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Industries face collective action and commitment problems when attempting to influence Congress. At the same time, an individual firm's political investments can yield reduced bureaucratic scrutiny by indicating that firm's willingness to contest agency decisions. We develop a model in which the desirability of maintaining a political footprint for this reason enables individual firms to commit to rewarding elected officials who maintain laws benefiting an entire industry. Our dual forbearance model anticipates that corporate political investments will be larger on average when statutes are stringent and that even pro-industry legislative coalitions will benefit politically from the existence of a minimal regulatory state.
Scholars and the public alike have long shared concerns about corporate influence on sovereign states' regulatory powers. However, despite the documentation of some well-known cases of corporate interference with government regulation, an investigation of the overarching mechanism that drives both corporations' willingness and ability to shape regulatory processes is lacking. This dissertation builds on Stigler (1971)'s insight that government regulation is often a corporate demand because of its potential to create an external environment conducive to private benefits. The proposed argument posits that highly innovative firms within complex industries are more likely to support regulatory initiatives proposed by governments, both at the domestic and global levels, because these firms have an interest in locking in a favorable regulatory environment for the exercise of their competitive advantage over rivals. Such support by innovative firms should accelerate the adoption and spread of regulations across countries. On the other hand, less innovative firms within low-complexity industries should be more likely to try to delay or block regulation, thus contributing to slower regulatory processes. I employ a variety of novel data sources to test a series of observable implications derived from this theory at the levels of analysis of global industries, domestic industries, individual firms and specific regulations. I estimate statistical models that leverage the measurement of not only the likelihood of corporate influence on regulation and the direction of such influence, but also of its effects on the timing and pace of regulatory initiatives. I also employ qualitative evidence obtained from interviews and from the analysis of primary and secondary sources to illustrate the mechanism proposed. Results largely corroborate the positive relationship between corporate innovativeness, support for regulation and the acceleration of global regulatory processes. They also show that even though less innovative firms can effectively delay governments' regulatory efforts, such effects can be limited and temporary. These results imply that solutions for complex global problems in areas such as environmental protection and public health can be facilitated by committed governments and innovative corporations. However, by devising policies that benefit innovative firms, governments might end up over empowering already large and politically influential corporations
Leading scholars from across the social sciences present empirical evidence that the obstacle of regulatory capture is more surmountable than previously thought.
"This textbook provides an innovative, internationally oriented approach to the teaching of corporate social responsibility (CSR) and business ethics. Drawing on case studies involving companies and countries around the world, the textbook explores the social, ethical, and business dynamics underlying CSR in such areas as global warming, genetically modified organisms (GMO) in food production, free trade and fair trade, anti-sweatshop and living-wage movements, organic foods and textiles, ethical marketing practices and codes, corporate speech and lobbying, and social enterprise. The book is designed to encourage students and instructors to challenge their own assumptions and prejudices by stimulating a class debate based on each case study"--Provided by publisher.
How has the regulation of business shifted from national to global institutions? What are the mechanisms of globalization? Who are the key actors? What of democratic sovereignty? In which cases has globalization been successfully resisted? These questions are confronted across an amazing sweep of the critical areas of business regulation--from contract, intellectual property and corporations law, to trade, telecommunications, labor standards, drugs, food, transport and environment. This book examines the role played by global institutions such as the World Trade Organization, World Health Organization, the OECD, IMF, Moodys and the World Bank, as well as various NGOs and significant individuals. Incorporating both history and analysis, Global Business Regulation will become the standard reference for readers in business, law, politics, and international relations.
"This publication contains the 'Guiding Principles on Business and Human Rights: Implementing the United Nations Protect, Respect and Remedy Framework', which were developed by the Special Representative of the Secretary-General on the issue of human rights and transnational corporations and other business enterprises. The Special Representative annexed the Guiding Principles to his final report to the Human Rights Council (A/HRC/17/31), which also includes an introduction to the Guiding Principles and an overview of the process that led to their development. The Human Rights Council endorsed the Guiding Principles in its resolution 17/4 of 16 June 2011."--P. iv.
This is a print on demand edition of a hard to find publication. The annual cost of federal regulations in the U.S. increased to more than $1.75 trillion in 2008. Had every U.S. household paid an equal share of the federal regulatory burden, each would have owed $15,586 in 2008. While all citizens and businesses pay some portion of these costs, the distribution of the burden of regulations is quite uneven. The portion of regulatory costs that falls initially on businesses was $8,086 per employee in 2008. Small businesses, defined as firms employing fewer than 20 employees, bear the largest burden of federal regulations. This report shows that as of 2008, small businesses face an annual regulatory cost of $10,585 per employee, which is 36% higher than the regulatory cost facing large firms (500+ employees). Ill.
This Handbook discusses the main issues, research, and theory on business and the natural environment, and how they impact on different business functions and disciplines
Understanding the power of the corporations and how to take the struggle directly to them It's no secret that "the 1%" - the business elite that commands the largest corporations and the connected network of public and private institutions- exercise enormous control over U.S. government. While this control is usually attributed to campaign donations and lobbying, Levers of Power argues that corporate power derives from control over the economic resources on which daily life depends. Government officials must constantly strive to keep capitalists happy, lest they go on "capital strike" - that is, refuse to invest in particular industries or locations, or move their holdings to other countries - and therefore impose material hardship on specific groups or the economy as a whole. For this reason, even politicians who are not dependent on corporations for their electoral success must fend off the interruption of corporate investment. Levers of Power documents the pervasive power of corporations and other institutions with decision-making control over large pools of capital, particularly the Pentagon. It also shows that the most successful reform movements in recent U.S. history - for workers' rights, for civil rights, and against imperialist wars - succeeded by directly targeting the corporations and other institutional adversaries that initiated and benefitted from oppressive policies. Though most of today's social movements focus on elections and politicians, movements of the "99%" are most effective when they inflict direct costs on corporations and their allied institutions. This strategy is also more conducive to building a revolutionary mass movement that can replace current institutions with democratic alternatives.