CIRIEC-Espaa, Revista de Economa Pblica,

Social y Cooperativa, n. 73, Special Isse, !ctober

"#$$,
p. $7$-$%$
&ood 'overnance in t(e entities
o) t(e social economy
*+ del Carmen *o,
*edrao -an .riones
Pealver /niversidad Polit0cnica de Carta'ena
CIRIEC-Espaa, revista de economa pblica, social y cooperativa
ISSN printed edition: 0213-8093. ISSN online edition: 1989-6816.
2011 CIRIEC-Espaa www . ir ie .e s
www . ir ie - r e ! is ta e o n o " ia .e s
&ood 'overnance in t(e entities
o) t(e social economy
*+ del Carmen *o, *edrao
-an .riones Pealver
/niversidad Polit0cnica de Carta'ena
1.S2R1C2
Entities of the Social Economy are ruled by practices of collective action and democratic participation within
the framework of what is known as good governance. This is based on a set of values and principles belonging to
the organisations. These practices reach beyond the frontiers of the entity and have an impact on society with the
application of policies of local development, social and environmental responsibility, and cooperation. This
article seeks to establish a relationship between said good governance practices and business results by means
of a lite- rature study, finally formulating a theoretical model of good governance in Social Economy, which will be
contras- ted empirically in subsequent studies.
3E4 5!R6S7 Social economy, 'ood 'overnance, democratic mana'ement, cooperation,
reslts, social co(esion, or'anisational cltre, e))icient mana'ement.
EC!89I2 6ESCRIP2!RS7 *$:#, *$##, P$3#, &3##.
Reference7 */;!<, *.C. = .RI!8ES, -. >"#$$?7 @&ood 'overnance in t(e entities o) t(e social
eco- nomyA, C!EC-Espa"a, !evista de Econom#a $%blica, Social y Cooperativa, no. 73, Special
Isse, p. $7$-$%$.
www. i ri e- re!is ta e on o "ia .es
CIRIEC-ES#$%$ & S#ECI$' ISS(E & No. )3*2011
EN+R, -$+E: 19*09*2011
$CCE#+$NCE -$+E: 10*10*2011
*/;!< *E6R1;!, *+ 6E9 C1R*E8 = .RI!8ES PE;19BER, 182!8I!
$7"
$7"$
www . irie - re ! is ta e o n o " ia .e s CIRIEC-ES#$%$ & S#ECI$' ISS(E & No. )3*2011
El ben 'obierno de las entidades de la
economa social
RESUMEN: 9as entidades de la Economa Social se ri'en por las prCcticas de la acciDn colectiva y la par- ticipaciDn
democrCtica en el marco de lo Ee se conoce como el ben 'obierno. Esto se basa en n conFnto de valores y principios
Ee pertenecen a las or'ani,aciones. Estas prCcticas van mCs allC de las )ronteras de la entidad y tienen n impacto en la
sociedad con la aplicaciDn de polticas de desarrollo local, responsabilidad social y ambiental, y la cooperaciDn. Este artclo
bsca establecer na relaciDn entre dic(as prCcticas de ben 'obierno y los resltados empresariales a trav0s de n estdio
de la literatra. Por ltimo, se )ormla n modelo teDrico de la bena 'obernan,a en la economa social, Ee serC
contrastado empricamente en estdios posteriores.
PALABRAS CLAVE: Economa social, ben 'obierno, 'estiDn democrCtica, cooperaciDn, resltados, co(e- siDn social,
cltra or'ani,acional, 'estiDn e)iciente.
.onne 'overnance dans les entit0s de
lG0conomie sociale
RESUME : 9es entit0s de lH0conomie sociale sont r0'ies par des pratiEes dHaction collective et de partici- pation
d0mocratiEe dans le cadre de ce Ei est conn sos le nom de bonne 'overnance. Elle est )ond0e sr n ensemble de
valers et de principes appartenant aI or'anisations. Ces pratiEes vont a-delJ des limites de lHentit0 et ont n impact sr
la soci0t0 avec lHapplication de politiEes de d0veloppement local, de responsabilit0 sociale et environnementale et de
coop0ration. Cet article c(erc(e J 0tablir ne relation entre lesdites pratiEes de bonne 'overnance et les r0sltats
commerciaI a moyen dHne 0tde biblio'rap(iEe, en )ormlant en)in n modKle de bonne 'overnance dans lH0conomie
sociale, Ei sera contrast0 de )aLon empiriEe dans des 0tdes lt0rieres.
MOTS CL : Mconomie sociale, bonne 'overnance, 'estion d0mocratiEe, coop0ration, r0sltats, co(0sion sociale,
cltre or'anisationnelle, 'estion e))icace.
www . irie - re ! is ta e o n o " ia .e s CIRIEC-ES#$%$ & S#ECI$' ISS(E & No. )3*2011
&!!6 &!BER818CE I8 2NE E82I2IES !O 2NE S!CI19 EC!8!*4
>pp. $7$-$%$? $73
$73$
$.- Introdction
&overnance in t(e entities o) t(e Social Economy >(ence)ort( SE? is considered a )orm o) e))icient mana'ement in t(e
se o) t(e assets con)i'red t(erein >.eno, "##:?. It is )onded on principles o) solidarity and practices o) economic
democracy >-liC, "##:P C(aves, "##:?P o))ers reliable in)orma- tion to t(e stakeholders >Se' et al., "##Q?P and in 'eneral,
'ives stren't( to t(e or'anisations R(ic( )olloR its premises >Sa, and Cars, "##Q?.
In )act, t(e administration o) Social Economy Entities >(ence)ort( SEE? mst combine policies o) e))icient mana'ement
R(ic( are traditionally tilised in maFor corporations, Rit( t(e principles o) respon- sibility and transparency and presmably
(ave an impact on t(e con)idence deposited in t(e a'ents R(o intervene in t(eir mana'ement.
