Saturday, December 29, 2007

Power: corporations

How do large corporations wield power? What are the kinds of outcomes that corporate leaders want to influence? What are the instruments available to them through which they can influence outcomes? And are there impersonal means through which corporations influence society -- i.e., wield power or exert causal influence?

Consider first the outcomes. Corporations are businesses with interests. These include first and foremost profitability -- short, medium, and longterm. Profitability is influenced by a number of economic, legal, and political factors: a favorable trading environment; a favorable environment for secure property and contract rights; a favorable regulatory environment; favorable and predictable relationships with the workforce and unions; and favorable attitudes from consumers and the public. So corporate officers are charged to do everything possible to bring about positive results for the company in all these spheres.

Lobbying is a central activity through which the corporation pursues its agenda. The corporation employs professionals at a range of levels whose job it is to persuade and influence political and agency actors -- legislators, staffers, agency officials, lower-level agency workers who can influence regulations and findings. Lobbying works through personal relationships, campaign support (including campaign gifts), and other forms of influence. (The subject of corruption and conflict of interest and commitment comes in here, but not all lobbying effort
falls in that category.)

Advertising, communications, and public relations are related efforts by the corporation through which the corporation exercises influence. The corporation expends substantial resources to "get its message out" -- and these expenditures have measurable effects. Targeted audiences change their opinions and behavior as a result of these efforts.

So far we have identified instruments of suasion and incentives -- persuading various actors to act in ways that are favorable to the corporation. And these efforts are substantially effective because of the weight of the resources the corporation can devote to the effort. Are there also more coercive means available to the corporation? There are. A company can threaten various constituencies through redirection of business activities to compel actions favorable to its agenda. For example, it can threaten to close a factory, or to lay off a group of workers, or to move production to overseas locations. These threats influence the behavior of municipalities, state governments, and unions.

In some historical circumstances corporations can also use violence and the threat of violence as part of its strategy for achieving its agenda. Examples of violence and intimidation can be found in China and Columbia today, and in the British and American business- labor struggles of the past. Violence and intimidation are among the tools through which strategic actors may pursue their goals.

This inventory indicates that businesses behave strategically in pursuit of their interests; that they have means of influencing powerful political and social actors through resources, organization, and intimidation; and that the results of this strategic action over time significantly influence the social space in which business activity, political rule-setting, and labor activism occur. In other words, corporations have significant causal powers in modern societies, and corporations constitute a significant locus of power in the contemporary world.

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