MEMBERSHIP IN SOCIAL ORGANIZATIONS

MEMBERSHIP IN SOCIAL ORGANIZATIONS: A GOOD PROXY FOR STRUCTURAL SOCIAL CAPITAL? Karem Sánchez de Roldán1 RESUMEN: El sistema de ideas asociadas al capital social ha gozado de gran popularidad en las tres últimas décadas al asegurar promesas de remedio para los males económicos y sociales. Los esfuerzos para evaluar su existencia se caracterizan por posturas acríticas a sus supuestos de base y a las metodologías empleadas. Un análisis al segmento del capital social estructural contenido en el cuestionario integrado del Banco Mundial y a los datos que se obtienen sugiere la necesidad de introducir dimensiones históricas y contextuales en su interpretación para obtener una visión precisa de su significado y alcance. Se ilustra el argumento con el caso de las organizaciones sociales relacionadas con actividades económicas.

Palabras clave: Capital Social, Organizaciones Sociales, Empresa, Actividad Económica, Colombia,

ABSTRACT: During the last three decades, social capital’ system of ideas has been popular in the development context. It has promised the remedy for social and economic ills. Efforts for assessing its existence characterizes by a current acritical stance towards its basic assumptions and methods. The analysis of the structural social capital segment of the integrated questionnaire of the World Bank and the data it gathers, suggests the importance of taking into account the historical and contextual background in their interpretation. Only on this condition, it will be possible to obtain accurate insights on its real meaning and scope. Social organizations articulated to economic and business activities in Colombia illustrates the case.

Keywords: Social Capital, Social Organizations, Businness Activity, Economic Activity, Colombia, 1. INTRODUCCIÓN

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PhD©, Profesora Titular. Departamento de Administración y Organizaciones, Facultad de Ciencias de la Administración Universidad del Valle. Colombia. [email protected]

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Enrooted in a theoretical sociological background, the social capital system of ideas has become along the last three decades an influential, inspirational source for public policy makers, practitioners, private entrepreneurs and managers. The underlying assumptions according to which in the absence of natural, economic or financial resources social ties -whether strong or weak (Granovetter 1973, Coleman1980,1990) can act to some extent as a fungible resource have propelled social capital use and abuse (Sanchez, 2016). Social and economic development, its theories, approaches, and practices, are fields where social capital has enjoyed an enthusiastic welcome.

Fostered at national and subnational level by

international development multilateral organizations such as the World Bank and InterAmerican Development Bank, the social capital framework entailed research efforts to assessing this new asset. The Social Capital Assessment Tool – SOCAT (Grottaetter Woolcok ), involving quantitative and qualitative methodology strategies aimed at capturing the enormous complexities embedded in determining existing social capital in communities and societies at large (Sanchez, 2016). However, factors associated with research team training, budget, and time limitations prevented the widespread use of SOCAT. Instead, a social capital integrated questionnaire became a crucial tool purposeful to gather information on structural and cognitive social capital, and collective action. Facing the dominant quantitative approach, the qualitative one lost ground. Not surprisingly, fact and figures collected using the integrated questionnaire in large-scale surveys brought about enriching insights regarding where, how, and in which ways social capital existed, in social settings. A good example of it were the results and findings obtained in the Social Capital and Social Inclusion Survey in Valle del Cauca, Colombia (Sánchez, 2008,2016). Nonetheless, one can reasonably question whether or not these data provide an accurate and meaningful overview of what is happening at community or society level. This paper argues that a critical exam to the integrated questionnaire and its yielded data requires alternative and complementary methodological and analytical approaches to get a more comprehensive picture. For the sake of argument, it examines the structural social capital segment of the questionnaire, focusing on the questions searching for associative behavior and social organizations related to economic activities (commerce chambers, trade and 2

business association, and labor union) interviewees are questioned about, in the Colombian context. A necessary debate on the importance of mix methods for social capital research is out of the scope of this paper.

2. THEORETICAL FRAMEWORK From a sociological perspective social capital addresses the nature and features of relationships between individuals in society in such a way that the established social ties bring about resources aligned to what is called forms of capital (Bourdieu,1980: Coleman 1986). In this view, a better understanding of ‘society’ acknowledges the importance of social relationships to both the interwoven societal and economic dimensions. Social capital’s theoretical perspective has provided relevant insights to the next questions: How and in which ways individuals interact and build social relationships, what are the quality, quantity, and consequences of these interactions, which variables determine their shape; how multidimensional complex context affect them. (Portes,1998). Since the end of the 1990s, the World Bank developed and promoted one of the most prominent approaches to social capital – theoretically and practically. Three parallel analytical dimensions composed the theoretical framework to study this new social resource: The levels in which it occurred, the channels through which it spread in society and the forms it assumes.

