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The contribution of network governance to preventing opportunistic behaviour by managers and to increasing stakeholder involvement: the Eroski case

Author

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  • Giacomo Manetti
  • Simone Toccafondi

Abstract

This present work is an exploratory analysis of network governance models that are characterised by widespread distribution of decision-making and control, auditing and supervisory functions in company structure, frequently through stakeholder engagement in the management system. In the study, we verify the way in which NG can involve stakeholder representatives in the governance bodies and in the decision-making process, also preventing opportunistic behaviour of management, according to the stakeholder-agency theory. A case study of network governance is presented regarding the Spanish cooperative Eroski - a self-governing organisation, with direct participation by representatives of the various stakeholder categories in the main governing bodies. In the conclusions, we discuss the strengths and weaknesses of the network governance system and its implications for theory and practice and we describe an incremental approach, on an entirely voluntary basis, for implementing this governance model in other corporations, including non-cooperative ones.

Suggested Citation

  • Giacomo Manetti & Simone Toccafondi, 2012. "The contribution of network governance to preventing opportunistic behaviour by managers and to increasing stakeholder involvement: the Eroski case," International Journal of Business Governance and Ethics, Inderscience Enterprises Ltd, vol. 7(3), pages 252-278.
    • Handle: RePEc:ids:ijbget:v:7:y:2012:i:3:p:252-278
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    Citations

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    Cited by:

    1. Emilio Passetti & Lara Bianchi & Massimo Battaglia & Marco Frey, 2019. "When Democratic Principles are not Enough: Tensions and Temporalities of Dialogic Stakeholder Engagement," Journal of Business Ethics, Springer, vol. 155(1), pages 173-190, March.
    2. Helen LaVan & Lori S. Cook & Ivana Zilic, 2021. "An analysis of the ethical frameworks and financial outcomes of corporate social responsibility and business press reporting of US pharmaceutical companies," International Journal of Business Governance and Ethics, Inderscience Enterprises Ltd, vol. 15(3), pages 326-355.

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