Social Movements and Ngos in the Construction of New Market Mechanisms

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Social Movements and Ngos in the Construction of New Market Mechanisms A Service of Leibniz-Informationszentrum econstor Wirtschaft Leibniz Information Centre Make Your Publications Visible. zbw for Economics Abramovay, Ricardo; de Almeida Voivodic, Maurizio; Cardoso, Fatima Cristina; Conroy, Michael E. Article Social movements and NGOs in the construction of new market mechanisms economic sociology_the european electronic newsletter Provided in Cooperation with: Max Planck Institute for the Study of Societies (MPIfG), Cologne Suggested Citation: Abramovay, Ricardo; de Almeida Voivodic, Maurizio; Cardoso, Fatima Cristina; Conroy, Michael E. (2010) : Social movements and NGOs in the construction of new market mechanisms, economic sociology_the european electronic newsletter, ISSN 1871-3351, Max Planck Institute for the Study of Societies (MPIfG), Cologne, Vol. 11, Iss. 2, pp. 24-30 This Version is available at: http://hdl.handle.net/10419/155940 Standard-Nutzungsbedingungen: Terms of use: Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Documents in EconStor may be saved and copied for your Zwecken und zum Privatgebrauch gespeichert und kopiert werden. personal and scholarly purposes. Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle You are not to copy documents for public or commercial Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich purposes, to exhibit the documents publicly, to make them machen, vertreiben oder anderweitig nutzen. publicly available on the internet, or to distribute or otherwise use the documents in public. Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, If the documents have been made available under an Open gelten abweichend von diesen Nutzungsbedingungen die in der dort Content Licence (especially Creative Commons Licences), you genannten Lizenz gewährten Nutzungsrechte. may exercise further usage rights as specified in the indicated licence. www.econstor.eu Social Movements and NGOs in the Construction of New Market Mechanisms 24 Social Movements and NGOs in the Construction of New Market Mechanisms ized. Four fundamental features link these initiatives to By Ricardo Abramovay, Maurizio de an international tendency, admittedly incipient, but rap- Almeida Voivodic, Fatima Cristina idly gaining force: they are voluntary processes; they Cardoso, and Michael E. Conroy engage the full range of stakeholders; they tend to ex- pand their fields of action way beyond the products of What is behind the proliferation of initiatives directed at the niche in question; and they interact dynamically with improving the social and environmental governance of government policy formulation processes. strategic sectors of the Brazilian economy such as soy, bio-fuels, livestock, wood, paper and cellulose? Round- There are at least two tentative lines of thought that tables involving the private sector, non-governmental explain these new ways of organizing markets that partly organizations, and research organizations are coming incorporate the aspirations of the social and environ- together to insert themselves into what, up until re- mental movements. The first can be described as “func- cently, fell strictly under the aegis of corporate boards. It tional” and shows the importance of business networks is still too early to assess the practical consequences of in stabilizing the social bonds that are typically part of these processes. But it has become sufficiently well de- corporate functioning in contemporary capitalism. fined to allow analysis of what motivates it and what its more important mechanisms may be. A study of those The core idea is that there is a tendency for the reputa- mechanisms could well contribute toward elucidating tion associated with products and services offered to be some of the probable results. This text draws attention increasingly externalized and become subject to parame- to an issue that is increasingly important for contempo- ters that are no longer entirely controlled by the compa- rary social science and even more so for economic soci- nies themselves. As the weight of the business networks ology: the emergence of the non-state market-driven articulated around brands increases in contemporary (NSMD) governance systems (Cashore, 2002) of global capitalism (Davis, 2009, Laville, 2009), so do the de- action networks (Glasbesrgen, 2010); a quest for “ethi- mands for certification and traceability that the brands cal quality” branding capable of changing predatory rely on. The Global Reporting Initiative is just one exam- corporate behavior (Conroy, 2007), or as Hommel and ple of a tendency that is visibly on the increase. Godard (2001) would have it, the proactive manage- ment of contestability. In Brazil, this is one of the themes Another approach really needs to be added to that func- to which part of the current production in economic tional and macro-structural explanation: a theory of ac- sociology is being devoted. tion. It means envisaging corporate social-environmental responsibility as a social field (Bartley, 2007). Indeed, there At first sight it might seem to be merely a strategy to is a vast amount of literature interpreting what corporate differentiate products by endowing them with a quality boards do as a result of what they have learned from the brand as typically occurs in situations of intense competi- cooperative dimensions in which their competitive proc- tion, traditionally studied in microeconomics under the esses are immersed. The literature is notably less abun- heading “industrial economics.” What calls our attention dant, however, when the focus is not restricted to the in the cases briefly outlined in this text is that it is not a direct protagonists of competition (the companies) but question of organizing productive niches or highly dif- gives equal attention to social actors belonging to social ferentiated luxury markets. Quite the contrary, the inten- spheres that are not primarily dedicated to obtaining tion of the round tables (and to some extent, the very economic gains, such as civil society organizations, unions, reason for their existence) is that their results affect all and social movements (Cashore, 2002; Conroy, 2007, the elements that make up the supply chain. Were that Bartley, 2007) and even the agencies of the State itself. not the case, the outreach of the environmental govern- ance they seek to implant would be seriously jeopard- economic sociology_the european electronic newsletter Volume 11, Number 2 (March 2010) Social Movements and NGOs in the Construction of New Market Mechanisms 25 Roundtables offer excellent opportunities for observing lead the way to social-environmental sustainability. Quite the workings and transformations of social fields the contrary, since they depend on the relative power of (Bourdieu, 2005). Studying them basically implies de- the various actors, achieving them will always be the scribing the cognitive arrays that make up the fields in object of intense negotiation; so much so that in each of question and how they have evolved. The central idea is the cases examined, the initiatives are significantly dif- to denature the elements around which the protagonists ferent in terms of their organizational composition, define the field itself, as much in response to objective agenda and ambitions. In each field it is possible to study circumstances associated with the evolution of the mar- the way the actors organize their social bonds around kets as to the discussions and conceptions of control the four basic concepts that Fligstein (2001b) uses to that prevail in the interior of the field (Fligstein, 2001a). study the subject: property rights, governance structure, Each field structures itself on bases that consist of the rules of exchange, and concepts regarding control over actors’ mutual commitments, the information and mate- the available resources. At the same time, the entry of rial resources that circulate among themselves, the social new actors, above all those whose existence is associ- control mechanisms on which they support their actions, ated with interests that are not strictly economic (like and the way they solve their own conflicts and those NGOs, indigenous organizations, unions and various that arise with participants from other fields. In other other social movements), stamps new features on the words, far from being clear,distinct, and ready-made hierarchies in the formations of the fields (relations be- technical parameters waiting to be discovered and re- tween dominators and challengers) that so far have been vealed, the social-environmental requirements that are studied little in the respective literature. increasingly being incorporated into contemporary mar- kets are the object of intense disputes around their defi- Skepticism surrounds the term ‘corporate social- nition, their reach, and their scope. They cannot be ad- environmental responsibility’. On the one hand, even dressed as if they were mere rhetoric, in spite of the authors strongly connected to important corporate con- admitted risk of the presence of ‘greenwashing’ in any sultancy activities (Porrit, 2007, Speth, 2008) offer abun- private does, and claims to do, announcing its perform- dant examples that the real meaning of changes in be- ance in this field. What it means is recognizing that the havior adopted by companies is practically irrelevant. The markets are in fact susceptible to social pressures and British newspaper The Guardian has run an impressive that
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