Ekona

The importance of maintaining a balance of power in companies

15 Oct 2024

More and more companies and organisations of various kinds are choosing to operate in a way that promotes social justice, fairness and equality. This ranges from entities that already include these principles among their core values to those that are aware of the benefits of incorporating approaches that tend towards horizontalisation and democratisation into their internal processes. This can be seen more clearly in the case of social market entities, non-profit organisations, activist groups and some third sector organisations, whose specific aims already involve challenges and opportunities for social transformation, starting with the environments in which they operate.

In the case of the Spanish economy, the corporate tradition is characterised by an undeniable structural and procedural rigidity in terms of the verticality of the hierarchies that sustain companies, mainly large ones. This rigidity has historically been a problem not only for the possibilities of innovation and expansion of companies but also for limiting the promotion of a broader and more diverse range of economic activities and the development of the people who work in them. The inability to actively participate in the development of business structures from different levels has created a corporate culture that is detrimental to the interests of the companies themselves and to society as a whole. Its consequences are very significant and determine working conditions.

Often, as a result of this cultural heritage, what happens is that we assume and normalise a lack of deep understanding of the logic in which we are embedded as workers and of the structures of which we are a part. It is therefore not surprising that, when it comes to the workplace, we tend to resign ourselves to accepting the status quo rather than showing initiative to contribute to and participate in change.

Possibilities for change offered by work environments

The context in which we currently find ourselves is that of an increasingly fragmented and individualistic society, with a high rate of youth precariousness that has existed for decades, mired in temporary employment, having to gain experience by facing extremely limiting working conditions. The progressive tertiarisation of the Spanish economy in low value-added activities, together with the fact that the working classes have been blamed, while at the same time being subjected to cuts and adjustments due to bad economic decisions for which they were not responsible, have contributed to putting the life prospects of society as a whole at risk. The reality is that a large part of the population faces serious problems when it comes to achieving autonomy, accessing housing, becoming independent and achieving a minimum level of economic stability.

We often see this situation justified by appealing to the ‘overqualification’ of young people, while at the same time, educational and training institutions continue to promote meritocracy and competitiveness as a gateway to the world of work, even though these will not be factors that will be used in their future careers. 

This discontent can also be seen in the decline in trade union membership, which is yet another sign of the mistrust that workers feel towards traditional mechanisms for bringing about change to improve their working conditions. All of this contributes to portraying the collective problem we are currently facing, a social fabric damaged by the progressive loss of channels for citizen participation in a context of crisis and necessary eco-social transition. 

Added to this is the fact that the types of companies that have been favouring the Spanish economy have archaic and obsolete organisational models in terms of sustainability, social justice and equality, resulting in working environments that are, to say the least, unattractive.

That said, it is important to bear in mind that the workplace is still one of the most important spaces for socialisation in the lives of adults and, therefore, represents a key setting for carrying out conscious actions towards fairer and more sustainable development models. So much so that the logic and dynamics that take place in work contexts affect and have an impact on society as a whole. Furthermore, this area is not limited solely to salaried employment but encompasses any work carried out by organised individuals who share common principles, objectives and goals in which they invest daily effort.

Conscious organisational culture

Most organisations in which labour relations develop, including small and medium-sized enterprises, do not have to adhere to traditional logic or settle for aspiring to replicate hostile power structures that are often incompatible with self-care and shared responsibility. In this regard, many are already opting for operating models that prioritise conscious care for the people who dedicate their work to the organisation. In this sense, all organisations have the opportunity to improve their performance and influence social change through decisions made regarding their own functioning and structure.

It is essential to pay special attention to the type of organisational culture that companies promote, being aware that this has a direct impact on people’s lives, as they are spaces for the individual and collective construction of meaning and, therefore, the construction of reality. It is not only a question of seeking consistency with the organisation’s values at all levels, but also of delving deeper into the specific needs for improvement in structures and procedures to ensure compliance with the commitment to equality, the free expression of abilities, the exchange of knowledge and the promotion of responsible participation and involvement.

Attention to organisational culture consists of understanding how all of this contributes to the sustainability of the organisation, also from the point of view of business development. The incorporation of transformative practices in working relationships and the establishment of more horizontal structures with more democratic participation mechanisms will benefit the use and promotion of talent, which translates positively into both collective results and the individual development of its members. 

