Institutional Sources of Business Power (original) (raw)
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Political sociologists have identified a seeming contradiction: over the past forty years, the world has seen a renaissance in public engagement practices; yet during the same time, economic inequality has increased dramatically. Resolving this contradiction requires a reconsideration of political action in capitalist democratic societies. Similar to how Steven Lukes reconceived of power according to three dimensions, a similar move is made with regard to political action. Political sociologists tend to posit that only two dimensions of political action exist—electoral and participatory-deliberative activity. However, abiding by these two dimensions overlooks a third dimension of political action, which is integral to understanding how corporate power is constituted in the twenty-first century. Economic actions are themselves forms of political participation. Through economic activities, like consumption, individuals provide corporations with the economic capital that they translate into political power. Rather than understanding corporations as external, private entities colonizing and corrupting the pure logic of democracy, this chapter develops a theory of corporations as ‘franchise governments’ that are neither private nor public entities but firmly situated within both camps.
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This paper examines the increasingly diverse range of roles played by the corporate sector in shaping education policy. While a growing body of scholarship has documented the deepening embeddedness of the corporate sector within policy-making processes, empirical research on the strategies mobilized by corporate actors remains unsystematised and fragmentary. Furthermore, existing categorizations of corporate policy-influence strategies are frequently restricted to a limited group of Anglo-Saxon countries and, consequently, are ill suited to capturing emerging policy dynamics globally. Building on the results of a literature review, this paper categorises four emerging strategies articulated by the corporate sector: knowledge mobilization, networking, engaging with grassroots, and leading by example. Each strategy is illustrated with examples from a selection of country case studies. These examples suggest that, in the education policy domain, the corporate sector operates not only as a policy influencer, but increasingly as a policy actor organically embedded within policy-making processes and spaces.
Georgetown University: Program of Development Management & Policy, 2018
This thesis investigates the influence of business on the public policymaking process in the United States. A framework is proposed for categorizing policymaking contexts and mechanisms of influence, synthesized from previous literature on structural versus institutional power, automatic versus instrumental influence, arenas of power, and on the opportunity structures pertaining to distinct varieties of capitalism. Much of the literature on business’ influence on policy performs analyses at the corporation level, resulting in the limited consideration of firms as formal-legal entities, as rational “black-box” actors, or as ensembles of resources. This thesis proposes an assemblage-theoretic approach to conceptualizing the firm and its position within political institutions and political-economic structures. It is argued that firms’ preferences and capacities for influence are properties emergent from the extrinsic relations among actors and resources within the firm, as well as from firms’ extrinsic relations with other actors in broader structural and institutional networks. This framework is demonstrated through an analysis of the Department of Energy’s Loan Guarantee Program (LGP), including an institutional and structural history of the program, a quantitative analysis of the program’s portfolio, and a qualitative analysis of two high-profile cases: Tesla and Solyndra. The qualitative analysis illustrates the instrumentalization of automatic pathways of influence, the transformation of transactional mechanisms into relational pathways, and the interaction of formal and informal pathways. The multivariate regression analyses show a significant positive relationship between lobbying and loan size, reinforcing the notion that relational pathways are instrumentalized effectively by firms at the stage of distribution. Political contributions were not found to be statistically significant, but were negatively associated with loan size, suggesting that the impact of contributions may be indirect through their transformation into relational pathways over time. It is proposed that additional emergent properties captured by the mapping of firm assemblages, such as mediated relational pathways, may be modeled using the framework developed and quantified using network analysis. It is argued that the conception of firms as assemblages comprising larger institutional and structural networks is a promising inroad to future study of business’ influence on policymaking, with broader implications for policy studies and political economy.