Indeed, today measres o) 'ood 'overnance in SEE are so'(t, Rit( a political model o) economic mana'ement bein'
recently called. Sc( a model Rold taSe into accont measres o) economic and social mana'ementP members Rold
participate actively >C(aves, "##:?P it Rold (ave social and environmental implications >Pentes and Belasco, "##%?P and
also Rold consider t(e impact o) t(eir actions to satis)y t(e economic, social and cltral needs, not only o) t(e members bt
also o) t(e com- mnities >C(aves and *on,Dn, "##T? and t(e mandatory interests o) t(e stakeholders &Se' et al.,
"##Q? t(ro'( social responsibility.
2(e very identity o) SEE Rit( bases t(at s(ape vales UU>mtal spport, responsibility, democ- racy, eEality, eEity,
solidarity, (onesty, transparency, social responsibility and concern )or ot(ers? and t(eir principles - volntary and open
members(ip, democratic control, edcation, trainin' and in)or- mation, cooperation amon' cooperatives, and commitment to
t(e commnity - )its per)ectly into t(e model o) 'overnance demanded by society and is t(ere)ore R(y t(eir stdy raises 'reat
interest.
Oor t(at reason, t(ese policies o) 'ood 'overnance in or'anisations t(at are part o) t(e SE play an important role in t(e
economy as a R(ole, since t(ey (elp to correct marSet )ailres t(ro'( neR sorces o) employment Rit( nmet needs >Pentes
and Belasco, "##%? tryin' to ac(ieve 'reater social co(e- sion and an eEitable distribtion o) Realt(, R(ic( in trn, provide
economic 'roRt( >.riones, "##%?.
5it( t(e SEE, society (as increased its level o) democratic cltre, (as boosted its level o) social participation and (as
provided bar'ainin' poRer )or social 'rops eIclded )rom t(e economic process >Pastor, "#$$?. Its democratic mana'ement is
based on democratic principles and social responsibil- ity >1rcas and .riones, "##%?, R(ic( leads to carryin' ot its activities in
a sstainable manner and Rit( a positive impact not only on t(e or'anisation bt also on society, contribtin' to t(e creation o)
Eal- ity employment >-ordCn, "##", .el et al., "##V, &Dme, et al., "#$#?
6e to t(e increasin' social needs in recent years, t(e SE (as been 'ainin' increasin' importance bot( nationally and
internationally. Oirstly, it (as (elped to inte'rate disadvanta'ed people and areas socially andWor into t(e RorSplace >&alle'o,
"##7P *o,as, "##T?. Similarly, t(e 'roRt( in nemploy- ment in Erope is anot(er reason )or t(e importance o) t(e diversity
o) or'anisations Rit(in t(e tertiary sector and t(eir contribtion to Fob creation and prodctivity >.enardi, "#$$?, contribtin'
to balanc- in' t(e marSet and demonstratin' t(eir ability to increase t(e level o) social co(esion >.el and 1sin, "##7?.
Oor t(ese reasons, Re ndertaSe t(is RorS t(at )irst introdces some o) t(e accepted principles in t(e economic and
social literatre, re)errin' in 'eneral to 'ood 'overnance in SEE, bot( in t(eir oRn internal mana'ement o) or'anisations R(ic(
are representative o) t(e SE, and sbseEently to t(e measres t(at re)lect otRardly t(e practices o) 'ood 'overnance in
associative enterprises as a means o) e))icient mana'ement. Oinally, Re Rill discss some contribtions o) t(e e))ective
administration toRards t(eir involvement in t(e reslts and impact on society
www . irie - re ! is ta e o n o " ia .e s CIRIEC-ES#$%$ & S#ECI$' ISS(E & No. )3*2011
*/;!< *E6R1;!, *+ 6E9 C1R*E8 = .RI!8ES PE;19BER, 182!8I!
$7:
$7:$
".- &overnance in Social Economy
Social Economy corporate 'overnance emer'es as a tool )or t(e company to )l)il its social respon- sibility by providin' more reliable
in)ormation to all its staSe(olders >Se' et al., "##Q?, in sc( a Ray t(at t(e company can be socially responsible and meet its tar'ets
e))iciently and it is a Sey indicator o) 'ood mana'ement and social responsibility >Pentes et al., "##%7$"#? ensrin' t(e creation o) vale
)or t(e oRners o) )inancial resorces.
&overnance is c(aracterised by t(e set o) control systems and relations amon' t(e di))erent actors Rit(in t(e company7 directors, maFor
s(are(olders, minority s(are(olders and employees, alt(o'( it cold inclde t(e ot(er staSe(olders, sppliers, cstomers and pblic
administrations >see Oi're $?
Oi're $. Corporate &overnance in SE
S!/RCE7 1t(ors.
2(e strate'y o) 'ood corporate 'overnance mst be de)ined Rit(in t(e )rameRorS o) t(ese princi- ples >.eno, "##:?7
X Principle o) responsibility7 t(e principle t(at ens(rines or Fsti)ies t(e mission o) t(e or'anisa- tion, as set by t(e
policy and Rit(in t(e le'al or policy )rameRorS o) t(e 'overnment body responsible )or strate'ic direction.
X Principle o) transparency7 t(e principle R(ic( aims to ensre t(e eIercise o) 'overnance to pro- vide t(e marSet, and
society >all social interest 'rops t(at compose it, or staSe(olders?, as Rell as t(e or'anisationHs oRn members Rit(
accrate and trt()l in)ormation, actin' obFec- tively and independently in t(e )ace o) potential con)licts o) interest
t(at are 'enerated Rit(in t(e (eart o) t(e poRer system.
X Principle o) e))ectiveness7 t(e principle o) internal e))ectiveness s(old be t(e eIponent o) 'ood compliance Rit( t(e
obFectives or mission intended by t(e or'anisation or as an eIpression o) (oR to ensre t(at t(e strate'y, tactics
and lo'istics are coordinated to ac(ieve sccess in t(e policies establis(ed.
