Corporate Power and Politics Essay

Paper Type:  Essay
Pages:  5
Wordcount:  1114 Words
Date:  2022-05-09

Corporate power is a term used to describe the influence some groups have because of their financial capabilities. It is a means through which a company achieves its objectives and purposes. In social science, power is referred to as the ability to influence or take control over human behavior (Hardy, 1995). Corporations take part in the provision of the power base for individuals. From an economic perspective, companies through their existence create a surplus of income compared to costs by meeting the marketplace needs. However, organizations are also political structures that provide chances for people to grow their careers and are thus a platform for the expression of individual interests and persuasions. An effective organization lays its emphasis on strong leadership, political concerns, and power. These elements are of great importance in the creation of an organization which is fully aware of ethics, values, and culture. Examining the usage of power and politics are compulsory to decipher the behavior of individuals within an organization. Corporate power and politics can be viewed in two respects. In one hand it can be implied as the dishonest side of leadership while on the other hand it can be seen as positively as a tool in which managers use to perform tasks effectively.

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The Corporate world comes with so much power and authority because of its dominance in the society and as a result, can effects changes which are tailor-made to serve their interests. Because the interests of huge corporations do not exactly match those of smaller establishments or individuals, the dovetail with those of smaller entities such as small businesses, the individual or with society at large, the concentration of power in the hands of people running large corporations poses a challenge (Wilks, 2013).

With the era of globalization, corporations with unlimited access to wealth have managed to acquire political powers which have enabled them to influence the ways the laws are made for their own benefits Corporations can influence government through campaign funding, lobbying, and regulatory agencies. Companies now allocate enormous resources to politics, and their involvement on that big scale dangerously restricts the proper functioning of the political system. Big organizations donate money to political campaigns and politicians accept them in return for political favors (Wilks, 2013). Most government agencies solicit help through the use of advisory committees when they need to pass public policies. This information is normally obtained from people in the industry, and consequently, the policies will be in favor of corporations and not the public. Since many corporations are known to have large sums of money at disposable, they can provide advertisements in support of a particular candidate. Also, corporate giants can easily get access to powerful politicians meaning the issues they raise will be heard often and fast.

The rise of corporate power has resulted in a fall in democracy. As far as the mid-1970s, when the corporations collaborated with states, principles, and representatives of democracy have been killed. Not only are the corporate exercising public authority but, but governments are coordinating and serving corporate activities. Resulting from corporate power, oligarchy has replaced democracy. Corporate Power, therefore, is so disastrous to democracy because it acknowledges no limits except those imposed upon it. A corporation with such power has only the objective of maximizing profits and increasing their powers.

Over many years, large corporations have acquired territories and have taken in resources for the state, manipulating lawmakers and violating the laws laid to constrain them, while gaining in power and privileges. It is evident from history that there is an ingrained tendency for corporations to take part in social and environmental destruction including violence. In the past, the state was forced to hold them back through regulation processes. However, the underlying logic of regulation today is generally meant to benefits those who have the resources to sponsor legislation and can afford to hire of lawyers and accounting experts required in order to comply with the regulator needs (Hardy, 1995).

Due to their financial muscles, large corporations often hire consulting firms to do their lobbying. Because they prioritize on running the business, companies rarely have the internal expertise to find the right government official who would fully examine their issues of concern. Group of companies, would, therefore, combine efforts and band to together with funding lobby groups. The lobbyists do their research on all the relevant laws and issues, to find appropriate lawmakers to meet with so that they can present their company's case. Nonetheless, some lobby groups might push for changes that are detrimental to other groups or individuals. Since it's not possible for individuals to afford to lobby, a question is often raised as to whether wealthy corporations have excessively more political power than they should.

Ideally, if the activities of a corporation are conducted in an ethical, equitable, socially responsible way, it can then be said to be doing great good in the society However, if a corporation, with its rights and powers of an immortal being, is controlled by corrupt, greedy, power hungry individuals, it can pose a danger to humankind and the ecosystem.

As the world is getting increasingly industrialized, corporations have gained excess influence and power over the social, economic and political system, especially in the United States. Governments, resources and monetary systems are now controlled by corporate interests in big proportions. Largest corporations, even though they are managed by individuals are owned almost fully by other corporations. Their shareholders normally require the board and management, to take up a profit-at-all-costs approach tin total disregard to human existence, the environment and social justice. Despite the historical tendencies of manipulation of societal fabric and destruction of the environment in seeking for profits, there is an emergence of a transformative corporate culture which is starting to embrace ethical business practices. These attributes are characterized by adoption of corporate social responsibility methods, recruiting credible officers and provision of fair wages as well as better health and education arrangements.


In conclusion, corporate powers can be used by shareholders and management in big organizations to influence the different political sectors in many governments across the world. This has negatively affected the lives of citizens and dented democratic processes in a number of countries because of the selfish nature of corporate societies. The governments also misuse the corporate powers for own corrupt gains at the expense of the citizens that they should serve. However, It's imperative to point out that, if corporate powers are used well, the powers can help solve so many societal problems including ending corruption that is deep rooted in the world.


Hardy, C. (1995). Power and politics in organizations. Aldershot: Darthmouth.

Wilks, S. (2013). The political power of the business corporation.

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