ABSTRACT

In theory, there are two main ways to limit contractual risks. One of them consists LQUHIXVLQJWRHQWHULQWRDFRQWUDFWXQOHVVWKHGHDOLVDVSRWPDUNHWWUDQVDFWLRQZLWK FDVK SD\PHQW DQG IXOO LQVSHFWLRQ RI WKH JRRGV%XW WKLV VWUDWHJ\ FKDUDFWHULVWLF RIZKDW)DIFKDPSVDQG0LQWHQFDOO³ÀHDPDUNHWHFRQRPLHV´LVQRWZHOO DGDSWHGWRWKHFRQGXFWRIPRUHFRPSOH[EXVLQHVVDFWLYLWLHV$QDOWHUQDWLYHVWUDWHJ\ LQYROYHVHQJDJLQJLQULVN\WUDQVDFWLRQVZLWKUHOLDEOHSDUWQHUVRQO\7KLVVROXWLRQ LVDOVRRIOLPLWHGUHOHYDQFHLQWKH'DNDUFRQWH[W2QWKHRQHKDQGWKHVPDOOVL]H RIWKHORFDOPDUNHWDQG¿UPV¶OLPLWHGDFFHVVWRH[WHUQDOPDUNHWVLQZKLFKWKH\FDQ JHWWKHVXSSOLHVWKH\QHHGRUVHOOWKHLUSURGXFWVVHYHUHO\OLPLWWKHSRROIURPZKLFK WKH\FDQFKRRVHWKHLUVXSSOLHUV2QWKHRWKHUKDQGLQWHQVHFRPSHWLWLRQIURPERWK VPDOOHUDQGODUJHU¿UPVRIWHQIRUFHV60(VWRWDNHPRUHULVNVWKDQWKH\ZRXOGOLNH LQRUGHUWR³ZLQWKHGHDO´

Selecting Suppliers

$PDMRUSUREOHPHQFRXQWHUHGE\¿UPVRSHUDWLQJLQ'DNDUFRQFHUQVWKHOLPLWHG VL]HRIWKHORFDOVXSSOLHUSRRO7KHXQGHUGHYHORSPHQWRIWKHPDQXIDFWXULQJVHFWRU PHDQVWKDWORFDOSURGXFWLRQLVLQH[LVWHQWIRUDQLPSRUWDQWQXPEHURIJRRGV)RUD PDMRULW\RI¿UPVRSHUDWLQJLQWKHWUDGHDQGPDQXIDFWXULQJVHFWRUVWKLVHQWDLOVWKDW DQLPSRUWDQWSDUWRIWKHLUVXSSOLHVKDYHWREHLPSRUWHGIURP(XURSH$VLDRU1RUWK $PHULFDHLWKHUGLUHFWO\RUWKURXJKORFDOO\EDVHGLQWHUPHGLDULHV'HDOLQJGLUHFWO\ ZLWK IRUHLJQEDVHG VXSSOLHUV RQ D UHJXODU EDVLV DOORZV¿UPV WKHP WRJHW EHWWHU SULFHVWKDQLIWKHVDPHJRRGVZHUHDFTXLUHGWKURXJKDQLQWHUPHGLDU\+RZHYHU VLQFH LPSRUWLQJ HQWDLOV KDVVOH DQG DGGLWLRQDO GHOD\ LW LV DQ RSWLRQ RQO\ZKHUH GHOLYHU\WLPHLVQRWDQLVVXH³XVXDOO\ZHLPSRUWIURP6SDLQRU,WDO\LWLVFKHDSHU EXWZKHQ WKHGHOD\ LV VKRUWZHKDYHVRPHRQH LQ'DNDUZKRFDQGHOLYHU LQ KRXUV%XWLWLVPRUHH[SHQVLYH´7KLHUQR)RUVRPHLPSRUWLQJFDQDOVRLQFUHDVH ULVNVRI FRQWUDFWXDOEUHDFK IRU WZR UHDVRQV)LUVW GHIHFWLYHSURGXFWV FDQQRWEH UHWXUQHGHDVLO\DQGGLVSXWHVDERXWTXDOLW\DUHKDUGWRVROYHDWDGLVWDQFH6HFRQGO\ EXVLQHVV IURPVPDOO$IULFDQ¿UPV LVQRWDFWLYHO\VRXJKWDIWHUE\ IRUHLJQ¿UPV ZKRWHQGWRJLYHSULRULW\WRODUJHUPRUHHVWDEOLVKHGSDUWQHUV$ODVVDQHZKRZRUNV LQDXWRPRWLYHVDOHVQRWHGWKDWRUGHUVIURPIRUHLJQH[SRUWHUVRIWHQDUULYHODWH³LI ZHRUGHU¿YHFRQWDLQHUVIURPD)UHQFKVXSSOLHUWKDWDOVRKDVRUGHUVIURP&KLQD or Brazil for twenty containers, no matter how nice you are, how good is your UHODWLRQVKLSWKHELJJHUGHDOVZLOOWDNHSUHFHGHQFH,W¶VQRUPDOEXVLQHVV´ )RUPDQ\ ¿UPV EXLOGLQJ EXVLQHVV UHODWLRQVKLSVZLWK IRUHLJQ ¿UPV UHPDLQV

D FKDOOHQJH 2QH LVVXH FRQFHUQV WKH UHOXFWDQFH RI IRUHLJQ H[SRUWHUV WR JUDQW FUHGLWDQGWKHLULQVLVWHQFHRQXVLQJFRVWO\¿QDQFLDOLQVWUXPHQWVVXFKDVOHWWHUVRI FUHGLWWRVHFXUHSD\PHQWDQGOLPLWWKHLURZQULVNV:KDWLVVHHQDVWKHUHOXFWDQFH RI IRUHLJQ EXVLQHVVHV WR GHDOZLWK ORFDO ¿UPV LV RIWHQ DWWULEXWHG WR WKH JHQHUDO UHSXWDWLRQRI$IULFDQ¿UPVDVXQUHOLDEOHRUWKH$IULFDQFRQWLQHQWDVWRRULVN\D SODFHIRUEXVLQHVVZKLFKOHDGVWRDVLJQL¿FDQWGH¿FLWRIWUXVWLQ6HQHJDOHVH¿UPV ³(XURSHDQVWUXVW\RX>1RUWK$PHULFDQV@EXWWKH\GRQRWWUXVWXV>$IULFDQV@(YHQ LQ&KLQDRU-DSDQWKH\DVNIRULUUHYRFDEOHOHWWHUVRIFUHGLWFRQ¿UPHGE\DEDQN :KDWGRHVLWPHDQ"7KDW¶VZKDW\RXDVNIURPWKLHYHVDQGPXUGHUHUV´6DOLRX $VIRUORFDOVXSSOLHUVWKHLUQXPEHULVRIWHQTXLWHOLPLWHGZKHUHFHUWDLQW\SHV

RIJRRGVDUHFRQFHUQHGRUODUJHTXDQWLWLHVDUHQHHGHGZLWKPDUNHWVRIWHQEHLQJ ROLJRSROLVWLF)LUPVVHHNLQJWRSODFHODUJHRUGHUVJHQHUDOO\KDYHWREX\IURPRQH RIWKHYHU\IHZODUJH¿UPVLQDSRVLWLRQWR¿OOWKHP7KLHUQRKHDGRIDPHGLXP VL]HG¿UPLQWKHPDQXIDFWXULQJVHFWRUDOZD\VEX\VIURPWKHODUJHVW¿UPVLQWKH PDUNHW³EHFDXVHWKH\FDQPHHWRXUQHHGVWKH\KDYHODUJHLQYHQWRULHVDQGWKH\ FDQHYHQKDYHDGGLWLRQDOVWRFNVKLSSHGE\SODQH LIQHHGEH´,W LVDOVRGLI¿FXOW WRORFDWHUHOLDEOHORFDOVXSSOLHUVIRUSURGXFWVRIKLJKHUTXDOLW\)LUPVLQQHHGRI

VXFKJRRGVRIWHQKDYHWRSD\WKHKLJKHUSULFHVFKDUJHGE\ZHOOHVWDEOLVKHG¿UPV XQWLOWKH\FDQORFDWHDOWHUQDWLYHVXSSOLHUVRIIHULQJSURGXFWVRIHTXLYDOHQWTXDOLW\ LQFOXGLQJLQWHUPVRIDIWHUVDOHVVHUYLFH (YHQ LQ WKH VHJPHQWV LQ ZKLFK PDQ\ ¿UPV FRPSHWH IRU WKH VDPH FOLHQWV

YDULDWLRQVLQWKHFRPSRVLWLRQRIWKHLULQYHQWRULHVPHDQWKDWDVSHFL¿FSURGXFWLV UDUHO\DYDLODEOHDWPRUH WKDQRQHSODFHDW WKHVDPHWLPH$V-DFTXHVPHQWLRQV ³LWLVKDUGIRUXVWRPDLQWDLQDQDSSURSULDWHLQYHQWRU\VRFOLHQWVMXVWJRIRUWKH VXSSOLHUZKRKDV WKHSURGXFW LQ VWRFN´&OLHQWV DUH WKXV IRUFHG WR VKRSDURXQG WR ¿QG WKH VXSSOLHUZKR FDQ IXO¿OO WKHLU QHHGV UHOHJDWLQJ SULFH FRQVLGHUDWLRQV WRWKHEDFNJURXQG,QFDVHVZKHUHDFHUWDLQJRRGLVLQIDFWDYDLODEOHIURPPDQ\ GLIIHUHQWVRXUFHVSULFHLVWKHGHWHUPLQLQJIDFWRULQWKHEX\LQJGHFLVLRQ+RZHYHU WKHSUHFDULRXV¿QDQFLDOVLWXDWLRQRI¿UPVPHDQVWKDWDOWKRXJKWKH\ZDQWWRREWDLQ WKHEHVWSULFHWKH\FDQWKH\DOVRSD\SDUWLFXODUDWWHQWLRQWRWKH¿QDQFLDOFRQGLWLRQV LPSRVHGE\VXSSOLHUV7KHHVWDEOLVKPHQWRIORQJWHUPEXVLQHVVUHODWLRQVKLSVZLWK DVXSSOLHULVRIWHQVHHQDVNH\WRREWDLQLQJFUHGLW³DW¿UVWVXSSOLHUVGRQ¶WWUXVW \RXLWWDNHVWLPHDQGHIIRUWWRFRQYLQFHWKHPWRVHOORQFUHGLW´%DEDFDU /RQJWHUPUHODWLRQVKLSVDOVRDOORZ¿UPVWRDFKLHYHRWKHUHFRQRPLFHI¿FLHQFLHV

VXFKDVHFRQRPL]LQJRQVHDUFKDQGQHJRWLDWLRQFRVWV7KLVLVQRWQHJOLJLEOHLQFDVHV ZKHUHWKHVXSSOLHUSRROFRQVLVWVRIDSOHWKRUDRIVPDOO¿UPVRIIHULQJSURGXFWVRU VHUYLFHVRIYDU\LQJSULFHVDQGTXDOLW\,WPD\DOVREHSDUWLFXODUO\YDOXDEOHLQSODFHV OLNH'DNDUZKHUHEXVLQHVVGHDOLQJVVWDUWZLWKDURXQGRIQHJRWLDWLRQV³WKDW¶VWKH PDMRU LQWHUHVW RI KDYLQJ D UHJXODU VXSSOLHU KH NQRZVKRZPXFKZH DUH UHDG\ WRSD\ZHGRQ¶W KDYH WRQHJRWLDWH DVPXFK HDFK WLPHSULFHVJHWPRUH VWDEOH´ 3LHUUH%XWHYHQZKHUHVXFK ORQJWHUPUHODWLRQVKLSVDUHHVWDEOLVKHG WKH\DUH UDUHO\H[FOXVLYHDQGGRQRWSUHYHQW¿UPVIURPVKRSSLQJDURXQGIRUQHZSDUWQHUV DQGEHWWHUSULFHVDQGUHQHJRWLDWLQJFRQWUDFWXDOWHUPV³KDYLQJDUHODWLRQVKLSZLWK RUV\PSDWK\IRUVRPHRQHGRHVQRWDOORZWKLVSHUVRQWRFKDUJHPHSULFHVWKDWDUH QRWFRUUHFW±,NQRZZKDWSULFHV,FDQJHWRQWKHPDUNHW´$OPDP\

Screening Clients

7KH PDLQ ULVN DVVRFLDWHG ZLWK GHDOLQJ ZLWK FOLHQWV LV WKH ULVN RI QRQ RU ODWH SD\PHQW2QO\RQH¿UPLQYROYLQJWKHVDOHRIVHFRQGKDQGFORWKHVWRORZLQFRPH FOLHQWVGHDOWZLWKWKLVULVNE\HQWHULQJLQWRVSRWPDUNHWWUDQVDFWLRQVDORQH/HVV GUDVWLFVROXWLRQVLQFOXGHUHIXVLQJWRH[WHQGFUHGLWWRFHUWDLQFDWHJRULHVRIFOLHQWV FRQVLGHUHGWRRULVN\IRUH[DPSOHVWDWHLQVWLWXWLRQVZKLFKDUHLQWKHXQLTXHSRVLWLRQ RIEHLQJDEOHWRLPSRVHWKHLUFRQGLWLRQVRQSULYDWH¿UPVZKLOHEHLQJQRWRULRXVO\ VORZSD\HUV)ULHQGVDQGIDPLO\PHPEHUVDUHDOVRFRQVLGHUHGWREHEDGSD\HUV DV WKH\ RIWHQ IHHO HQWLWOHG WR ERUURZPRQH\RU REWDLQ JRRGV RQ FUHGLWZLWK QR

VWULQJHQWREOLJDWLRQWRUHSD\,QFRQVHTXHQFH³GHDOLQJZLWKUHODWLYHVDOZD\VJHWV \RXLQWRWURXEOH´$OLRXDQGVKRXOGEHDYRLGHG $YRLGLQJFHUWDLQNLQGVRIFOLHQWVKDVDQLPSRUWDQWGUDZEDFN±LWPD\SUHYHQW

¿UPV IURP DWWUDFWLQJ HQRXJK FXVWRPHUV WR VWD\ LQ EXVLQHVV ,Q YLHZ RI WKH LPSRUWDQFHRIFUHGLWLQWKHOLIHRI¿UPVDQGLQGLYLGXDOVDOLNHUHIXVLQJWRH[WHQG FUHGLWPD\WXUQDZD\FOLHQWVZKRVHEXVLQHVVPLJKWQRQHWKHOHVVEHSUR¿WDEOH LQ WKHORQJUXQ0DQ\RIWKH¿UPVPHWVHHPHGVRPHZKDWWRUQEHWZHHQWKHLUQHHGWR NHHSWKHLUFXVWRPHUVDQGDWWUDFWQHZRQHVDQGWKHQHHGWRVWD\DÀRDW¿QDQFLDOO\ WRHQVXUH WKHLUVXUYLYDO$VWUDWHJ\XVHGE\PDQ\LQWHUYLHZHHVWR LQFUHDVH WKHLU FRPSHWLWLYHQHVVZLWKRXWLQFUHDVLQJWKHLU¿QDQFLDOULVNVFRQVLVWVLQGLIIHUHQWLDWLQJ RQH¶VSURGXFWVIURPFRPSHWLQJRIIHUVIRUH[DPSOHE\HPSKDVL]LQJWKHLUVXSHULRU TXDOLW\DQGRUH[FOXVLYHFKDUDFWHURURWKHUIHDWXUHVVXFKDVWKHSURYLVLRQRIDIWHU VDOHVHUYLFHV7KLVDOVRVHHPHGWREHWKHSUHIHUUHGZD\WRGHDOZLWKWKH³XQIDLU´ FRPSHWLWLRQRI¿UPVRSHUDWLQJWRWDOO\RUSDUWLDOO\LQIRUPDOO\ZKLFKRSHUDWHDW lower costs than formal SMEs. Alternative strategies to attract clients included UHVRUWLQJWRQHWZRUNVRIUHODWLRQVKLSVRUJLYLQJ³JLIWV´WRHVWDEOLVKFRQWDFWZLWK SRWHQWLDO FOLHQWV DQG LQÀXHQFH WKHP LQRQH¶V IDYRU0RVWRI WKH WLPHKRZHYHU 60(V WU\LQJ WREUHDN LQWRRU VXUYLYH LQ FRPSHWLWLYHPDUNHWVKDYH WRPDWFKRU EHDW WKHSULFHVDQGRWKHU¿QDQFLDOFRQGLWLRQVRIIHUHGE\H[LVWLQJ¿UPV$EGRX ZKRKHDGVD¿UPLQWKHWUDGHVHFWRUPHQWLRQVWKDW³ZKHQZHRSHQHGWKHUHZHUH RQO\ WZRRIXVRQ WKLVPDUNHW:HDOPRVWQHYHUVROGRQFUHGLWEDFN WKHQ1RZ HYHU\ERG\GRHVZKDWZHGRLIZHGRQ¶WVHOORQFUHGLWZHMXVWZRQ¶WVHOODWDOO´ 3ULFHDQGFUHGLWIDFLOLWLHVRIWHQZRUNLQFRPELQDWLRQZKHQGHYLVLQJWKH³EHVW

RIIHU´WRPDNH)RUH[DPSOHRQHLQWHUYLHZHHDUHWDLOHUVHOOLQJH[FOXVLYHKLJKHU HQG FORWKLQJ LWHPV PDQDJHG WR DWWUDFW FXVWRPHUV WRZDUG KLV PRUH H[SHQVLYH SURGXFWVE\KDYLQJWKHSULFHRIWKHJRRGVVROGGHGXFWHGHDFKPRQWKIURPWKHLUSD\ FKHFNE\WKHLUHPSOR\HU%XWDJUHHLQJWRH[WHQGFUHGLWLQRUGHUWRDWWUDFWDFOLHQW PD\FUHDWHDGDQJHURXVSUHFHGHQWZKHQWKHFOLHQW¶VUHOLDELOLW\RYHUWKHORQJWHUP FDQQRWEHDVFHUWDLQHG$OLRXLQGLFDWHGWKDWKHVRPHWLPHVVROYHGVXFKGLOHPPDVE\ RIIHULQJORZHU³HQGRIVHDVRQ´FDVKSULFHVWRFOLHQWVKHZDQWVWRDWWUDFWDQGWKHQ VZLWFKLQJWRFUHGLWVDOHVDWKLJKHUSULFHVDVWKHUHODWLRQVKLSGHYHORSV :KDWHPHUJHVIURPWKHLQWHUYLHZVLVWKDWPDUNHWSRVLWLRQUDWKHUWKDQWKHQHHG

