The Political Power Of The Business Corporation

The large business corporation has become a governing institution in national and global politics. This study offers a critical account of its political dominance and lack of democratic legitimacy.

We have long been told that corporations rule the world, their interests seemingly taking precedence over states and their citizens. Yet, while states, civil society, and international organizations are well drawn in terms of their institutions, ideologies, and functions, the world's global corporations are often more simply sketched as mechanisms of profit maximization. In this book, John Mikler re-casts global corporations as political actors with complex identities and strategies. Debunking the idea of global corporations as exclusively profit-driven entities, he shows how they seek not only to drive or modify the agendas of states but to govern in their own right. He also explains why we need to re-territorialize global corporations as political actors that reflect and project the political power of the states and regions from which they hail. We know the global corporations' names, we know where they are headquartered, and we know where they invest and operate. Economic processes are increasingly produced by the control they possess, the relationships they have, the leverage they employ, the strategic decisions they make, and the discourses they create to enhance acceptance of their interests. This book represents a call to study how they do so, rather than making assumptions based on theoretical abstractions.

Why does corporate governance--front page news with the collapse of Enron, WorldCom, and Parmalat--vary so dramatically around the world? This book explains how politics shapes corporate governance--how managers, shareholders, and workers jockey for advantage in setting the rules by which companies are run, and for whom they are run. It combines a clear theoretical model on this political interaction, with statistical evidence from thirty-nine countries of Europe, Asia, Africa, and North and South America and detailed narratives of country cases. This book differs sharply from most treatments by explaining differences in minority shareholder protections and ownership concentration among countries in terms of the interaction of economic preferences and political institutions. It explores in particular the crucial role of pension plans and financial intermediaries in shaping political preferences for different rules of corporate governance. The countries examined sort into two distinct groups: diffuse shareholding by external investors who pick a board that monitors the managers, and concentrated blockholding by insiders who monitor managers directly. Examining the political coalitions that form among or across management, owners, and workers, the authors find that certain coalitions encourage policies that promote diffuse shareholding, while other coalitions yield blockholding-oriented policies. Political institutions influence the probability of one coalition defeating another.

Shows why business sometimes loses in policy debates despite often having overwhelming resources

Silver WINNER of the 2021 Axiom Business Book Awards in Business Ethics WINNER of the 2021 Jim Deva Prize for Writing That Provokes From the author of The Corporation: The Pathological Pursuit of Profit and Power comes this deeply informed and unflinching look at the way corporations have slyly rebranded themselves as socially conscious entities ready to tackle society's problems, while CEO compensation soars, income inequality is at all-time highs, and democracy sits in a precarious situation. Over the last decade and a half, business leaders, Silicon Valley executives, and the Davos elite have been calling for a new kind of capitalism. The writing was on the wall. With income inequality soaring, wages stagnating, and a climate crisis escalating, it was no longer viable to justify harming the environment and ducking taxes in the name of shareholder value. Business leaders realized that to get out in front of these problems, they had to make social and environmental values the very core of their messaging. Their essential pitch was: Who could be better suited to address major societal issues than efficiently run corporations? There is just one small problem with their doing well by doing good pitch. Corporations are still, ultimately, answerable to their shareholders, and doing well always comes first. This essential truth lies at the heart of Joel Bakan's argument. In lucid and engaging prose, Bakan lays bare a litany of immoral corporate actions and documents corporate power grabs dressed up as social initiatives. He makes clear the urgency of the problem of the corporatization of society itself and shows how people are fighting back and making gains on a grassroots level.

Investigates to what extent business can get what it wants politically as firms and trade associations have a better understanding of the likely effects of policy than politicians and because their decisions partly determine these effects.

Why we’re better off treating corporations as people under the law—and making them behave like citizens Are corporations people? The U.S. Supreme Court launched a heated debate when it ruled in Citizens United that corporations can claim the same free speech rights as humans. Should corporations be able to claim rights of free speech, religious conscience, and due process? Kent Greenfield provides an answer: Sometimes. With an analysis sure to challenge the assumptions of both progressives and conservatives, Greenfield explores corporations' claims to constitutional rights and the foundational conflicts about their obligations in society. He argues that a blanket opposition to corporate personhood is misguided, since it is consistent with both the purpose of corporations and the Constitution itself that corporations can claim rights at least some of the time. The problem with Citizens United is not that corporations have a right to speak, but for whom they speak. The solution is not to end corporate personhood but to require corporations to act more like citizens.