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Communitarian governance in social enterprises Case evidence from the Mondragon Cooperative Corporation and School Trends Ltd

Communitarian governance in social enterprises Case evidence from the Mondragon Cooperative... Purpose – Prevailing concepts of corporate governance that are based on external shareholder interests have been challenged by a number of authors over the last three decades. The purpose of this paper is to outline the core assumptions of communitarian philosophy and values, together with the way writers imagine these might be enacted in a social enterprise context. These assumptions are then explored using two case studies. Design/methodology/approach – The paper was conducted using participatory action research which involves parties examining current actions together and seeking to improve on them. The value of this approach is based on the plausible, authentic and critical insights it generates into management practice. Findings – Case evidence suggests that companies are able to adopt and operate effectively while deploying communitarian values and that these values lead to alternative business objectives expressed through new forms of corporate governance. Nevertheless, the adopting of common language does not necessarily mean that social enterprises share a common philosophy. Originality/value – The key contribution of this paper is to evaluate the institutionalisation of governance and consider the relationship between the form and substance of practice. By considering the link between words and actions, the paper concludes that the adoption of a governance framework, or particular language, matters less than the capacity of company members to participate in the development of governance norms that enable them to act congruently with their own beliefs and values. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Social Enterprise Journal Emerald Publishing

Communitarian governance in social enterprises Case evidence from the Mondragon Cooperative Corporation and School Trends Ltd

Rory Ridley‐Duff
Social Enterprise Journal , Volume 6 (2): 21 – Aug 17, 2010
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References (98)

Publisher
Emerald Publishing
Copyright
Copyright © 2010 Emerald Group Publishing Limited. All rights reserved.
ISSN
1750-8614
DOI
10.1108/17508611011069266
Publisher site
See Article on Publisher Site

Abstract

Purpose – Prevailing concepts of corporate governance that are based on external shareholder interests have been challenged by a number of authors over the last three decades. The purpose of this paper is to outline the core assumptions of communitarian philosophy and values, together with the way writers imagine these might be enacted in a social enterprise context. These assumptions are then explored using two case studies. Design/methodology/approach – The paper was conducted using participatory action research which involves parties examining current actions together and seeking to improve on them. The value of this approach is based on the plausible, authentic and critical insights it generates into management practice. Findings – Case evidence suggests that companies are able to adopt and operate effectively while deploying communitarian values and that these values lead to alternative business objectives expressed through new forms of corporate governance. Nevertheless, the adopting of common language does not necessarily mean that social enterprises share a common philosophy. Originality/value – The key contribution of this paper is to evaluate the institutionalisation of governance and consider the relationship between the form and substance of practice. By considering the link between words and actions, the paper concludes that the adoption of a governance framework, or particular language, matters less than the capacity of company members to participate in the development of governance norms that enable them to act congruently with their own beliefs and values.

Journal

Social Enterprise Journal – Emerald Publishing

Published: Aug 17, 2010

Keywords: Co‐operative organizations; Governance; Social economics; Entrepreneurialism

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