Upload File

the lack of consistency between corporate lobbying and csr ...httpauxpages)/985c281a0a1… ·...

  • Home
  • Documents
  • The lack of consistency between corporate lobbying and CSR ...httpAuxPages)/985C281A0A1… · Corporate lobbying can have negative impact on developing countries (e.g. Blowfield2004,
21
The lack of consistency between corporate lobbying and CSR policies Bart Slob & Francis Weyzig Centre for Research on Multinational Corporations (SOMO) UNRISD Conference, Geneva, 11 Nov 2007

Upload: others

Post on 24-Jun-2020

2 views

Category:

Documents


0 download

Report

TRANSCRIPT

Page 1: The lack of consistency between corporate lobbying and CSR ...httpAuxPages)/985C281A0A1… · Corporate lobbying can have negative impact on developing countries (e.g. Blowfield2004,

The lack of consistency

between corporate lobbying

and CSR policies

Bart Slob & Francis Weyzig

Centre for Research on Multinational

Corporations (SOMO)

UNRISD Conference, Geneva, 11 Nov 2007

Page 2: The lack of consistency between corporate lobbying and CSR ...httpAuxPages)/985C281A0A1… · Corporate lobbying can have negative impact on developing countries (e.g. Blowfield2004,

Outline

� Background

� Questions

� Lobbying targets

� Lobbying channels

� Government regulation

� Voluntary initiatives

� Conclusions & recommendations

Page 3: The lack of consistency between corporate lobbying and CSR ...httpAuxPages)/985C281A0A1… · Corporate lobbying can have negative impact on developing countries (e.g. Blowfield2004,

Background

� Corporate lobbying can have negative impact

on developing countries (e.g. Blowfield 2004,

Dharanajan 2005, Utting 2000)

� Alignment of corporate lobbying with CSR

policies lacking (Blowfield 2005)

� Few studies on corporate lobbying in

developing countries

Page 4: The lack of consistency between corporate lobbying and CSR ...httpAuxPages)/985C281A0A1… · Corporate lobbying can have negative impact on developing countries (e.g. Blowfield2004,

� How can stakeholders verify corporate

lobbying practices?

� How can lobbying be regulated and included in

CSR policies?

� What differences exist w.r.t. lobby targets

and channels?

Questions

Page 5: The lack of consistency between corporate lobbying and CSR ...httpAuxPages)/985C281A0A1… · Corporate lobbying can have negative impact on developing countries (e.g. Blowfield2004,

Lobbying can influence (Henriques 2007):

� Legislation

� Interpretation of legislation by judiciary

� Political ties (donations)

� Other stakeholders (brand management)

Lobbying targets

Page 6: The lack of consistency between corporate lobbying and CSR ...httpAuxPages)/985C281A0A1… · Corporate lobbying can have negative impact on developing countries (e.g. Blowfield2004,

Important to distinguish policy areas:

� Directly related to CSR

� E.g. Shell lobbying against UN Norms

� Other relevant policies

� E.g. Financial Leaders Group lobbying for

liberalisation of financial services

Lobbying targets

Page 7: The lack of consistency between corporate lobbying and CSR ...httpAuxPages)/985C281A0A1… · Corporate lobbying can have negative impact on developing countries (e.g. Blowfield2004,

3 dimensional model (Hillman & Hilt 1999):

1. Approach � transactional or relational

2. Participation level � individual or collective

3. Type of strategy (Getz 1997)

A. Information-oriented types � informing

decision makers, revolving doors

B. Pressure-oriented types � financial

incentives (donations, threats &

promises), constituency building

(grassroots campaigning)

Lobbying channels

Page 8: The lack of consistency between corporate lobbying and CSR ...httpAuxPages)/985C281A0A1… · Corporate lobbying can have negative impact on developing countries (e.g. Blowfield2004,

Additional strategies for salient issues (Bonardi & Keim 2005):

3. Type of strategy

A. Information-oriented types �

… influence experts, opinion leaders,

journalists (early stage)

B. Pressure-oriented types �

… self-regulation to pre-empt government

regulation (late stage, for policies directly

related to CSR)

Lobbying channels

Page 9: The lack of consistency between corporate lobbying and CSR ...httpAuxPages)/985C281A0A1… · Corporate lobbying can have negative impact on developing countries (e.g. Blowfield2004,

Lobbying channels

Coll.Indiv.

AdvertisingPublic

Constituency

building

Stake-

holders

Self-regulation

Threats

DonationsPolicy

makers

3B.

