Business Has Too Much Political Power - Coursework Example

Business has too much political power Name: Course: Tutor: Date: Business has too much political power Introduction The extent to which business possesses political power can be discussed from different aspects. There is however, some interdependence between the two. From the economic side, the government depends on business for survival especially from the revenue generated. From the business perspective, the government plays an important role in supporting businesses. The essay seeks to provide an insight into the amount of power that business has in relation to the government. In reality, both institutions do not get enough of what they want from each other. The essay will provide a discussion of the power of business in the light of the comment that business has too much political power. For many years, many criticisms have been pointed towards business. We agree that business has too much political power because business is too powerful, too big, pollutes the environments and exploits the involved parties for its own gain. It does not tell the truth, takes advantage of consumers and workers and has a perceived abuse of power (Carroll & Buchholtz, 2008, p. 16). Some citizens are of the opinion that business has too much power over the many aspects of life. We will begin by getting an understanding of political power, business power and then just how so much political power is given to businesses. Political power is the struggle of power. It is a power that allows administration of some or all of the resources necessary for the health of a business. Individuals or businesses involved pursue their own self-centered interests at the expense of others. The main question with this kind of power is who gets what, how and when. The involved parties are driven by the will to power. The question here is if politics is meant for competition where individuals try to obtain their wellbeing at the disbursement of others, why are such values as justice, freedom and inequality playing recurrent and large roles in the political life? This kind of power sometimes fails to account for the many dimensions taken by politics. Businesses do not wish to have their selfish interests and objectives unmasked because their achievements will be made more difficult (Hawkesworth & Kogan, 2004, p. 23). The consumers and others minor businesses do not also wish to confront their own craven natures. They instead opt to mask the ruling businesses’ self-interests. The values of politics are often wrongly unmasked as manifestations of the will to power. Business power is the capacity or ability to influence or produce an effect to bear on people or on a situation. The power can be negative or positive. In the business context, power is often seen as being abused (Carroll & Buchholtz, 2008, p. 19). Business power can be manifested at several levels such as macro level, intermediate level, micro level and individual level. The level of power has to be specified though when discussing the issue. In this case, political power is employed which exerts some influence on the way business is conducted. Business exercises their power via lobbying, party finance activities and campaigns. Businesses are essential since it has the power to decide future investments. The investments are critical in the enhancement of national income and creation of new employment. The power of business is both weak and strong depending on some factors. There are areas where businesses lack political power and areas where they enjoy the highest levels of power. Political power can be very dangerous if allowed to go beyond the necessary and appropriate boundaries. It becomes dangerous if businesses are allowed to engage in physical forces against each other. It has to be controlled to limit the use of such forces so that force is only used to protect the rights of businesses and not to violate them (Simpson, 2005, p. 66). Some businesses use their wealth to obtain some special powers from the government, the question here is doing this become a threat to other businesses? In a capitalist society, famous businesses are not allowed to use their wealth to initiate force against their fellow businesspersons. Even if, the businesses are allowed to finance election campaigns, the power they get is only limited to, protection of individual rights (Simpson, 2005, p. 67). It is business to defend the human rights of individuals no matter the economic status. There has been reported divide between big and small businesses in terms of power (Hall, 2010, p. 1). Politicians tend to focus their attention to the companies that are doing big business. This results in, some businesses having too much power over others. Some governments involve themselves in their economic growth to an extent of establishing public utilities. An example is the Australian government that provides capital for investment and has regulatory activities (Ward & Stewart, 2006, p. 16). The role of government is to ensure that markets operate freely without the presence of struggle for power. The government ensures that the monopoly issue is rid of so that citizens are given the freedom to choose whatever suits their needs. Political entities are important points of attachment particularly for businesses. The government usually has the ability to restrict, prohibit and license many activities. This applies to businesses