WRUHGXFHULVNOHYHOVPD\EHWKHPRVWLPSRUWDQWGHWHUPLQDQWRIEXVLQHVVGHFLVLRQV UHODWLQJ WR WKH VHOHFWLRQRISDUWQHUVDQG WKHGHWHUPLQDWLRQRIFRQWUDFWXDO WHUPV :KHUHFRPSHWLWLRQFRPHVIURP¿UPVZLWK¿QDQFLDO UHVRXUFHV WKDWHQDEOH WKHP WRRIIHUKDUGWRPDWFKFUHGLWIDFLOLWLHV60(VRIWHQKDYHWRWDNHJUHDWHUULVNVWKDQ WKH\ZRXOGOLNHLQRUGHUWRZLQWKHGHDO$V$OPDP\QRWHV³DVZHDUHQHZRQ WKHPDUNHWDQGVPDOOHUWKDQRXUFRPSHWLWRUVWKH\KDYH¿QDQFLDOUHVRXUFHVWKDW we don’t have, they can advance money to their clients. So the clients have more EDUJDLQLQJSRZHUZKHQ WKH\FRPH WRXV´7KHFDSDFLW\RIFOLHQWV WRPHHW WKHLU

REOLJDWLRQVDOVRRIWHQFRUUHODWHVZLWKWKHLUPDUNHWSRZHU/RZULVNUHOLDEOHFOLHQWV DUHIHZDQGJHQHUDOO\KDYHWKHFDSDFLW\WRVWULNHEHWWHUGHDOVDQGLPSRVHVWULQJHQW ¿QDQFLDOFRQGLWLRQV WKDWPDNHOLIHGLI¿FXOW IRU OHVVSRZHUIXOPDUNHWSOD\HUV ,Q FRPSDULVRQFOLHQWVLQOHVVDGYDQWDJHRXVPDUNHWVSRVLWLRQVPD\EHHDVLHUWRJHW DQGDJUHHWRSD\KLJKHUSULFHVEXWDUHPRUHYXOQHUDEOHWRFRQWLQJHQFLHVDQGOHVV OLNHO\WRSD\RQWLPHZKHQFUHGLWLVH[WHQGHG /RFDOVRFLDOQRUPVDOVRHPHUJHDVKDYLQJDFHUWDLQ LPSDFWRQ¿UPV¶FUHGLW

JUDQWLQJSUDFWLFHV,Q'DNDULWLVZLGHO\EHOLHYHGWKDWRQHKDVWROHQGPRQH\WR UHODWLYHVDQGIULHQGVLQFOXGLQJE\³VHOOLQJ´RQFUHGLW7KLVREOLJDWLRQWRVHOORQ FUHGLWLUUHVSHFWLYHRIWKHEX\HU¶VFDSDFLW\WRUHSD\FDQDOVRH[WHQGEH\RQGRQH¶V RZQFLUFOHWRHQFRPSDVVSHUVRQVLQWURGXFHGE\RWKHUV)RUVRPHWKLVFRQVWUDLQW DOWKRXJKLWPD\FRQVWLWXWHDQLPSRUWDQWREVWDFOHWREXVLQHVVSUR¿WDELOLW\LVVLPSO\ LPSRVVLEOHWRHYDGH

/LPLWLQJ WKH LPSDFW RI WKLV FXVWRP PD\ UHTXLUH VRPH LPDJLQDWLRQ &KHLN GHVFULEHVKLVSHUVRQDOWDFWLFVLQWKHIROORZLQJWHUPV

.HHSLQJDEDODQFHEHWZHHQVKRUWWHUPLPSHUDWLYHVLHFDVKÀRZPDQDJHPHQW DQG ORQJHUWHUPJRDOV LH LQFUHDVLQJ UHYHQXHV WHQGV WR EH D FKDOOHQJH IRU DOO 60(V%XWZKHUHDVVWDUWXSDQGYHU\VPDOO¿UPVVHHDWWUDFWLQJQHZFOLHQWVDV IXQGDPHQWDO³ODUJHU´DQGEHWWHUHVWDEOLVKHGHQWHUSULVHVWHQGWREHPRUHVHQVLWLYH WR¿QDQFLDOPDQDJHPHQWLVVXHVDQGPRUHOLNHO\WR³UDWLRQDOL]H´WKHLUFUHGLWDQG GHEW FROOHFWLRQ IXQFWLRQV E\ FUHDWLQJ VSHFLDOL]HG GHSDUWPHQWV DQG SURFHGXUHV +DYLQJGHDOWZLWK¿QDQFLDOSUREOHPVLQWKHSDVWDOVRVHHPVWROHDGPDQDJHUVWR DGRSWPRUHFRQVHUYDWLYHFUHGLWJUDQWLQJSUDFWLFHV$V&KHLNLQGLFDWHV

5LVN0DQDJHPHQWDQG³7UXVW´

7KH HQYLURQPHQW LQZKLFK'DNDU60(VRSHUDWHV VHYHUHO\ OLPLWV WKH HI¿FLHQF\ RI³VFUHHQLQJ´DQG³VSRWWUDQVDFWLRQ´PHWKRGVIRUSUHYHQWLQJFRQWUDFWXDOEUHDFK 5DWKHUWKDQDYRLGLQJULVN¿UPVKDYHWRGHYLVHZD\VWRGHDOZLWKLWDVZHOODVWKH\ FDQ$PDMRUFKDOOHQJHIRU60(VFRQVLVWVLQFRUUHFWO\DVVHVVLQJEHIRUHKDQGWKH OHYHORIULVNDVVRFLDWHGZLWKSRWHQWLDOWUDQVDFWLRQVLQRUGHUWRGHWHUPLQHZKHWKHU LWLVZRUWKWDNLQJRUQRW7KHULVNVDWWDFKHGWRDSDUWLFXODUWUDQVDFWLRQGHSHQGRQ WZRGLVWLQFWIDFWRUVWKHSUREDELOLW\WKDWWKHDJUHHPHQWZLOOEHEUHDFKHGDQGWKH FRQVHTXHQFHVDWWDFKHGWRWKHEUHDFKLQTXHVWLRQ7KHSRWHQWLDOLPSDFWRIDEUHDFK PD\ EH OHVVHQHG WKURXJK GLYHUVH PHDQV VXFK DV GHDOLQJ ZLWK PRUH WKDQ RQH VXSSOLHU¿[LQJOLPLWVWRWKHDPRXQWRIFUHGLWWKDWFDQEHJUDQWHGWRDVLQJOHFOLHQW RUDVNLQJIRUDGRZQSD\PHQWFRYHULQJRQH¶VFRVWVEHIRUHFRPSOHWLQJDQRUGHU,Q DGGLWLRQWRWKHVHVWUDWHJLHVWKH¿UPVPHWRIWHQDWWHPSWHGWRUHGXFHFRQWUDFWXDOULVN E\¿[LQJWKHDPRXQWDWULVNLQDWUDQVDFWLRQLQIXQFWLRQRIWKH³WUXVWZRUWKLQHVV´ RIWKHSDUWQHULQYROYHGZLWKWUDQVDFWLRQVUHSUHVHQWLQJDVLJQL¿FDQWOHYHORIULVN EHLQJUHVHUYHGIRUSHRSOHWKH\³WUXVW´ %HLQJFRQVLGHUHGWUXVWZRUWK\LVDFRPSOLFDWHGPDWWHULQ'DNDU%HFDXVHRIWKH

XQFHUWDLQHQYLURQPHQWLQZKLFKWKH\RSHUDWH'DNDUHFRQRPLFDFWRUVWHQGWRVHH SHUIHFWFRQWUDFWXDOFRPSOLDQFHDVUDUHO\DFKLHYDEOH7UXVWWKHUHIRUHKDVOHVVWRGR ZLWKWKHSUREDELOLW\WKDWVRPHRQHZLOOIXO¿OOKLVFRQWUDFWXDOGXWLHVDVSODQQHGWKDQ ZLWKKLVZLOOLQJQHVVWRGRKLVEHVWWRPLQLPL]HWKHLPSDFWRIDSRWHQWLDOEUHDFK RQKLVSDUWQHUDVPXFKDVSRVVLEOHLQOLJKWRIWKHFLUFXPVWDQFHV7UXVWZRUWKLQHVV FRPSULVHV WZR HOHPHQWV WKH SULPDULO\ ¿QDQFLDO FDSDFLW\ WR VDWLVI\ RQH¶V REOLJDWLRQVDQGRQH¶VZLOOLQJQHVV WRGRVR$VVHVVLQJ WUXVWZRUWKLQHVV WKXV¿UVW requires distinguishing ERQD¿GH¿UPVIURPFURRNVORRNLQJIRUDQRSSRUWXQLW\WR WDNHRQH¶VPRQH\DQGUXQ,WLVRIWHQDPDWWHURIH[SHULHQFH³DIWHUDZKLOH\RX know who you deal with, who is serious, rigorous in what he says and does. So WKDW¶VSUHWW\VLPSOH´$LFKD6XFKLPSUHVVLRQVFDQEHVXSSOHPHQWHGE\SD\LQJ DYLVLWWRWKHVKRSRURI¿FHRISURVSHFWLYHSDUWQHUVRULQIRUPDWLRQJOHDQHGIURP GLYHUVHVRXUFHV,QWKHDEVHQFHRIIRUPDOFUHGLWUDWLQJRURWKHUUHOLDEOHLQIRUPDWLRQ PHFKDQLVPVEXVLQHVVDQGVRFLDOQHWZRUNVUHSUHVHQWWKHPRVWLPSRUWDQWUHSRVLWRU\ RI PRUHRU OHVV UHOLDEOH LQIRUPDWLRQRQEXVLQHVV UHSXWDWLRQDQGDUH URXWLQHO\ XVHGWRLGHQWLI\DQGJHWLQWRXFKZLWKSRWHQWLDOSDUWQHUV 'HVSLWH WKH VL]H RI 'DNDU DQG LWV VWDWXV ZLWKLQ WKH :HVW $IULFDQ UHJLRQ

LQWHUYLHZHHV RIWHQPHQWLRQHG WKDW WKH WRZQ LV VWLOO VPDOO HQRXJK IRU SHRSOH WR

JHWWRNQRZDOPRVWDOOWKHPDMRUSOD\HUVLQWKHLUOLQHRIEXVLQHVV,QDGGLWLRQWKH YDULRXVQHWZRUNVRI UHODWLRQVKLSV WKDWH[LVW LQ WKHFLW\RIWHQRYHUODSDQGFUHDWH QXPHURXVW\SHVRIOLQNVEHWZHHQDSSDUHQWO\XQUHODWHGDFWRUV,Q'DNDUHYHU\RQH NQRZV HYHU\RQH HOVH DQG LQIRUPDWLRQ ÀRZV HDVLO\ IURPRQH FLUFOH WR DQRWKHU )ULHQGV UHODWLYHV FROOHDJXHV RU EXVLQHVV UHODWLRQV FDQ EH SXW WR XVH WR JDWKHU VSHFL¿FLQIRUPDWLRQRQD¿UP¶VVLWXDWLRQ$V$ODVVDQHUHSRUWV

,QWHUHVWLQJO\ LQIRUPDWLRQ DERXW SDVW FRQWUDFWXDO YLRODWLRQV GRHV QRW VHHP SDUWLFXODUO\ VRXJKWDIWHURUFRQVLGHUHGZKHQPDNLQJGHFLVLRQV7KLV LVEHFDXVH SDVW FRQGXFW WRZDUGRWKHU SHRSOH LV VHHQ DV FRQVWLWXWLQJ D UHOLDEOH LQGLFDWRU RI future conduct only where it clearly reveals a serious lack of ethics or a state of LPSHQGLQJEDQNUXSWF\2WKHUZLVHGLUHFWEXVLQHVVGHDOLQJVUHPDLQWKHEHVWZD\WR DVVHVVWKHWUXVWZRUWKLQHVVRIDSDUWLFXODUSDUWQHU7UXVWWKHQEXLOGVLQFUHPHQWDOO\DV SDUWLHVJHWWRNQRZHDFKRWKHUDQGDJUHHWRJUDGXDOO\LQFUHDVHWKHOHYHORIULVNWKH\ DUHUHDG\WRWDNH)LQDOO\WKHSHUPDQHQWVHYHULQJRIEXVLQHVVUHODWLRQVKLSVZLWK SDUWQHUVLQEUHDFKZDVUDUHO\FLWHGDVDQDSSURSULDWHZD\WROLPLWFRQWUDFWXDOULVN ,QYLHZRIWKHIHZRSWLRQVDYDLODEOHWR¿UPVZKHQWLPHFRPHVWRVHOHFWEXVLQHVV SDUWQHUV UHIXVLQJ WRGHDOZLWKVRPHRQHRQ WKHEDVLVRISDVWFRQWUDFWXDOEUHDFK DORQHLVDOX[XU\WKDWPDQ\RIWKHPFDQQRWDIIRUG³VRPHWLPHV\RXZRXOGOLNHWR VD\,ZLOOQHYHUGHDOZLWKWKLVJX\DJDLQEXWRXUPDUNHWLVVRVPDOOWKDWVRPHWLPHV \RXQHHGWRZLSHWKHVODWHFOHDQDQGIRUJHWDERXWVPDOOGLVSXWHV´5REHUW,QFDVH RIGHIDXOWE\SUHYLRXVO\WUXVWHGSDUWQHUV¿UPVJHQHUDOO\FKRRVHWRUHYHUWWR³FDVK DQGFDUU\´RU³VHFXUHG´WUDQVDFWLRQVXQWLOGHEWVDUHSDLGDQG³WUXVW´LVUHEXLOW

The Importance of Relationships

Traditional solutions for limiting or eliminating contractual risk are of limited UHOHYDQFHLQ'DNDU,QWHQVHFRPSHWLWLRQIURPERWKVPDOOHUDQGODUJHU¿UPVRIWHQ IRUFHV60(VWRWDNHPRUHULVNVWKDQWKH\ZRXOGOLNHLQRUGHUWR³ZLQWKHGHDO´ ,QDGGLWLRQWKHVPDOOVL]HRIWKHORFDOPDUNHWDQG¿UPV¶OLPLWHGDFFHVVWRH[WHUQDO PDUNHWVLQZKLFKWKH\FDQJHWWKHVXSSOLHVWKH\QHHGRUVHOOWKHLUSURGXFWVVHYHUHO\ OLPLW WKH SRRO IURPZKLFK WKH\ FDQ FKRRVH WKHLU SDUWQHUV 7KH GHSHQGHQFH RI 'DNDU60(VRQWKHLUVXSSOLHUVDQGFOLHQWVPHDQVWKDWWKH\DUHXQOLNHO\WREHLQD SRVLWLRQWR³VDQFWLRQ´DGHIDXOWLQJSDUWQHUE\HQGLQJWKHUHODWLRQVKLS0RUHRYHU

LQ'DNDUWKHRUGHURIWKLQJVFDQFKDQJHIDVWDQGLQXQH[SHFWHGGLUHFWLRQV$¿UP LQDGLI¿FXOWSRVLWLRQWRGD\PLJKWEHFRPHRQH¶VEHVWSDUWQHULQWKHQHDUIXWXUH,Q VXFKDFRQWH[WVHYHULQJEXVLQHVVWLHVLVQRWDGHFLVLRQWKDWFDQEHPDGHOLJKWO\ 7KH³VKDGRZRI WKHIXWXUH´ LVDOPRVWDOZD\VSUHVHQWDQGEXVLQHVV WUDQVDFWLRQV DUHEHWWHUXQGHUVWRRGQRWDVGLVFUHWHHYHQWVEXWDVHSLVRGHVSXQFWXDWLQJ ORQJHU EXVLQHVVUHODWLRQVKLSV )RUPDQ\LQWHUYLHZHHV WKHGHVLUHWRSUHVHUYHIXWXUHUHODWLRQVKLSVZLWKWKHLU

SDUWQHUV SOD\HG DQ LPSRUWDQW UROH LQ WKH FKRLFH RI GLVSXWLQJ VWUDWHJLHV 'DWD LQGLFDWH WKDW WKH FRQWUDFWXDOÀH[LELOLW\ H[KLELWHGE\ LQWHUYLHZHHVSDUWO\ GHULYHV IURP WKHLUEHOLHI WKDW VXSSOLHUVDQGFOLHQWVZRXOG WDNH WKHLUEXVLQHVVHOVHZKHUH LI WKH\ SUHVVHG WRR PXFK IRU HQIRUFHPHQW $GRSWLQJ D ÀH[LEOH UDWKHU WKDQ FRQIURQWDWLRQDO DWWLWXGHZDV RIWHQ GHVFULEHG DV HVVHQWLDO LQ RUGHU WR DOORZ WKH SDUWLHVWRUHPDLQRQJRRGWHUPVDQGGREXVLQHVVWRJHWKHUDJDLQLQWKHIXWXUH,W UHPDLQVXQFOHDUZKHWKHU WKLVEHOLHI LVEDFNHGE\H[SHULHQFH VLQFHQRQHRI WKH ¿UPVPHWPHQWLRQHGKDYLQJDFWXDOO\ORVWDSDUWQHUEHFDXVHRIDFRQIURQWDWLRQDORU LQÀH[LEOHDWWLWXGH6DOLRXZKRKDGZRUNHGIRUDIRUHLJQ¿UPZLWKDUHSXWDWLRQIRU EHLQJWKRURXJKRQFROOHFWLRQPDWWHUVEHIRUHVWDUWLQJKLVRZQEXVLQHVVPHQWLRQHG WKDWWKLVH[SHULHQFHIRUFHGKLPWRUHFRQVLGHUKLVYLHZVRQWKLVPDWWHU³ZKHQ,ZDV ZRUNLQJIRUWKLVRWKHU¿UP,EURXJKWSHRSOHWRFRXUWDQGLWKDGQRLPSDFWRQRXU EXVLQHVVUHODWLRQVKLSVVRLI,QHHGHGWRGRWKHVDPHQRZ,ZRXOGQRWKHVLWDWH´ 7KLVLVFRQVLVWHQWZLWKWKHIDFWWKDW¿UPVDQGLQGLYLGXDOVGRQRWDOZD\VKDYHWKH RSWLRQWRVZLWFK WRDPRUHDFFRPPRGDWLQJSDUWQHUZLWKRXW LQFXUULQJDGGLWLRQDO FRVWV$V -DFTXHVPHQWLRQHG ³LI VRPHRQHQHHGVZKDW , VHOOKH¶VJRLQJ WREX\ IURPPHHYHQLIKHGRHVQ¶WOLNHPH$QGLIKHFDQEX\IURPP\FRPSHWLWRUDWD EHWWHUSULFHKHZLOOEX\IURPKLPQRPDWWHUKRZQLFH,DP´,QDGGLWLRQDYLDEOH VWUDWHJ\IRUGHIDXOWLQJFOLHQWVZKRDFWXDOO\KDYHPDQ\RSWLRQVLVWRGLYHUVLI\WKHLU VRXUFHVRI VXSSO\ DPHDVXUH WKDW HQDEOHV WKHP WR UHVLVW FODLPV ,Q VXFK FDVHV EHLQJÀH[LEOH RQO\ UHGXFHV RQH¶V FKDQFH RI JHWWLQJ SDLGZLWKRXW EULQJLQJ DQ\ EHQH¿W$V<DFLQHZKRKHDGVD¿UPLQDYHU\FRPSHWLWLYHVHFWRUVDLG³WKHPRUH FUHGLW\RXJLYHWKHPRUHFOLHQWV\RXORVH´ (YHQ LI WKH SXUVXLW RI D FODLP GRHV QRW QHFHVVDULO\ LPSDFW RQ WKH EXVLQHVV