In social structure, it is argued, there are three levels in which social capital occur: micro, meso, and macro. The micro level refers to the features of social organization such as networks of individuals or households, and the associated norms and values that create externalities (positive or negative) for the neighboring community as a whole. Here, members of the social organization benefit from existing social capital, although not necessarily nonmembers or the community at large. An example is community civic associations. At meso level, social capital considers relationships among organizations, rather than individuals. 3

Drawing on Coleman’s social capital definition (Coleman, 1990) it takes into account vertical and horizontal social ties. The former are characterized by hierarchical relationships and unequal power distribution among the members. In both cases, social capital at meso level looks into behavior within and among organizations, such as firms.

At the macro level,

social capital includes the social and political environment that shapes the social structure and enables norms to develop. It involves formalized institutional relationships and structure. For instance, the political regime, the rule of law, the court system, and civil and political liberties. From the institutional economics approach, two theoretical perspectives are central to social capital at the macro level. First, Mancour Olson’s, theories of groups and organizations and collective action (Olson, M. 1965, 1982). In this view, the main issues tackled refers to interest groups' organization, their failure and success in achieving goals, and their impact on government decisions and economic growth. Olson points to the interaction of government and civil society, and how it shapes economic performance. Secondly, Douglas North’s works (1990, 1991) on institutions and their links to institutional change and economic performance. In his views, informal constraints and formal rules structuring human interactions are the enabling conditions to engage in economic activity. Consequently, institutions help reduce uncertainty and transaction cost. These ideas are central to social capital’s role in development.

In creating networks, social ties become channels for social capital flow. Depending on who and what is connected to whom, three types of social capital emerge. Bonding social capital – describes closer connections between people. It is characterized by strong bonds, for example, among family members or members of the same ethnic group. Bridging social capital – describes more remote connections between people and is characterized by weaker, but more cross-cutting ties, for example, with business associates, acquaintances, friends from different ethnic groups, or friends of friends. Linking social capital – describes connections with people in positions of power. It is characterized by relations between those within a hierarchy where there are differing levels of power. It is different from bonding and 4

bridging in that it is concerned with relations between people who are not on an equal footing. An example would be a social services agency dealing with an individual, for example, job searching at the Benefits Agency. In convergence with these approaches are the theories of social networks (Granovetter, 1973,1983; Burt, 2001; Gittell and Vidal 1998; Narayan 2002; Putnam 2000; Woolcock 1999; World Bank 2000; Grootaert, 2004).

This theoretical approach distinguishes two forms of social capital: cognitive and structural. Cognitive social capital refers to shared norms, values, trust, attitudes, and beliefs. It is a subjective and intangible concept (Uphoff 2000). Structural social capital, at the core of this paper, detects and captures the individual’s associative behavior reflected in the membership in institutional networks, and formal and informal organizations. It is a relatively objective and externally observable construct (Grootaert 2001). Additionally, detecting structural social capital entails inquiring on the number and sort of organizations existing in a particular area or community considered as an analytical social setting. Thus, structural social capital is supposed to facilitate information sharing, collective action, and decision making through established roles, social networks and other social structures supplemented by rules, procedures, and entrenched habits.

The social capital approach resulted in practical applications strongly influencing Latin American countries. They permeated national and sub-national governments, and nongovernmental and private sector organizations. Colombia was not an exception. From the above, it is clear the centrality of ‘organization’ as an analytical unit to structural social capital. Therefore, it is imperative to state a working definition drawn from the intersection of main organization theories. A literature review (Bittner, 2013; Daft, R., 2016; Robbins, S., 1990) suggests the following as a complete and comprehensive definition: Organizations are social entities made up of people and their relationships with one another. Thus, the concept applies correctly to stable associations of persons engaged in concerted activities directed to the attainment of specific objectives. In a nutshell, they are goal5

directed. As such, organizations are intentionally structured, entail coordinated activity systems, and are embedded in the external environment. As it is explained bellow, this theoretical approach provides an operationalization power to focusing formal organizations linked to economic activity, and however, not productive unities in themselves: Commerce chambers, trade associations, and labor unions, at the heart of this analysis.

