------------ EH.NET BOOK REVIEW --------------
Published by EH.NET (November 2006)
Mairi Maclean, Charles Harvey and Jon Press, _Business Elites and
Corporate Governance in France and the UK_. Basingstoke: Palgrave
Macmillan, 2006. xvii + 357 pp. $66 (hardcover), ISBN: 1-4039-3579-3.
Reviewed for EH.NET by Hugo Cer�n-Anaya, Department of Sociology,
University of Essex.
In the current world, international corporations are able to control
more human and economic resources than many nation states. The
economic influence of these companies goes far beyond stock markets;
they have a real impact on people's lives, as the case of Enron
showed in the U.S. In this context it is worth asking, who governs
corporations? How are top executives appointed? Is economic
globalization changing corporate governance practices? Mairi Maclean
(University of the West of England), Charles Harvey (University of
Strathclyde) and Jon Press (Bath Spa University) seek to answer these
questions in a comparative study of England and France during the
late twentieth and early twenty-first century.
In eight chapters the book covers issues such as the role of social
elements in shaping business elites; the impact economic
globalization is exerting on French and British business elites;
corporate government structures; and recent transformations of
corporate governance practices. These topics allow the authors to
present a portrait of the men - and, to a lesser extent, women -- who
run the top corporations in these two countries. The contribution of
this research is to expand the literature on international business;
elites; social spaces; and social networks, in France and the UK. In
this sense this book may appeal to business historians, economic
sociologists and scholars researching elites, as well as academics
analyzing social capital and networks.
In the Introduction the authors place their research within the
context of studies of business elites. Their main objective is to
analyze how governance practices (rules, regulations and practices)
are influenced by national systems (business systems, structures,
relationships) and ideologies (ideas, beliefs, values and
assumptions) in the face of far-reaching global change. The findings
of this study are based upon qualitative and quantitative data, the
latter referring to statistical information about the directors of
the top 100 companies in Britain and France, which is complemented by
in-depth interviews.
Chapter 2, on 'Theoretical Perspectives,' discusses diverse
theoretical approaches to the study and understanding of power and
elites. The authors mainly draw ideas from Michael Foucault, Pierre
Bourdieu, John Scott and Mark Granovetter. One of the main strengths
of the book is precisely this attempt to understand business elites
in a more complex way, taking into account social factors and
national ideologies, not just economic elements. In Chapter 3,
'Governance Regimes in Comparative Perspective,' the authors seek to
answer the question of how power works on French and British
corporations, and review the main transformations experienced in
corporate governance in both countries. The conclusion is that the UK
and France have dealt with these matters in very different ways. For
instance, British corporations have clearly separated the functions
of CEOs and chairmen in different posts, whereas in France it is
common to find one person simultaneously holding both roles.
Perhaps the most interesting chapters of the book are Chapter 4,
'Social Origins and the Education of Business Elites,' and Chapter 5,
on 'Elite Career and Lifestyles.' These explain how social structures
profoundly determine the shape and composition of business elites.
The authors state that their analysis is not deterministic, but
mention certain observable regularities in recruitment to the
business elite. Chapter 4 mainly explores the importance of family
and education for increasing an individual's possibilities to join
the business elite.
They conclude that education systems and the recruitment of business
elites gradually have become more open in both countries,
"nevertheless whilst undertaking this study we have been startled by
the degree to which elitism still applies" (p. 122). Chapter 5
examines how top executives in France and the UK reached the
positions they hold, and whether lifestyle patterns have influenced
these businessmen's careers. Issues such as the importance of sports,
cultural and academic patronage, and marriage are analyzed in this
chapter. The explanation that the authors give about why women are
underrepresented in top corporate positions in both countries is of
particular interest.
Chapter 6, 'Networks, Power and Influence,' studies the way elite
business networks operate within these countries. The authors analyze
how frequently top executives hold board positions in different
companies, and also the impact family ties have on business networks.
They conclude that the pattern is different in each country: in
France ties are institutionally created through the grande �coles,
grands corps and business associations; whereas in the UK, the clubs
of Pall Mall, the arts boards, not-for-profit groups and sporting
associations are the key spaces for networking.
Chapter 7, on 'Corporate Governance and the New Global Economy,'
evaluates the impact economic globalization has exerted on corporate
governance practices and the composition of business elites. It
explains that Britain and France have taken different paths to cope
with globalization. The UK has indeed followed a liberal path, while
France, by contrast, has combined elements of economic regulation
with liberal practices. They conclude that, despite the influence
that the British Code of Conduct exerts in global corporations and of
so-called 'Americanization,' "the systems of governance obtaining in
these two countries are rooted in each case in a distinct 'habitus,'
the origins of which go deep" (p. 236).
The final chapter, 'Elite, Power, and Governance,' sums up their main
findings. Regarding the nature of networks, the authors explain that
social ties among French business elites are institutional and strong
in nature. By contrast, social bonds among the British business elite
are expressly _social_ and relatively weak. In both cases, a strong
tendency towards cultural reproduction was found. This means that
continuity, and to some extent reinforcement, of values, ideas and
perceptions of the world are encouraged among business elites. They
add that the main structures that determine success in the business
sphere in both countries are family, education and professional
bodies.
The authors conclude that these two countries have responded in a
different ways to the new global scenario. The British economy has
gradually moved towards services whereas the French have supported
large-scale manufacturing enterprises. "What we are witnessing, in
effect, are the responses of two _competing capitalisms_ to
globalisation" (p. 256). Probably one of the main findings of the
book is precisely that there is no trend of convergence between the
French and British corporate governance systems. Instead, there are
strong national traditions that have encouraged divergence.
Hugo Cer�n-Anaya is a Ph.D. candidate in the Department of Sociology
at the University of Essex.
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Published by EH.Net (November 2006). All EH.Net reviews are archived
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