Financial Elites and Transnational Business

Financial Elites and Transnational Business

Who Rules the World?

Edited by Georgina Murray and John Scott

Several expert contributors focus on global issues, including the role of transnational finance, interlocking directorates, ownership and tax havens. Others examine how these issues at the global level interact with the regional or nation state level in the US, the UK, China, Australia and Mexico. The books scrutinizes globalization from a fresh, holistic perspective, examining the relationship between the national and transnational to uncover the most significant structures and agents of power. Possible policy futures are also considered.

Chapter 3: Capital Relations and Directorate Interlocking: The Global Network in 2007

William K. Carroll

Subjects: business and management, international business, economics and finance, political economy, politics and public policy, international politics, political economy, public policy


1 William K. Carroll Interlocking corporate directorates have been analysed from several theoretical perspectives – as means of reducing uncertainties in the environments of large organizations (Allen 1974), as channels of communication among members of a capitalist ‘inner circle’ (Useem 1984), and as traces of the power that resides within the accumulation of capital (Carroll and Sapinski 2011). In this chapter, I draw upon the third perspective in considering two ways in which board interlocks among the world’s largest firms may be articulated with processes of capital accumulation that are the raison d’être of corporations. As Marx (1956: ch. 4, para. 7) emphasized, capital accumulation is a ‘circuit describing process’ in which economic value is expanded under the control of the capitalist class. Within this circuit, capital is continually reconverted from money capital into productive capital (investment), from productive capital into commodity capital (production), and from commodity capital back into money capital (sales). As capital is always fragmented into competing units, even if they be giant corporations, different kinds of companies are distinctly positioned in capital’s circuitry, with financial institutions controlling money capital and steering it to industrial firms while the latter are mainly engaged in expanding value in the conversion of money capital into commodity capital. If the global corporate interlock network is a configuration linking the major organizational sites within which corporate capital accumulates, how does the structure of board interlocking correspond to the circuitry of accumulation? This is at its heart a question of the instrumentalities of...

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