Social Shareholder Engagement: The Dynamics of Voice and Exit

Investors concerned about the social and environmental impact of the companies they invest in are increasingly choosing to use voice over exit as a strategy. This article addresses the question of how and why the voice and exit options (Hirschman 1970) are used in social shareholder engagement (SSE) by religious organisations. Using an inductive case study approach, we examine seven engagements by three religious organisations considered to be at the forefront of SSE. We analyse the full engagement process rather than focusing on particular tools or on outcomes. We map the key stages of the engagement processes and the influences on the decisions made at each stage to develop a model of the dynamics of voice and exit in SSE. This study finds that religious organisations divest for political rather than economic motives using exit as a form of voice. The silent exit option is not used by religious organisations in SSE, exit is not always the consequence of unsatisfactory voice outcomes, and voice can continue after exit. We discuss the implications of these dynamics and influences on decisions for further research in engagement.     

The Self‐Help Myth: Towards a Theory of Philanthropy as Consensus Broker

This article presents a theoretical and methodological approach to studying how philanthropic power is maintained through the process of negotiating consensus between greatly unequal partners such as wealthy funders and social movement leaders. It is proposed that grant agreements between private foundations and social movement organizations construct idealized spaces of public participation and discursive theories of change that draw attention away from structural inequality and antagonism, ultimately generating consent. Drawing upon archival and ethnographic research on philanthropic investments in addressing migrant poverty in California's Central Valley, the article shows how consensus between foundation staff and farmworker and immigrant organizers promote funding frameworks that exclude questions that challenge relationships of power and systems of agricultural production that contribute to enduring poverty across the region. The Gramscian conceptual frames of “discursive power,” “hegemony as politics,” and “strategic articulation” are presented as a theoretical framework from which to understand the power of private philanthropy as consensus broker during historical moments of crisis.     

Community connectivity and heterogeneity: clues and insights on cooperation on social networks

While studies on the emergence of cooperation on structured populations abound, only few of them have considered real social networks as the substrate on which individuals interact. As has been shown recently [Lozano et al., PLoS ONE 3(4):e1892, 2008], understanding cooperative behavior on social networks requires knowledge not only of their global (macroscopic) characteristic, but also a deep insight on their community (mesoscopic) structure. In this paper, we look at this problem from the viewpoint of the resilience of cooperation, in particular when there are directed exogenous attacks (insertion of pure defectors) at key locations in the network. We present results of agent-based simulations showing strong evidence that the resilience of social networks is crucially dependent on their community structure, ranging from no resilience to robust cooperative behavior. Our results have important implications for the understanding of how organizations work and can be used as a guide for organization design. This work was supported by Ministerio de Educación y Ciencia (Spain) under grants FIS2006-13321-2 and MOSAICO and by Comunidad de Madrid (Spain) under grant. SIMUMAT-CM. S. Lozano was supported by URV through a FPU grant and by the EU Integrated Project IRRIIS (027568).     

Do Employees Care About CSR Programs? A Typology of Employees According to their Attitudes

This paper examines employees’ reactions to Corporate Social Responsibility (CSR) programs at the attitudinal level. The results presented are drawn from an in-depth study of two Chilean construction firms that have well-established CSR programs. Grounded theory was applied to the data prior to the construction of the conceptual framework. The analysis shows that the implementation of CSR programs generates two types of attitudes in employees: attitudes toward the organization and attitudes toward society. These two broad types of attitudes can then be broken down into four different categories: (1) acceptance of the new role of the organization, (2) identification with the organization, (3) importance attached to the work performed and (4) a sense of social justice. In turn, each of these categories is a grouping of many different concepts, some of which have at first sight little to do with CSR. Finally, the analysis reveals an attitudinal employee typology: the committed worker, the indifferent worker, and the dissident worker.     

