James Westphal
Social Distancing as a Control Mechanism

The article "Social Distancing as a Control Mechanism" by Professor James Westphal, is part of a larger stream of research that developed a more sociological perspective on corporate leadership and governance, an area of scholarship that had been largely dominated by economic perspectives into the 1990s. In a series of studies, Westphal and colleagues revealed a collection of social and psychological mechanisms by which governance policies, structures, and practices that were assumed to promote the economic interests of shareholders and other stakeholders were frequently subverted in ways that served the interests of powerful corporate elites. One such mechanism was "social distancing," a social sanction in which corporate directors who participated in governance reforms that threatened to increase board control over top management at one firm were socially isolated and even ostracized at other firms where they served on the board. They were less likely to be invited to informal meetings, and other directors were less likely to build on their comments and suggestions or solicit their opinions on strategic issues in formal board meetings. Directors who experienced social distancing, witnessed it firsthand, or were socially connected to a director who experienced it, were less likely to participate subsequently in elite-threatening actions. In that sense, the social distancing that Westphal identified parallels and anticipates the social distancing that we all learned about and practiced during the COVID-19 pandemic. But unlike social distancing during a pandemic, social distancing in corporate leadership, like the other social and psychological mechanisms that the authors uncovered, helped maintain a system that serves the interests of a powerful few rather than the many who depend on it for employment, goods and services, and wealth creation.