Corporations have evolved to become a key social and political actor (Barley, 2007; Farnsworth, 2004; Farnsworth and Holden, 2006; Matten and Moon, 2008; Miller and Mooney, 2010; Schuler, 2008; Skylair and Miller, 2010). The fact that corporations can undermine the concept of democracy is an indicator of their growing power, especially to influence policymaking (Barley, 2007; Farnsworth and Holden, 2006; Roth, 2002). Barley outlines three ways corporations have undermined the concept of representative democracy and the public good: (1) corporations have supported and pushed for legislations that benefits businesses at the expense of the public; (2) corporate utilization of policy influence mechanisms, such as lobbying groups, have hampered
agencies created to protect the public good from corporate externalities; (3) lastly, functions that have historically been mandated by the various levels of government have increasing been privatized. The power corporations wield, and how they exercise it, has the capacity to shape institutions influencing their effectiveness (Campbell, 2006) resulting in the potential to change the overall dynamics of society. Shaffer categorized the three reasons for corporate political activity (1995). (1) Firms use the policy process to enhance their legitimacy. The direct relationship between political activity and legitimacy has been established through various papers (Marcus et. al., 1987). (2) A firm and industry’s size and structure determines a firm’s political behavior. An industry that is heavily regulated will more likely participate politically. Lastly, (3) the firm’s goal to gain competitive advantage motivates companies to participate in political activity. For example, firms may support and encourage legislation that increases industry costs if it will result in the rearrangement of market shares due to the exit of a firm from the market (Oster, 1982).
A corporation was originally designed to allow for the forming of a group to get a single project done, after which it would be disbanded. At the end of the Civil War, the 14th amendment was passed in order to protect the rights of former slaves. At this point, corporate lawyers worked to define a corporation as a “person,” granting them the right to life, liberty and property. Ever since this distinction was made, corporations have become bigger and bigger, controlling many aspects of the economy and the lives of Americans. Corporations are not good for America because they outsource jobs, they lie and deceive, and they knowingly make and sell products that can harm people and animals, all in order to raise profits.
The growth of large corporations had impacted American politics by causing governmental corruption because of the power some industries had in society. Since the government had used laissez faire in the late 1800s for the big businesses to...
in lobbying policy makers, the role of business in financing elections, and messages favorable to
Lobbying is used to influence public policy so it’s expected that people will want to measure the influence of the lobbyists on the legislative process. However, they have avoided it because of the fact that it’s troubling to measure the influence concept quantitatively (Mahoney 35; John 27). Some of the reasons for are that there are too many variables, assumptions about the effect of lobbying are flawed because studies have been unable to establish convincing counterfactuals such as what effect an organization would have on policy if lobbyists' activities were not performed, and that self-reports on inf...
At first glance, it seems implausible the word democracy isn't written in the United States Constitution, or in the Preamble of the Constitution, or even in the Declaration of Independence. One would assume a concept so paramount to modern American culture would surely be derived from one of its oldest and most endeared documents. Alas, it is not. The Constitution only specifically mentions two entities, the government and “We the People”. Defining government is an easy enough task, but who are “We the People”? Originally consisting of only white male property owners, eventually adding in other races, income classes, women, and astonishingly, corporations, the definition of “We the People” has evolved numerous times. Corporation is another key term the architects of our government failed to define for us, perhaps that is why it found its way into the phrase “We the People”. A grave dilemma lies in this fallible defining of terms. Granting corporations person-hood legislatively shifts the power of democracy from human interests to corporate interests. This corrosion of human interest can clearly be noted when examining the battle over corporate power highlighted in the court cases of Sebelius v. Hobby Lobby, Citizens United v. Federal Election Commission, and United States v. Sourapas and Crest Beverage Company.
Corporations are thought to have utmost power on shaping how the United States is ran, whether economically, environmentally, or socially. Business dictates in this country how we live, where we live, and unfortunately, if the people of this country are to face good times or bad times. If the economy falters in the United States, which is the foundation of business, then this country will also falter. With this knowledge by big business, the corporations have corporate hegemony; the ability to wield power and the mold making influence on Congress to shape laws and design loopholes for these massive corporations to jump through just in case.
The pluralistic scholar David Truman notes that “the proliferation of political interest groups [is] a natural and largely benign consequence of economic development” (Kernell 2000, 429). That is, as American economic development increases, in the form of industry, trade, and technology, factions are produced in order to protect special interests. Factions have a large platform on which to find support from various political parties, committees, subcommittees, and the courts, as well as federal, state, and local governments (Kernell 2000, 429).
Direct Democracy vs Representative Democracy The term Democracy is derived from two Greek words, demos, meaning people, and kratos, meaning rule. These two words form the word democracy which means rule by the people. Aristotle, and other ancient Greek political philosophers, used the phrase, `the governors are to be the governed', or as we have come to know it, `rule and be ruled in turn'. The two major types of democracy are Representative Democracy and Direct
There are those that believe big business has a less dominant role in the government because “researchers found that when citizen interest groups and other competitors opposed businesses on policies, businesses had roughly an equal chance of success as the citizen group,” (ScienceDaily). When going against citizen interest groups, big businesses do not retain as much of an advantage. However, in reality it is obvious that big businesses still have an advantage against the working class and other citizens when it comes to government power. “Lobbyists for businesses also have the resources to outlast citizen groups and pursue a variety of policy changes simultaneously,” (ScienceDaily). Corrupt corporations continue to use their money and power to influence the government, particularly if it benefits
The “advocacy explosion” in the United States in the 20th century has been caused by the extreme increase in the number of interest groups in the United States. The general public views the increase and the groups themselves as a cancer that has come to the body of American politics and is spreading. The explosion in the number of interest groups and interest group members and finances has had an effect on the decline of the American political party and partisanship, the effect on democracy and the public interest, and the bias that has come with interest group competition.
It is known that corporations play a large part in making the world go around. Many times we read, hear or see stories on companies and why something was done a certain way. The film “The Corporation” has given a whole new insight to not only how businesses operate but what motivates them and their decisions that they make to keep their businesses thriving.
Covey & Brown (2001) “the role of business in society has progressed over the years, from being primarily concerned with profit for sharehold¬ers to a stakeholder and community approach with a focus on corporate social responsibility”
When the problem became serious two main views formed: the “narrow” view and the “broader” view, based on different ideas. The “narrow” view is based on the proposition that corporations have no social responsibility and they have only one main purpose, to make a profit (Friedman, 1970). So corporations should remain socially independent and all conflicts must be solved through the individual responsibility concept. On the contrary the “broader” view states that corporations have social obligations as all existing participants of market, persons and entities are tied together and are mutually dependent. So corporations cannot ignore some serious events or problems, which take place, and must help society, as profit is not their single purpose.
It seems obvious that large corporations have a tendency to ignore the negative effects of their actions in favor of profit. This example, although sensationalized, still says to me that with power comes responsibility. It affirmed my belief that a corporation’s goal cannot be just to provide profit to shareholders, but there must also be an element of social responsibility.
Corporations that place an importance on corporate social responsibility usually have an easier experience when dealing with politicians and government regulators. In compare, businesses that present an irresponsible disregard for social responsibility tend to find themselves fending off various reviews and probes, often brought on at the assertion of public service organizations. The more positive the public insight is that a corporation takes social responsibility seriously; the less likely it is that innovative groups will launch public campaigns and claim government inquiries against it.