The phenomenon of corporate interlock refers to members of corporate boards of directors serving on multiple boards simultaneously, thus creatinga network of multiple directors and interlocking boards.

This phenomenon occurs worldwide and is a primary mechanism whereby corporations as a network form business associations to lobby, influence, and capture the State. One study examined the “global board interlock network, covering 400,000 firms linked through 1,700,000 edges representing shared directors between these firms.”

While corporate interlock is not inherently indicative of capture, it significantly facilitates collective corporate action by fostering communication and mutual trust among board directors. This often results in corporations presenting a unified front with shared goals or interests. Consequently,interlocking directorates provide corporations with the resources or linkages to maintain or increase their power, making it a common precursor to corporate capture.

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