Implementing Democratic Governance and Ownership: The Interplay of Structure and Culture in Public Service Social Enterprises

Journal Paper by Leandro Sepulveda, Fergus Lyon and Ian Vickers
VOLUNTAS: International Journal of Voluntary and Nonprofit Organizations | February2020

Abstract

This paper examines the implementation of governance arrangements to extend ownership and control to employees and community stakeholders in social enterprises. Evidence from a sample of newly created public service social enterprises in England shows how the realisation of democratic ideals involves a gradual and often challenging process. Different outcomes are explained in terms of an interplay between the legal forms and representational mechanisms adopted and the enabling role of organisational culture. The paper contributes an analytic framework that captures the range of possible outcomes in terms of stakeholder versus stewardship forms of representation, and the cultural–psychological dimension of ownership. Organisations may find themselves at different stages in the journey towards the realisation of democratic ownership and governance. Conclusions are drawn for the field of social enterprise and non-profit research.