3. METHODOLOGY One of the striking findings obtained in the Social Capital and Social Inclusion Survey for Valle del Cauca in 2007 (Sánchez, 2008) showed that 68% of respondents did not participate in, or were members of any organization whether formal or informal. This trend on membership draws attention to the more or less obvious fact of a weak, in some cases, inexistent associative behavior. In average, only 32% of interviewees --with some variations in Valle del Cauca’s 41 municipalities, responded affirmatively to total or partial membership. The questionnaire immediately inquired what kind of organizations people were a member of, or belong to. A comprehensive list of existing formal and informal organization in the Colombian context was presented to respondents in a yes/no format. Here, findings revealed religious and political organization as catalyzers of associative dynamics. However rich and enlightening, these results diverted attention in at least two ways. On the one hand, in producing large-scale quantitative data, these findings brought g about the impression of having exhausted satisfactorily all necessary information to capture associative behavior. This view was detrimental to considering qualitative methodologies and data complementary to gain in-depth and accurate additional knowledge to understand associativeness better. On the other hand, targeting individuals prevented to search at the complementary end of the spectrum: the organizations. In fact, from a critical perspective, centering the analysis on people, and blaming their individualistic ways of living, prevented to look into organizations. Thus, their characteristics and underlying features were ignored as part of an analytical procedure to comprehending the lack of associative behavior. This alternative research’s approach lead to consider social organizations as units of analysis and

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to use qualitative methodologies and technics for data collection as strategic research dimensions to solve the riddle of associative behavior. Consequently, the methodology followed the next steps: first, regrouping under umbrella categories the organizations listed in the integrated questionnaire. They were economic activity, social good and services’ provision, civic organization and so on. Secondly, searching and reconstructing historical backgrounds referring to origins, goals, and performance for each type of organization. Thirdly, description of the economic, social, political context in which social organizations emerge and act. Sources, data collection, and analysis, consulted a broad range of documents, mainly qualitative in nature. This paper present and discuss findings regarding organizations such as Commerce chambers, trade and business associations, and labor unions are social organizations grouped under the umbrella category of ‘economic activity organizations’.

4. FINDINGS The studied organizations differ in nature and characteristics. They are designed with more or less intricate organizational structures; may have or may have not legal status; some are under surveillance and control of Industry and Commerce Superintendence (ICS); and represent first, second or third level organizations.

Commerce Chambers The origins of commerce chambers date back to 1877. Bogotá traders’ initiated the first Commerce Chamber in Colombia. At the time, they were government advisory organizations. In their inception, commerce chambers were voluntary membership’s organizations bringing together traders joining efforts in search of regional development and individual well-being. In the early 1930s, national government delegated to commerce chambers the administration of public commercial registers. Since then, their legal nature and functions have gone through a profound transformation going from being just traders’ 7

associations to later having the responsibility for administering and managing the public register and other duties of public interest.

As to legal status, they are non-for-profit organizations, corporative in nature and subject to private law. Their goals are rooted in Colombian constitutional principles of defending the entrepreneurs’ general interest, promoting entrepreneurship’ general prosperity, and maintaining business freedom considered as the foundations of national development. Also, they are in charge of keeping the commercial, non-for-profit organizations and bidders’ unique registers.

By 2016, there exist 57 commerce chambers in Colombia. They are incorporated in the Confederación Colombiana de Cámaras de Comercio (CONFECAMARAS) a third level organization founded in 1969.

There are two ways to be linked to commerce chambers. First, as registered member. Every businessperson must register his/her business before these organizations to exert entrepreneurial activities on a permanent and professional basis. It entails to obtain the mercantile register and comply with other legal commercial obligations. Second, as affiliated members. Exercising the right of self-organization, registered members voluntarily accept additional duties and rights granting privileges that plain registered members do not have. Namely, to be eligible to the directive board. In Valle del Cauca, for instance, there are seven commerce chambers located in Buenaventura, Buga, Cali, Cartago, Palmira, Sevilla y Tuluá. Each one has jurisdiction over the municipalities that are not powerful enough demographically, socially, economically and politically to have their organization.