Preventing horizontality from translating into informality

People who work in contexts that tend towards the horizontalisation and democratisation of internal processes often face specific organisational difficulties linked to power vacuums and informal decision-making spaces, which can be prevented by paying special attention and interest to resolving the power imbalances present in their structures and procedural work dynamics. Based on the goodwill and spirit of valuing the common ground shared by horizontal and democratic organisational projects, we invite you to formalise the structures and procedures that are agreed upon. In this way, important issues related to the work that people do can be prevented from falling into informal dynamics of power imbalance.

Such dynamics of imbalance are latent in organisations with a lack of clear and defined structures, as these are more prone to reproducing the inequalities present in society. In this way, the aim is not to compromise the objectives of social justice, equity and equality because of situations of imbalance caused by a lack of structures. To this end, each organisation should define its structure in line with its objectives and ensure that its procedures are set out in accessible protocols for action, guaranteeing that workers are aware of and understand them, having previously agreed on their relevance.

Balance of power in companies 

In the current context, it is crucial to incorporate good practices that promote balance of power and care in the organisational sphere. In this regard, it has been shown that the lack of a clear and defined structure in organisations facilitates the establishment of informal power hierarchies and dynamics of imbalance and/or abuse.

Some examples of good practices in this regard would be: the development and implementation of care guidelines, internal operating protocols that detail the structural and procedural logic of the organisation, protocols for prevention and action against imbalances and/or abuses of power, as well as enabling the necessary channels for participation, reporting irregularities, requesting reviews and/or suggesting improvements in internal operations. Obviously, all of this is compatible and combinable with Equality Plans and other regulated mechanisms for promoting and guaranteeing equal working conditions and opportunities in the company.

Given that the workplace is one of the main spaces for socialisation among adults, it becomes a key setting for opportunities for eco-social transformation towards fairer, more egalitarian and sustainable models of development. People’s lives can be improved in the workplace by reconfiguring the structures of the organisations in which they work, adopting democratic and transparent approaches to accountability. All of this contributes to optimising business performance and generating mechanisms that guarantee effective prevention against what we might call the dictatorship of lack of structures.

M. Adell Bris & P. Cotarelo

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Obligations arising from substantive rights The Court explicitly links the climate emergency to established rights, such as the right to life and personal integrity. A healthy environment is an essential condition for the enjoyment of these rights. In practice, this could mean that an individual or community could sue the state if, for example, air pollution from a nearby thermal power plant is seriously affecting their health, arguing that the state’s failure to adequately regulate that source of emissions violates their right to personal integrity. 3. Procedural obligations: transparency and participation States must not only act, but they must do so in a specific manner. This includes: a. Access to information: ensuring that citizens have access to clear, timely and understandable information on climate impacts and policies to address them. b. Public participation: allowing people to participate meaningfully in environmental decision-making, such as the approval of a project with a high carbon footprint. c. Access to justice: ensuring that accessible judicial or administrative mechanisms are in place to challenge actions or omissions that affect the environment. 4. The principle of equality and non-discrimination The Court is unequivocal in its assertion that the climate crisis is a crisis of inequality. State obligations must be applied with a perspective of equity, prioritising the protection of vulnerable groups that are disproportionately affected. Climate policies must be designed to protect them specifically, preventing the burden of climate change from falling on those who have contributed least to causing it. Towards a new social contract The exploration of including these rights implies a profound change in the relationship between citizens, the State and the environment. For citizens: it would mean having a legal tool that would allow individuals and groups to take legal action against their governments to demand that they meet their climate targets, halt polluting projects, or implement plans to adapt to climate change and its effects. For society as a whole: it represents an opportunity to forge a new social contract that places sustainability and intergenerational justice at its core. For states: it would mean much stricter accountability at different levels of government. From climate agreements at international summits to local government resolutions, all would become legally enforceable commitments. Urban planning, energy policy and water management, for example, would inevitably have to pass through the filter of human rights. P. Cotarelo and O. Mayoral
Opinion

Towards the institutionalisation of public-community partnerships in the energy sector