X Principle o) e))iciency7 t(e principle R(ic( de)ines creatin' vale in t(e or'anisation in an eco- nomic sense, or t(e
balance betReen reslts and costs, t(ro'( t(e processes and best prac- tices to reac( t(e or'anisation or
systemHs desired levels o) competence, prodctivity and pro)itability and in balance Rit( t(ose reEired by t(e
varios participants t(erein.
Orom t(e point o) vieR o) t(e practical implications o) corporate 'overnance, development, adop- tion and en)orcement o) codes o)
'ood 'overnance is directly linSed to 'overnment strate'ies adopted by t(e company and particlarly t(e relations(ips t(at t(e director (as
inside and otside company Rit( t(e varios staSe(olders >1'ilar and Cervo-Ca,rra, "##%?
www . irie - re ! is ta e o n o " ia .e s CIRIEC-ES#$%$ & S#ECI$' ISS(E & No. )3*2011
&!!6 &!BER818CE I8 2NE E82I2IES !O 2NE S!CI19 EC!8!*4
>pp. $7$-$%$? $7V
$7V$
Cooperative 'overnance is intended to 'ide mana'ement by means o) democratic mec(anisms so t(at t(eir administration bene)its
its members, and additionally, t(e commnities in R(ic( t(ey live >NernCnde, et al., "##Q7$##? ac(ievin' t(e tar'ets e))iciently and
contribtin' to innovation t(ro'( t(e application o) cooperative principles >*arcello and Sa,, "##Q?. I) Re nderstand t(e concept o)
'overnance as @a set o) tools t(at alloR t(e oRners o) a company to monitor compliance Rit( its obFec- tivesA >CoEe, "##V? and R(en
compared Rit( t(e 'overnance in SE, nderstandin' it as a Ray o) 'id- in' t(e cooperative enterprise toRards ac(ievin' its tar'ets
>NernCnde, et al., "##Q? Re can state t(at control is inclded in t(e scope o) cooperative 'overnance as a tool )or ac(ievin' 'ood
'overnance.
2(e speci)ic c(aracteristics o) entities t(at are part o) t(e SE >*on,Dn, "##T? - private, )ormally or'anised, Rit( decision-maSin'
atonomy, )reedom o) members(ip, t(e distribtion o) pro)its or sr- plses is not proportional to capital, satis)y needs, democratically
or'anised, mean t(at t(eir man- a'ement and 'overnance aroses 'reat interest amon' t(e researc( commnity >Ri, et al., "##T?.
Nence, drin' t(e last decades nmeros stdies (ave been pblis(ed addressin' t(e isse o) cooperative 'overnance as t(e
(i'(est representative o) t(e 'overnance model o) SEE becase t(e cooperatives are a bsiness reality o) collective oRners(ip and
democratic mana'ement t(at seeSs to promote solidarity, participation and responsibility >*arcello and Sa,, "##Q, T$?.
!ne sc( model is t(at proposed by C(aves >"##:?, in R(ic( tRo types o) approac( are di))eren- tiated7 policy and mana'ement >see
Oi're "?. It is on t(e political )ront R(ere t(e partners maSe t(e decisions R(ic( Rill later be pt into practice by t(e mana'ement aspect. 1ll
t(is Rill be done by means o) democratic participation >CoEe, "##Q?.
2(e political aspect Rill consist o) t(e 'overnin' bodies o) t(e cooperative >'eneral assembly, t(e 'overnin' concil and aditors?,
R(ere company decisions are taSen democratically and R(ere t(e members are t(e main prota'onists. !n t(e ot(er (and is t(e
mana'ement side, in R(ic( t(e eIec- tives taSe part, and R(o are responsible )or implementin' t(e decisions taSen by t(e political poRer
o) t(e cooperative.
2(is cooperative 'overnance model is based on several premises t(at maSe p t(e political aspect o) t(e cooperative >C(aves, "##:7$?7
$? 2(e members mana'e and decide democratically, in t(e &eneral 1ssemblyP
"? 2(ey participate actively in t(e &eneral 1ssembly and in t(e election o) representativesP
3? 2(e representative posts inte'rated into t(e &overnin' Concil represent and mana'eP
:? 2(e representative positions are accontable to t(e members(ipP
V? Cooperatives, especially lar'e ones, may provide t(emselves Rit( mana'ers-administrators and ot(er paid sta)), t(e so-called
eIective apparats, in order to implement t(e decisions o) t(e members and ac(ieve 'ood economic per)ormance.
Oi're ". *odel o) cooperative 'overnance
S!/RCE7 1dapted )rom C(aves "##:.
www . irie - re ! is ta e o n o " ia .e s CIRIEC-ES#$%$ & S#ECI$' ISS(E & No. )3*2011
*/;!< *E6R1;!, *+ 6E9 C1R*E8 = .RI!8ES PE;19BER, 182!8I!
$7T
$7T$
3.- Internal dimension o) 'ood 'overnance in
Social Economy
Orom an internal point o) vieR o) 'ood 'overnance, SEE are constitted as an alternative bsiness model to t(e capitalist
model, R(ere collective action >&arca et al., '(()* and democratic participation become basic c(aracteristics o) its strctre
and operation >NernCnde, et al., "##Q?.
2(e strate'ic lo'ic o) SEE is c(aracterised not only by t(e economic mana'ement and )ormal con- tractal relations(ips
bt is also a commnity approac( centred on vales, trst and mtal aid >*ic(elsen, $%%:, Eoted in CoEe, "##Q77#-7$?
2(e 'overnance strctre o) SEE is )ormed by t(e di))erent or'ans o) poRer and control, and espe- cially in cooperative societies, most
clearly s(oRs t(e particlar c(aracteristics o) t(is or'anisational strctre
2(ese bodies necessary )or t(e administration and mana'ement o) t(e cooperative enterprise are7 t(e &eneral 1ssembly, t(e
&overnin' Concil and t(e 1ditors, Rit( t(e members o) t(e or'anisation bein' present in all o) t(ese bodies and t(ey are involved in
maSin' decisions democratically.