since they require permits and premises where they can carry out their commercial activities Galligan & Ravenhill, 1997, p. 46). The argument here is that there are major contributing factors to the political power of businesses. The factors include the political matrix, the level of cooperation and interaction between the diverse business sectors, the strengths of structures that support organized interests and the possibility of powerful interference from the other sectors of society. The power of business in the context of politics is fragmented between the various sectors. The fragmentation could result in conflicts between businesses, which could be an advantage to the government. The political power of businesses is big and powerful but also fragmented. The political power of businesses is also determined by the society power infrastructures. The government often acts as a coordinator between the business and activists representing consumers. Businesses with much power often benefit from the system as a decision made is always to their favor. The government has to be able to maintain a favorable business climate hence businesses will bail out from the economy and opt to invest elsewhere. This further proves the fact that the government is reliant on business for its growth and survival. The capacity of government to create and enforce laws relating to business creates an incentive and a rise to competition, which captures or influences the government (Ward & Stewart, 2006, p. 19). Business provides support to many groups in government and society. The indirect power, that businesses enjoy, can influence policy making in a more effective manner. The support of different groups, enhances the interests in government policy making. The government does not have control over many factors of the economy. The factors include investments, employment levels and technological innovation. Businesses, on the other hand, enjoy the control over the factors, which are essential components of the economy. Businesses enjoy the opportunity of choosing whether to adopt new policies created by the government, de-invest or diversify into other markets. Businesses and firms often have the power to set policies regarding the public. This means that they have the freedom to make the rules that they like (Coen, Grant & Wilson, 2010). They also make deals between each other for setting rules and standards of trade. The electoral power is also delegated to the business sectors. There is a correlation between political parties being reelected and satisfactory performance. Political parties will ensure that they are reelected by adopting policies to business needs and interests. A good business climate fosters investments hence increase the economic welfare as well as provide employment. Government officials as individuals who perform functions regarded as indispensable views businesspersons. Business leadership provides insights into how government leadership is supposed to be structured and how it works (Vogel, 2003, p. 6). There is a belief that businesses provides a healthy and safe surroundings to labor in, is able to hire the chronically unemployed, affords to build and rebuild cities, makes safe products and improves the living standards of individuals. The interests of businesses are different. They can either use the power to advance their collective interests or to compete with each other. Most government systems are structured to favor businesses. It is easy for business groups to gain insider status with their large policy networks and capital base hence obtain political power. It is usually to the advantage of businesses that lobbying takes place in government (Coen, p. 198). Conclusion The question of how many, businesses exercise political power has given rise to many controversial issues. There is a give and take relationship between the government and businesses. This means that they highly depend on one another. The level of power awarded to businesses should however, be restricted to avoid the domination of some businesses over others. There is dependence in both sides of the equation with government on one side and business on the other. Businesses enjoy a privileged position in government and society due to success in politics and in maintaining interest groups, pressure groups, unions and industry associations. We can therefore, conclude that business has too much political power. References Carroll, A & Buchholtz, A. (2008). Business and society: Ethics and stakeholder management. New York: Cengage Learning. Coen, D., Grant, W & Wilson, G. (2010). The oxford handbook of business and government. Cambridge: Oxford University Press. Coen, D. Environmental and business lobbying alliances in Europe learning from Washington? Retrieved from, . Galligan, B & Ravenhill, J. (1997). New Developments in Australian Politics. Eagle Farm QLD: Macmillan Education AU. Hall, A. (2010). Business Divides: Big Companies Have Too Much Power and Influence in DC, Small Business Has Too Little. Harris Interactive. Hawkesworth, M & Kogan, M. (2004). Encyclopedia of Government and Politics, vol. 1. New York: Routledge. Simpson, B. (2005). Markets do not fail. New York: Lexington Books. Vogel, D. (2003). Fluctuating Fortunes: The political power of Business in America. New York: Beard Books. Ward, I & Stewart, R. (2006). Politics One, 3rd Edition. South Yarra: Palgrave Macmillan, Chapter 1. Read More