The complex contemporary economic processes that enable the material and symbolic sustenance of people depend on energy. It is a resource of primary necessity and this makes it strongly linked to power and conflict. Access to and control over energy has historically been a fundamental political issue. The development of our fossil economies has led to the preponderance of energy ownership schemes (public and private) consistent with the liberal vision of ownership (exclusive and exclusionary) and with the dynamics of dispossession inherent to capitalism. But the energy transition towards renewables contributes to experimenting with alternative forms to the traditional ones: public (state) and private ownership of energy. This is due to the fact that in this impasse, renewable electricity becomes relevant, allowing the involvement of a wide diversity of actors: from large financial groups to SMEs of different legal natures (including social and solidarity economy enterprises), public bodies at local or regional level, and the citizenry as a whole. However, the fact that energy is such an absolutely strategic element for a country means that it is highly intervened by States and by supra-state bodies such as the European Union, fundamentally to guarantee security of supply in a framework of international economic competitiveness and a global energy and climate crisis. Intervention mainly involves a very high degree of regulation and ownership in the global energy sector, either through the acquisition of assets or through state-owned enterprises, especially in the electricity sector. According to the report State-Owned Enterprises and the Low-Carbon Transition published by the OECD (2018), 31 of the 51 largest electricity utilities in the world have a majority public shareholding, most of them Chinese and Russian. In Europe, the so-called ‘neoliberal consensus’ of the last quarter of the 20th century led to a reduction in the weight of the state in the electricity business and, as a result, only the Swedish Vattenfall, which is fully public, the French EDF (85% owned by the French state) and, in second place, the French ENGIE and the Italian ENEL, with a minority shareholding by their states (33% and 24%, respectively), stand out. On the other hand, it is also true that the very nature of energy makes public intervention indispensable. If we focus on electricity, it should be stressed that, unlike fossil fuels, once it has been generated, it circulates through the networks with little or no possibility of being stored. This key detail conditions its management because it requires precise coordination to match supply and demand at all times. To do so, it is also necessary to take into account the constraints imposed by the different generation technologies or processes: from their capacity to regulate production (for example, a nuclear power plant cannot be shut down suddenly or the production of a wind turbine varies depending on the wind blowing) to their geographical location (the distance between the point of generation and the point of use). Nor should we forget the management of international grid connectivity with neighbouring countries. In short, these issues cannot be ignored when discussing possible – and desirable – models of energy ownership. Energy is a resource that is difficult to compare to any other, and public non-intervention is inexcusable in order to adapt to its peculiarities. Energy ownership in Spain Before continuing, it should be noted that, depending on how one looks at it, linking ownership and energy does not only mean addressing the question of the possession of legally sealed titles in the energy sector. From a republican perspective, to speak of property is to speak of access to the set of material and immaterial resources considered relevant – of a nature and quantity contingent on each spatio-temporal context – to guarantee people a dignified livelihood. The social function of property has to do with enabling people to live a life of socio-economic independence. It is also assumed that the only interdependencies with others are those that are free from arbitrary interference. Thus, ownership is also defined by the right to control these basic resources. No one doubts that energy – and more so electricity in the current transition – falls into this category of basic resources and that public authorities are needed to guarantee the right to access them. However, citizens must have the mechanisms to control these public authorities. On the one hand, so that they do not allow certain private actors to interfere arbitrarily over others, giving rise to relations of dependency; and on the other, so that they do not feed clientelistic practices that lead to oligarchic and despotic logics. Looking at the Spanish case, we can conclude that the energy ownership model is far from fulfilling its social function: on the one hand, the regulation does not define electricity as an essential good in terms of universal accessibility, and on the other hand, the structure of property rights over energy infrastructures is controlled by a small and powerful block of private companies. As accessibility to electricity is not guaranteed ex-ante, what we do find in Spain are ex-post corrective measures whose level of effectiveness in universalising reasonable access is debatable: the bono social, Law 24/2015 against supply cuts, emergency aid, advisory services on rights, generation and optimisation of consumption, tax incentives or subsidies for renewables, or municipal supply companies. These measures do not tackle a problem that is structural and related to the legal system. Beyond ex-post public intervention, it is fair to point out that there are private initiatives whose actions are not profit-oriented and which offer a supply service with certain public service overtones, as they put the coverage of their members‘ or clients’ energy needs before obtaining profitability. This is the case of the energy cooperatives, among which Som Energia stands out. In its case, it is also an actor that promotes and facilitates popular participation in renewable generation projects, as well as an energy culture based on the values of sustainability, social justice and democracy. Energy communities and public sector participation Energy access schemes are
Opinion