2(e members maintain a presence in t(e leaders(ip, in t(e middle level, and at t(e base o) t(e or'anisation. 2(e members are part
o) t(e &eneral 1ssembly R(ic( de)ines t(e tar'ets o) t(e or'an- isation. 2(e members Rill be part o) t(e middle level R(en, as a member o)
t(e &overnin' Concil, t(e &eneral 1ssembly dele'ates t(e )ormal at(ority to direct and mana'e t(e company and Rill Foin t(e operations
'rop in t(e event o) bein' responsible )or ensrin' t(e prodction process >NernCnde, et al., "##Q7%%?.
*tal spport amon' members is one o) t(e prereEisites )or 'ood 'overnance and ad(erence to t(e cooperative proFect, in terms
o) eEality in democratic mana'ement o) t(e company, contribt- in' to t(e )inancin' o) activities by providin' capital and receivin'
compensation in proportion to t(e labor inpt >P0re, et al., "##%?.
In t(is sense, t(e incentives to participate in t(e mana'ement are sbFect to t(e principle o) iden- tity t(at demands homogenisation
of the capacities to meet the needs of the entity >CoEe, "##Q777?. 2(e dal role o) t(e member >capitalist and ser? Rill be a doble
incentive to 'overn t(e company to e))ectively meet needs and contine to do so in t(e )ace o) possible deviations )rom 'ood 'overnance
o) t(e entity.
NoRever, in a cooperative, t(e member is not t(e only actor R(o participates in t(e mana'ement >CoEe, "##Q7Q#?.5e can )ind p to
)ive di))erent types o) players >mass members(ip, mana'in' part- ners, pro)essional mana'ers, employees and ot(er eIternal players?
R(o may be interested in 'ov- ernin' or participatin' in t(e 'overnance, a sitation R(ic( can case t(e appearance o) con)licts o)
interest >see Oi're 3?.
Oi're 3. Players involved in t(e 'overnance o) SEE
www . irie - re ! is ta e o n o " ia .e s CIRIEC-ES#$%$ & S#ECI$' ISS(E & No. )3*2011
&!!6 &!BER818CE I8 2NE E82I2IES !O 2NE S!CI19 EC!8!*4
>pp. $7$-$%$? $77
$77$
S!/RCE7 1t(ors.
2(e eIistence o) t(ese di))erent players Rit( di))erent interests Rit(in t(e or'anisation complicates t(e decision-maSin'
process considerably, as eac( one seeSs to de)end t(eir interests, and sc( inter- ests Rill di))er dependin' on t(e role o) eac(
Rit(in t(e cooperative.
2(e basis o) 'ood cooperative 'overnance is precisely t(e democratic participation inclded in t(e second cooperative
principle o) t(e International Cooperative 1lliance >(ence)ort( IC1?, R(ic( is t(e principle o) @democratic mana'ement by t(e
membersA >IC1, $%%V?, R(ere t(e 'eneral decision rle is SnoRn as one voice, one vote.
6emocratic participation processes Rit(in t(e company and especially in t(e SEE, )acilitate inte- 'ration, avoid
con)rontations by minimisin' con)licts o) interest and can be vieRed as an instrment o) 'ood 'overnance t(at maSes it
possible )or interest 'rops &stakeholders* to accept c(an'es in man- a'ement systems, labor or'anisations and t(e probable
restrctrin' o) 'overnin' bodies.
2(is principle t(s re)lects one o) t(e main c(aracteristics o) t(is type o) enterprise, Sey to t(e analy- sis and stdy o) 'ood
'overnance in t(ese entities7 establis(in' a democratic decision-maSin' system.
2(is democratic decision-maSin' process, alt(o'( it seems simple, is not Rit(ot problems >C(aves, "##:P CoEe,
"##Q, NernCnde, et al., "##Q?7 (etero'eneity o) t(e members, loR participa- tion in t(e assembly and )ra'mentation de to t(e
dispersion o) votes are some o) t(e problems )acin' cooperative 'overnance. 2(ere)ore, Re Rold liSe to t(inS t(at t(e principle
o) mtal assistance amon' members can overcome possible di))erences.
/ndobtedly, anot(er important mec(anism )or ac(ievin' t(e tar'ets Rit(in t(e )rameRorS o) 'ood 'overnance to be considered, in
addition to t(e systems o) democratic participation, is t(e cltre o) t(e or'anisation.
In SEE, t(at cltre is closely linSed to cooperative principles based on vales o) eEality, democ- racy, solidarity, eEity, solidarity,
(onesty, transparency, social responsibility and concern )or ot(ers t(at Rill be adopted by t(ese enterprises >C(aves et al. "##3?, Rit(
t(ese vales bein' intan'ible and constitents o) a de)inite competitive advanta'e >*arcello and Sa,, "##Q?.
Cltre is one o) t(e basic pieces o) or'anisational be(avior o) t(ese or'anisations since it inte- 'rates t(e set o) social norms,
vales, principles and be(aviors common to t(e individals R(o maSe p t(e or'anisation >NernCnde, et al., "##Q7%:?. It is t(is
participatory idiosyncrasy >an entreprener- ial cltre in todayHs terms? t(at (as been created, consolidated and pdated )or over one and
a (al) centries t(ro'( a 'lobal social movement )ormalised and coordinated by t(e IC1 >CoEe, "##Q?.
2(ose people R(o, based on t(is participatory cltre, RorS in SEE, develop more collectivist vales t(an ot(er RorSers in
www . irie - re ! is ta e o n o " ia .e s CIRIEC-ES#$%$ & S#ECI$' ISS(E & No. )3*2011
*/;!< *E6R1;!, *+ 6E9 C1R*E8 = .RI!8ES PE;19BER, 182!8I!
$7Q
$7Q$
capitalist enterprises, so t(at SEE (ave a role in s(apin' and trainin' in t(e development o) collectivist vales to all t(eir members, as
compared to ot(er types o) enterprises >6a, and -Cime,, "##%7::?.
