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The governance of capital market institutions did not receive much interest compared to their banking sector counterparts, partly due to their different ownership structures. Recent trends; increased competition, technological advances, structural changes, globalization, all had their share of impact on governance systems of capital markets institutions particularly on exchanges. Corporate governance of non-financial firms and capital markets institutions differ in several ways. Firstly the role of risk management differs since they may impose systemic risks to the financial system. Secondly well-implemented governance structures and processes are required but are not sufficient in capital markets since there are several conflicts of interests to be addressed. Therefore whether and how effectively they function is what matters. Thirdly the governance structures of such institutions exhibit different effectiveness on their decisions.The governance of FIs in capital markets is discussed in terms of board structure and management, risk governance, supervisors, shareholders, executive compensation, role of regulators, authorities and values and culture. The role of stock exchanges in corporate governance are discussed separately in terms of implementing corporate governance codes, demutualisation and its impact on regulations, transparency and accountability issues and the effects of M&As among exchanges. Market needs strong analytical tools and reliable benchmarks to assess governance risk. The corporate control and the regulation of the institutions by the exchanges when the corporations (regulated) are the competitors of the exchanges (regulators) or owned by the stockholders of the exchanges must be addressed. The risk of regulatory arbitrage, calls for the need of harmonisation among regulators. Better regulation of FIs and greater global coordination among regulators are seen as the most two important issues to prevent another crisis.

Alternative enterprises – organizations that operate as a business while still also being driven by a social purpose – are sometimes owned by workers or other stakeholders, rather than shareholders. What role does ownership play in enabling alternative enterprises to prioritize substantively rational organizational values, like environmental sustainability and social equity, over instrumentally rational ones, like profit maximization? We situate this question at the intersection of research on: (1) stakeholder governance and mission drift in both hybrid and collectivist-democratic organizations; and (2) varieties of ownership of enterprise. Though these literatures suggest that ownership affects the ability of alternative enterprises to maintain their social missions, the precise nature of this relationship remains under-theorized. Using the case of a global, social, and environmental values-based banking network, we suggest that alternative ownership is likely a necessary, but not sufficient, condition to combat mission drift in enterprises that have a legal owner. A supermajority of this network’s banks deploy alternative ownership structures; those operating with these structures are disproportionately associated with social movements, which imprint their values onto the banks. We show how alternative ownership acts through specific mechanisms to sustain enterprises’ missions, and we also trace how many of these mechanisms are endogenous to alternative ownership models. Finally, we find that ownership models vary in how well they enable the expression and maintenance of these social values. A ladder of mission-sustaining ownership models exists, whereby the dominance of substantive, non-instrumental values over operations and investment becomes increasingly robust as one moves up the rungs from mission-driven investor ownership to special shareholder and member-ownership models.

Purpose – The aim of this chapter is to analyse the discourse associated with, and preceding the establishment of, the community interest company (CIC) legal format in the United Kingdom in 2005. The analysis identifies the political, ideological, social and economic meta-narratives that are embedded in five key texts from which the CIC emerges and is codified.

Design, methodology and approach – The approach consists of a discourse analysis of five principal texts produced between 2002 and 2005 in which the idea of a CIC is articulated and refined prior to the launch of the CIC format in 2005.

Findings – Analysis of five key texts elucidates four meta-narratives that contrast political, ideological, social and economic discourse and counter-discourse.

Research implications and limitations – The selection of five key texts excludes other texts that were produced during the articulation and refinement of the CIC format. Further research to examine the diffusion, adoption and translation of the CIC legal format is recommended.

Practical implications – We show how the crafting of policy is embedded in meta-narratives that shape the content and implementation of policy.

Social implications – The CIC protects, in perpetuity, collectively held property rights through an asset lock, and enables capital to be raised from investors and trustees to be paid. These characteristics are beneficial in that community asset ownership can contribute to local development, e.g. by creating new ventures, generating jobs and anchoring wealth in communities; raising capital from investors can facilitate the enterprise to grow and scale up; and the expertise of the board can be enhanced by rewarding trustees financially for their involvement in the governance of the CIC.

Originality – This chapter presents the first critical analysis of the discourse associated with the origins of the idea for, and articulation of, the need for a legal format for social enterprises in the United Kingdom.

This article describes the practical and theoretical implications relating to the labor managed firm (LMF), which has been formed from an insolvent company purchased by its workers. The research focuses on an international comparison and the cultural context of six LMFs – two each in the United States, Spain, and Italy where legislation supports worker buyouts from insolvency. Adopting a critical theoretical approach it draws on the scholarship of industrial relations and human resource management, grounded in a historical analysis to predict when a transformative or integrative LMF will be formed.

Taking a case study methodology to enable an in-depth understanding of the firms internal processes and relationships the use of semi-structured interviews of blue- and white-collar workers (with the use of a translator) and the administration of a structured questionnaire are used to gather and triangulate qualitative and quantitative data. The research limitations relate to the small number of respondents in each firm, which prevented more rigorous analysis, and calls for further research with larger numbers of respondents.

The results reveal that at macro level the theoretical model predicts that the LMF will have a propensity to emerge when there are market failures, when there is support from the state and the labor movement. The type of LMF was found to depend on the national context of industrial relations. At the micro level a core set of practices were found to work together to lead to high member commitment and positive behavioral outcomes.

The research has important social implications by informing public policy aimed at redressing the injustice to employees when a business fails and jobs and entitlements are lost.

The article advances an understanding of the theoretical nature of the LMF.

Purpose – This chapter aims to show the similarities and differences that can be found in the destiny of cooperative banks and mutual insurance companies; these two industries, for reasons both similar and specific, are now “at a crossroads.” To reinforce this, we begin by tracing the history of cooperative banks and mutual insurance companies to better inform the future. Cooperative banks and mutual insurance gradually secularized and out of corporatism have patiently built-in different ways depending on the network as opposed to companies.

Results – This chapter will pursue these observations by identifying the impacts of recent crises in shaping business models by questioning a central issue which is that the trap values meet performance requirements in a fierce competition. Then, this chapter will end with the discussion on the main challenges faced by the mutual sphere; «She» should be replaced by «it». Could it exert a role in the crisis?

Le premier qui, ayant enclos un terrain, s'avisa de dire: “Ceci est à moi” et trouva des gens assez simples pour le croire, fut le vrai fondateur de la société civile. Que de crimes, de guerres, de meurtres, que de misères et d'horreurs n'eût point épargnés au genre humain celui qui, arrachant les pieux et comblant le fossé, eût crié à ses semblables: “Gardez-vous d’écouter cet imposteur; vous êtes perdus et vous oubliez que les fruits sont à tous, et que la terre n'est à personne!– J.J. Rousseau (Discours sur l'origine et les fondements de l'inégalité parmi les hommes, 1755)The first man who, having enclosed a piece of ground, bethought himself of saying ‘This is mine’, and found people simple enough to believe him, was the real founder of civil society. From how many crimes, wars, and murders, from how many horrors and misfortunes might not any one have saved mankind, by pulling up the stakes, or filling up the ditch, and crying to his fellows: Beware of listening to this imposter; you are undone if you once forget that the fruits of the earth belong to us all, and the earth itself to nobody.–J. J. Rousseau (Discours sur l'origine et les fondements de l'inégalité parmi les hommes, 1755, translated by G. D. H. Cole)