Pressure-

oriented

Influencing

experts

Experts

Revolving doors

Direct lobbyingPolicy

makers

3A. Infor-

mation-

oriented

2. Part. level3. Type of

strategy

Target

group

Orienta-

tion

Page 10: The lack of consistency between corporate lobbying and CSR ...httpAuxPages)/985C281A0A1… · Corporate lobbying can have negative impact on developing countries (e.g. Blowfield2004,

For developing countries:

Foreign companies can also exert pressure via

home country government

E.g. in China, when domestic strategies are

insufficient (Kennedy 2007)

Lobbying channels

Page 11: The lack of consistency between corporate lobbying and CSR ...httpAuxPages)/985C281A0A1… · Corporate lobbying can have negative impact on developing countries (e.g. Blowfield2004,

� Cisco (ICT company) lobbyist appointed US

assistant secretary of commerce, then

founded lobby firm; favourable changes in US

policies

� American Chamber of Commerce speaking out

against new Chinese labour law

� ExxonMobil funding climate change denial

groups, directing Global Climate Coalition

� US agribusiness companies invited by USTR to

defend in-kind food aid in trade negotiations

Lobbying channels – examples

Page 12: The lack of consistency between corporate lobbying and CSR ...httpAuxPages)/985C281A0A1… · Corporate lobbying can have negative impact on developing countries (e.g. Blowfield2004,

Lobbying channels - examples

Coll.Indiv.

AdvertisingPublic

Constituency

building

Stake-

holders

Self-regulation

Threats

DonationsPolicy

makers

3B.

Pressure-

oriented

Influencing

experts

Experts

Revolving doors

Direct lobbyingPolicy

makers

3A. Infor-

mation-

oriented

2. Part. level3. Type of

strategy

Target

group

Orienta-

tion

Page 13: The lack of consistency between corporate lobbying and CSR ...httpAuxPages)/985C281A0A1… · Corporate lobbying can have negative impact on developing countries (e.g. Blowfield2004,

Lobbying channels – examples

Coll.Indiv.

AdvertisingPublic

Constituency

building

Stake-

holders

Self-regulation

Threats

DonationsPolicy

makers

3B.

Pressure-

oriented

Influencing

experts

Experts

CiscoRevolving doors

CiscoDirect lobbyingPolicy

makers

3A. Infor-

mation-

oriented

2. Part. level3. Type of

strategy

Target

group

Orienta-

tion

Page 14: The lack of consistency between corporate lobbying and CSR ...httpAuxPages)/985C281A0A1… · Corporate lobbying can have negative impact on developing countries (e.g. Blowfield2004,

Lobbying channels – examples

Coll.Indiv.

AdvertisingPublic

Constituency

building

Stake-

holders

Self-regulation

ChinaChinaThreats

DonationsPolicy

makers

3B.

Pressure-

oriented

Influencing

experts

Experts

Revolving doors

ChinaChinaDirect lobbyingPolicy

makers

3A. Infor-

mation-

oriented

2. Part. level3. Type of

strategy

Target

group

Orienta-

tion

Page 15: The lack of consistency between corporate lobbying and CSR ...httpAuxPages)/985C281A0A1… · Corporate lobbying can have negative impact on developing countries (e.g. Blowfield2004,

Lobbying channels – examples

Coll.Indiv.

AdvertisingPublic

Exxon

Mobil

Constituency

building

Stake-

holders

Self-regulation

Threats

DonationsPolicy

makers

3B.

Pressure-

oriented

Exxon

Mobil

Influencing

experts

Experts

Revolving doors

Direct lobbyingPolicy

makers

3A. Infor-

mation-

oriented

2. Part. level3. Type of

strategy

Target

group

Orienta-

tion

Page 16: The lack of consistency between corporate lobbying and CSR ...httpAuxPages)/985C281A0A1… · Corporate lobbying can have negative impact on developing countries (e.g. Blowfield2004,

Lobbying channels – examples

Coll.Indiv.

AdvertisingPublic

Constituency

building

Stake-

holders

Self-regulation

Threats

DonationsPolicy

makers

3B.