9iSe cltre, social capital is anot(er Sey element )or t(e development o) competitive advanta'es in in)lencin' or'ani,ational
SnoRled'e trans)er amon' members o) t(e or'ani,ation )acilitatin' col- lective decision maSin' >8a(apiet and Nos(al, $%%QP /pad(yayla
and /mar, "##:, InSpen and 2san', "##V?, decision-maSin' process is ndobtedly one o) t(e Seys to t(e 'overnment in es.
:.- 2(e eIterior re)lection o) t(e practices o) 'ood
'overnance in social economy
&ood 'overnance o) SEE s(old be re)lected not only )rom an internal point o) vieR o) t(e or'an- isation bt (as to be re)lected more
and more eIternally becase society increasin'ly demands social and environmental commitments )rom t(e companies beyond t(e
strictly economic >6e 8ieves and .riones, "#$#?. So mc( so t(at a 'ood model o) 'overnance does not only mst ensre t(e economic, bt
social Rel)are 2embi and t(e balance betReen staSe(olders and corporate 'overnance t(at is embedded in a cltral and social
economic conteIt. >-o(anson y !ster'ren, "#$#?.
2(e entities t(at are part o) t(e SE RorS toRards sstainable development o) t(eir commnities t(ro'( policies
approved in advance by t(eir members, 'eneratin' social, economic and environ- mental capital >&alati et al., "###, .eno
et al., "##3, .riones, "##%?, divertin' some o) t(eir reslts to t(e commnity in R(ic( t(ey are located, t(s contribtin', t(ro'(
t(e 'ood 'overnance practices carried ot, to t(e development o) t(e area R(ere t(ey are and to t(e Rel)are o) t(e society.
2(ere)ore, t(at )rt(er sstainable development, s(old provide innovative alternatives and neR Rays o) t(inSin' based on
creativity, to ensre t(at breaSt(ro'(s contribte to economic development and social Rel)are, yet do not pose a t(reat to social
and environmental relations >1rcas and .riones, "##%?.
Sa, and Cars >"##Q? assert t(at amon' t(e stren't(s o) t(e or'anisations t(at maSe p t(e SE, )olloRin' t(e
Sstainability Report >"##V? are7 >$? t(e vales UUare essential to establis( linSs and cre- ate netRorSs spported by t(e
credibility o) t(e or'anisation and by trstP >"? eIternal commnication and connection are a si'ni)icant stren't(P and >3? t(e
creation o) netRorSs and t(e establis(ment o) intercommnication Rit( all staSe(olders >interest 'rops? is an asset in a
'lobalised and intercon- nected society sc( as Re (ave today.
2(is is leadin' companies to taSe on t(at type o) responsibilities and to adopt Entreprenerial Social Responsibility practices
aimed at meetin' t(e eIpectations and concerns o) t(e di))erent interest 'rops >P0re, et al., "##%?.2(is strate'ic-type approac(
s(old be part o) t(e everyday mana'ement in deci- sion-maSin' in creatin' vale )or t(e company and contribtin' to
creatin' lon'-lastin' competitive advanta'es >*artine, et al., "#$$?. 2(ey are a Sey )actor )or sccess, not Fst )or bsiness bt
)or soci- ety in 'eneral t(ro'( actions contribtin' to sstainable development.
2(e social natre o) sc( entities >Bar'as and Baca, "##VP Pentes and Belasco, "##%P Server and Capo, "##%? is
detailed in t(e de)initions o) at(ors sc( as C(aves and *on,Dn >"##T?, as bein' atonomos associations o) people R(o
(ave Foined volntarily, R(ic( aim to meet t(e economic, social and cltral needs, not Fst o) t(eir members bt also o) t(e
commnity t(ro'( t(e creation o) a Fointly oRned and democratically mana'ed company spontaneosly assmin' social
responsibilities >P0re, and &allardo, "##V?.
It is t(ere)ore not srprisin' t(at at(ors sc( as Server and CapD >"##%? compare t(e vales UUo) t(e SE Rit( t(e
principles proposed by t(e Eropean Commission )or t(e promotion o) Corporate Social Responsibility >CSR? >2able $?. 2(ese
principles can lead to t(e stdy o) some o) t(e eIternal prac- tices o) 'ood 'overnance in SEE. 2(ese are7
X reco'nition o) t(e volntary natre o) CSRP
X credible and transparent social responsibility practicesP
X )ocs on activities R(ere vale is addedP
X balanced and compre(ensive approac( to CSR, incldin' economic, social and ecolo'ical aspects, as Rell as
www . irie - re ! is ta e o n o " ia .e s CIRIEC-ES#$%$ & S#ECI$' ISS(E & No. )3*2011
&!!6 &!BER818CE I8 2NE E82I2IES !O 2NE S!CI19 EC!8!*4
>pp. $7$-$%$? $7%
$7%$
consmer interestsP
X spport )or and compatibility Rit( eIistin' international a'reements >core labor standards adopted by t(e I9!,
t(e !EC6 &idelines )or *ltinational Enterprises?.
2able $. Comparison betReen co-operative principles >IC1? and t(e
Eropean Commission )or t(e CSR
COOPERATIVE PRINCIPLES CSR (European Commission
!" Vo#un$ar% an& open mem'ers(ip Bolntary natre o) CSR
)" *emocra$ic mana+emen$ '% $(e mem'ers 2ransparency and credibility o) CSR activities
," *emocra$ic par$icipa$ion
-" Au$onom% an& In&epen&ence
." E&uca$ion/ Trainin+ an& Informa$ion 2ransparency and credibility o) CSR activities
0" Coopera$ion amon+ coopera$i1es .alanced approac( to CSR in t(e economic, social and environmental
aspects as Rell as t(e interests o) consmers
7. Concern for $(e communi$% 9ocation o) commnity action in activities in R(ic( t(e CommnityHs action
brin's real added vale .alanced approac( to CSR in t(e economic,
social and environmental aspects as Rell as t(e interests o) consmers
1ttention to t(e speci)ic needs o) S*Es. Respect )or eIistin' international
a'reements and instrments
S!/RCE7 1dapted )rom Server and CapD >"##%?