UHODWLRQVKLSEHWZHHQWKHSDUWLHVPDQ\RIWKH¿UPVPHWH[SUHVVHGVRPHFRQFHUQ DERXWWKHLPSDFWRIWKHLUGLVSXWLQJEHKDYLRURQWKHLUEXVLQHVVUHSXWDWLRQDQGWKXV RQWKHLUUHODWLRQVKLSVZLWKRWKHUSDUWQHUV*RLQJWRFRXUWRUSXUVXLQJFODLPVWRR DJJUHVVLYHO\ UDWKHU WKDQ FRPSURPLVLQJPLJKW SRVLWLRQ RQH DV ³WRR WRXJK´ DQG VWULFWLQEXVLQHVVPDWWHUVDQGUXQVWKHULVNRIGULYLQJDZD\H[LVWLQJRUSRWHQWLDO SDUWQHUV³,I\RXDUHUHDOO\VWULFWSHRSOHZLOOODEHO\RXDVVRPHRQHZKRPLJKWQRW EHWKHUHWRVXSSRUWWKHPLIQHHGEH´6DOLRX,QWKLVUHVSHFWLWLVLPSRUWDQWWRQRWH WKDWDOWKRXJKEXVLQHVVQHWZRUNVFRQVWLWXWHWKHPDLQFRQGXLWVRILQIRUPDWLRQRQ ¿UPVWKH\DOVRRYHUODSZLWKDYDULHW\RIVRFLDOQHWZRUNVEDVHGRQGLYHUVHW\SHV

RIWLHV7KHSRURXVERXQGDULHVEHWZHHQWKHGLIIHUHQWNLQGVRIQHWZRUNVDVZHOO DV WKH IDFW WKDW EXVLQHVVSDUWQHUVRIWHQ VKDUHPHPEHUVKLSRI RQHRUPRUHQRQ EXVLQHVVQHWZRUNVDOORZLQIRUPDWLRQWRÀRZHDVLO\IURPRQHFLUFOHWRDQRWKHU,Q WKHDEVHQFHRIFOHDUO\GH¿QHGERXQGDULHVEHWZHHQWKHSURIHVVLRQDODQGSHUVRQDO VSKHUHV RI OLIH WKH ³UHSXWDWLRQ´RI D60( LV LQWLPDWHO\ UHODWHG WR WKHSHUVRQDO UHSXWDWLRQRIWKHSHRSOHZKRRZQDQGPDQDJHLW8QVXUSULVLQJO\DODUJHQXPEHU RI LQWHUYLHZHHV H[SUHVVHG FRQFHUQ DERXW WKH SRWHQWLDO LPSDFW RI D GHFLVLRQ WR OLWLJDWHDFODLPRQWKHLUSHUVRQDOUHSXWDWLRQDQGUHODWLRQVKLSV$FORVHUORRNDWWZR LPSRUWDQWDVSHFWVRIWKHORFDOFXOWXUHZLOOVKHGVRPHOLJKWRQWKHLPSDFWRIORFDO VRFLDOQRUPVRQEXVLQHVVGLVSXWLQJ

7KH³&XOWXUHRI&RPSURPLVH´

'DNDURLV DUH JHQHUDOO\ NHHQ RQ VHHLQJ WKHPVHOYHV DV FRQÀLFWDYRLGLQJ SHRSOH IRUZKRPDQ\PDWWHUFDQDQGVKRXOGEHUHVROYHGDPLFDEO\7KHORFDOFXOWXUHLV widely seen as a culture de compromisLQZKLFKFRQÀLFWFDOOVIRUGLDORJXHXQWLODQ DJUHHPHQWLVUHDFKHG/LWLJDWLRQZKLFKWXUQVUHODWLRQVKLSVEDVHGRQQHJRWLDWLRQ IRUPXWXDOJDLQ LQWRPDWWHUVRI ULJKW DQGZURQJ LV RIWHQYLHZHGDV DSHUVRQDO DWWDFNRQWKHGHIHQGDQW¶VSURELW\DQGHQWDLOLQJWKHGHVWUXFWLRQRIDOOSHUVRQDODQG SURIHVVLRQDOUHODWLRQVKLSVEHWZHHQWKHSDUWLHV$VVXFK LW LVJHQHUDOO\VHHQLQD QHJDWLYHOLJKWDVGLVUXSWLYHRIFROOHFWLYHRUGHU7KLVSHUFHSWLRQLVSRVVLEO\IHGE\ DFHUWDLQWHQGHQF\FRPPRQDPRQJOD\SHRSOHDVZHOODVWKH¿UPVPHWWRDVVRFLDWH FRXUWVZLWK WKH DSSOLFDWLRQ RI SHQDO VDQFWLRQV )RUPDQ\ LW VHHPV WKDW SXWWLQJ FRXUWVLQFKDUJHRIDQLVVXHHYHQLQFLYLOPDWWHUVDXWRPDWLFDOO\RSHQVWKHGRRU WRWKHSRVVLELOLW\RIVHHLQJRQHSDUW\WRWKHGLVSXWH³FRQGHPQHG´DQGEURXJKWWR SULVRQ 7KH LPSDFW RI WKH ORFDO FXOWXUH RI FRPSURPLVH RQ EXVLQHVV GLVSXWLQJ

EHKDYLRU GRHV QRW VHHP LQVLJQL¿FDQW EXW UHPDLQV KDUG WR DVVHVV 2Q WKH RQH KDQG WKH DSSOLFDWLRQRI WKH REOLJDWLRQRI FRPSURPLVH VHHPV WRGHSHQGRQ WKH W\SHRIUHODWLRQVKLSVEHWZHHQWKHSDUWLHVDQGPRUHSDUWLFXODUO\RQWKHVWUXFWXUH RI WKHFRPPRQQHWZRUNV WRZKLFK WKH\EHORQJ ,QDGGLWLRQJHQHUDO DJUHHPHQW RQ HOHPHQWV RI WKH ³ORFDO FXOWXUH´ GRHV QRW SUHYHQW WKH H[LVWHQFH RI SRVVLEOH GLVFUHSDQFLHVEHWZHHQZKDW'DNDURLVVD\DERXWWKHLUSUHIHUHQFHVDQGZKDWWKH\ DFWXDOO\ GR 6RPHZHUH TXLFN WR SRLQW WR QHZVSDSHU UHSRUWV RI OLWLJDWHG FDVHV DV HYLGHQFH WKDW WKH SODFH KDG LQGHHG WXUQHG LQWR D KDYHQ IRU ODZ\HUV RU WR GHVFULEH OLWLJDWLRQDVDVWDQGDUGDQGZHOODFFHSWHGSUDFWLFH LQEXVLQHVVPDWWHUV 6RFLDOQRUPVQHYHUWKHOHVVDSSHDUWRLPSDFWRQDFHUWDLQSURSRUWLRQRIPDQDJHUV¶ GHFLVLRQVWKURXJKHLWKHULQWHUQDOL]DWLRQRUVRFLDOSUHVVXUH)RUVRPHSUHVHUYLQJ KDUPRQLRXVUHODWLRQVKLSVLVDSULRULW\HYHQZKHQLWPHDQVJLYLQJXSRQDULJKWIXO

FODLP )RU&KHLN ³, DP6HQHJDOHVH WKRVH YDOXHV DUH SDUW RIPH , IHHO EHWWHU ZKHQ,DPRQJRRGWHUPVZLWKSHRSOHWKDW¶VZKDWPDNHVPHKDSS\0D\EHLW¶VD ZHDNQHVVEXWWKDW¶VWKHZD\,OLYH´7KHIHDURIEHLQJVWLJPDWL]HGLIRQHEULQJVD FDVHWRFRXUWDOVRSOD\VDUROHLQVRPHFDVHV³:H¶UHQRWLQ(XURSHZKHUHEXVLQHVV LVEXVLQHVV,I\RXWDNHVRPHRQHWRFRXUWKHUHDOO\RXUUHODWLYHVZLOOVHH\RXLQD GLIIHUHQWOLJKW´7KLHUQR

³Le relationnel´

7KHUROHSOD\HGE\ORFDOQRUPVIDYRULQJQHJRWLDWLRQDQGFRPSURPLVHLQEXVLQHVV GHFLVLRQVFDQQRWEHSURSHUO\XQGHUVWRRGZLWKRXWFRQVLGHULQJWKHVSHFL¿FZD\VLQ ZKLFKVRFLDOSUHVVXUHLVH[HUWHGLQ'DNDUWKURXJKDORFDOSUDFWLFHRIWHQUHIHUUHG WRDV³PHGLDWLRQ´RU³LQWHUPHGLDWLRQ´'DNDUPHGLDWLRQFRQVLVWV LQDVNLQJWKLUG SDUWLHV WR LQWHUYHQH LQELODWHUDOSURFHVVHVRIEXVLQHVVQHJRWLDWLRQE\VHUYLQJDV DQLQIRUPDOOLQNEHWZHHQWZRSDUWLHVXQDEOHWRUHDFKDQDJUHHPHQW7KHW\SHRI LQIRUPDO³PHGLDWLRQ´LQZKLFKWKHVHWKLUGSDUWLHVHQJDJHLVTXLWHGLIIHUHQWIURPWKH VWDQGDUGGH¿QLWLRQRIWKHWHUP'DNDU³PHGLDWRUV´DUHQRWQHXWUDOWKLUGSDUWLHV$V -DFTXHVVSHFL¿HV³PHGLDWLRQLVQRWDERXW¿QGLQJDFRPSURPLVHLW¶VDERXWPDNLQJ WKHRWKHUSHUVRQOLVWHQWRUHDVRQ´$OWKRXJKRQHDVSHFWRIWKHUROHRIPHGLDWRUVLV WR IDFLOLWDWH FRPPXQLFDWLRQ DQGQHJRWLDWLRQ EHWZHHQ WKH SDUWLHV WKHLU HVVHQWLDO WDVNLVWR³FRQYLQFH´RQHSDUW\WREHKDYHLQDFHUWDLQPDQQHU $ JRRG SURSRUWLRQ RI LQWHUYLHZHHV LQGLFDWHG WKDW WKH\ UHVRUW WR WKHLU RZQ

relationnel LQ EXVLQHVV PDWWHUV PRVWO\ LQ RUGHU WR PHHW ZLWK SRWHQWLDO FOLHQWV DQG VXSSOLHUV EXW DOVR IRU FRQWUDFW HQIRUFHPHQW SXUSRVHV 0HGLDWRUV FDQ EH XVHGWRPDNHFRQWDFWZLWKVSHFL¿FSHUVRQVLQELJEXUHDXFUDFLHVLQWKHKRSHWKDW WKHFUHDWLRQRI DSHUVRQDOL]HG UHODWLRQVKLSZLWKLQ WKH¿UPZRXOGPDNH LWPRUH OLNHO\WRJHWRUGHUVRUVSHHGXSSD\PHQWV$ZHOOFKRVHQPHGLDWRUPD\DOVRKHOS FRQYLQFHVRPHRQHWRSD\DGHEWJUDQWIXUWKHUGHOD\RUVHWWOHDFODLPIRUOHVVWKDQ KHZRXOGKDYHRWKHUZLVH'HSHQGLQJRQWKHVLWXDWLRQPHGLDWRUVFDQWKXVHLWKHU FRQWULEXWHWRWKHHQIRUFHPHQWRIDFRQWUDFWRUWRWKHFRQWUDU\GHWHUDSDUW\IURP SXUVXLQJVXFKHQIRUFHPHQW

Finding a mediator willing to intercede in one’s favor does not seem to require much effort in Dakar. Due to the small size of the city and the density of local QHWZRUNVDQ\WZRSHUVRQV¶FLUFOHVRIUHODWLRQVDOPRVWDOZD\VRYHUODSPDNLQJLW UHODWLYHO\HDV\WR¿QGVRPHRQHZKRNQRZVWKHRWKHUSDUW\ZHOOHQRXJKWRDJUHH WRLQWHUYHQHLQDGLVSXWH0HGLDWRUVKDYHLQÀXHQFHQRWEHFDXVHWKH\UHIHUWRQHZ DUJXPHQWV QRW SUHYLRXVO\ LQYRNHG E\ WKH SDUWLHV WKHPVHOYHV EXW EHFDXVH WKH ZHLJKWRIDQDUJXPHQWGHSHQGVRQWKHLGHQWLW\RIWKHSHUVRQZKRXWWHUVLW³PRUDO´ DUJXPHQWVPD\FRQWDLQ LPSOLFLW WKUHDWVZKHQYRLFHGE\SHRSOH LQDSRVLWLRQ WR

H[HUWUHSXWDWLRQDORURWKHUVDQFWLRQV2QWKHRWKHUKDQGUHIXVLQJWRFRPSURPLVH DQG JUDQW WKH IDYRU DVNHG IRU E\ WKH PHGLDWRU PD\ KDYH DQ LPSDFW RQ RQH¶V UHODWLRQVKLSZLWKWKHPHGLDWRUDVZHOODVRQH¶VUHSXWDWLRQ$V,GULVVDSXWVLW

7KHEHVWPHGLDWRUVDUHSHUVRQVWRZKRVHRSLQLRQWKHRWKHUSDUW\LVSDUWLFXODUO\ VHQVLWLYH IRU D YDULHW\ RI UHDVRQV LQFOXGLQJ WKH GHSWK RI WKHLU UHODWLRQVKLS ZLWK WKH GHIDXOWLQJ SDUW\ DQG WKHLU SHUVRQDO VWDWXV ,QWHUHVWLQJO\ WKH VSHFLDO DXWKRULW\FRQIHUUHGRQVRPHUHOLJLRXVHWKQLFRU³H[WHQGHGIDPLO\´¿JXUHVDQG WKH FRUUHVSRQGLQJ REOLJDWLRQ WR FRPSO\ ZLWK WKHLU UHTXHVWV ZHUH VSHFL¿FDOO\ PHQWLRQHGE\RQO\DKDQGIXORIWKHSHRSOHPHWDOOEXWRQHEHLQJRIQRQ6HQHJDOHVH RULJLQV7KLVPD\EHHLWKHUEHFDXVHQRQ6HQHJDOHVH LQWHUYLHZHHVRYHUHVWLPDWHG WKHLQÀXHQFHRIVXFKSHUVRQVDQGWKHLUUROHLQWKHPHGLDWLRQSURFHVVRUEHFDXVH 6HQHJDOHVHLQWHUYLHZHHVIDLOHGWRPDNHH[SOLFLWPHQWLRQRIWKLVIDFWRUEHFDXVHRI LWVWDNHQIRUJUDQWHGTXDOLW\ 7KHSUDFWLFHRIPHGLDWLRQUHSUHVHQWVERWKDQDGYDQWDJHDQGDGUDZEDFNIRU

¿UPV$V5REHUWLQGLFDWHV

2QHPHDQVWRSUHYHQWWKHLQWHUYHQWLRQRIWKLUGSDUWLHVLQRQH¶VDIIDLUVFRQVLVWVLQ DYRLGLQJGRLQJEXVLQHVVZLWKSHRSOHZKRDUH³WRRFORVH´WREHVXHGDQGSULYLOHJLQJ DUP¶VOHQJWKSDUWQHUV7KLVLVDVWUDWHJ\WKDW,GULVVDXVHVRQDUHJXODUEDVLV

+RZHYHU WKH RYHUODSSLQJ RI QHWZRUNV ZKLFK FUHDWH LQYLVLEOH OLQNV EHWZHHQ VHHPLQJO\XQUHODWHGSHUVRQVVHYHUHO\OLPLWVWKHFDSDFLW\RI¿UPVWRFXWWKHPVHOYHV RIIIURPSRWHQWLDOO\SUREOHPDWLFUHODWLRQV ,Q DGGLWLRQ WR WKHLU UROH DV PHGLDWRUV UHODWLRQV DOVR LQWHUYHQH LQ EXVLQHVV

GLVSXWHVDVSURYLGHUVRIIXQGV,Q'DNDUFHUWDLQNLQGVRIUHODWLRQVKLSVJLYHULVH

WR¿QDQFLDOREOLJDWLRQVWRJLYHRUOHQGPRQH\LQWLPHVRIQHHG$GHEWRUIDFLQJD UXWKOHVVFUHGLWRUPD\WKXVWU\WRVHWWOHDGLVSXWHE\DVNLQJVRPHRQHLQKLVFLUFOH RIUHODWLRQVWRJLYHRUOHQGWKHDPRXQWDWVWDNH7KHVH¿QDQFLDOREOLJDWLRQVDUHQRW UHVWULFWHGWRUHODWLRQVKLSVEHWZHHQUHODWLYHVDQGPD\EHIRXQGLQDYDULHW\RIPRUH RUOHVVLQWLPDWHUHODWLRQVKLSVLQFOXGLQJDVWKHIROORZLQJH[DPSOHVKRZVEHWZHHQ VXSSOLHUVDQGFOLHQWV

7KH ³IULHQGVKLS´ GHVFULEHG LQ WKLV FDVH ZDV QRW EDVHG RQ SHUVRQDO UHODWLRQV EH\RQGWKHEXVLQHVVFRQWH[WRIWKHUHODWLRQVKLSDQGLVKDUGO\GLVWLQJXLVKDEOHIURP ¿QDQFLDOLQWHUHVWLQWKHSUHVHUYDWLRQRIDUHODWLRQ 7KH H[LVWHQFH RI ¿QDQFLDO REOLJDWLRQV DPRQJ UHODWHG SHRSOH HQWDLOV WKDW

PRQH\UHFHLYHGLQSD\PHQWRIDGHEWGRHVQRWQHFHVVDULO\FRPHIURPWKHGHEWRU¶V SRFNHW,QVXFKDFRQWH[WDJJUHVVLYHFODLPLQJDQGOLWLJDWLRQPD\KDYHXQH[SHFWHG FRQVHTXHQFHV$LFKD GHVFULEHV D FDVH ZKHUH WKH FRQVWUDLQWV VKH DSSOLHG RQ D GHEWRU VSUHDG WR WKHGHEWRU¶V FLUFOHRI UHODWLRQV WR HYHQWXDOO\ UHDFKRQHRIKHU FORVHIULHQGVZKRDJUHHGWRSD\LQSODFHRIWKHGHEWRU

