Retrieving corporate policy: managing minority dissent

Abstract

Purpose

The purpose of the research was to discover to what extent franchisees supported the direction the company was taking as determined by the board of directors. Specifically, franchisees were invited to comment on corporate policies, initiatives and values that they were expected to implement and embody in their daily business practices.

Design/methodology/approach

This article presents the findings from an international study conducted on the world's largest retail bakery franchisor which operates some 670 bakeries (January 2004) throughout Australia and New Zealand.

Findings

In many key areas of company policy and values, a considerable proportion of franchisees appeared to be strongly opposed to, or ignorant of, what the corporate body was promoting as business strategy. With respect to environmental initiatives, many franchisees are not supporting corporate policy to a very significant degree and some major initiatives seem destined to fail unless effective intervention is enacted. A proportion of franchisees are not implementing many core policies designed to promote good employee relations and develop staff potential. There were also some concerns regarding franchisee attitudes towards community involvement.

Originality/value

Outlined here are the distinct characteristics of franchise organizations that can combine to frustrate corporate governance. The survey findings as they relate to the company's policy initiatives and organizational values are discussed, along with recommendations for developing more effective franchisor‐franchisee relationships.

Citation

Davis, P. (2005), "Retrieving corporate policy: managing minority dissent", Corporate Governance, Vol. 5 No. 4, pp. 64-74. https://doi.org/10.1108/14720700510700420