The commerce chambers, mirroring the economic dynamics, manifest strengths and weaknesses of the municipalities where they operate. Some of the roles and actions these organizations unfold involve not only the economic sphere but also the political and the social. A prominent example is the so-called Regional Block of Congressmen of Valle del 8

Cauca (Bloque Regional y de Congresistas del Valle del Cauca). It is composed of Congress senators and representatives from Valle del Cauca, with the support of governors, majors, the Department Assembly, Municipal Councils, and local and regional business organizations and unions. Cali Commerce Chamber exert the technical secretariat. ‘Its aims are to creating consensus among parliamentarians and the public and private sector's actors about a collective agenda for building a more prosper and competitive region’ (BRV, 2016). It is an evidence of the intricate links between the economic, social and political in which power is at stake. In it, commerce chambers play a crucial role.

Trade and business associations

There is a long tradition of trade and business associations in Colombia dating back to 1871 when was formally founded the Farmers Society of Colombia (Sociedad de Agricultores de Colombia -SAC). This association grouped, and still does, farmers dedicated to agriculture, cattle and livestock breeding. Throughout the twentieth century, emerged new associative organizations (association, federations, chambers and societies) flourishing with the development and consolidation of economic activities in sectors such as industry and services.

Although, not having the same power or influence, these organizations set their goals towards uphold and protect the conditions –economic, social and political, for business development. They play a strategic role before the national government lobbying business interests, voicing their concerns and influencing sectorial policies. In recent decades, within the context of free trading agreements, they were strategic partners in bilateral or multilateral negotiations. There are 21 trade and business associations in Colombia distributed by economic sectors as follow: Industry,5; Services, 7; Agriculture and livestock, 5; Finance, 5. They are gathered in the National Trade Union Council (Concejo Gremial Nacional - CGN), founded in 1993.

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Most of these organizations have branches in Valle del Cauca and other Colombian departments. Some of them are highly influential economically and politically at the national level. What remains to be seen is, whether or not, this organizational density reflects a high degree of associativity meaning large numbers of members, easy access to required memberships criteria, and open forms of participation. Researches developed by Alvaro Camacho (1988) and Eduardo Saenz R. (1988) suggested concentration of organizational power and control in few hands.

Labor Unions

Artisans and craftsmen associations of the early nineteenth century constitute the historical backgrounds for the labor unions formally recognized by the Colombian government in the twentieth century. Printers, tailors, shoemakers, blacksmiths, among others artisans, formed the first worker's unions. Economic and industrial development policies boosted the creation of factories and productive organizations. Development of capitalism, and transformation of production relationships resulted in the appearance of a new working class shaping the flourishing of labor unions. (Bejarano, J.A., 1985; Ocampo, J.A.,1987; Kalmanovitz, S., 1994;).

The first labor union census carried out in 1947, indicated the first union was

founded in 1906. At the end of the 1930s, there were 99 recognized labor unions. It shows the dynamism and expansion of this organizational form aimed at the defense of workers’ rights. Concomitant with the emergence of new labor unions was the appearance of union’s second-level organizations. The Workers Union of Colombia (Unión Obrera de Colombia), founded in 1913 was the first.

The twentieth century also witnessed the growth of first, second and third-level labor unions organization, and the strengthening of labor union movement (Hernandez, 2014; Vidal, 2012). Among the most relevant are the following: The Oil Industry Workers Union (Unión Sindical Obrera de la Industria del Petróleo - USO) founded in 1922; the Workers Confederation of Colombia (Confederación de Trabajadores de Colombia- CTC) in 1935; 10

the Union de Trabajadores de Colombia in 1946; The Colombian Federation of Teachers (Federación Colombiana de Educadores – FECODE) in 1959; the General Confederation of Workers (Confederación General de Trabajadores - CGT) in 1971. They were, and still are, key interlocutors to the national government. In 2012, three union federations grouped 50% of existing unions. The larger is United Workers Federation (Central Unitaria de los Trabajadores –CUT) concentrating 65% of all unionized workers. CUT gathers workers affiliated to most influential unions. Among them The Colombian Federation of Teachers (Federación Colombiana de Educadores – FECODE), National Farming Industry Workers Union

(Sindicato

Nacional

de

Trabajadores

de

la

Industria

Agropecuaria

–

SINTRAINAGRO), and the Oil Industry Workers Union (Unión Sindical Obrera de la Industria del Petróleo - USO). The other two are the General Confederation of Workers (Confederación General de Trabajadores - CGT) and Workers Confederation of Colombia (Confederación de Trabajadores de Colombia- CTC) (Vidal, 2012). Since the 1980s, factors such as the neo-liberal policies’ implementation, the decline in worker’s union affiliation and number of organizations, led to a critical condition the labor union movement. Most of the unionized workers are members of public-employee’s labor unions. Others include the public and private enterprise-level union and guild or industry unions.