7KHLPSRUWDQWUROHSOD\HGE\WKLUGSDUWLHVLQWKHUHVROXWLRQRIEXVLQHVVGLVSXWHV VXJJHVWVWKDWLQ'DNDUFRQÀLFWVDUHOLNHO\WRWUDQVFHQGWKHOLPLWVRISULYDWHELODWHUDO UHODWLRQVKLSVDQGWDNHRQDSXEOLFFKDUDFWHU,QWKLVUHVSHFWLWLVLPSRUWDQWWRQRWH WKDWWKHYHU\LGHQWLW\RIWKHSHUVRQVFDOOHGRQWRLQWHUYHQHDQGPRUHSDUWLFXODUO\ WKHIDFWWKDWWKHWLHVWKH\VKDUHZLWKWKHSDUWLHVSUHH[LVWWKHELUWKRIWKHFRQÀLFW SOD\VDIXQGDPHQWDOUROHLQMXVWLI\LQJWKHLULQYROYHPHQWLQWKHGLVSXWH0HGLDWRUV DUHQRWFRQVLGHUHG³VWUDQJHUV´WRWKHGLVSXWHDQGWKHLULQWHUYHQWLRQWKHUHIRUHGRHV QRW LQ LWVHOI WXUQ WKHGLVSXWH LQWR D SXEOLFPDWWHU LQ WKH VDPHZD\ DV OLWLJDWLRQ ZRXOGGR)URPWKLVSHUVSHFWLYHWKHIRUPDODUELWUDWLRQDQGPHGLDWLRQPHFKDQLVPV SURPRWHGE\2+$'$DQGWKHORFDO&KDPEHURI&RPPHUFHVHHPPRUHVLPLODUWR OLWLJDWLRQWKDQWRORFDOPHGLDWLRQSUDFWLFHV)RU$ODVVDQHHJKDYLQJERWKSDUWLHV

VLW LQ IURQWRIDPHGLDWRURUDUELWUDWRU LVDSURFHVVRID IXQGDPHQWDOO\GLIIHUHQW nature than the involvement of the relationnel:

In other words, whereas resorting to the relationnelGRHVQRWLPSDFWRQWKH³FORVHG´ FKDUDFWHURIDGLVSXWHXVLQJDOWHUQDWLYHGLVSXWHUHVROXWLRQPHFKDQLVPVEDVHGRQ WKHLQWHUYHQWLRQRIQHXWUDOWKLUGSDUWLHVHQWDLOVDIRUPDOUHFRJQLWLRQWKDWDFRQÀLFW H[LVWVDQGQHHGVUHVROXWLRQ(YHQUHVRUWLQJWRIRUPDOPHGLDWLRQPLJKWWKXVVLJQDO DODFNRIFRPPLWPHQWWRWKH³FXOWXUHRIFRPSURPLVH´)URPWKLVSHUVSHFWLYHLW PLJKWQRWEHVXUSULVLQJWRVHH'DNDURLVPDNHYHU\OLWWOHXVHRIWKHIRUPDO$'5 PHFKDQLVPVDWWKHLUGLVSRVDO

The Emergence and Transformation of Disputes: Contractual Breach as a Fact of Life

'DNDU¶VOHJDOVSKHUHLVFKDUDFWHUL]HGE\WKHSUHVHQFHRIDKLJKQXPEHURISUREOHPV WKDWFRXOGEHDGGUHVVHGE\ OHJDOPHDQVEXW IDLO WR UHDFK WKH IRUXPGHVLJQHG WR VROYH WKHP$VPHQWLRQHGDERYHDYDULHW\RI IDFWRUVVSHFL¿F WR'DNDUDQG WKH VLWXDWLRQRI60(VPD\DFFRXQW IRU WKLV VLWXDWLRQ ,QRUGHU WREHWWHUXQGHUVWDQG KRZWKHVHDQGRWKHUIDFWRUVLQWHUDFWDQGLPSDFWRQWKHPDQDJHPHQWRIFRQWUDFWXDO GLVSXWHVLQ'DNDULWLVQHFHVVDU\WRWDNHDFORVHUORRNDWWKHGLVSXWLQJSURFHVVDVD ZKROHDQGH[DPLQHKRZGLVSXWDQWVPDQDJHRUIDLOWRVROYHWKHLUSUREOHPVZLWKRXW the intervention of courts. ,QDVHPLQDODUWLFOH)HOVWLQHU$EHODQG6DUDWSURSRVHGWKDWLQMXULRXV

H[SHULHQFHVJHWRUIDLOWRJHWWUDQVIRUPHGLQWRGLVSXWHVIROORZLQJDWKUHHVWDJH SURFHVV 7KH naming stage LQYROYHV SHUFHLYLQJ WKH H[SHULHQFH DV LQMXULRXV 7KHQH[W VWHS blaming FRQVLVWV LQ WKH WUDQVIRUPDWLRQRI WKHH[SHULHQFH LQWRD grievance against an individual or social entity. The claiming stage FRUUHVSRQGVWR WKHYRLFLQJRIWKHJULHYDQFHWRWKHSDUW\KHOGUHVSRQVLEOH5HMHFWLRQRIWKHFODLP OHDGVWRWKHHPHUJHQFHRIDGLVSXWHper se. 5HDFWLQJ WR D SDUWLFXODU VLWXDWLRQ ¿UVW LQYROYHV LGHQWLI\LQJ WKLV VLWXDWLRQ DV

VRPHWKLQJFDOOLQJ IRU VRPH IRUPRI UHVSRQVH ,QRWKHUZRUGV WKH VLWXDWLRQKDV WREHVHHQDVRXWRIWKHRUGLQDU\DQGLWPXVWEHSRVVLEOHWRUHPHG\LW3HUVRQDO H[SHFWDWLRQV WKXV SOD\ D IXQGDPHQWDO UROH LQ GHWHUPLQLQJKRZGLIIHUHQW SHRSOH

UHDFWWRVLPLODUVLWXDWLRQVDQGWKHLUSURSHQVLW\WRTXDOLI\DQHYHQWRUVLWXDWLRQDV SUREOHPDWLF$QXPEHURIFRQWH[WXDOIDFWRUVDOVRLPSDFWRQRQH¶VH[SHFWDWLRQVDQG SHUFHSWLRQVDEHKDYLRUVHHQDVSHUIHFWO\QRUPDOLQVLWXDWLRQ;PD\EHSHUFHLYHG DVDQLQVWDQFHRIJURVVPLVFRQGXFWLQVLWXDWLRQ<7KHYLRODWLRQRIDFRQWUDFWWKXV GRHVQRWQHFHVVDULO\FRQVWLWXWHDZURQJFDOOLQJIRUUHWULEXWLRQ :KHQTXHVWLRQHGDERXWWKHSUREOHPVWKH\PRVWIUHTXHQWO\IDFHGLQWKHFRXUVH

RI WKHLU EXVLQHVV UHODWLRQVKLSVPDQ\ RI WKH ¿UPVPHW LQ 'DNDU ¿UVW LQGLFDWHG that they never or very rarely encountered such issues. Their answers were very GLIIHUHQW WKRXJK ZKHQ WKH FRQYHUVDWLRQ UHIHUUHG UDWKHU WR VSHFL¿F LQVWDQFHV RIEUHDFK HJZKLFKSURSRUWLRQRIDOORI\RXUFOLHQWVXVXDOO\SD\RQ WLPH"GR \RXXVXDOO\JHW\RXURUGHUVRQWLPH"RUWKH³GLI¿FXOWLHV´WKDW¿UPVDUHOLNHO\WR encounter in their daily activities, in which cases contract enforcement issues were GHVFULEHGDVFRPPRQSODFH:KDWVHWV'DNDU¿UPVDSDUWLVWKXVQRWWKHDEVHQFHRI ZKDWZRXOGTXDOLI\DV³FRQWUDFWXDOEUHDFKHV´LQD:HVWHUQFRQWH[WEXWWKHLUIDLOXUH WRVSRQWDQHRXVO\PHQWLRQDQGODEHOVXFKLQMXULRXVH[SHULHQFHVDV³SUREOHPDWLF´ and worthy of mentioning. $ FRPPRQ ZD\ WR DFFRXQW IRU WKLV VLWXDWLRQ FRQVLVWV LQ SRLQWLQJ WR VRPH

HOHPHQWVFKDUDFWHULVWLFRI³$IULFDQFXOWXUHV´DQGPDQDJHPHQWVW\OHVFRPPRQO\ GHVFULEHGDV³IDWDOLVWLFUHVLVWDQWWRFKDQJHUHDFWLYHVKRUWWHUPLVWDXWKRULWDULDQ ULVN UHGXFLQJ FRQWH[W GHSHQGHQW DQG EDVLQJ GHFLVLRQV RQ UHODWLRQVKLS FULWHULD UDWKHU WKDQ XQLYHUVDOLVWLF FULWHULD´ -DFNVRQ ,Q KLV VWXG\ RI FRQWUDFW HQIRUFHPHQWLQ*KDQD)DIFKDPSVPDNHVDVWURQJFDVHDJDLQVWWKLVYLHZ 1RWLQJWKHORZOHYHOVRIFRQWUDFWXDOGLVFLSOLQHSUHYDLOLQJDPRQJWKH¿UPVVWXGLHG KH LGHQWL¿HVDV LWV URRW FDXVH WKH³ORZ OHYHORI HFRQRPLFGHYHORSPHQWDQG WKH PDJQLWXGH RI VKRFNV WRZKLFKPDQXIDFWXULQJ ¿UPV DUH VXEMHFWHG´ )DIFKDPSV 7KHGDWDJDWKHUHGLQ6HQHJDOSURYLGHVVXSSRUWIRUWKLVSRVLWLRQ$Q RYHUZKHOPLQJ PDMRULW\ RI WKH ¿UPV PHW GHSORUHG WKH IUHTXHQF\ RI LQVWDQFHV RI ODWH RU QRQSD\PHQW RUGHU FDQFHOODWLRQ DQG ODWH RU GHIHFWLYH GHOLYHULHV DQG DFNQRZOHGJHG WKH QHJDWLYH FRQVHTXHQFHV RI VXFK HYHQWV RQ WKHLU EXVLQHVV RSHUDWLRQV0RVWDOVRZHUHDZDUHWKDWVXFKHYHQWVFRQVWLWXWHFRQWUDFWYLRODWLRQV WKDW FDQ EH DGGUHVVHG WKURXJK OHJDO PHDQV 7KHLU UHOXFWDQFH WR GHVFULEH VXFK HYHQWVDVFRQVWLWXWLQJ³SUREOHPV´RUHYLGHQFLQJWKHH[LVWHQFHRID³FRQÀLFW´ZLWK DEXVLQHVVSDUWQHUGRHVQRWDSSHDUWRUHODWHWRDORRVHDWWLWXGHWRZDUGFRQWUDFWXDO FRPPLWPHQWEXWDVGHULYLQJIURPWKHYHU\SUHYDOHQFHRIWKRVHLVVXHV,QYLHZRI WKHIUHTXHQF\RIFRQWUDFWXDOSUREOHPVFRQWUDFWYLRODWLRQVDUHFORVHUWRD³IDFWRI OLIH´ZLWKZKLFKRQHKDVWRGHDOWKDQDQH[FHSWLRQDOHYHQW ,QRUGHUWRGLVWLQJXLVKWKRVH³IDFWVRIOLIH´WKDWZLOOUHPDLQVRIURPWKRVHWKDW

ZLOOEH³QDPHG´DQGHOHYDWHGWRWKHVWDWXVRIDFWXDOSUREOHPVWREHGHDOWZLWKLWLV HVVHQWLDOWRFRQVLGHUWKHFORVHUHODWLRQVKLSEHWZHHQWKH³QDPLQJ´DQG³EODPLQJ´ VWDJHVRIWKHGLVSXWLQJSURFHVV³1DPLQJ´LVQRWRQO\FRQWLQJHQWRQWKHSHUFHSWLRQ

RI WKH LQMXULRXV FKDUDFWHU RI DQ HYHQW EXW RQ WKH FDXVHRI VXFK LQMXU\+DYLQJ WKHPVHOYHVWRGHDOZLWKDVHULHVRIXQSUHGLFWDEOHFRQWLQJHQFLHVRQDUHJXODUEDVLV ¿UPVRSHUDWLQJLQ'DNDUJHQHUDOO\FRQVLGHUFRQWUDFWXDOFRPSOLDQFHWREHDQLGHDO RXWRI UHDFKRI WKHLUSDUWQHUVDVZHOODV WKHPVHOYHV ,QFRQVHTXHQFH WKH\KDYH FRPHWR WUHDWFRQWUDFWXDOEUHDFKDVDPRVWO\ LQHYLWDEOHHYHQWDQGQRW WRH[SHFW VWULFWFRPSOLDQFHZLWKFRQWUDFWXDOWHUPV)RUWKHPFRQWUDFWXDOWHUPVVHHPFORVHU WR DQ LGHDO WKDQD OLVW RISUHFLVHREOLJDWLRQV WREH IXO¿OOHG DW DOO FRVWV ,Q VXFK DFRQWH[W¿UPVDUH UHOXFWDQW WREODPH WKHLUSDUWQHUV IRU HYHU\ VLQJOH IDLOXUH WR FRPSO\2QO\WKRVHHYHQWVIRUZKLFKVRPHRQHLVWREODPHZLOOFRQVWLWXWHDFWXDO LQMXULHVUDWKHUWKDQFRPPRQLQFRQYHQLHQFHVRQHKDVWROHDUQWRH[SHFWDQGGHDO with. 7KHLU TXDOL¿FDWLRQ RI VSHFL¿F LQVWDQFHV RI EUHDFK DV SUREOHPV DQG ¿UPV¶

UHDFWLRQVWRVXFKEUHDFKHVGHSHQGVRQWKHGH¿QLWHVHQVHWKH\JUDGXDOO\FRPHWR DVFULEHWRDVHULHVRIHYHQWVFRPSULVLQJEXWQRWOLPLWHGWRWKHDFWXDOEUHDFKRI FRQWUDFW,QRUGHUWRXQGHUVWDQGWKHGLYHUVHUHDFWLRQVRI¿UPVIDFLQJFRQWUDFWXDO YLRODWLRQVLWLVQHFHVVDU\WRKDYHDFORVHUORRNDWKRZWKH\DVFULEHUHVSRQVLELOLW\ IRUEUHDFKLQGLYHUVHLQVWDQFHVRIFRQWUDFWXDOYLRODWLRQ7KHVLWXDWLRQVLQZKLFKD FRQWUDFWPD\EHYLRODWHGPD\EHFODVVL¿HGLQIRXUPDLQFDWHJRULHVEDVHGRQWKH FDXVHWKH\DUHDWWULEXWHGWR $¿UVWFDWHJRU\FRPSULVHVLQVWDQFHVRI³UHDOGLVKRQHVW\´LQZKLFKLQGLYLGXDOV

RU¿UPVDFWLQEDGIDLWKDQGKDYHQRLQWHQWLRQWRFRPSO\6XFKFDVHVDUHJHQHUDOO\ FRQVLGHUHG H[FHSWLRQDO 7KH RWKHU WKUHH FDWHJRULHV FRQFHUQ FDVHV LQ ZKLFK FRPSOLDQFHLVGHOD\HGUDWKHUWKDQVLPSO\DYRLGHG2QHRIWKHPFRPSULVHVWKRVH FDVHVRIGHIDXOWWKDWUHVXOWIURPHYHQWVFRQVLGHUHGWREHEH\RQGWKHFRQWURORIWKH GHIDXOWLQJSDUW\,QWKHFDVHRIVPDOO¿UPVRULQGLYLGXDOVVXFKHYHQWVPD\LQFOXGH ¿QDQFLDORURWKHUGLI¿FXOWLHVUHODWHGWRWKHOLPLWHGOHYHORIWKHLUUHVRXUFHV'HEWRUV LQVXFKVLWXDWLRQVDUHKHOGWREHWHPSRUDULO\RULIEDGOXFNSHUVLVWVSHUPDQHQWO\ XQDEOHWRVDWLVI\WKHLUREOLJDWLRQGHVSLWHWKHLUZLOOLQJQHVVWRGRVR%HFDXVHPRVW 60(VDUHH[SRVHGWRULVNVRIWKLVW\SHWKH\JHQHUDOO\GRQRWEODPHWKHLUSDUWQHUV IRU WKHLU LQFDSDFLW\LQVXFKFDVHV7KH\QHYHUWKHOHVVH[SHFW WKHPWRIXO¿OO WKHLU REOLJDWLRQVDV VRRQDV WKHFLUFXPVWDQFHVPDNH LWSRVVLEOH$QRWKHUFDWHJRU\RI EUHDFKHVFRPSULVHVWKRVHWKDWDUHDWWULEXWHGWRLVVXHVRULJLQDWLQJIURPZLWKLQWKH ¿UPVXFKDVLQWHUQDOEXUHDXFUDWLFKXUGOHVRU³PDQDJHPHQWSUREOHPV´WKDWSUHYHQW ¿UPV IURP IXO¿OOLQJ WKHLU REOLJDWLRQV LQ DQ DSSURSULDWH DQGRU WLPHO\ PDQQHU 'HJUHHVRIWROHUDQFHIRUVXFKNLQGRI³SUREOHPV´DUHYDULDEOH:KLOHLQWKHFDVH RIYHU\ODUJH¿UPVRUSXEOLFLQVWLWXWLRQVEXUHDXFUDWL]DWLRQDQGLQHI¿FLHQF\PD\ EHVHHQDVDFRUUHODWHRI¿UPVL]HSUREOHPVPD\DOVREHDWWULEXWHGWR³EDGKDELWV´ DQGLQHI¿FLHQWPRGHVRIRUJDQL]DWLRQZLWKLQ¿UPV,QDOOFDVHVKRZHYHUGHIDXOW UHPDLQVH[FXVDEOHDVORQJDVJRRGIDLWKLVQRWLQLVVXH7KHQH[WFDWHJRU\RIFDVHV FRQFHUQV WKRVH VLWXDWLRQVZKHUH WKH GHIDXOWLQJSDUW\ZLOOIXOO\ FKRRVHV WR GHOD\

WKH VDWLVIDFWLRQRI LWV FRQWUDFWXDOREOLJDWLRQV IRU¿QDQFLDOJDLQ IRU H[DPSOHE\ SRVWSRQLQJWKHSD\PHQWRIELOOVLQRUGHUWR³SOD\ZLWKWKHFUHGLW´JUDQWHGE\LWV VXSSOLHUV 7KH XVH RI VXFK EXVLQHVV WDFWLFV DOWKRXJK VHHQ DV UHSUHKHQVLEOH LV JHQHUDOO\QRWKHOGWREHGLVKRQHVWRUWRFRQVWLWXWHIUDXG $FFRUGLQJWRWKH¿UPVPHWFODLPVDUHPDGHLQDOPRVWDOOFDVHVRIEUHDFK0DQ\

