Stakeholders inside formal governance networks: exclusiveness of business interest

Abstract

The corporate stakeholder governance mode may be subdivided into governance networks, where government, business and the society are interrelated and pursue diverse needs. However, self organized policy networks confront with the state's hierarchical way of acting and bring us to a different network typology: policy networks, collaborative networks and governance networks. This paper presents a formal network in the field of (Lithuania's) economy with the purpose to underline practical deviations from the theoretical course of network governance and demonstrates formation of exclusiveness of interest groups by means of a social network analysis. This goal goes in line with the purpose to contribute to the body of knowledge of how short term goals of policy makers reflect on the selection of stakeholders in formal governance networks. The formal governance network of 2013 led by the Ministry was reconstructed out of documents available in the organisation. The network actors represent a large variety of the institutions majority constituted by authorities. Exclusiveness of interests is caused by the lack of social representation. In such a case collective interests’ of the society are supposed to be represented by a diverse range of competing governmental institutions.