Oor t(ese at(ors, t(e very natre o) t(e cooperatives, leads to socially responsible operation, as is apparent R(en analysin' t(e
cooperative principles and t(ere)ore t(e SE enterprises (ave an advanta'e R(en applyin' t(e aIioms o) CSR Rit( respect to ot(er
companies >Server and CapD, "##%?.
It is important to note t(e ease Rit( R(ic( SEE and in particlar cooperatives tend to natrally establis( linSs Rit( t(eir
srrondin's, contribtin' to t(e economic, social and environmental devel- opment in a sstainable and responsible manner, to t(e
eItent t(at t(eir activity is based on t(e se o) endo'enos resorces )rom t(e area >Pentes and Belasco, "##%?
Cooperative principles are an eIample o) t(e interest t(at SEE (ave )or local and social develop- ment. 1mon' t(e principles,
edcation, trainin' and in)ormation, t(e principle o) cooperation and inter- est in t(e commnity are t(ose R(ic( are closest to t(e concept
o) local development as nderstood by t(e !r'anisation )or Economic Cooperation and 6evelopment >!EC6? as a @process by which a
certain number of institutions and+or local people are mobilised in a given locality in order to build, strengthen and stabilise operations
using the resources of the territory in the best possible manner.,
9ocal development policy (as to date been sstained on t(e )olloRin' strate'ic aIes >2omCs, "##Q?7
$? Promotion o) investment, bot( internally and eIternally, and Fob creation.
"? *obilisation o) potential endo'enos development, as a 'arantee o) atonomy and economic sstainability in t(e 'roRt(
process.
3? 6i))sion o) innovation and SnoRled'e o) t(e prodction system, as a ve(icle )or competitive- ness and adaptation to
c(an'es in t(e environment.
:? 2rainin', retrainin' o) (man capital and employability, as a ve(icle )or economic adFstment and social stability.
V? *ore e))icient articlation o) t(e rban space and improvement in t(e attractiveness o) cities to attract companies.
T? Establis( development coalitions betReen pblic and private sectors and di))erent interests in order to increase t(e
e))ectiveness o) policies and t(e 'overnance o) adaptation processes.
7? Promotin' t(e internationalisation o) bsiness to boost t(e eIport base, entreprenerial sSills and t(e inte'ration o) t(e local
economy into t(e 'lobal economy.
Q? 6evelopment o) in)ormation and commnication tec(nolo'ies and t(eir se by t(e bsiness commnity and citi,ens.
www . irie - re ! is ta e o n o " ia .e s CIRIEC-ES#$%$ & S#ECI$' ISS(E & No. )3*2011
*/;!< *E6R1;!, *+ 6E9 C1R*E8 = .RI!8ES PE;19BER, 182!8I!
$Q#
$Q#$
2(e 'ood 'overnance practices o) t(ese entities are not only re)lected in social and environmen- tal responsibility
copled Rit( local development. 1t(ors sc( as CoEe >CoEe, "##Q77"? state t(at cooperatives are t(e bsiness model
R(ic( most natrally inte'rates bsiness netRorSs, as t(e c(ar- acteristics o) t(e )ormer )it in(erently into t(e latter.
2(e 'eneration o) netRorSs o) cooperatives be'an considerably be)ore t(e crrent eIplosion o) strate'ic alliances
betReen or'anisations, since cooperation amon' cooperatives is one o) t(e coop- erative principles t(at (ave t(eir ori'in in
t(e Roc(dale Principles, establis(ed in En'land in $Q::.
1mon' t(e main strate'ic reasons t(at lead or'anisations to taSe t(e decision to adopt coopera- tive a'reements as a
soltion to t(eir needs or eIpectations, are as )olloRs >6e 8ieves et al., "#$#7$$%?7
$? Create and s(are tradin' netRorSs by t(ose companies R(ic( rat(er t(an bein' considered individally, are related
)rom t(e perspective o) t(e or'anisational system t(ey compriseP
"? !vercome marSet barriers, and t(s cooperation a'reements are a means )or companies to directly impact on
competitionP
3? Redce risS and ncertainty and t(s t(e inter-company relations )acilitate t(eir adaptation to t(e 'lobalisation o)
marSets and tec(nolo'yP
:? Improve e))iciency in RorS systems t(at )avor t(e development o) atonomos or in)lential 'ropsP
V? 1ccess to neR resorces and capabilities in order to access speci)ic 'oods not oRned by t(e company bt R(ic(
complete its activityP
T? Researc(, development and innovation >R Y 6 Y I?P
7? !btain an appropriate si,e to be able to compete, since alliances alloR to reac( a critical mass in certain resorces, R(ile
avoidin' t(e dplication o) activities and alloRin' t(e se o) resorces )or ot(er tasSsP and,
Q? Create and eIploit t(e positive syner'ies, becomin' economies o) scope by t(e Foint opera- tion o) a )iIed asset or by taSin'
advanta'e o) t(e asymmetries and complementarities o) resorces, sSills or eIperiences o) t(e associated companies.
2(ese cooperative practices are processes o) 'ood 'overnance and SnoRled'e trans)er, alloRin' 'reater access to innovation
processes and lanc(in' neR prodcts t(at better meet bsiness eIpec- tations >.riones and 9aborda, "#$$?, in t(is case considerin'
SEE and especially cooperatives as a means o) e))icient or'anisation )or t(e development o) innovative processes >Oaria et al., "#$#?.
!n t(e ot(er (and, increasin' t(e si,e o) t(e company is noRadays crcial to ensre its very srvival. 2(is leads companies to reac(
cooperation a'reements and alliances, in order to increase pro)itability and vale creation, poolin' t(eir resorces and capabilities andWor
completin' t(em Rit( SnoRled'e )rom ot(er companies >*artne, et al., "#$$?.