PHQWLRQHGWKDWWKH\QRWRQO\PDNHFODLPVEXWJLYHXSDVNLQJIRUFRPSOLDQFHRQO\ ZKHUHLWLVLQIDFWLPSRVVLEOHZKHUHYHU\VPDOODPRXQWVRIPRQH\DUHDWVWDNH RUZKHUH WKH FRVWV WREH LQFXUUHGH[FHHG WKH DPRXQWV WKDW FRXOGEH UHFRYHUHG +RZHYHU UHDFWLRQV WR LQVWDQFHV RI FRQWUDFWXDO EUHDFK DOVR HYLGHQFH YHU\ KLJK OHYHOVRIÀH[LELOLW\DPRQJ60(VZLWKRXWDQ\VLJQL¿FDQWGLIIHUHQFHVEHWZHHQWKH FDVHVZKHUHLQDELOLW\LVGXHWRH[WHUQDOVKRFNVDQGWKRVHZKHUHLWGHULYHVIURPD VXSSOLHU¶VOLPLWHG¿QDQFLDODQGRWKHUUHVRXUFHVLQFOXGLQJOLPLWHGSURIHVVLRQDODQG PDQDJHPHQWVNLOOV7KHVWDQGDUGUHVSRQVHWRUHTXHVWVIRUIXUWKHUGHOD\WRFRPSO\ is to welcome them with resignation and understanding. Claimants generally give WKHGHIDXOWLQJSDUW\WKHEHQH¿WRIWKHGRXEWDVZHOODVVRPHWLPHWRJHWEDFNRQ LWVIHHW1HZSD\PHQWVFKHGXOHVRURWKHUDUUDQJHPHQWVDUHURXWLQHO\DJUHHGXSRQ ZLWKRXW LQWHUHVWEHLQJFKDUJHG6LPLODUO\GHIHFWLYHZRUN UDUHO\ OHDGV WRFODLPV IRUSHUIRUPDQFHRUGDPDJHV,QPDQ\FDVHVÀH[LELOLW\PLJKWEHWKHRQO\RSWLRQ ZLWKWKHSRWHQWLDORIRIIHULQJVROXWLRQVZLWKRXWQHJDWLYHO\LPSDFWLQJRQEXVLQHVV )OH[LEOHQHJRWLDWLRQVDOORZSDUWLHVWR¿QGDPXWXDOO\DFFHSWDEOHVROXWLRQWRZKDW KDVEHFRPHD FRPPRQSUREOHP0RNWDUZKRKHDGV D¿UP LQ WKH FRQVWUXFWLRQ LQGXVWU\SURYLGHGWKHIROORZLQJH[DPSOH

)OH[LEOH QHJRWLDWLRQV FDQ VRPHWLPHV EH DVVLPLODWHG WR D IRUP RI SDUWLDO ³OXPSLQJ´ZLWK¿UPVHLWKHUSD\LQJIRUGHIHFWLYHZRUNDWIXOOSULFHRUJLYLQJH[WUD PRQH\WRFRUUHFWGHIHFWV$OOWKHFDVHVRIWKLVQDWXUHFRQFHUQHGVPDOOYXOQHUDEOH VXSSOLHUVZKRZHUHKDUGO\ LQDSRVLWLRQ WRSURYLGHPRQHWDU\RURWKHU W\SHVRI FRPSHQVDWLRQ

$FFRUGLQJWR)HOVWLQHU$EHODQG6DUDWGLVSXWHVHPHUJHZKHQDFODLPPDGHLV UHMHFWHGE\WKHSDUW\WRZKLFKLWLVDGGUHVVHG³>G@HOD\WKDWWKHFODLPDQWFRQVWUXHV DVUHVLVWDQFHLVMXVWDVPXFKDUHMHFWLRQDVLVDFRPSURPLVHRIIHUSDUWLDOUHMHFWLRQ RUDQRXWULJKWUHIXVDO´)HOVWLQHU$EHODQG6DUDW8QGHUWKLVYLHZPRVW RIWKHFODLPVPDGHLQ'DNDUZRXOGEHKHOGWRJHQHUDWHGLVSXWHV+RZHYHUWKHIDFW WKDWSHUIHFWFRPSOLDQFHLVUDUHO\H[SHFWHGDQGWKDWSDUWLHVDUHJLYHQVRPHOHHZD\ ZLWKUHVSHFWWRWKHVDWLVIDFWLRQRIWKHLUREOLJDWLRQVPDNHVLWKDUGHUWRGHWHUPLQHDW ZKLFKSRLQWDFODLPLVFRQVLGHUHGUHMHFWHGDQGWUDQVIRUPVLQWRDGLVSXWH,WFRXOG EHDUJXHGWKDWGLVSXWHVVWDUWZKHUHÀH[LELOLW\VWRSV LHDW WKDWSRLQWZKHUHRQH SDUW\ IHHOV MXVWL¿HG WR VWRS ³WU\LQJ WRXQGHUVWDQG´ DQG UHVRUW WRPRUH DVVHUWLYH modes of claiming. 7KLVWUDQVLWLRQIURPPRGHVRIFODLPLQJEDVHGRQÀH[LEOHQHJRWLDWLRQWRDORJLF

RIGLVSXWHUHVROXWLRQXVXDOO\WDNHVSODFHZKHQRQHVWDUWVVHHLQJDEUHDFKDVGXHWR ³XQZLOOLQJQHVV´WRFRPSO\UDWKHUWKDQLQDELOLW\$V7KLHUQRH[SODLQV³LIVRPHRQH LVLQWURXEOH\RXKDYHQRFKRLFHEXWWRZDLW%XWLILWLVVRPHRQHZKRKDVWKHPRQH\ EXWUHIXVHVWRSD\WKHQZDULVGHFODUHG´%XWDOWKRXJKLWLVHDV\WRFRQFHSWXDOL]HLQ WKHRU\WKHERXQGDU\EHWZHHQ³IDXOW\´DQG³LQYROXQWDU\´LQVWDQFHVRIFRQWUDFWXDO EUHDFK LV IDU IURP FOHDU LQ SUDFWLFH 7KH DFWXDO UHDVRQV ZK\ D SDUW\ IDLOHG WR FRPSO\ RIWHQ UHPDLQ LPSRVVLEOH WR LGHQWLW\ IRU RXWVLGHUV 6LPLODUO\ GHGXFWLQJ WKH VWDWHRIPLQGDQG LQWHQWLRQVRI WKHRWKHUSDUW\ IURP WKHEHKDYLRUH[KLELWHG DIWHU WKHIDFW LVQRWDVWUDLJKWIRUZDUGSURFHVV5HVLVWDQFHWRLQFUHDVLQJSUHVVXUH WRFRPSO\PD\EHLQWHUSUHWHGERWKDVDVLJQWKDWLQDELOLW\LVUHDO³LIKHKDGWKH PRQH\KHZRXOGKDYHSDLG DOUHDG\´ DQG DV HYLGHQFHRI XQZLOOLQJQHVV WRSD\ $VFULELQJDSUHFLVHPHDQLQJWRVXFKEHKDYLRU WKXVUHTXLUHV WDNLQJLQWRDFFRXQW DGGLWLRQDO UHOHYDQWHOHPHQWV7KH LQWHUHVWRUDEVHQFHRI LQWHUHVW LQSXUVXLQJ WKH UHODWLRQVKLSPDQLIHVWHGE\WKHSDUW\ZLOORIWHQEHGHWHUPLQDQWLQWKLVUHVSHFW)RU H[DPSOH%DVVLURXDGLVWULEXWRULQGLFDWHGWKDWKLVSUHIHUUHGVWUDWHJ\¿UVWLQYROYHG LQWHUUXSWLQJVDOHVWRFOLHQWVLQGHIDXOWIRUDWZRPRQWKSHULRG)DLOXUHWRSD\GXULQJ WKLVSHULRGLVWKHQLQWHUSUHWHGDVHYLGHQFHWKDWWKHFOLHQWKDVIRXQGDQHZVXSSOLHU DQG WKXV HQGHG WKH UHODWLRQVKLS MXVWLI\LQJ OHJDO DFWLRQ 6LPLODUO\ ³JRRG IDLWK´ GHEWRUVDUHH[SHFWHGWRUHDFWWRUHTXHVWVIRUFRPSOLDQFHLQDZD\HYLGHQFLQJWKHLU ZLOOLQJQHVVWRFRPSO\HYHQWXDOO\,WLVHVVHQWLDOWREHRSHQDERXWRQH¶VVLWXDWLRQDV ZHOODVWRVKRZUHVSHFWDQGFDUHDERXWRQH¶VSDUWQHUVRQHQHHGVWRWDNHVWHSVWR ¿QGDFRPSURPLVHVROXWLRQNHHSRQH¶VZRUGNHHSOLQHVRIFRPPXQLFDWLRQRSHQ DQGPLQLPL]HWKHLPSDFWRIWKHLUEUHDFKRQWKHLUSDUWQHUV $OWKRXJKXQZLOOLQJQHVV WRFRPSO\PD\EH LQIHUUHG IURP WKH LGHQWLW\RI WKH

SDUW\ ZLWK ODUJHU ZHOOHVWDEOLVKHG ¿UPV EHLQJPRUH OLNHO\ WR EH KHOG WR WKHLU commitment, in most cases, concluding that a case is one of unwillingness comes DW WKHHQGRID ORQJHUSURFHVV:URQJHGSDUWLHVJHQHUDOO\DGRSWDELODWHUDODQG JUDGXDODSSURDFKWRFODLPLQJZLWKUHTXHVWVEHFRPLQJPRUHLQVLVWHQWDQGIUHTXHQW

DVWLPHJRHVE\,QLWLDOFODLPVDUHJHQHUDOO\PDGHYHUEDOO\RIWHQRYHUWKHSKRQH DQGPRUHDNLQWRJHQWOH³UHPLQGHUV´WKDQIRUPDOUHTXHVWV9LVLWVWRWKHGHEWRU¶V ZRUNSODFH RU SODFH RI UHVLGHQFH PD\ WKHQ EH PDGH 6WDWHPHQWV RI DFFRXQW UHPLQGHUOHWWHUVDQGIRUPDOQRWLFHVPD\EHVHQW'LYHUVHZD\VWR³SXWSUHVVXUH´ RQGHEWRUVPD\DOVREHXVHG7KUHDWHQHGRUDFWXDOVXVSHQVLRQRUWHUPLQDWLRQRI EXVLQHVVUHODWLRQVKLSVLVVRPHWLPHVXVHGWRGLVFLSOLQHQHJOLJHQWVXSSOLHUVXVXDOO\ LQFRPSHWLWLYHLQGXVWULHVZKHUHWKHEXVLQHVVUHODWLRQVKLSLVPRUHYDOXDEOHWRWKH VXSSOLHUWKDQWRWKHFOLHQW,QFRQWUDVW¿UPVZKRKDYHIHZDOWHUQDWLYHRSWLRQVZLOO VHYHUEXVLQHVVUHODWLRQVKLSVRQO\LQH[WUHPHFDVHVZKHUHWKHSRVVLELOLW\RIIXWXUH LQWHUDFWLRQKDVEHHQGLVFDUGHGDVLQFOHDUFDVHVRIGLVKRQHVW\RUODFNRIUHVSHFW,Q WKLVFDVHHQGLQJWKHUHODWLRQVKLSVLVSXUHO\SUHYHQWLYHDQGVHUYHVQRHQIRUFHPHQW SXUSRVHV ,Q FDVHV RI QRQSD\PHQW UHYHUWLQJ WR ³FDVK DQG FDUU\´ RU ³VHFXUHG´ WUDQVDFWLRQVXQWLOGHEWVDUHSDLGLVSUHIHUDEOHWRVHYHULQJWKHUHODWLRQVKLS6XFKD VWUDWHJ\QRWRQO\DOORZVQHZVDOHVWRWDNHSODFHEXWDOVRLQFUHDVHVWKHSUREDELOLW\ RIUHFRYHULQJWKHDPRXQWVRZHG$V-DFTXHVH[SODLQVZKHQPRQH\LVRZHG

$QRWKHUFRPPRQZD\WRSUHVVXUHGHEWRUVDQGWKXVDVVHVVWKHLUFDSDFLW\DQG ZLOOLQJQHVVWRFRPSO\LQYROYHVWKHLQWHUYHQWLRQRIWKLUGSDUWLHV$OWKRXJKDIHZ RIWKH¿UPVPHWLQGLFDWHGWKDWWKH\SUHIHUUHGWRNHHSGLVFXVVLRQVDWWKHELODWHUDO OHYHOPDQ\PHQWLRQHGUHJXODUO\DVNLQJSHRSOHIURPWKHLUrelationnels to intervene LQWKHLUEXVLQHVVGLVSXWHV$OWHUQDWLYHO\SUHVVXUHPD\EHDSSOLHGE\WKUHDWHQLQJWR GDPDJHDEXVLQHVVUHSXWDWLRQ$EGRXOD\HUHSRUWV³,RIWHQWHOOWKHPWKDW'DNDULV QRW1HZ<RUN±UHSXWDWLRQPDWWHUVLI\RXGRQ¶WSD\PH,ZLOOQRWKHVLWDWHWRJLYH \RXEDGSXEOLFLW\´)LQDQFLDO LQVWLWXWLRQVVRPHWLPHVUHVRUW WRDVLPLODUSUDFWLFH FRQVLVWLQJ LQ SRVWLQJ ³PXJ VKRWV´ RI WKHLU GHIDXOWLQJ FOLHQWV RQ WKHLU GRRUV$ PDQDJHURIVXFKDQLQVWLWXWLRQGHVFULEHGWKHSUDFWLFHDVYHU\HIIHFWLYH $YHU\VPDOOSURSRUWLRQRI LQWHUYLHZHHVPHQWLRQHG LQYROYLQJ³VWUDQJHUV´ LQ

WKHLUGLVSXWH$IHZLQGLFDWHGWKDWWKH\VRPHWLPHVKLUHEDLOLIIVWRGHOLYHUOHWWHUV RU SUHSDUH RI¿FLDO UHSRUWV LQ RUGHU WR SXW DGGLWLRQDO SUHVVXUH RQ GHEWRUV2QO\ RQHRIWKH¿UPVLQYROYHGLQWKHVWXG\PHQWLRQHGUHVRUWLQJUHJXODUO\WRWKHSROLFH LQRUGHUWRJHWLWVPRQH\EDFN7KLVSDUWLFXODUFDVHVHHPVH[FHSWLRQDOLQWKDWWKH KHDGRI WKH¿UPLQTXHVWLRQDGPLWWHGEHLQJRQJRRGSHUVRQDO WHUPVZLWKPDQ\ SROLFHFKLHIV,QVXFKFRQWH[WVSROLFHRI¿FHUVPD\EHPRUHDNLQWRPHPEHUVRI the relationnelZLWKVSHFLDOSRZHUVRISHUVXDVLRQWKDQWRSXEOLFRI¿FHUVH[HUFLVLQJ WKHLU GXW\)RXURWKHU LQVWDQFHVRI SROLFH LQWHUYHQWLRQZHUHPHQWLRQHG7ZRRI WKHPFRQFHUQHGDFDVHRIIUDXGDQGD16)FKHTXHUHVSHFWLYHO\7KHRWKHUFDVHV

FRQFHUQ&KHLNZKRUHVRUWHGWRWKHSROLFHWZLFHLQRUGHUWRVFDUHGHEWRUVRQHRI KLVGHEWRUVSDLGEHIRUHWKHDFWXDOLQWHUYHQWLRQRIWKHSROLFHZKLOHWKHRWKHUHQGHG XSLQSULVRQDWZKLFKSRLQW&KHLNZLWKGUHZKLVFRPSODLQW

Only one interviewee indicated having resorted to collection agencies and was not VDWLV¿HGZLWKWKHUHVXOWVDQGRQHPHQWLRQHGFRQVLGHULQJWKHSRVVLELOLW\RIGRLQJ it in the future. )LQDOO\ DOWKRXJK¿UPVZKRZDQW WR NQRZDERXW WKHLU ULJKWVZKHQ IDFLQJ D

GLVSXWHVRPHWLPHVFRQVXOWODZ\HUVOHJDOSURIHVVLRQDOVVHHPYHU\XQOLNHO\WREH DVNHGWRPDNHUHSUHVHQWDWLRQVRQEHKDOIRIWKHLUFOLHQWV7KHJHQHUDOWUHQGVHHPV WREHIRUODZ\HUVWRJHWLQYROYHGDWWKHVWDJHZKHUHGLVSXWHVKDYHHVFDODWHGDQG WKHGHFLVLRQWROLWLJDWHKDVDOUHDG\EHHQPDGH)URPWKHQRQFODLPVDUHKDQGOHG H[FOXVLYHO\E\WKHODZ\HUVLQFKDUJH

7KH,PSOLFLW'LPHQVLRQVRI'DNDU&RQWUDFWV

7KH IDFW WKDW DQ RYHUZKHOPLQJPDMRULW\ RI'DNDU EXVLQHVV GLVSXWHV DUH VROYHG through informal mechanisms raises the question of the role that the local legal DQG MXGLFLDO V\VWHPV DFWXDOO\ SOD\ RU FRXOG SOD\ LQ WKH RUGHULQJ RI EXVLQHVV UHODWLRQVKLSV ,W LVZRUWK QRWLQJ WKDW WKH KLJK OHYHOV RI ÀH[LELOLW\ H[KLELWHG E\ the interviewees in the enforcement of their agreements do not entail a total GLVLQWHUHVWLQWKHIRUPDQGFRQWHQWRIWKHLUEXVLQHVVFRQWUDFWV,QIDFWDPDMRULW\ RIWKH¿UPVLQYROYHGLQWKHVWXG\LQGLFDWHGWKDWWKH\GRQRWFRQWHQWWKHPVHOYHV ZLWKYHUEDODJUHHPHQWVEXWUHVRUWWRVRPHRWKHUNLQGRIZULWWHQGRFXPHQWDWLRQ including invoices and order forms, in most of their transactions. In addition, a VLJQL¿FDQWSURSRUWLRQRI WKHLQWHUYLHZHHVPHQWLRQHGLQYROYLQJODZ\HUVRURWKHU OHJDOSURIHVVLRQDOV LQ WKHSUHSDUDWLRQRI WKHLUPRUHFRPSOH[EXVLQHVVFRQWUDFWV RUDVNLQJWKHPWRUHYLHZWKHDJUHHPHQWVSUHSDUHGE\WKHLUSDUWQHUVEHIRUHVLJQLQJ them. 7KHSRVVLELOLW\RIREWDLQLQJMXGLFLDOHQIRUFHPHQWRIWKHFRQWUDFWRUSURWHFWLRQ

IURPRSSRUWXQLVWLFEHKDYLRUGRHVQRWFRQVWLWXWH WKHPDLQUHDVRQDFFRXQWLQJIRU such a resort to written documentation and lawyers. In only a few cases did the LQWHUYLHZHHV VSHFL¿FDOO\ H[SUHVV FRQFHUQV ZLWK WKH HQIRUFHDEOH RU GHWHUUHQW FKDUDFWHU RI WKHLU FRQWUDFWV RU FKRRVH WR LQFRUSRUDWH FODXVHV VHUYLQJ WKHVH

