each other and to various national components. National networkers, despite thinning ranks and sparser interlocks, continue to form the backbone of the global corporate elite, and remain on balance nationally cohesive. Overall, despite modest accretions in participation from the semi‐periphery, and with the decline of the Japanese corporate network, the elite becomes centred even more strongly on the North Atlantic. With its growing regional cohesiveness, corporate Europe gains prominence within that heartland. This analysis helps specify the process of transnational capitalist class formation at its higher reaches.     

Global Agro-Food Corporations and the State: The Ferruzzi Case

The relationship between transnational corporations (TNCs) in the agro-food sector and the nation-state in the context of global post-Fordism is examined through a case study of recent events involving the Ferruzzi transnational corporation. TNCs have a complex and contradictory set of relations with the state that are affected by competition among TNCs, by TNCs' internal disagreements, and by the fragmented nature of the state. The state assists TNCs through formal and informal channels. In this specific case, the informality of the system is underscored by the openly illegal arrangement that was operated for years by Ferruzzi officials and members of the officialdom of the state. However, the state also has the capacity to counter the actions of TNCs and to enforce the interests of subordinate groups.     

The global corporate elite after the financial crisis: evidence from the transnational network of interlocking directorates

What impact did the recent financial crisis have on the corporate elite's international network? Has corporate governance taken on an essentially national structure or have transnational networks remained robust? We investigate this issue by comparing the networks of interlocking directorates among the 176 largest corporations in the world economy in 1976, 1996, 2006 and 2013. We find that corporate elites have not retrenched into their national business communities: the transnational network increased in relative importance and remained largely intact during the crisis lasting from 2006 to 2013. However, this network does not depend – as it used to do – on a small number of big linkers but on a growing number of single linkers. The network has become less hierarchical. As a group, the corporate elite has become more transnational in character. We see this as indicative of a recomposition of the corporate elite from a national to a transnational orientation.     

Transnational class formation and spatialities of power: the case of elite competition in Bolivia

In this article, I argue that the neoliberal and counter‐neoliberal transitions in Bolivia secured the power of transnational capital within the country. In the 1980s and 1990s, Bolivia's mining elite used neoliberal strategies to undermine the interests of the country's agricultural elite and pursued a marriage of convenience with transnational capital that allowed both to enter state‐monopolized spaces of investment in mutually beneficial ways. In Bolivia's counter‐neoliberal turn, leftist social movements and political parties removed the elite from power but were dependent on transnational firms to help them use the country's natural resource wealth to fund programmes of socioeconomic change. Engaging theories of the transnational class formation, I assert that scholars need to acknowledge how different capitalist class fractions have distinct spatialities of power. In particular, it is necessary to distinguish between global elites that participate in local circuits of accumulation and local elites that participate in global circuits of accumulation.     

Diasporic Memberships in Historical Perspective: Comparative Insights from the Mexican,Italian and Polish Cases1

This article compares the evolution of diaspora‐sending state relations for Mexico, Italy, and more briefly, Poland during their peak periods of out migration. I argue that sending‐state diaspora relations evolve through the state's changing relations with the global system, their domestic politics, and migrants' ability to act politically with respect to the homeland. This research shows the state helping to create diasporic or transnational space. It also contributes to the analytical work of fleshin out examples of transnational life in history, and examines a case (the Polish one) where the global system and other conditions combine to overwhelm transnational life.     

Transnational political action and ‘global civil society’ in practice: the case of Oxfam

The term ‘global civil society’ has taken on increasing significance within scholarly debate over the past decade. In this article we seek to understand transnational political agency via the study of a particular transnational actor, Oxfam. We argue that various schools of thought surrounding the global civil society concept, in particular the prevailing liberal‐cosmopolitan approach, are unable to conceptualize transnational political action in practice – due largely, in the case of liberal‐cosmopolitanism, to a shared normative agenda. We also assess what contribution literature on development and civil society has made to the analysis of groups such as Oxfam. In investigating Oxfam's own perceptions of its context and the meanings of its agency, we discover an anti‐political perspective derived from an encounter between Oxfam's longstanding commitment to liberal internationalism and globalization discourse. Existing scholarship has insufficiently identified the local or parochial nature of the identities of global civil society actors.     