V.- Reslts o) t(e measres o) 'ood 'overnance
2(e adoption o) all t(e practices o) 'ood 'overnance by SEE, R(ic( are in a certain manner so c(aracteristic, based on social and
collectivist vales UUand principles, mean t(at t(eir impact on bsi- ness per)ormance is noteRort(y, becase t(e application o) t(ese
measres o) 'ood 'overnance in SEE brin's increased prodctivity and bsiness reslts t(ro'( innovation >6el Z'ila !bra and Padilla,
"#$#?.
&roRt( strate'ies )ocsed on cooperative activities are a principle amon' cooperatives, t(ey are also considered a means to improve
t(e competitiveness o) companies in 'eneral, especially in SEE, tri''erin' collaboration relations(ips in collective a'ents >*orandeira et al.
"#$#?, re)erred to by Ptnam >"##$? as stron' relations(ipsP in t(is sense, e))ectiveness is so'(t in t(eir coordination, as is mtal bene)it
)or t(e parties involved >*art and 9o,ares, "##Q?.
2(e inclsion o) SR measres in t(e mana'ement as Rell as concern )or environmental and ss- tainable development, are re)lected
in t(e reslts o) t(e entity and in society at lar'e, as t(ese mea- sres are seen as a lon'-term commitment by eac( company Rit( its
srrondin's, improvin' t(e response strate'ies to t(e society, Rit( t(e ltimate 'oal o) retrnin' a portion o) t(eir pro)its to t(e
staSe(olders >*artne, et al., "#$$?, t(s increasin' t(e satis)action o) t(e di))erent a'ents.
www . irie - re ! is ta e o n o " ia .e s CIRIEC-ES#$%$ & S#ECI$' ISS(E & No. )3*2011
&!!6 &!BER818CE I8 2NE E82I2IES !O 2NE S!CI19 EC!8!*4
>pp. $7$-$%$? $Q$
$Q$$
2(e policies o) SR increases t(e reliability and vale perceived by cstomers >9o and .(attac(ayra, "##T? R(ic( can
lead to an increase in sales and t(s an improvement in )inancial per- )ormance >*ai'nan, "##$?. In addition, t(e policies o)
RS improvin' relations Rit( staSe(olders to increase motivation, satis)action, loyalty and trst >6entc(ev, "##:? and maSin'
lon'-lastin' Ray.
.riones and 9aborda >"#$$, $3V? state t(at @amon' t(e many reasons t(at Fsti)y t(e stdy o) entre- prenerial capacities
provided t(ro'( innovation, Re )ind tec(nolo'ical development to be important since it enables innovation to be a
di))erentiatin' strate'y.A In t(is sense, t(e SEE are by natre con- sidered innovative and an important strate'ic )ocs )or local
development o) t(e territories.
T.- Providin' a model o) 'ood 'overnance in t(e
Social Economy
1)ter condctin' a t(oro'( revieR o) t(e literatre on 'ood 'overnance practices o) SEE )rom bot( an internal and eIternal
perspective and its impact on bsiness reslts, Re (ave proposed a t(eoretical model o) 'ood 'overnance in t(e SE R(ic(
establis(es a relations(ip betReen t(e practices o) 'ood 'ov- ernance and t(eir implication in terms o) bot( t(e bsiness as Rell as
social otcomes >see Oi're :?.
2(is model seeSs to Fsti)y t(e application o) 'ood 'overnance practices in bot( t(e internal mana'e- ment o) SEE
>democratic mana'ement, e))ectiveness, e))iciency and or'anisational cltre? as Rell as in its eIternal impact >social inte'ration
and employment, SR and t(e environment, cooperation, local devel- opment?. 2(is is done Rit(in t(e )rameRorS o) t(e vales
in(erent in t(e SE >mtal aid, responsibility, democracy, eEality, eEity, solidarity, (onesty, transparency, social responsibility
and concern )or ot(ers? R(ic( can brin' settlement and continity to SEEP increases in bot( bsiness and social reslts in t(e Rel-
)are o) t(e society and a))ectin' t(e people t(erein.
Oi're :. *odel o) 'ood 'overnance in t(e SE
S!/RCE7 1t(ors
www . irie - re ! is ta e o n o " ia .e s CIRIEC-ES#$%$ & S#ECI$' ISS(E & No. )3*2011
*/;!< *E6R1;!, *+ 6E9 C1R*E8 = .RI!8ES PE;19BER, 182!8I!
$Q"
$Q"$
7.- Conclsions
In t(is article Re (ave so'(t to carry ot a t(eoretical stdy o) 'ood 'overnance in SEE )rom an internal point o) vieR
>members, 'overnment a'encies, democratic participation, or'anisational cl- tre? and its eIternal re)lection in society >local
development, social responsibility, cooperation, social co(esion and t(e environment? all )rom t(e broad concept o) 'ood
'overnance and its re)lection on company reslts.
1nalysis o) t(e literatre (as s(oRn t(e SE to be an alternative to t(e capitalist model, based on vales >mtal spport,
responsibility, democracy, eEality, eEity, solidarity, (onesty, transparency, social responsibility and concern )or ot(ers?
R(ic( are increasin'ly demanded by society and R(ic( t(s leads t(ese companies to be Rell accepted by society.
5e (ave seen t(at collective action and democratic participation are intrinsic )actors in t(e 'over- nance o) t(ese entities.
2(ey are strate'ic Seys in decision- maSin' and are seen as 'ood 'overnance practices in t(e SE )rom t(e most internal )acet
o) t(e or'anisation. 2(e application o) t(ese practices lessens con)licts o) interest betReen di))erent staSe(olders >mass
members(ip, mana'in' partners, pro)essional mana'ers, employees and ot(er eIternal actors?, t(s creatin' vale )or t(e
company.
1not(er important mec(anism )or ac(ievin' t(e companyHs tar'ets in t(e )rameRorS o) 'ood 'ov- ernance is t(e
or'anisational cltre o) SEE. 2(ese enterprises (ave a speci)ic or'anisational cltre based lar'ely on t(ese cooperative
principles and vales.
