Post on 04-Aug-2015
Corporate Social Responsibility and Political Ties
Alireza Omidvar
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
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
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
• 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
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
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.
Corporate Driver for CSR