Communitarian Perspectives on Corporate Governance

Rory Ridley-Duff Faculty Of Organisation and Management Sheffield Hallam University February 2006
r.ridley-duff@shu.ac.uk PhD Available From: http://shura.shu.ac.uk/2681/ (SHU Research Archive)

Introduction
• Literature
– Communitarianism v Individualism – Governance / Management Control

• Methodology
– Critical Ethnography

• Contributions to Knowledge
– Relationship Theory – Culture Theory – Governance Theory

Literature (Chapter 2)
• Communitarianism / Individualism
– Identity is social v individual
– Common good v self-interest – Communitarian Pluralism

• Governance and Control
– Contractual: Principal/Agent Theory (Berle and Means) - Economic: Markets and Hierarchies (Coase, Williamson) - Behavioural: Bounded Rationality, Cybernetics, Culture Management (Simons, Beer, Ouchi, Peters and Waterman)

Methodology (Chapter 3)
• Critical Ethnography
– Descriptive, Sensitising (Hammerley, Van Maanen)

– Critical, Explanatory (Agar, Clough, Thomas, Dey)
– Goal: constructed plausible reality / explanatory theory

• Grounded Theory
– Inductive and grounded in data (Glaser and Strauss) – Existing theory sensitises researcher (Locke, Partington)

Relationship Theory (Chapter 4)
• Relationship Dynamics
– People adopt intentional strategies….
• To give/get attention (social rationality) • To give/get assistance (economic rationality)

• Identity formation…
– Social / economic aspirations regarding marriage / children…

– … economic aspirations / dependencies (wealth creating role)
– … social aspirations / dependencies (reproductive role)

Relationship Theory (2)
Economic Rationality
Intellectual Material I N T I M A C Y Information Emotion

Social Rationality

Assistance
Physical

Attention
Access

Relationship Theory (3)
Attention (Social Domain)

Access
Desire for intimacy

Information

Emotion
Incentive to (dis)agree

Decision Making Processes
Greater dependency Incentive to (dis)agree

Physical

Intellectual

Material

Assistance (Economic Domain)

Culture Theory (Chapter 5)
Increased commitment levels and feelings of satisfaction
Shared Understanding and Value Congruence Physical and Psychological Commitment Openness, Honesty, Intimacy

INITIATOR

Co-operation
Yes

RECIPIENT

Understanding ?
Yes No Yes

Dissonance

Dialogu e?

DIFFERENCE

Dialogu e?

Culture Theory (2)
Dialogu e? DIFFERENCE Dialogu e?

No

Dissonance

No

INITIATOR
Coerc e? No No Rejec t? Yes

RECIPIENT Compliance
No Resist ? Yes No Rejec t?

Yes

Yes

Confrontation

Physical and Psychological Withdrawal (Illness?)

Resignation or Contract Termination

Decreased Trust, Openness and Honesty

Lower commitment levels and feelings of dissatisfaction

Governance Theory (Chapter 6)
• Entrepreneurial Behaviour
– – – – Outcome of childraising expectations/responsibilities One parent oriented towards tasks (wealth creation) Other prioritises relationships (social cohesion) …OR a delicately negotiated balance…

• Workplace Structures
– Reflect personal relationship aspirations / commitments – Facilitate (hidden) development of sexual relationships

• Hidden Societal Norms
– – – – Protection of the female Control of the male Conflicts with legal obligations towards gender equality … discriminatory against both women and men

Governance Theory (Patriarchy)
Economically Rational View of Social Life (Corporate Centred)

Economic Life
Delegate Work (if desired) Managerial Class Business Class

Social Life
No Need to Do Caring

Men

Secondary Caring Role
(Necessity)

Professional Class Administrative Class

Primary/Secondary Caring (Choice) Primary Caring Role (Necessity)

Wealth Creation

Women

Women

Labouring Class

Primary/Secondary Caring (Choice)

Men
Underclass (No paid work / illegal trading) Dispossesed No Caring Role

Governance Theory (Matriarchy)
Socially Rational View of Economic Life (Community Centred) Social Life
Delegate Caring (if desired) Primary Carer
Celebrity Elite

Economic Life
No Need to Do Paid Work Part-Time Paid Work (Necessity)

Women

Secondary Carer

Full-Time Paid Work (Necessity) Human Reproduction

Men

Men

No Dependents

Full/Part-Time Paid Work (Choice)

Women
No Family Life Dispossesed No paid work / illegal trading

Communitarian Governance
Understanding of how to satisfy (gendered) economic goals

Sustainability

Understanding of how to satisfy (gendered) social goals

Potential Efficiencies

Economic Rationality

Social Rationality

Potential Effectiveness

Profitability

Operationa l Competence

Social Cohesion

Ability to satisfy economic and social goals

Summary (Chapter 7)
• Corporate Governance
– Existing theory cannot fully explain firm development – Theory needs to accommodate gendered social interests

• Social Control and Power
– Power embedded in (intimate) relationships, not great leaders… – “Masculine” power as wealth creation skills… – “Feminine” power as intimacy management skills…

• Social Enterprise
– Business underpinned by goals and governance structures that are both socially and economically rational

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