In SE, as Re (ave seen Rit( t(e analysis o) t(e literatre, 'ood 'overnance practices trans'ress t(e bondary o) t(e
or'anisation and are re)lected in and (ave an impact on society. 2(e SE is con- cerned Rit( sstainable local development o)
t(e areas R(ere t(ey settle, since t(ey 'enerate impor- tant social, economic and environmental capital, by SR and
environmental policies, local andWor labor development and cooperation a'reements. 2(ese 'ood 'overnance practices
can become capaci- ties t(at SEE develop, and t(s obtainin' Rit( t(eir development di))erent levels o) pro)itability t(an t(e
capital )irms.
2(is model is a )irst step t(at leads s to consider a nmber o) lines o) researc( R(ic( Rill )ocs )irst to demonstrate
empirically t(e application o) t(e model o) 'ood 'overnment to t(e EES and t(e basic sectors entas entities.
See R(ere o))icial indstrial strctres, R(et(er or not t(ey oRn t(e SE and R(et(er or not to adapt ot(er traditional capital
companies and (oR t(is model a))ect t(e be(avior o) di))erent people.
2(e stdy Ras addressed )rom t(e perspective t(at relates t(e proposed 'overnance model Rit( t(e natre o) t(e entity
o) ES and t(e di))erent approac(es or t(eories t(at a))ect t(e or'ani,ational be(avior o) t(e a'ents involved in t(e
'overnance and application o) t(e rles o) t(ese t(eories abot t(e internal and eIternal 'rops, considerin' t(e prpose o)
)indin' moderatin' relations a'ency costs, property ri'(ts or ot(er aspects bot( )rom t(e standpoint o) instittional economics.
www . irie - re ! is ta e o n o " ia .e s CIRIEC-ES#$%$ & S#ECI$' ISS(E & No. )3*2011
&!!6 &!BER818CE I8 2NE E82I2IES !O 2NE S!CI19 EC!8!*4
>pp. $7$-$%$? $Q3
$Q3$
www . irie - re ! is ta e o n o " ia .e s CIRIEC-ES#$%$ & S#ECI$' ISS(E & No. )3*2011
*/;!< *E6R1;!, *+ 6E9 C1R*E8 = .RI!8ES PE;19BER, 182!8I!
$Q:
$Q:$
www . irie - re ! is ta e o n o " ia .e s CIRIEC-ES#$%$ & S#ECI$' ISS(E & No. )3*2011
&!!6 &!BER818CE I8 2NE E82I2IES !O 2NE S!CI19 EC!8!*4
>pp. $7$-$%$? $QV
$QV$
www . irie - re ! is ta e o n o " ia .e s CIRIEC-ES#$%$ & S#ECI$' ISS(E & No. )3*2011
*/;!< *E6R1;!, *+ 6E9 C1R*E8 = .RI!8ES PE;19BER, 182!8I!
$QT
$QT$
www . irie - re ! is ta e o n o " ia .e s CIRIEC-ES#$%$ & S#ECI$' ISS(E & No. )3*2011
&!!6 &!BER818CE I8 2NE E82I2IES !O 2NE S!CI19 EC!8!*4
>pp. $7$-$%$? $Q7
$Q7$
*/;!< *E6R1;!, *+ 6E9 C1R*E8 = .RI!8ES PE;19BER, 182!8I!
$QQ
$QQ$
www . irie - re ! is ta e o n o " ia .e s CIRIEC-ES#$%$ & S#ECI$' ISS(E & No. )3*2011
*/;!< *E6R1;!, *+ 6E9 C1R*E8 = .RI!8ES PE;19BER, 182!8I!
$Q#
$Q#$
www . irie - re ! is ta e o n o " ia .e s CIRIEC-ES#$%$ & S#ECI$' ISS(E & No. )3*2011
www . irie - re ! is ta e o n o " ia .e s CIRIEC-ES#$%$ & S#ECI$' ISS(E & No. )3*2011
&!!6 &!BER818CE I8 2NE E82I2IES !O 2NE S!CI19 EC!8!*4
>pp. $7$-$%$? $Q$
$Q$$
www . irie - re ! is ta e o n o " ia .e s CIRIEC-ES#$%$ & S#ECI$' ISS(E & No. )3*2011
*/;!< *E6R1;!, *+ 6E9 C1R*E8 = .RI!8ES PE;19BER, 182!8I!
$Q"
$Q"$
www . irie - re ! is ta e o n o " ia .e s CIRIEC-ES#$%$ & S#ECI$' ISS(E & No. )3*2011
&!!6 &!BER818CE I8 2NE E82I2IES !O 2NE S!CI19 EC!8!*4
>pp. $7$-$%$? $Q3
$Q3$
www . irie - re ! is ta e o n o " ia .e s CIRIEC-ES#$%$ & S#ECI$' ISS(E & No. )3*2011
*/;!< *E6R1;!, *+ 6E9 C1R*E8 = .RI!8ES PE;19BER, 182!8I!
$Q:
$Q:$
www . irie - re ! is ta e o n o " ia .e s CIRIEC-ES#$%$ & S#ECI$' ISS(E & No. )3*2011
&!!6 &!BER818CE I8 2NE E82I2IES !O 2NE S!CI19 EC!8!*4
>pp. $7$-$%$? $QV
$QV$
www . irie - re ! is ta e o n o " ia .e s CIRIEC-ES#$%$ & S#ECI$' ISS(E & No. )3*2011
*/;!< *E6R1;!, *+ 6E9 C1R*E8 = .RI!8ES PE;19BER, 182!8I!
$QT
$QT$
&!!6 &!BER818CE I8 2NE E82I2IES !O 2NE S!CI19 EC!8!*4
>pp. $7$-$%$? $Q7
$Q7$
www . irie - re ! is ta e o n o " ia .e s CIRIEC-ES#$%$ & S#ECI$' ISS(E & No. )3*2011
*/;!< *E6R1;!, *+ 6E9 C1R*E8 = .RI!8ES PE;19BER, 182!8I!
$QQ
$QQ$
www . irie - re ! is ta e o n o " ia .e s CIRIEC-ES#$%$ & S#ECI$' ISS(E & No. )3*2011