The Structural Pension Reform in Chile: Effects, Comparisons with Other Latin American Reforms, and Lessons

Chile pioneered a structural reform in Latin America that privatizedits public pension system and influenced similar reforms inanother nine countries. Twenty-five years later, this articleevaluates the macroeconomic, microeconomic, and social effectsof this reform in Chile and the other countries in the region,and extracts lessons from those experiences. Fiscal costs ofthe reform have been high and prolonged, exceeded capital accumulation,and had a negative impact on national savings, but Chile's reformhas contributed to the development of capital markets; employer'scontributions were eliminated or reduced in half of the countriesand the worker's share in the total contribution averages 65per cent; competition is afflicted by a small number of administratorsand a high level of concentration; administrative costs arehigh and stagnant; capital returns are fair but declining; portfoliodiversification has been achieved only in Chile and Peru; labour-forcecoverage has declined in all ten countries, and gender and incomeinequalities have expanded. Footnotes ¹ E-mail addresses: aarenas{at}dipres.gob.cl; cmesa{at}usa.net     

Unpacking transnational corporate responsibility: coordination mechanisms and orientations

This article aims to advance the discussion of how multinational companies manage the tension between global integration and local responsiveness in their corporate social responsibility (CSR). In particular, it studies the relationships between headquarters and subsidiaries in a transnational CSR strategy and the types of coordination mechanisms used. Building on a qualitative study of a multinational bank, we find that in addition to formal and informal coordination mechanisms, a transnational CSR strategy cannot be fully understood without considering lateral learning and participatory decision making. Further, we suggest that discussions about the transnational approach to CSR should not be disentangled from the question about a company's CSR orientation. Finally, we propose some characteristics of transnational CSR and discuss its theoretical and practical implications.     

Mobility and labour market exclusion in the Barcelona Metropolitan Region

This article analyses the relationship between daily mobility and labour market exclusion. In many areas of the Barcelona Metropolitan Region, the predominant car-based mobility model and the secondary role of public transport discriminate against non-car users when it comes to job opportunities. This territory’s capacity to generate labour market inclusion is analysed based on multi-functionality and the level of public transport services which, in turn, serve as a basis for three territorial classifications: non-excluding, semi-excluding and excluding.     

The Role of NGOs in CSR: Mutual Perceptions Among Stakeholders

This paper explores the role of NGOs in corporate social responsibility (CSR) through an analysis of various stakeholders’ perceptions and of NGOs’ self-perceptions. In the course of qualitative research based in Spain, we found that the perceptions of the role of NGOs fall into four categories: recognition of NGOs as drivers of CSR; concerns about their legitimacy; difficulties in the mutual understanding between NGOs and trade unions; the self-confidence of NGOs as important players in CSR. Each of these categories comprises the various elements analysed in the paper. We found some discrepancies between the perception of others and the self-perceptions of NGOs, which explains why their role is often controversial. The research confirms that secondary stakeholders, such as NGOs, are key players in CSR, but their role is still regarded as controversial and their legitimacy contested. Deep-seated misunderstandings and mistrust among various stakeholder groups (particularly between NGOs and trade unions) are a possible hurdle to the integration of social and environmental concerns in business activity and corporate governance in Spain. The study finds that business managers need to take a less firm-centric and a more contextual approach, and look more closely into the relationship with and among stakeholder groups. For NGO managers, the research shows that NGOs are not always aware of the stereotypes they generate and the problems caused mainly by what is seen as ambivalent roles: critic and counsellor, accuser and judge, idealist and fund raiser.

From Preaching to Investing: Attitudes of Religious Organisations Towards Responsible Investment

Religious organisations are major investors with sometimes substantial investment volumes. An important question for them is how to make investments in, and to earn returns from, companies and activities that are consistent with their religious beliefs or that even support these beliefs. Religious organisations have pioneered responsible investment. Yet little is known about their investment attitudes. This article addresses this gap by studying faith consistent investing. Based on a survey complemented by interviews, we investigate religious organisations?? attitudes towards responsible investment including opinions, practices and the impediments for implementing faith consistent investing. Although our results cannot be generalised because of the non-random character of our sample, six main characteristics of faith consistent investing are drawn: investing is not perceived as being in contradiction with religious values, religious values are important drivers, there is a strong community around faith consistent investing, religious investors are pioneering impact investing, implementing faith consistent investing is not without difficulties, and practices vary across regions. The survey also reveals that faith consistent investing has many commonalities with secular responsible investors.