SXUSRVHV 7KH SHUFHLYHG LQDELOLW\ RI MXGLFLDO VDQFWLRQV WR GHWHU EUHDFK DV ZHOO DV WKHZLGHVSUHDGEHOLHI WKDW WKHRYHUZKHOPLQJPDMRULW\RIFDVHVRIEUHDFKDUH LQYROXQWDU\ ± DQG WKXV ZRXOG RFFXU QRWZLWKVWDQGLQJ WKH SUHVHQFH RI KDUVKHU MXGLFLDOVDQFWLRQV±PLJKWDFFRXQWIRUWKLVVLWXDWLRQ,QWKLVFRQWH[WWKHSULRULW\ ZKHQQHJRWLDWLQJFRQWUDFWVLVWRSUHYHQWWKRVHFDVHVRIEUHDFKWKDWFDQEHSUHYHQWHG DQGOLPLWWKHLPSDFWRIWKHRWKHUVRQEXVLQHVVRSHUDWLRQV7KLVPD\HQWDLOWDNLQJ WKH SRVVLELOLW\ RI ODWH GHOLYHU\ LQWR DFFRXQW LQ RQH¶V SODQQLQJ JLYLQJ GHWDLOHG VSHFL¿FDWLRQV DERXW WKHZRUN WR EH GRQH WKH SURGXFW WR EH GHOLYHUHG DQG WKH VFKHGXOH WREH UHVSHFWHG DQGGHOD\LQJ IXOO SD\PHQWXQWLO VDWLVIDFWRU\GHOLYHU\ ERWKDVDQLQFHQWLYHWRFRPSO\DQGDVDZD\WROLPLWORVVHVLQFDVHWKHUHODWLRQVKLS HQGVDQGDQHZVXSSOLHUKDVWREHIRXQG 7KHZULWWHQFRQWUDFWVPDGHE\'DNDU60(VDUHQRWJHQHUDOO\KHOGWRVWDWHDOO

WKHREOLJDWLRQVXQGHUWDNHQE\ WKHSDUWLHV7KH\DUHEHWWHUXQGHUVWRRGDVSDUWLDO GHVFULSWLRQV RI WKH SDUWLHV¶ H[SHFWDWLRQV DGGLWLRQDO WHUPV EHLQJ VSHOOHG RXW YHUEDOO\RUHYHQOHIWLPSOLFLW6XFKXQZULWWHQWHUPVPD\FRPSOHPHQWWKHFRQWUDFW DVZKHQGHWDLOHGZULWWHQVSHFL¿FDWLRQVDERXWWKHSURGXFWWREHGHOLYHUHGFRPELQH ZLWKDQLQIRUPDOGXW\DQGULJKWRIWKHFOLHQWWRPRQLWRUWKHVXSSOLHU¶VZRUNDQG SURJUHVV$V0RNWDUZKRRSHUDWHV LQ WKHFRQVWUXFWLRQLQGXVWU\ LQGLFDWHV³LW LV RXU UHVSRQVLELOLW\ WRPRQLWRU WKH VXEFRQWUDFWRUV LIZH MXVW OHW WKHPGR WKH MRE DQGWKH\GRQ¶WGRLWULJKWZHFDQQRWFKDUJHWKHPIRUWKHH[WUDFRVWV´8QZULWWHQ WHUPVPD\DOVRFRQWUDGLFW FRQWUDFWXDOSURYLVLRQV DV HJZKHQSDUWLHVGHYHORS QHZXQGHUVWDQGLQJVRIWKHLUPXWXDOREOLJDWLRQVDVWKHLUUHODWLRQVKLSVGHYHORS,Q FRQVHTXHQFHWKHUROHSOD\HGE\FRQWUDFWXDOSURYLVLRQVLQEXVLQHVVUHODWLRQVFDQQRW EH IXOO\XQGHUVWRRGZLWKRXW WDNLQJDFORVHU ORRNDW WKH LQIRUPDO WHUPVDFWXDOO\ DSSOLHGE\WKHSDUWLHVLQWKHVSHFL¿FFRQWH[WRIWKHLUEXVLQHVVUHODWLRQVKLSV ,Q OLJKW RI WKH GLYHUVH FRQGLWLRQV LQ ZKLFK 'DNDU 60(V RSHUDWH LW LV QRW

VXUSULVLQJ WR VHH WKDW WKH EXVLQHVV UHODWLRQVKLSV WKH\ HVWDEOLVK GR QRW IRUP D XQLTXHFDWHJRU\LQZKLFKODZKDVDSUHGHWHUPLQHGDQGXQLIRUPUROHWRSOD\&DUH VKRXOGEH WDNHQKRZHYHUQRW WRRYHUORRNWKHFRPSOH[LW\RIEXVLQHVV LQ'DNDU E\ UHVRUWLQJ WR GRXEWIXO DOWKRXJK SRSXODU GLFKRWRPLHV VXFK DV WKH RSSRVLWLRQ EHWZHHQWKHLQIRUPDODQGWKHIRUPDOVHFWRUV,QIDFWPDQ\RIWKH60(VLQYROYHG LQ WKH VWXG\ GHVFULEHG WKHPVHOYHV DV QHLWKHU WUDGLWLRQDO ³LQIRUPDO´ ¿UPV QRU W\SLFDO PRGHUQ RU IRUPDO ¿UPV DGKHULQJ WR PRGHOV RI EXVLQHVV UHODWLRQVKLSV ODEHOHGDV³:HVWHUQ´³SURIHVVLRQDO´ ³REMHFWLYH´RU³OHJDO´'DWDDOVR VXJJHVW WKDWDOWKRXJKWKHOHYHODQGW\SHRIWUXVWEHWZHHQWKHSDUWLHVKDVDQLPSDFWRQWKHLU XVHRIOHJDOPHFKDQLVPVLWZRXOGEHRYHUVLPSOLVWLFWRFDWHJRUL]HWKHLUEXVLQHVV UHODWLRQVKLSVDVHLWKHU³ODZ´RU³WUXVWEDVHG´,WLVSURSRVHGWKDWWKH\FRXOGEH EHWWHUGHVFULEHGDVFRQVWLWXWLQJDFRQWLQXXPUDQJLQJIURPDWRQHHQGUHODWLRQVKLSV KDUGO\GLVWLQJXLVKDEOHIURPWKHVRFLDOUHODWLRQVWKDWXQGHUOLHWKHPWRDWWKHRWKHU HQGWKHNLQGRILPSHUVRQDOUHODWLRQVHVWDEOLVKHGE\ODUJHRUJDQL]DWLRQV

,Q DGGLWLRQ DOWKRXJK FHUWDLQ FKDUDFWHULVWLFV RI ¿UPV XQGRXEWHGO\ KDYH DQ LPSDFWRQ WKHLU DWWLWXGHV WRZDUG ODZDQGSURSHQVLW\ WR UHVRUW WR LW LWZRXOGEH LQDSSURSULDWH WRDVVXPH WKDW VXFKFKDUDFWHULVWLFVGHWHUPLQHRU OLPLW WKH W\SHRI UHODWLRQVKLSVWKDW¿UPVFDQHVWDEOLVK)LUPVRSHUDWLQJ³LQIRUPDOO\´PD\EHOHVV SURQHWRUHVRUWWROHJDOHQIRUFHPHQWPHFKDQLVPVDQGPRUHOLNHO\WRUHO\RQWUXVW DQG LQIRUPDO VROXWLRQV KRZHYHU WKLV VLWXDWLRQ GRHV QRW VHHP WR GHULYH IURP WKHLU LQIRUPDOVWDWXVEXWIURPWKHQDWXUHRI WKHEXVLQHVVUHODWLRQVKLSVWKH\WHQG WR GHYHORS9HU\ VPDOO ¿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

RQWKHQDWXUHDQGGLYHUVLW\RI'DNDUEXVLQHVVUHODWLRQVKLSVFRQVLVWVLQFDWHJRUL]LQJ WKHPLQWHUPVRIWKHLUSRVLWLRQRQWKHDERYHPHQWLRQHG³VRFLDO±OHJDO´FRQWLQXXP 7KUHHPDLQFDWHJRULHVRIUHODWLRQVKLSVWKHQHPHUJHFRUUHVSRQGLQJWRWKHWZRHQGV DQGWKHPLGGOHUDQJHRIWKHFRQWLQXXP7KHVHWKUHHLGHDOW\SHVGRQRWSXUSRUWWR EHPXWXDOO\H[FOXVLYHDQGGHVFULEHWKHZKROHUDQJHRI'DNDUFRQWUDFWXDOUHODWLRQV 7KH\ DUH XVHG SULPDULO\ EHFDXVH RI WKHLU SRWHQWLDO FRQWULEXWLRQ WR EXLOGLQJ D EHWWHUXQGHUVWDQGLQJRIWKHORJLFVJRYHUQLQJWKHVHUHODWLRQVDVZHOODVWKHGLYHUVH IXQFWLRQVSOD\HGE\ODZLQWKHEXVLQHVVWUDQVDFWLRQVWDNLQJSODFHLQ'DNDU

Business Contracts as Social Relations

$¿UVW W\SHRIEXVLQHVVFRQWUDFWVFRPSULVHV WKRVHEXVLQHVV UHODWLRQVHVVHQWLDOO\ UHJXODWHG E\ VRFLDO QRUPV KDUGO\ GLVWLQJXLVKDEOH IURP WKRVH DSSO\LQJ WR QRQ EXVLQHVV UHODWLRQVKLSV0RVWO\ YHUEDO DQG JRYHUQHG E\ ³WUXVW´ WKRVH FRQWUDFWV DUHHVWDEOLVKHGRQWKHEDVLVRISUHH[LVWLQJEXVLQHVVRUQRQEXVLQHVVWLHVEHWZHHQ PHPEHUVRIDUHODWLYHO\FORVHNQLWQHWZRUN3HRSOHLQVXFKUHODWLRQVKLSVGRQRW HVWDEOLVKDFOHDUVHSDUDWLRQEHWZHHQWKH³SHUVRQDO´DQG³EXVLQHVV´VLGHVRIWKHLU DFWLYLWLHVDQG WHQG WR LQFRUSRUDWHQRQEXVLQHVVFRQVLGHUDWLRQV LQ WKHLUEXVLQHVV GHFLVLRQV7KH\JHQHUDOO\GHVFULEHWKHPVHOYHVDVSHDFHIXOSHUVRQVDQGDUHRIWKH YLHZWKDWDOOSUREOHPVFDQEHVROYHGDPLFDEO\LIRQHWULHVKDUGHQRXJK7KH\DUH PRVWO\ FRQFHUQHGZLWK WKH SUHVHUYDWLRQ RI KDUPRQLRXV UHODWLRQVKLSVZLWK WKHLU

SDUWQHUVDVZHOODVZLWKWKHPHPEHUVRIWKHODUJHUQHWZRUNVWRZKLFKWKH\EHORQJ 7KHSUHVHUYDWLRQ RI RQH¶V UHSXWDWLRQ DV DQ KRQHVW EXVLQHVVSHUVRQ DQG D GHFHQW KXPDQEHLQJLVSULPRUGLDO

In such contracts, informal, collective understandings of what constitutes DSSURSULDWHEHKDYLRUJHQHUDOO\FRPHWRVXSHUVHGHZULWWHQFRQWUDFWXDOFODXVHVRU WKHYHUEDODJUHHPHQWV UHDFKHGE\ WKHSDUWLHV7KHKLJK OHYHOVRIÀH[LELOLW\ WKDW FKDUDFWHUL]HWKRVHFRQWUDFWVDUHSULPDULO\WKHH[SUHVVLRQRIWKHFROOHFWLYHYDOXHV RI WROHUDQFH XQGHUVWDQGLQJ DQG VROLGDULW\ WKDW JRYHUQ DOO LQWUDQHWZRUN VRFLDO HQFRXQWHUV/DZSOD\VDPDUJLQDOUROHLQVXFKDJUHHPHQWV 3UREOHPVHQFRXQWHUHGLQWKHFRXUVHRIWKRVHFRQWUDFWVDUHVROYHGH[FOXVLYHO\

WKURXJKQRQFRQIURQWDWLRQDOPHDQV&RQÀLFWVDUHUHVROYHGZLWKLQWKHQHWZRUNDQG UHVRUWLQJWRH[WHUQDOWKLUGSDUWLHVLVGLVFRXUDJHGDVGLVUXSWLYHRIFROOHFWLYHRUGHU 6RFLDO SUHVVXUH DQG SRWHQWLDO GDPDJHV WR RQH¶V UHSXWDWLRQ FRQVWLWXWH WKH PDLQ UHDVRQVIRUDYRLGLQJOLWLJDWLRQ0XOWLODWHUDOUHSXWDWLRQPHFKDQLVPVSOD\DPDMRU UROHLQWKHUHVROXWLRQRIGLVSXWHV5HVRUWWRWKHSDUWLHV¶relationnel is common. In YLHZRIWKHSURIRXQGHPEHGGHGQHVVRIWKRVHFRQWUDFWVZLWKLQVRFLDOQHWZRUNVWKH UHODWLYHSRVLWLRQVRIWKHSDUWLHVLQVXFKQHWZRUNVLVNH\WRXQGHUVWDQGLQJWKHSRZHU G\QDPLFVDWSOD\LQWKHLUUHODWLRQVKLS3DUWLHVZLWKPRUHUHODWLRQDOUHVRXUFHVDUHDW DQDGYDQWDJHZKHQWLPHFRPHVWRSUHVVWKHRWKHUSDUW\WREHKDYHLQWKHLULQWHUHVWV $OWKRXJKUHVRUWLQJWRVRFLDOFRQWUDFWVPLJKWUHTXLUHVRPHGHJUHHRISHUVRQDO

FRPPLWPHQW WR VRFLDOQRUPVRI VROLGDULW\DQGFRPSURPLVH LW GRHVQRWSUHYHQW SDUWLHVIURPTXHVWLRQLQJWKHDGHTXDF\RIVXFKQRUPVLQDEXVLQHVVFRQWH[W0DQ\ LQWHUYLHZHHVLQYROYHGLQWKLVNLQGRIUHODWLRQVKLSVUHFRJQL]HGWKDWWKHODFNRIDFOHDU VHSDUDWLRQEHWZHHQWKHSHUVRQDODQGEXVLQHVVVSKHUHVRIWKHLUOLYHVDQGWKHXVHRI VRFLDOSUHVVXUHWRHQIRUFHVRFLDOQRUPVRIÀH[LELOLW\FRPSURPLVHDQGVROLGDULW\LQ EXVLQHVVPDWWHUVFRXOGFRQVWLWXWHLPSRUWDQWLPSHGLPHQWVWRWKHSUR¿WDELOLW\DQG GHYHORSPHQWRIWKHLUEXVLQHVVHV$V7KLHUQRPHQWLRQV³WKHSUREOHPZHKDYHKHUH LV WKDWZHDOZD\VPL[EXVLQHVVDQGIDPLO\PDWWHUV´&UHGLWPXVWVRPHWLPHVEH H[WHQGHGQRWZLWKVWDQGLQJRQH¶VDELOLW\WRUHSD\7KHLPSRUWDQFHSXWRQ³WUXVW´DOVR PDNHVLWOLNHO\WKDWULVNPDQDJHPHQWPHFKDQLVPVVXFKDVDVNLQJIRUDEDQNHU¶V GUDIWRUVLJQLQJDQDJUHHPHQWZLOOEHVHHQDVHYLGHQFHRIXQZDUUDQWHGZDULQHVV :LWKYLJRURXVFRQWLQXLQJDWWHPSWVWR³IRUPDOL]H´LQIRUPDOWUDGHUVDVZHOODV

WKH FROODSVH DQG GLVPDQWOHPHQW RIPDQ\ EXVLQHVV HPSLUHV DVVRFLDWHGZLWK WKH ³LQIRUPDO PRGHO´ RI EXVLQHVV GHYHORSPHQW LQ UHFHQW \HDUV DQG WKH LQFUHDVLQJ DOWKRXJK SDUWLDO IRUPDOL]DWLRQ RI VRPH RI WKH PRVW LPSRUWDQW SOD\HUV RI WKH LQIRUPDOVHFWRURQHPLJKWZRQGHUZKDWWKHIXWXUHRIWKLVEXVLQHVVPRGHOZLOOEH $OWKRXJKEXVLQHVVFRQWUDFWVEDVHGRQVRFLDOQHWZRUNVDUHXQOLNHO\ WRGLVDSSHDU DQ\WLPHVRRQLWLVSUREDEOHWKDWRWKHUPRGHOVZLOOJUDGXDOO\FRPHWRSHQHWUDWH WKHLU FXUUHQW VWURQJKROGV WKURXJK LQFUHDVHG H[SRVXUH WR DOWHUQDWLYH PRGHV RI

IXQFWLRQLQJRUDPRUHDFXWHXQGHUVWDQGLQJRIWKHFRQVWUDLQWVLWPD\SODFHRQ¿UPV¶ FRPSHWLWLYHQHVV)RUH[DPSOH,GULVVDDQHQWUHSUHQHXULQKLVVL[WLHVPHQWLRQV

7KHFDVHRI/DPLQHZKRKHDGVWZRGLVWLQFW¿UPVLQWKHWUDGHVHFWRUVKRZV WKDWLWLVSRVVLEOHIRUDVLQJOHSHUVRQWRGHYHORSPDQ\GLIIHUHQWW\SHVRIEXVLQHVV UHODWLRQVKLSV/DPLQH¿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

Business Contracts as Partnerships

7KH VHFRQG W\SH RI EXVLQHVV FRQWUDFWV REVHUYHG LQ'DNDU FRQVLVWV LQ SULPDULO\ ELODWHUDO UHODWLRQVKLSV EHWZHHQ WZR SDUWLHV VHHLQJ WKHPVHOYHV DV ³SDUWQHUV´ LQ EXVLQHVV 7KH FDWHJRUL]DWLRQ RI D UHODWLRQVKLS DV D SDUWQHUVKLS GHSHQGV RQ WKH LPSOLFLWQRUPVSHUFHLYHGWREHJRYHUQLQJWKHUHODWLRQVKLSLQTXHVWLRQ3DUWQHUVKLS

UHODWLRQVKLSVPD\HPHUJHEHWZHHQUHODWHGDVZHOODVXQUHODWHGSDUWLHVWRWKHH[WHQW WKDWDFHUWDLQOHYHORIWUXVWKDVEHHQEXLOWJHQHUDOO\LQWKHFRXUVHRIEXVLQHVV ³3DUWQHUVKLSV´ DUH GH¿QHG SULPDULO\ LQ FRQWUDVW WR SUR¿WGULYHQ PDUNHW

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ÀH[LELOLW\ ERWK DV D PHDQV

WR SUHVHUYH YDOXHG UHODWLRQVKLSV DQG DV D IRUPRI LQVXUDQFH LQ FDVH RI WURXEOH 'LVSOD\VRIXQGHUVWDQGLQJHQWLWOHRQHWRH[SHFWWKHVDPHNLQGRIEHKDYLRUIURP RWKHUVLQWLPHVRIQHHG)RUH[DPSOH6DOLRXZKRVHOOVVXSSOLHVWRERWKSXEOLFDQG SULYDWHLQVWLWXWLRQVWDONHGDERXWWKHIRUPHULQWKHIROORZLQJWHUPV