Although accurate figures about unions and affiliated members are precarious due to discrepancies in the sources (Ministry of Labor, Industrial Associations, Unions and Escuela Nacional Sindical - ENS,), the trend is clear. Either there is stagnation in numbers of unions and unionized members, or there is little growth. In fact, Colombia has one of the lowest unionization rates in the world. By 2010 it was barely of 4.9%2. This indicator decreased significantly since 1970 when it was about 20%. At the beginning of 1990’s unions were accounted for 2.575, and unionized workers accounted for 909.504. In 2010, there were 2.936

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In the same year union rates in Argentina , Brazil and Uruguay were above 30%. (Hernández, 2014: Vidal 2012)

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unions. In 2012, unionized workers were 811.850. In November of 2015, ENS released the most recent figures for 2013 (Table 5.n) This traditional form of workers’ organizations has been particularly vulnerable to transformations in the labor market and to political persecution. In a labor environment where informality prevails, and the formal labor market have not gone beyond 30%, opportunities for developing strong trade unionism are few. Exposed to burgeoning neoliberal reforms, new forms of workers’ recruitment characterized by outsourcing and short-term contracts prevent workers to developing social and political relationships in factories and organizations leading to a steady and consolidated national unionism. Furthermore, trade unions activists have been victims of human rights violations entailing assassinations and harassments. Consequently, figures in existing trade unions and their membership show the drastic reduction in an already adverse economic environment.

There are significant barriers to organizing labor unions. On the one hand, the administrative and burocratic hurdles, on the other, the new forms of employment contract arrangements in the context of the current labor reforms and flexibilization. In reference to the second, the progressive extinction of open-ended contracts, the increased prevalence of fixed-term contracts where terms are time and again shorter (from one year to six, three, or even less months) prevent the stabilization of a mass of unionized workers with bargaining power. In this way, from the collective work agreements (convenciones colectivas) of the past obtained by strong labor unions, nowadays declining in numbers, the collective pacts and collective contract have raised in detriment of labor rights of the past. Particularly, collective contract has been very much questioned as promoter of outsourcing and labor force subcontract. It breaks the direct relationships between the enterprise and the worker by means of intermediaries or contractors (contratistas). In addition to the above-mentioned obstacles, ideological conflicts and power struggles between and among unions have weaken their bargaining power. The internal disputes have also prevented them to react and respond to the current political, social and economic changes. 12

An outlook to the Colombian union’s environment would not be complete without making reference to the forces acting violently against activist and affiliated union members. In fact, Colombia is the country in the world with the greatest number of murders of union leaders. The first decade of twenty-first century concentrates 63% of the registered cases. Between 2002 and 2009 about 500 unionized workers were murdered. Despite the fact that since 2003 numbers of assassinations have decreased, other violation to human rights, threats, forced displacement and torture continued to be a scourge to union activist. (Vidal ,2012).

5. CONCLUSIONS Description and analysis of the context –social, economic, cultural and political—in which organization performs are necessary to examine the nature and forms of membership in the organizations. Equally important as the study of the individual associative behavior in determining the existence and intensity of structural social capital is the study of organizations to which individuals are intended to be members of. Consequently, structural social capital assessment is not exhausted just listing the number of organization present in the research setting and searching the share or individuals in a community that are members in organizations. Together with the prevalent quantitative research approach, a qualitative one exploring social organization’s history, traditions, and functioning is required to obtain comprehensive insights allowing informed policy or managerial decision-making empowering individuals and organizations as well.

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RESUMEN HOJA DE VIDA Karem Sánchez de Roldán Sociologa, Especialista en teorías y métodos de investigación en Sociología, Maestría en Sociología, Doctorado en Estudio del Desarrollo. Profesora Titular de la Facultad de Ciencias de la Administración de la Universidad del Valle. Miembro del grupo de Investigación Humanismo y Gestión en donde coordina la línea Perspectivas sociales de las Organizaciones. Consultora del Banco Interamericano de Desarrollo en el programa del INDES-BID Efectividad en el Desarrollo

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