A needs theory of governance

New-institutional economics hypothesizes imperfect rationality, self-seeking preferences, monetary-related needs, and opportunism as fundamental features of human behavior. Consistently, new-institutionalist models of governance highlight the efficiency and transaction costs minimizing features of control rights and governance. Differently, needs theory of governance, as here presented, hypothesizes imperfect rationality, multiple needs, and reciprocity, in which case opportunism is reduced to an exception to individual behavior. Consistently, it presents a theory that links production governance with the wellbeing of those partaking in production. Building on Maslow’s human psychology, the governance model suggested in this paper is aimed at evidencing the self-actualization potential of control rights, organizational structures and practices. The application of Maslow’s theory to the institutional structure of organizations suggests that the deepest organizational layers (control rights and governance) broadly correspond to the most basic needs in Maslow’s theory (survival, security and belonging), while the outer layers (managerial models and employment relations) correspond to the fulfillment of the highest needs (self-esteem and self-actualization). Cooperative firms are used as an illustration of governance solutions consistent with needs theory in human psychology

Democratic Enterprise : Ethical Business for the 21st Century

Published with the support of the Scottish Government and the Economic and Social Research CouncilPublisher PD

Reflections on the EU objectives in addressing aggressive tax planning and harmful tax practices Final Report. CEPS Report November 2019

This Report analyses the EU’s instruments to tackle aggressive tax planning and harmful tax practices. Based on desk research, interviews with stakeholders and expert assessments, it considers the coherence, relevance, and added value of the EU’s approach. The instruments under analysis are found to be internally coherent and consistent with other EU policies and with the international tax agenda, in particular with the OECD/G20 BEPS framework. The Report also confirms the continued relevance of most of the original needs and problems addressed by the EU’s initiatives in the field of tax avoidance. There is also EU added value in having common EU instruments in the field to bolster coordination and harmonise the implementation of tax measures. One cross-cutting issue identified is the impact of digitalisation on corporate taxation. Against this background, the Report outlines potential improvements to the EU tax strategy such as: making EU tax systems fit for the digital era; leading the international debate on tax avoidance; enabling capacity building in Member States and developing countries; strengthening tax good governance in third countries; ensuring a consistent approach at home and abroad; achieving a level playing field for all companies; and increasing tax certainty and legal certainty

Good governance in the entities of the social economy

Entities of the Social Economy are ruled by practices of collective action and democratic participation within the framework of what is known as good governance. This is based on a set of values and principles belonging to the organisations. These practices reach beyond the frontiers of the entity and have an impact on society with the application of policies of local development, social and environmental responsibility, and cooperation. This article seeks to establish a relationship between said good governance practices and business results by means of a literature study, finally formulating a theoretical model of good governance in Social Economy, which will be contrasted empirically in subsequent studies.Social economy, good governance, democratic management, cooperation, results, social cohesion, organisational culture, efficient management.

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

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. In this paper, the core assumptions of communitarian philosophy and values are outlined, 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: The study 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 study 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

Cooperative social enterprises: company rules, access to finance and management practice

Objectives: In light of the faster than expected take up of the Community Interest Company (CIC) in the UK, this paper revisits findings from a study undertaken in 2000 on the impact of asset-locks on the longevity, growth and management styles in co-operative social enterprises. Prior Work: The co-operative and employee-ownership movements played a leading role in the establishment of Social Enterprise London and the Social Enterprise Coalition. The heritage of the UK co-operative movement, however, differs from its continental counterpart in placing a much stronger emphasis on common ownership that inhibits the transfer of capital and assets to private interests. Approach: This paper is both conceptual and empirical. It examines different worker co-operative traditions and develops a meta-theory that explains underlying assumptions in different forms of co-operative social enterprise. Using empirical data from 5 common ownership co-operatives and 5 equity-based co-operatives, this exploratory study found differences in management style, access to finance and growth prospects both within and between the two groups. Implications: Devolution of management responsibilities was more prevalent in co-operatives permitting both individual and collective ownership, as opposed to common ownership. Access to external finance was less problematic for organisations where individuals had made investments. Despite this, it was not established that organisations with external equity or loan finance grew quicker or faired better over the longer term. Value: The value of the paper lies both in the development of a meta-theoretical framework for differentiating forms of worker co-operative, as well as empirical evidence on the impact of asset-locks in the management and development of social enterprises. The study suggests that the CLS version of the CIC, or abandonment of the CIC in favour of an appropriately structured CLS or IPS model, may be appropriate for social enterprises wishing to grow, but makes little difference in small service oriented social enterprises.</p

Natural resources conservation management and strategies in agriculture

This paper suggests a holistic framework for assessment and improvement of management strategies for conservation of natural resources in agriculture. First, it incorporates an interdisciplinary approach (combining Economics, Organization, Law, Sociology, Ecology, Technology, Behavioral and Political Sciences) and presents a modern framework for assessing environmental management and strategies in agriculture including: specification of specific “managerial needs” and spectrum of feasible governance modes (institutional environment; private, collective, market, and public modes) of natural resources conservation at different level of decision-making (individual, farm, eco-system, local, regional, national, transnational, and global); specification of critical socio-economic, natural, technological, behavioral etc. factors of managerial choice, and feasible spectrum of (private, collective, public, international) managerial strategies; assessment of efficiency of diverse management strategies in terms of their potential to protect diverse eco-rights and investments, assure socially desirable level of environmental protection and improvement, minimize overall (implementing, third-party, transaction etc.) costs, coordinate and stimulate eco-activities, meet preferences and reconcile conflicts of individuals etc. Second, it presents evolution and assesses the efficiency of diverse management forms and strategies for conservation of natural resources in Bulgarian agriculture during post-communist transformation and EU integration (institutional, market, private, and public), and evaluates the impacts of EU CAP on environmental sustainability of farms of different juridical type, size, specialization and location. Finally, it suggests recommendations for improvement of public policies, strategies and modes of intervention, and private and collective strategies and actions for effective environmental protection

Innovative Strategies to Help Affordable Consumer Operated and Oriented Plans (CO-OPs) Compete in New Insurance Marketplaces

Outlines provisions in the federal health reform law for CO-OPs, or innovative nonprofit health insurance and care plans designed for individuals and small businesses, challenges, and strategies for long-term sustainability and financial success

Sri Lanka Social Enterprise Needs Assessment and Advisory

Authored in collaboration with Oxfam, this research maps social enterprises within the agriculture sector, identifies the key challenges they face, and makes recommendations for donors and development agencies looking to support the space in Sri Lanka. Findings and recommendations developed based on secondary research and field survey of social enterprises in Sri Lanka

FairShares Model

The attached document provides an introduction to the FairShares Model, a new brand and concept for self-governing social enterprises operating under Company and Co operative Law