Motives of corporate political donations: industry regulation,subjective judgement and the origins of pragmatic and ideological corporations

What motivates corporate political action? Are corporations motivated by their own narrow economic self‐interest; are they committed to pursuing larger class interests; or are corporations instruments for status groups to pursue their own agendas? Sociologists have been divided over this question for much of the last century. This paper introduces a novel case – that of Australia – and an extensive dataset of over 1,500 corporations and 7,500 directors. The paper attempts to understand the motives of corporate political action by examining patterns of corporate political donations. Using statistical modelling, supported by qualitative evidence, the paper argues that, in the Australian case, corporate political action is largely motivated by the narrow economic self‐interest of individual corporations. Firms’ interests are, consistent with regulatory environment theory, defined by the nature of government regulation in their industry: those in highly regulated industries (such as banking) and those dependent on government support (such as defence) tend to adopt a strategy of hedging their political support, and make bipartisan donations (to both major parties). In contrast, firms facing hostile regulation (such as timber or mining), and those without strong dependence on state support (such as small companies) tend to adopt a strategy of conservative partisanship, and make conservative‐only donations. This paper argues that regulatory environment theory needs to be modified to incorporate greater emphasis on the subjective political judgements of corporations facing hostile regulation: a corporation's adoption of conservative partisanship or hedging is not just a product of the objective regulation they face, but also whether corporate leaders judge such regulation as politically inevitable or something that can be resisted. Such a judgement is highly subjective, introducing a dynamic and unpredictable dimension to corporate political action.     

Corporate Involvement in Community Affairs*

An extensive monitoring of the Jones and Laughlin (J&L) steel mill in Hennepin, Illinois suggests that absentee-owned corporations have the ability to involve themselves in local community affairs while maintaining an illusion of non-involvement. Three techniques J&L employed to exert influence are described: unilateral actions, cooptation, and intervention. The failure of reputational leadership data to identify corporate influentials is used to suggest both the success J&L had in concealing corporate influence and the inadequacy of the reputational technique for fully identifying power structures in verticalized communities.     

The globalization of football: a study in the glocalization of the 'serious life'

Sport, in particular football, constitutes one of the most dynamic, sociologically illuminating domains of globalization. This paper examines the globalization of football with particular reference to Robertson's theorizations of global processes. We examine football's cultural globalization through the concept of 'glocalization', which highlights the interdependence of local and global processes within the game's identities and institutions. We address economic globalization in football by considering the world's leading clubs as 'glocal' transnational corporations. We assess the political globalization of football with reference to the possible enhancement of democracy within the game's international governance. We conclude by affirming the utility of sport in advancing our empirical and theoretical understanding of globalization processes.     

Development,the state,and transnational political connections: state and subject formations in Latin America

Focusing on the processes of making and sustaining transnational political ties between actors, international actors and states, this paper reviews recent work from a number of disciplines on globalization and politics, and outlines an agenda for future research. Rather than seeing transnational political linkages merely as forerunners to the loss of local sovereignty, the paper argues for a wider conceptualization of transnational connections, embedded within processes of state formation in Latin America. Using a variety of examples, it is argued that transnational networks are associated with a wide range of meanings and a variety of responses by diverse actors. Drawing on recent work in political science, post‐structuralism and anthropology, it is suggested that geographical concepts ‐ related to scale, process and networks ‐ offer a means through which to analyze and ‘map out’ these transnational political processes.     

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.     

Networks of organizational learning and adaptation in retail TNCs

Abstract In this article we contribute to a growing body of literature concerned with the socio‐cultural dynamics of learning and adaptation inside firms. Specifically, we apply a ‘competence‐based’ view of the firm to a newly emerging breed of retail‐industry transnational corporations (TNCs). We situate these firms within the context of ‘relational networks’ and then consider – from a geographical perspective – the complex interplay between ‘extra‐firm’ networks and ‘intra‐firm’ networks, and between store‐based learning and organizational adaptation. We argue that the competitiveness of the retail TNC increasingly rests upon its ability to adapt the portfolio of retail formats to different and rapidly changing business environments by mobilizing and blending knowledge from multiple locations. This, it is suggested, is leading to the emergence of a ‘reflexive’ or ‘hybridized’ model of retail globalization.     

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.     

Where's the Farmer? Limiting Liability in Midwestern Industrial Hog Production

Scholars largely assume that hog production is following the same industrialization process as the integrated poultry industry. Since the collapse of hog farming in the 1990s, academics have anticipated that producers will eventually become trapped in contracts that leave the integrator with full control over the production process. Embedded in this prediction is an assumption that hog farmers respond to these productive pressures individually. Our analysis of the Carthage Management System suggests a different path for the hog commodity chain. The Carthage Management System is a conglomeration of business management firms that bring finishing hog farmers together to form limited liability corporations (LLCs) in the breed‐to‐wean stage of hog production. We use a sociology of agrifood framework to suggest that the nuances of hog production encourage the use of what we call folding corporations to limit liability in ways that profoundly transform the family farm. Corporations and individual hog farmers alike employ this creative LLC structure to deflect responsibility for the risks of hog production. We identify how folding corporations externalize the costs of production onto rural communities. Additional research is needed to better understand unfolding farmer identities, legal protections for farmers, how widespread organizational structures like Carthage Management System are, and their consequences for rural communities and the industrialization process.