,QFDVHRISUREOHPVSDUWQHUVGHDOZLWKWKHPDFFRUGLQJWRWKHLULQWHUSUHWDWLRQ RI WKHEHKDYLRURI WKHRWKHUSDUW\3UHVVXUH LV DSSOLHG LQFOXGLQJ WKURXJKRQH¶V relationnelSDUWO\LQRUGHUWRDVFHUWDLQZKHWKHUWKHRWKHUSDUW\VKRXOGVWLOOEHVHHQ DVDSDUWQHUZLWKDQLQWHUHVWLQWKHUHODWLRQVKLSRUQRW$OWKRXJKOLWLJDWLRQUHPDLQV DQRSWLRQIRUGHDOLQJZLWKQRQSDUWQHUVLWLVJHQHUDOO\H[FOXGHGRQWKHEDVLVRI FRVW±EHQH¿WFDOFXODWLRQV 3DUWQHUVKLS FRQWUDFWV RIWHQ FRPELQH ZULWWHQ FODXVHV DQG LQIRUPDO EXVLQHVV

QRUPV WKH ODWWHU WHQGLQJ WR WDNH SUHFHGHQFH RYHU WKH IRUPHU DV WLPH SDVVHV %\ FODULI\LQJ WKH H[SHFWDWLRQV RI WKH FRQWUDFWLQJ SDUWLHVZULWWHQ WHUPV SUHYHQW GLVDJUHHPHQWV IURP RFFXUULQJ WKXV FRQWULEXWLQJ WR WKH SUHVHUYDWLRQ RI WKH UHODWLRQVKLS)RUH[DPSOHZULWWHQFRQWUDFWVPD\EHYDOXDEOHLQSUHYHQWLQJRUGHU FDQFHOODWLRQ%\DVNLQJIRUFRPPLWPHQWVWREHSXWLQZULWLQJRQHLQFUHDVHVWKH SUREDELOLW\WKDWRQH¶VSDUWQHUVZLOOIHHOWRRHPEDUUDVVHGWRFKDQJHWKHLUPLQGVRU LQYRNH³PLVWDNHV´LQWKHSODFHPHQWRUSURFHVVLQJWKHLURUGHUVLQRUGHUWRHVFDSH IURPWKHLUREOLJDWLRQVRUWKDWWKH\ZLOORIIHUVRPHIRUPRIFRPSHQVDWLRQLQUHWXUQ for cancelling their order. 6LJQLQJ D FRQWUDFW GRHV QRW JXDUDQWHH WKDW WKH RWKHU SDUW\ ZLOO VDWLVI\ KLV

REOLJDWLRQVRUHYHQDFWLQJRRGIDLWKDQGSURYLGHVQRSDUWLFXODUSURWHFWLRQDJDLQVW RSSRUWXQLVP6RPHPLQLPDOOHYHORIWUXVWLVWKXVSUHUHTXLVLWHWRHQWHULQJLQWRDQ\

NLQGRIFRQWUDFWH[FHHGLQJDFHUWDLQOHYHORIULVN³WKHUHDUHVRPHSHRSOH,ZRXOG QHYHUZRUNZLWKHYHQZLWKDQLFHVLJQHGFRQWUDFW,ZRXOGQRWEHFDXVHWKH\GRQ¶W NHHSWKHLUSURPLVHV´$EGRXOD\H<HWDJUHHLQJWRVLJQDFRQWUDFWFRQVWLWXWHVDQ XQGLVSXWDEOHLQGLFDWLRQWKDWRQHKDVGHOLEHUDWHO\DJUHHGWRDVVXPHDQREOLJDWLRQ The use of written documents as signs of commitment varies with the level of trust EHWZHHQWKHSDUWLHVWRDUHODWLRQVKLS&RQWUDFWVEHWZHHQWUXVWLQJSDUWQHUVDUHRIWHQ SUHSDUHGDQG VLJQHGDIWHU WKHSDUWLHVKDYH VWDUWHG WR IXO¿OO WKHLUREOLJDWLRQV ,Q FRQWUDVWZKHUHWUXVWLVRQO\SDUWLDOUHTXLULQJRQH¶VSDUWQHUVWRFRPPLWLQZULWLQJ DOORZVRQHWRGLVWLQJXLVKUHDOFRPPLWPHQWVIURPSRWHQWLDOO\HPSW\SURPLVHV 3DUWLHVLQYROYHGLQSDUWQHUVKLSVDUHXQOLNHO\WREODPHWKHLUSDUWQHUVIRUWKHLU

IDLOXUHWRFRPSO\DQGJHQHUDOO\UHDGLO\DJUHHWRDGMXVWWKHLUGHPDQGVWRZDUGWKH RWKHU SDUW\ZKHQ FLUFXPVWDQFHV UHTXLUH5HTXHVWV IRU ÀH[LELOLW\ RU FRPSOLDQFH DUHJHQHUDOO\XWWHUHG LQPRUDO UDWKHU WKDQ OHJDO WHUPVZLWK WKHHPSKDVLVEHLQJ SXWRQRQH¶VRZQQHHGVDQGSUREOHPVUDWKHUWKDQRQH¶VULJKWVDQGWKHFRUUHODWLYH REOLJDWLRQV RI WKH RWKHU SDUW\ $V $EGRXOD\H ZKR KHDGV D VPDOO ¿UP LQ D FRPSHWLWLYH VHFWRU RI WKH VHUYLFH LQGXVWU\ LQGLFDWHG ³\RX KDYH WR EH FDUHIXO ZKHQ\RXDSSURDFKDFOLHQW)RUH[DPSOHLIDFOLHQWKDVQ¶WSDLGDELOO,PD\FDOO KLPDQGWHDVHKLPDELWVD\LQJVRPHWKLQJOLNHµ,JXHVV\RXIRUJRWPH,DPQRW LQ\RXUSODQQLQJIRUWKHGD\¶´)URPWKLVSHUVSHFWLYHZULWWHQFODXVHVPD\KDYH OLWWOHLPSDFWRQRQH¶VSURSHQVLW\WRFRPSO\EXWQHYHUWKHOHVVSUHVHQWWKHLPSRUWDQW DGYDQWDJHRISURYLGLQJSDUWLHVZLWKDFOHDUEDVLVXSRQZKLFKIXWXUHQHJRWLDWLRQV DUHWRWDNHSODFHWKHSUHVHQFHRIZULWWHQFODXVHVPDNHVLWFOHDUIRUERWKSDUWLHVWKDW ÀH[LELOLW\LQWKHLUDSSOLFDWLRQLVDIDYRUFDOOLQJIRULPPHGLDWHRUIXWXUHUHWULEXWLRQ $OWKRXJKWKH\GRQRWHUDVHSRZHUGLIIHUHQWLDOVSDUWQHUVKLSFRQWUDFWVVHHPWR

HYHQRXWLQHTXDOLWLHVVRPHZKDW%HFDXVHRIWKHLUHPSKDVLVRQPXWXDOVXSSRUWDQG UHFLSURFLW\WKH\WHQGWREHQH¿WWKHZHDNHUSDUW\WRDUHODWLRQVKLSZLWKVWURQJHU SDUWLHVIHHOLQJDQREOLJDWLRQWRUHIUDLQIURPWDNLQJDGYDQWDJHRIWKHLUSRVLWLRQDQG VXSSRUWWKHLUSDUWQHUVLQQHHG)RUH[DPSOH,VVDPHQWLRQHGWKDWHYHQWKRXJKWKH VDQGPDUNHWLVDYHU\FRPSHWLWLYHRQHKHKDGEHHQGHDOLQJZLWKWKHVDPHVXSSOLHU DQLQIRUPDOLQGLYLGXDOHQWHUSULVHIRUPDQ\\HDUV+HGHVFULEHGWKHLUUHODWLRQVKLS in the following terms:

Business Contracts as Legal Agreements

$WKLUGFRQFHSWLRQRIEXVLQHVVUHODWLRQVKLSVFRQVLVWVLQVHHLQJWKHPDVVHULHVRI GLVWLQFWWUDQVDFWLRQVEHWZHHQLQGHSHQGHQWSDUWLHV7KHVHFRQWUDFWVOHDYHOLWWOHRU QRURRPIRUÀH[LEOHex postDGMXVWPHQW7KH\DUHWKXVDSSURSULDWHRQO\LQFDVHV ZKHUHÀH[LELOLW\ LV QRW UHTXLUHG DQGRQH¶V ODFN RI XQGHUVWDQGLQJ LV XQOLNHO\ WR LPSDFWRQ WKHSUHVHUYDWLRQRIYDOXDEOHUHODWLRQVKLSV ,QGHHGVXFKFRQWUDFWVDUH WKXVPRUHOLNHO\WREHIDYRUHGE\¿UPVLQUHODWLYHO\JRRGFRPSHWLWLYHDQG¿QDQFLDO SRVLWLRQV DQG KDYLQJ DQ HVWDEOLVKHG FXVWRPHU EDVH7KH DGYDQWDJHRXV SRVLWLRQ WKH\RFFXS\LQWKHPDUNHWDQGWKHGHSHQGHQFHRIWKHLUFRQWUDFWXDOSDUWQHUVWRZDUG WKHPHQWDLOWKDWWKH\FDQJHWDZD\ZLWKLQÀH[LELOLW\DQGDFRQIURQWDWLRQDODWWLWXGH 7KLV DOORZV WKHP WR JLYH SULRULW\ WR WKH SUR¿WDELOLW\ DQG GHYHORSPHQW RI WKHLU EXVLQHVVHVRYHUWKHFUHDWLRQRUSUHVHUYDWLRQRIEXVLQHVVUHODWLRQVKLSVDQGWRORQJ WHUP¿QDQFLDOFRQVLGHUDWLRQVRYHUVKRUWWHUPFDVKÀRZPDQDJHPHQWFRQFHUQV &RQWUDFWVRI WKLV W\SHDUHJHQHUDOO\QRW WKHSURGXFWRIQHJRWLDWLRQVEHWZHHQ

WKHSDUWLHV7KH\DUHPRUHOLNHO\WREHLPSRVHGE\SDUWLHVLQDVXSHULRUEDUJDLQLQJ SRVLWLRQZKRDOVRGHWHUPLQHPRVWRIWKHWHUPVRIWKHDJUHHPHQW)RU60(VGRLQJ EXVLQHVVZLWKWKHVWDWHLQWHUQDWLRQDOLQVWLWXWLRQVDQGVRPHGRPHVWLFDQGIRUHLJQ SULYDWH¿UPVRIWHQPHDQVDJUHHLQJWRSUHVHWSULFHSD\PHQWDQGGHOLYHU\WHUPV $V ,GULVVDVD\V³HYHQ LQ WKHSULYDWHVHFWRUZLWK WKH ODUJHHQWHUSULVHVPLJKW LV ULJKW\RXPLJKWKDYHVRPHOHYHUDJHEXWPRVWRIWKHWLPH\RXMXVWDFFHSWWKHLU WHUPV7KHUHLVMXVWQRURRPWRPDQHXYHU´ 7KHXVHRIOHJDODJUHHPHQWVFRXOGEHVHHQDVDZD\WRGLVFLSOLQHFRQWUDFWXDO

SDUWQHUV DQG LQFUHDVH SUHGLFWDELOLW\ %XW LQ YLHZ RI WKH OLWWOH LPSDFW WKDW WKH SUHVHQFHRIOHJDOVDQFWLRQVKDVRQWKHIUHTXHQF\RIFRQWUDFWXDOEUHDFKLWPLJKWEH PRUHDSSURSULDWHWRYLHZUHVRUWLQJWRVXFKOHJDODJUHHPHQWVDVRQHDVSHFWRIDPRUH HQFRPSDVVLQJSURFHVVRIVSHFLDOL]DWLRQEXUHDXFUDWL]DWLRQDQGSURIHVVLRQDOL]DWLRQ WDNLQJ SODFHZLWKLQ¿UPV LQ H[SDQVLRQ )URP DPDQDJHPHQW SHUVSHFWLYH OHJDO DJUHHPHQWV FRQWULEXWH WR WKH UDWLRQDOL]DWLRQRI¿UPV¶ FUHGLW DQGGHEWFROOHFWLRQ IXQFWLRQV WKURXJK WKH VWDQGDUGL]DWLRQ RI FRQWUDFWLQJ DQG FODLPLQJ EHKDYLRU 6WDQGDUGSROLFLHVDQGFRQWUDFWVDUHDGRSWHGDQGSUREOHPVDUHGHDOWZLWKDFFRUGLQJ WRDSUHGH¿QHGSURFHGXUH, RIWHQE\SHRSOHH[WHUQDOWRWKH¿UPRUEHORQJLQJWRD GHSDUWPHQWGLVWLQFWIURPWKHFRPPHUFLDOEUDQFK6XFKVSHFLDOL]DWLRQDOORZVIRU WKHHVWDEOLVKPHQWRIDFOHDUGLVWLQFWLRQEHWZHHQWKHSHRSOHLQFKDUJHRIFODLPVDQG FROOHFWLRQPDWWHUVDQGWKHHPSOR\HHVZKRGHDOZLWKWKHFOLHQWRUVXSSOLHULQWKH QRUPDOFRXUVHRIWKHEXVLQHVVUHODWLRQVKLSV7KLVGLVWLQFWLRQWKHQDOORZVVHOOHUVRU EX\HUVWRGLVWDQFHWKHPVHOYHVIURPWKHFODLPVPDGHE\RWKHUUHSUHVHQWDWLYHVRI WKHLUEXVLQHVVHVDQGPDLQWDLQKDUPRQLRXVFRPPHUFLDOUHODWLRQVKLSV /HJDODJUHHPHQWVDUHPHDQWWRELQGERWKSDUWLHVDQGVSHOORXWWKHWRWDOLW\RI

WKHLUUHVSHFWLYHREOLJDWLRQV,QSUDFWLFHWKRXJKWKH\JHQHUDOO\DSSO\WRSDUWQHUV

ZKR GR QRW KDYH DQ HTXDO DFFHVV WR OHJDO UHPHGLHV DQG WHQG WR EH HPLQHQWO\ RQHVLGHG3DUWLHV LQ D IDYRUDEOHPDUNHW SRVLWLRQ FDQERWK DIIRUG WKH FRVWV DQG FRQVHTXHQFHVDVVRFLDWHGZLWK OLWLJDWLRQDQG VLQFHGHSHQGHQWSDUWLHVZLOORIWHQ DYRLG OLWLJDWLRQ DQG FRQÀLFW DW DQ\ FRVWV WDNH VRPH OLEHUW\ZLWK UHVSHFW WR WKH VDWLVIDFWLRQ RI WKHLU RZQ REOLJDWLRQV$ IHZ LQWHUYLHZHHV PHQWLRQHG WKDW SDVW LQVWDQFHVRIGLVDJUHHPHQWVZLWKSDUWQHUVLQOHJDOUHODWLRQVKLSVPDGHWKHPDZDUH RIWKHQHHGWRSXWWKHGHWDLOVRIWKHLUFRQWUDFWVLQZULWLQJWRSODQIRUFRQWLQJHQFLHV LQWKHLUFRQWUDFWVDQGWRUHDGFDUHIXOO\WKHFRQWUDFWVSURSRVHGE\WKHLUSDUWQHUV EHIRUH VLJQLQJ WKHP 6DOLRX SURYLGHG WKH IROORZLQJ H[DPSOH ³QRZ , WDNH D SLFWXUHRIWKHSURGXFWVKRZLWWRWKHFOLHQWDQGKDYHKLPVLJQLW:LWKWKLVLIKH UHIXVHVGHOLYHU\VD\LQJLWLVQRWWKHULJKWSURGXFW,FDQVKRZWKHSLFWXUHWRSURYH P\SRLQW´7KLVVXJJHVWVWKDWHYHQWKRXJKOLWLJDWLRQLVUDUHO\DQRSWLRQIRU¿UPV LQZHDNFRPSHWLWLYHSRVLWLRQVZULWWHQFRQWUDFWVPD\FRQVWLWXWHDXVHIXOWRROIRU QHJRWLDWLQJZLWKSDUWQHUVPRUHVHQVLWLYHWR³OHJDO´WKDQ³UHODWLRQDO´DUJXPHQWV

Implicit Agreement … and Disagreements: Dealing with Divergent Views

7KHSURSRVHGFDWHJRUL]DWLRQRIEXVLQHVVFRQWUDFWVDVVRFLDOUHODWLRQVSDUWQHUVKLSV RUOHJDODJUHHPHQWVLVEDVHGRQGHVFULSWLRQVRIZKDWWKHLQWHUYLHZHHVH[SHFWIURP WKHLUFRQWUDFWXDOSDUWQHUVDQGKRZWKH\FRQFHLYHRIWKHLURZQREOLJDWLRQVWRZDUG WKHP$VVXEMHFWLYHLQGLYLGXDOEHOLHIVDERXWWKHQRUPVDWWDFKHGWRDUHODWLRQVKLS WKH\ FRQVWLWXWH ZKDW 5RXVVHDX FDOOV ³SV\FKRORJLFDO FRQWUDFWV´ 7KRVH VXEMHFWLYHH[SHFWDWLRQVDUHOLNHO\WRUHPDLQLPSOLFLWDVORQJDVQRLVVXHUHODWLQJ WR WKHLU DSSOLFDWLRQ HPHUJHV ,W LV WKXV RQO\ ZKHQ GLVDJUHHPHQW DERXW WKH LQWHUSUHWDWLRQRIDQRUPRULWVUHOHYDQFHWRDVSHFL¿FLVVXHDULVHVWKDWSDUWLHVZLOO realize that they do not share a common understanding of the normative content RIWKHLUUHODWLRQVKLS $OWKRXJK FROOHFWLYH VKDUHG EHOLHIV DERXW DSSURSULDWH EHKDYLRU XQGRXEWHGO\

LPSDFWRQVXEMHFWLYHEHOLHIVWKHGHFLVLRQWRHQWHULQWRRQHW\SHRIFRQWUDFWRUDQRWKHU GHSHQGV RQ D YDULHW\ RI IDFWRUV GLVWLQFW IURP SHUVRQDO YDOXHV DQG SUHIHUHQFHV 'H¿QLQJ WKHQRUPDWLYHFRQWHQWRIDVSHFL¿FUHODWLRQVKLS LVQRWVLPSO\DPDWWHU RIFRQIRUPLQJWRSHUVRQDORUFROOHFWLYHQRUPVEXWRQHRIEHKDYLQJLQFRQIRUPLW\ ZLWK WKH UXOHV DSSOLFDEOH WRSDUWLFXODU VLWXDWLRQV ,W LQYROYHVFKRRVLQJEHWZHHQ PDQ\GLIIHUHQWVHWVRIH[SHFWDWLRQVWKHUXOHVWREHIROORZHGLQWKHVLWXDWLRQDWSOD\ 0DUFKVXJJHVWVWKDWUXOHIROORZLQJLVQRWJURXQGHGRQFRVW±EHQH¿WDQDO\VLVEXW RQD³ORJLFRIDSSURSULDWHQHVV´

