2. Main sources of corporate power
• Privileged position of business; Public officials
see businessmen as their partners in
governance
• Superior political resources; more tangible
resources to bear on the political process
(Money information and organization)
• business’ ability to shape public preferences
with persuasion
• CSR and philanthropy activities
3. CSR as Political Power
• CSR understood in three politically relevant
ways
– As public goods provision, (goodschools, low crime rates,
and clean air)
– As self-regulation,(business ethics codes or codes of conduct;
efforts to ensure racial, ethnic, and gender diversity , compliance with
labor laws)
– As political philanthropy (hard money contributions,
soft money contributions, lobbying resources, information
and expertise
4. Benefit
• Gain favorable regulatory treatment or helped
you avoid additional regulation
• Obtain a specific political benefit such as
legislative support from a particular official, a
government contract, or a tax break
• Improve relationships with other groups active
in the political process, such as consumer
advocacy, environmental, or labor groups
5. • for example, reported that 72 percent of all
Washington lobbying organizations represented
business interests, while only 5 percent
represented citizens’ groups, and only 2 percent
represented labor interests
• In January 2010, a US Supreme Court ruling
removed limits on corporate spending in political
campaigns.
• Responsible Lobbying initiatives around the world
Facts
6. Developing Countries
• government as dominant
player in the economy
• Rentier Government
or rentier state
• Quasi government Co and
• State Owned Enterprise
are main player in the
economy.
• CSR as a tools for Toll Management
• Respond to the expectation of
pressure groups
• CSR activities may flatter a
politician’s ego, help him fulfill a
fundraising responsibility to an
organization, support ideological or
public policy goals he is deeply
committed
• Obtain a specific political benefit
such as legislative support from a
particular official, a government
contract, secure their position and
get promoted
• Gain favorable regulatory treatment
or helped business avoid additional
regulation
7. Developing Countries
• Corporation and Director don’t know about the social
challenges
• Their CSR Activities are in favor of Political party and
political interest group
• Their CSR Activities focus on religious and old
fashioned issue
• They waste money on building mosques , Schools, they
are not trying to solve or tackle the real social issues ,
they are not partner of the society
• Firm ability to vary public goods provision means that
firms can privilege interests affiliated with certain
officials
• Corporations use lobbying to follow their self-interest
under the mask of CSR.
These include the provision of key economic goods (the privileged position of business, or structural dependence), hard
money contributions, soft money contributions, lobbying resources, information and expertise, and the power to shape public opinion whether corporations view corporate social responsibility as a political resource
Public officials who are judged by voters
on the quality of local schools, the availability of child care, or the level of air pollution
are likely to look upon firms who help them do their jobs as allies. Politicians have a
material interest in encouraging such firms to continue their efforts.
He suggests that firms can use philanthropy to obtain access to
lawmakers by supporting charitable events at which lawmakers will be present or by
supporting lawmakers’ pet charity projects. philanthropy should be viewed as part of the corporate political portfolio
At least three strategies are plausible. Firms may find
corporate responsibility efforts effective at building generalized goodwill among multiple
political audiences (reputation management), they may deliberately use CSR to
strengthen ties to particular political actors (relationship building), or they may undertake
some CSR action in an effort to secure a specific political benefit (political bargaining).