The tortuous path of destouristification

In recent months, neighbourhood movements in different parts of Spain have brought to public debate the need to structurally rethink the tourism sector in their areas. They warn that in these places (and perhaps in others as well) the carrying capacity has been exceeded due to the constant growth of tourist activity and its consequences. These include environmental degradation and increased pollution, frequent and in some cases dangerous crowding, deterioration of public services such as transport, increased cost of living, displacement of local people, difficulties for working people to live relatively close to their daily place of work, housing speculation, and loss of local cultural identity. Although perhaps new to the general public, different groups and social agents have been warning about this problem for years thanks to data collected in other locations where the process of touristification has advanced before. Due to this data and the reflections, analyses and publications from the social sciences, some political leaders have tried to provide solutions from the public policy sphere to avoid the most serious effects of the tourist monoculture and, in some cases, to try to reverse it, with mixed outcomes. First of all, it must be recognised that the incentives for policy-makers are not particularly favourable for carrying out this task. For, despite the institutional mandate to represent the interests of their population, and despite the social protests that have taken place in their different forms, significant factors that encourage the opposite seem to have more weight. As a result, we see that the general tendency is to remain the same as before, i.e. to do nothing to alter the tourism mechanism. Arguably, the biggest incentive for nothing to change is that change in general, and this one in particular, is very time-consuming and complex. This is due to inertia, technical difficulties and established power relations. Among the technical difficulties, one that, despite its importance, is often overlooked is the impossibility of replacing the tourist monoculture with another activity (or activities) while maintaining the main indicators in similar terms. Like any other predatory activity, tourism extracts ‘assets’ (beaches and other natural spaces, monuments, climate, architecture, educated and cared-for population, public infrastructures, etc.). ) for free and processes them, generating an economic return (which in many cases does not return to the area, not even to its capitalist class) and generally negative externalities (such as those listed at the beginning of the text: environmental deterioration and increased pollution, overcrowding, worsening of public services, increased cost of living, displacement of the local population, difficulties for working people to live near their daily place of work, housing speculation, loss of local cultural identity). Moreover, when the monoculture of such an activity has been consolidated, too many bridges have been dynamited for it to be considered as just another activity in a range of economic activities to be developed. The tourism process advances towards the socio-economic monoculture phase and, once there, continues to advance in its depredation of the environment and society on which it is based. Indicators that tend to point unequivocally to the fact that the tourist monoculture has become established include the following: the census population is decreasing; disposable family income in the area is increasing due to the expulsion of the less well-off classes because of the generalised rise in prices and of housing in particular; the surface area dedicated to tourism and the hotel industry is increasing in relation to other economic activities, such as industry and education; the saturation of this type of activity is advancing, colonising more and more areas of the city; the proliferation of dwellings for tourist use is spreading exponentially in the absence of effective control mechanisms; shops commonly aimed at the local population, such as food shops, are turning their offer towards tourists, with the disappearance of fresh produce shops such as fishmongers, butchers and greengrocers. In addition, phenomena that are incomprehensible to the naked eye are beginning to be detected, such as the closure of shops (the closing of shutters) in the most overcrowded areas or their surroundings because they are used as warehouses for other premises (mainly restaurants) whose activity cannot develop as desired due to the high demand to which they are subjected and their need for product rotation. This also leads to an increased feeling of insecurity and/or risk in these areas. Under these conditions, an economic return of the same characteristics without incurring serious externalities is not possible. In other words, replacing this monoculture activity with another could only be done by assuming the same (or greater) amount of negative externalities. Negative externalities could be found in two broad groups: those that are outside the law, or those that would put the very survival of the business at serious risk in the short term (such as those of an environmental or social nature that would considerably disrupt the flow of capital).  In fact, a large part of the expansion of this monoculture comes from the perception that it is more profitable than other activities and that it is legitimate to facilitate its development. The mechanisms that facilitate its development over other socio-economic options also form part of the very institutional structure (public and private) of the tourist monoculture, which increases the perception of its high profitability and the lack of need for other activities unrelated to it. Therefore, the more the process of deepening the monoculture advances, the more the impossibility of substituting it with another sustainable activity in economic, environmental and social terms grows. On the one hand, the collective and institutional imaginary is moving further and further away from this possibility. On the other hand, in material terms, the growing inclusion of elements that threaten the environment and social rights and conditions, inherent to monoculture tourism, makes it impossible for there to be another activity that, while complying with socio-environmental rules, could generate similar monetary returns. Such an option is ruled out for political action. It is also a tremendously perverse incentive for policy makers