)URP WKLV SHUVSHFWLYH LQGLYLGXDO GHFLVLRQV UHVXOW IURP WKH LGHQWL¿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³,DPDWHQDFLRXVSHUVRQ EXWP\HPSOR\HHVDUHQRWWKH\ZRXOGVD\µ/HWWKHFOLHQWVEUHDWKH¶,DOZD\VVD\ QR,WLVRQHRIP\SHUVRQDOÀDZV,PHDQWKH\VHHLWDVDÀDZ,VHHLWDVDQDVVHW´ ,QVXFKFDVHV LWPLJKWEHQHFHVVDU\ IRUPDQDJHUV WRZRUNRQ WKHDOLJQPHQWRI H[SHFWDWLRQVZLWKLQ WKHRUJDQL]DWLRQ LQRUGHU WRSUHYHQWSRWHQWLDOFRQÀLFWVZLWK DQGEHWZHHQHPSOR\HHV 7KH LQWHUYLHZV VKRZ WKDW 'DNDU EXVLQHVV DFWRUV RIWHQ KDYH GLYHUJHQW

FRQFHSWLRQV RI WKH QRUPDWLYH FRQWHQW RI WKHLU UHODWLRQVKLSV$ W\SLFDO H[DPSOH FRQFHUQVFDVHVLQZKLFKRQHRIWKHSDUWLHVH[SHFWVKLVUHODWLRQVWREHEDVHGRQD VRFLDOFRQWUDFWZKLOHWKHRWKHUYLHZVLWDVDSDUWQHUVKLSRUOHJDOFRQWUDFW,QVXFK FDVHVWKHPDMRUSRLQWRIGLVDJUHHPHQWEHWZHHQWKHSDUWLHVFRQFHUQVWKHVHSDUDEOH FKDUDFWHU RI WKH ³VRFLDO´ DQG ³EXVLQHVV´ VSKHUHV RI WKHLU OLYHV ZLWK RQH SDUW\ GHSORULQJWKHHQFURDFKPHQWRIVRFLDOFRQVLGHUDWLRQVRQEXVLQHVVGHFLVLRQVZKLOH EHLQJEODPHGDVEHLQJWRRWRXJKDQGLQÀH[LEOHE\WKHRWKHU2WKHUFDVHVFRQFHUQ UHODWLRQVKLSV YLHZHG DV SDUWQHUVKLSV E\ RQH SDUW\ DQG OHJDO DJUHHPHQWV E\ WKH RWKHUOHDGLQJWRGLVDJUHHPHQWDERXWWKHDSSOLFDELOLW\RIWKHQRUPRIÀH[LELOLW\DQG PXWXDOKHOSLQWKHUHODWLRQVKLS7KLVW\SHRIGLYHUJHQFHVHHPVPRUHOLNHO\WRRFFXU LQKHDYLO\XQHTXDOUHODWLRQVKLSVZKHUHWKHVWURQJHUSDUW\LPSRVHVDOHJDOIUDPH SDUWO\IRUHLJQWRWKHRWKHUDVZHOODVLQUHODWLRQVKLSVZLWKIRUHLJQ¿UPVRUODUJHU 6HQHJDOHVHEXVLQHVVHVZKLFKGRQRWJHQHUDOO\VKDUHWKHORFDOXQGHUVWDQGLQJVRI WKH LQIRUPDO QRUPV JRYHUQLQJ VRFLDO UHODWLRQVKLSV ,QGHHG PDQ\ LQWHUYLHZHHV UHSRUWHG D FHUWDLQ GLVVDWLVIDFWLRQ ZLWK WKH ³ODFN RI WUXVW´ ³LQVHQVLWLYLW\´ DQG XQZLOOLQJQHVVWRDFWDVUHDOSDUWQHUVGLVSOD\HGE\IRUHLJQRUODUJHU¿UPV2QHRI WKHP&KHLNUHFRXQWHGKDYLQJSXWDQHQGWRDUHODWLRQVKLSIRUWKLVYHU\UHDVRQ

7KHUHDUHPDQ\ZD\VWRSUHYHQWDQGGHDOZLWKWKHVHNLQGVRISUREOHPV$¿UVW RQHFRQVLVWV LQVHOHFWLQJRQH¶VEXVLQHVVSDUWQHUVRQ WKHEDVLVRI WKH IUDPH WKH\ DUH OLNHO\ WR DSSO\ WR WKH UHODWLRQVKLS$VPHQWLRQHG DERYH RQHPD\ OLPLW WKH LPSDFWRIVRFLDOQRUPVRQWKHLUEXVLQHVVE\SULYLOHJLQJDUP¶VOHQJWKSDUWQHUVRYHU UHODWLYHV DQGRWKHU SHRSOHZKRVH VWDWXV DQG relationnel LQVXODWH IURPSUHVVXUH 6XFKVWUDWHJLHVFDQEHREVHUYHGLQDYDULHW\RILQGXVWULHVHYHQWKHPRVWWUDGLWLRQDO RQHVDVVKRZQLQ1GLRQH¶VVWXG\RI'DNDUZRRGZRUNHUVZKRVHHNWRDYRLG VRFLDOSUHVVXUHDQGLPSURYHWKHLUEDUJDLQLQJSRVLWLRQWRZDUGWKHLUDSSUHQWLFHVE\ KLULQJ³VRFLDORUSKDQV´UDWKHUWKDQPHPEHUVRIWKHLUQHWZRUNV $QRWKHU VWUDWHJ\ FRQVLVWV LQ VLJQDOLQJ RQH¶V YLHZV RQ EXVLQHVV UHODWLRQV

LQ JHQHUDO LQ WKH KRSH WKDW LW ZLOO LPSDFW RQ WKH RWKHU SDUW\¶V IUDPLQJ RI WKH UHODWLRQVKLS )RU H[DPSOH RQH¶V SUHIHUHQFH IRU ³SDUWQHUVKLSV´ RYHU ³VRFLDO UHODWLRQV´PD\EHVLJQDOHGE\PLQLPL]LQJWKHUROHRIWKHSDUWLHV¶relationnels in WKHUHODWLRQVKLS$EGRXOD\HVDLGWKDWKHUHIUDLQHGIURPDVNLQJIRUDWKLUGSDUW\¶V LQWHUYHQWLRQLQRUGHUWRLQVXODWHKLVEXVLQHVVIURPH[WHUQDOLQÀXHQFHV

0RUH EOXQWO\$LFKD LQGLFDWHG WKDW VKH H[SOLFLWO\ GHQLHVPHPEHUV IURP KHU relationnelWKHULJKWWRPDNHFODLPVRQKHU³,RIWHQVD\µ,I,ZHUHWRVD\\HVWR \RXDIWHUVD\LQJQRWRWKLVSHUVRQWKLVZRXOGPHDQ,DPDK\SRFULWH7KHUHLVQR UHDVRQZK\,VKRXOGEHDEOHWRGRVRPHWKLQJMXVWEHFDXVH\RX are the one asking IRULW,¶PQRWWKLVNLQGRISHUVRQ¶´ 3DUWLHVPD\ DOVR HQJDJH LQ RSHQ QHJRWLDWLRQ RYHU WKH QRUPDWLYH FRQWHQW RI

D UHODWLRQVKLS$LFKDZKRKHDGVD60(RSHUDWLQJ LQ WKHPDQXIDFWXULQJVHFWRU SURYLGHGDJRRGH[DPSOHRIVXFKDSURFHVV

)RU$LFKDWKHEHKDYLRURIWKH)UHQFKVXSSOLHUDPRXQWHGWRDYLRODWLRQRIWKH LPSOLFLWQRUPVRIULVNVKDULQJDQGÀH[LELOLW\WKDWZHUHWRJRYHUQWKHLUUHODWLRQVKLS DQGDVLJQRILQVHQVLWLYLW\DQGXQZLOOLQJQHVVWR³SOD\E\WKHUXOHV´+HUGHFLVLRQ WRH[SUHVVKHUGLVFRQWHQWPHQWDQGVWDWHKHURZQH[SHFWDWLRQV OHG WRDSHDFHIXO UHVROXWLRQ RI WKH GLVSXWH WKH VXSSOLHU ¿QDOO\ DJUHHG WR GHOLYHU WKH VXSSOLHV RQ credit. +RZHYHURSHQGLVFXVVLRQVRYHU WKHQRUPV WKDWDUH WRJRYHUQD UHODWLRQVKLS

FDUU\VRPHULVNV7KHUHLVDGDQJHUWKDWWKHSDUWLHVZLOOQRWEHDEOHWRDJUHHRQWKH QRUPDWLYHFRQWHQWRIWKHLUUHODWLRQVOHDGLQJWRGLVFRQWHQWDQGSRWHQWLDOUHODWLRQVKLS EUHDNGRZQ ,Q DGGLWLRQ¿UPVRSSRVLQJQRUPV WKDW DUHZLGHO\ DFFHSWHGE\ WKH RWKHUSOD\HUVLQWKHLU LQGXVWU\RU LQWKHODUJHUFRPPXQLW\WRZKLFKWKH\EHORQJ RSHQ WKHPVHOYHV WR WKH DSSOLFDWLRQ RI UHSXWDWLRQDO VDQFWLRQV )RU H[DPSOH DOWKRXJKPDQ\LQWHUYLHZHHVH[SUHVVHGWKHYLHZWKDWVRFLDOREOLJDWLRQVVKRXOGQRW LQWKHRU\LQWHUIHUHZLWKWKHIXQFWLRQLQJRIWKHLUEXVLQHVVIHZRIWKHPVHHPHGLQD SRVLWLRQWRDSSO\WKLVSULQFLSOHLQWKHFRXUVHRIDOORIWKHLUEXVLQHVVUHODWLRQVKLSV )RUH[DPSOH,EUDKLPDDUULYHGRQHKRXUODWHWRRXUDSSRLQWPHQWEHFDXVHKHKDG WRDWWHQGDUHOLJLRXVFHUHPRQ\+HH[SODLQHGWKDWHYHQWKRXJKVRFLDOREOLJDWLRQV VKRXOGQRWLQWKHRU\LQWHUIHUHLQEXVLQHVVPDWWHUVKLVDEVHQFHIURPWKHFHUHPRQ\ ZRXOGKDYHEHHQVRFLDOO\XQDFFHSWDEOHHYHQLILWWRRNSODFHGXULQJEXVLQHVVKRXUV )LUPVPD\ DYRLG VXFK GLI¿FXOWLHV E\ WU\LQJ WR OLPLW WKH QHJDWLYH LPSDFW RI

VSHFL¿FQRUPVLQZD\VWKDWGRQRWVLJQDODODFNRIFRPPLWPHQWWRWKRVHQRUPV 7KLVDOORZVWKHPWRJHWWKHEHVWRIERWKQRUPDWLYHZRUOGVE\UHDSLQJWKHEHQH¿WV RIWKHQRUPVIDYRUHGE\WKHLUSDUWQHUVZLWKRXWVXIIHULQJIURPWKHLUGLVDGYDQWDJHV ZKLOHSUHVHUYLQJDUHSXWDWLRQDVDYDOXDEOHEXVLQHVV³SDUWQHU´DQGGHFHQWKXPDQ EHLQJ7KLVUHVXOWFDQEHDFKLHYHGE\EODPLQJRQH¶VODFNRIFRPSOLDQFHZLWKWKH SDUWQHU¶VQRUPRQWKLUGSDUWLHVRUFLUFXPVWDQFHVRYHUZKLFKRQHKDVQRFRQWURO ,QLWVPRVWEDVLFIRUPWKLVVWUDWHJ\LQYROYHVSUHVHQWLQJRQH¶VGHFLVLRQDVEHLQJ PDGH XQGHU H[WHUQDO SUHVVXUH IRU H[DPSOH IURP EDQNHUV VXSSOLHUV DVNLQJ IRU SD\PHQWRUFOLHQWVZDLWLQJIRUWKHLURUGHUV%\EODPLQJRWKHUVIRUIRUFLQJWKHP

WREHLQÀH[LEOHZKLOHHPSKDVL]LQJWKHLURZQSUREOHPVDQGQHHGVDQGDVNLQJWKH RWKHUSDUW\IRUKHOS¿UPVFDQHVFDSHWKHLUREOLJDWLRQVWREHÀH[LEOHDQGDUHDEOH WRXVH WKHQRUPRI VROLGDULW\ IRUHQIRUFHPHQWSXUSRVHV³3HRSOHZRXOGDVNPH IRUKHOSDQG,ZRXOGVD\µ,FDQKHOSEXWRQO\XSWRDFHUWDLQSRLQWEHFDXVHWKHUH comes a time when I am not in control anymore, when the state, or courts, or RWKHUVVWDUWPDNLQJGHPDQGVRQPH¶´,GULVVD

An alternative strategy consists in voluntarily surrendering control over GHFLVLRQV E\ GHOHJDWLQJ WKH UHVSRQVLELOLW\ IRU FODLPLQJ WR SHRSOH IURP ZKRP ULJRU DQG LQWUDQVLJHQFH DUH EHWWHU DFFHSWHG ([WHUQDO VHUYLFH SURYLGHUV RU HYHQ HPSOR\HHVRIWKH¿UPPD\EHFDOOHGRQWRPDNHFODLPVWKXVDOORZLQJ³FRPPHUFLDO SHRSOH´ WRSUHVHUYHKDUPRQLRXVUHODWLRQVKLSVZLWK WKHLUFRQWDFWV LQRWKHU¿UPV )RU6DOLRX³LWLVSUHWW\VLPSOH<RXUDFFRXQWDQWVHQGVDOHWWHUOLWLJDWHVWKHFODLP DQGDOODQGRQFH\RXJRW\RXUPRQH\\RXJREDFNWR\RXUFOLHQWDQGVD\µ\RX NQRZKRZDFFRXQWDQWVDUH WKH\RQO\FDUHIRUPRQH\EXWZKDWI want is to do EXVLQHVV ZLWK \RX¶´ ,Q VRPH FDVHV WKH IDFW RI D PDQDJHU GLVWDQFLQJ KLPVHOI IURPKRZDGLVSXWHLVKDQGOHGE\RURQEHKDOIRIWKH¿UPPLJKWWXUQDSHUVRQDO DIIDLULQWRDGLVSDVVLRQDWHSUREOHPWREHVROYHGE\SURIHVVLRQDOVWKXVOLPLWLQJWKH QHJDWLYHLPSDFWRIWKHFRQÀLFWRQWKHSHUVRQDODQGFRPPHUFLDOUHODWLRQVEHWZHHQ WKHSDUWLHV$ODVVDQHPHQWLRQHGDFDVHLQZKLFKWKHGHFLVLRQWROLWLJDWHZDVSDUWO\ PDGHZLWKDYLHZWRSUHVHUYLQJDSHUVRQDOUHODWLRQVKLS

)RUPDQ\LQWHUYLHZHHVWKHGHSHUVRQDOL]DWLRQRIEXVLQHVVGLVSXWHVVHHPHGWR UHSUHVHQWDVPXFKDSUHFRQGLWLRQIRUJURZWKDVDFRQVHTXHQFHRILW6HULJQHDWRS H[HFXWLYHDWDPHGLXPVL]HG¿UPRSHUDWLQJLQWKHPDQXIDFWXULQJVHFWRUSUHVHQWHG EXUHDXFUDWL]DWLRQ DQG GHOHJDWLRQ RI SRZHU DV H[SOLFLW VWUDWHJLHV HPSOR\HG E\ WKH IRXQGHURIKLV¿UPD VHOIPDGHPDQZLWK OLWWOH IRUPDOHGXFDWLRQDOWKRXJK WKHEXVLQHVVLVVWLOORZQHGE\LWVIRXQGHULWLVQRZPDQDJHGE\³SURIHVVLRQDOV´ ZKRVHMRESDUWO\FRQVLVWVLQSUHYHQWLQJWKHRZQHUIURPEHLQJ³H[SRVHG´WRKDUG WRUHVLVW FODLPV EDVHG RQ VRFLDO QRUPV DQG LVRODWLQJ KLV EXVLQHVV IURP VRFLDO SUHVVXUHV6LPLODUO\7KLHUQRZKRKHDGVD IDPLO\¿UP UHIHUUHG WRKLVSODQV WR

WXUQLWLQWRDFRUSRUDWLRQVRFLpWpDQRQ\PHDVDZD\WRIUHHPDQDJHUVIURPFHUWDLQ VRFLDOFRQVWUDLQWVDQGDOORZWKH¿UPWRHQWHUDQHZSKDVHRIJURZWK³ZHKDYH WR WDNH LQWR DFFRXQW FHUWDLQ RXWGDWHG SDUDPHWHUV EHFDXVHZH DUH VWLOO D IDPLO\ ¿UP:KHQWKHEXVLQHVVEHFRPHVDFRUSRUDWLRQLWZLOOEHGLIIHUHQWDQRWKHUZRUOG SURIHVVLRQDOLVPQRIHHOLQJVRQO\LQWHUHVWV±EXVLQHVVLVEXVLQHVV´ ,QWKLVUHVSHFWLWLVZRUWKQRWLQJWKDWDOWKRXJKWKHYDULRXVVWUDWHJLHVGHYLVHG

E\EXVLQHVVSHRSOHWROLPLWWKHDSSOLFDWLRQRIORFDOVRFLDOQRUPVPD\EHLQWHUSUHWHG as evidence of their limited commitment to those norms, it is not necessarily the FDVH ,QJHQHUDO WKH LQWHUYLHZHHV WHQGHG WR VHH WKH HYROXWLRQRI ORFDOEXVLQHVV QRUPVLQOLQHZLWKGRPLQDQWEXVLQHVVPRGHOVDVLQHYLWDEOH7KHLUUHDFWLRQVWRWKLV state of affairs were quite varied, ranging from some kind of nostalgia for the good ROGGD\VWRDFOHDUGLVFRQWHQWZLWKZKDWWKH\VDZDVWKHODFNRISURIHVVLRQDOLVP RI WKH ORFDOEXVLQHVVFRPPXQLW\,QPDQ\FDVHV WKHDGRSWLRQRI³REMHFWLYH´RU ³LPSHUVRQDO´ZD\VRIGRLQJEXVLQHVVE\LQWHUYLHZHHVDFWXDOO\VHHPHGHVVHQWLDOO\ PRWLYDWHGE\ WKHSHUFHLYHGXQVXLWDELOLW\RI WKHFXUUHQWFRQWH[WRI ORFDOFXOWXUDO QRUPVWRZKLFKWKH\QHYHUWKHOHVVUHPDLQGHHSO\DWWDFKHG,GULVVD¶VGHVFULSWLRQRI WKH³FXOWXUHRIFRPSURPLVH´DQGLWVLPSDFWRQEXVLQHVVDFWLYLWLHVLOOXVWUDWHVVXFK DPELYDOHQFH