Pressure-

oriented

Influencing

experts

Experts

Revolving doors

Food aidDirect lobbyingPolicy

makers

3A. Infor-

mation-

oriented

2. Part. level3. Type of

strategy

Target

group

Orienta-

tion

Page 17: The lack of consistency between corporate lobbying and CSR ...httpAuxPages)/985C281A0A1… · Corporate lobbying can have negative impact on developing countries (e.g. Blowfield2004,

US survey among executives and congressional aides (Lord 2000):

� Constituency building most effective to get

proposed law passed or defeated

� Direct lobbying by executives or lobby firms

most effective to influence content of

legislation

� Advocacy advertising and political donations

much less effective

Lobbying channels – importance

Page 18: The lack of consistency between corporate lobbying and CSR ...httpAuxPages)/985C281A0A1… · Corporate lobbying can have negative impact on developing countries (e.g. Blowfield2004,

Lobbying channels – importance

Coll.Indiv.

LowLowAdvertisingPublic

HighConstituency

building

Stake-

holders

Self-regulation

Threats

LowDonationsPolicy

makers

3B.

Pressure-

oriented

Influencing

experts

Experts

Revolving doors

HighHighDirect lobbyingPolicy

makers

3A. Infor-

mation-

oriented

2. Part. Level3. Type of

strategy

Target

group

Orienta-

tion

Page 19: The lack of consistency between corporate lobbying and CSR ...httpAuxPages)/985C281A0A1… · Corporate lobbying can have negative impact on developing countries (e.g. Blowfield2004,

Types of government regulation (Chari & Murphy 2007):

� Disclosure of political donations

� Disclosure of lobbying positions

� Registration of lobbyists

� Disclosure of payments to lobby firms

� Government revolving door regulation

� Only a few jurisdictions have regulations (US,

EU, Canada, Germany)

� Often lowly or intermediately regulated

Government regulation

Page 20: The lack of consistency between corporate lobbying and CSR ...httpAuxPages)/985C281A0A1… · Corporate lobbying can have negative impact on developing countries (e.g. Blowfield2004,

Voluntary initiatives often concern disclosure:

� Disclosure of political donations most common

(GRI S05)

� Some companies report lobbying issues, but

not positions (GRI S06)

� No systems to align lobbying activities with

CSR policies (e.g. SOMO pharma survey 2006)

� No initiatives on collective level

Voluntary initiatives

Page 21: The lack of consistency between corporate lobbying and CSR ...httpAuxPages)/985C281A0A1… · Corporate lobbying can have negative impact on developing countries (e.g. Blowfield2004,

Conclusions:

� Lack of consistency between lobbying and CSR

not prevented

� Most important lobbying channels are least

addressed

� Some lobbying channels cannot be regulated

Recommendations:

� Lobbying must be included in CSR policies

� Companies need to report on all lobbying

channels and also on lobbying positions

Conclusions & recommendations


The Corporate Value of (Corrupt) LobbyingBorisov, Goldman, Gupta The value of (corrupt) lobbing May 2013 Lobbying in the U.S. Lobbying is a key channel by which U.S. corporations interact

The corporate value of (corrupt) lobbying › nagupta › bgg_Jan2014.pdfThe corporate value of (corrupt) lobbying Alexander Borisov, Eitan Goldman, and Nandini Gupta * January 2014

CORPORATE LOBBYING AND FRAUD DETECTIONweb-docs.stern.nyu.edu/salomon/docs/conferences/yu_yu.pdf · This paper examines the relation between corporate lobbying and fraud detection

Corporate lobbying

THE STRUCTURE AND CONDUCT OF CORPORATE LOBBYING …web.mit.edu/jdefig/www/papers/structure_conduct.pdf · the structure and conduct of corporate lobbying: how firms lobby the federal

Corporate Lobbying Revisited - uni-muenchen.de · 2019-10-07 · Munich Personal RePEc Archive Corporate Lobbying Revisited Kim, Jin-Hyuk 2008 Online at MPRA Paper No. 51396, posted

Tax-Exempt Lobbying: Corporate Philanthropy as a Tool for … › sites › default › files › area › workshop › ... · 2019-12-17 · Tax-Exempt Lobbying: Corporate Philanthropy

Corporate Lobbying and Financial Performance · the financial implications of corporate lobbying.5 First, lobbying is the largest form of corporate political involvement in America

Sustainability Measurement and Reporting The Corporate ...httpInfoFiles)/D4D335EB7558… · Corporate lobbying & political influence Note: issues highlighted in bold are referred

ICGN Political Lobbying and Donations · Corporate lobbying is a common practice which seeks to inform and influence political decisions, regulation, legislation and policies according

New Corporate Lobbying and Fraud Detection · 2014. 5. 23. · CORPORATE LOBBYING AND FRAUD DETECTION1 Frank Yu Barclays Global Investors [email protected] (415) 894-6476

Hidden Voices: The CBI, corporate lobbying and sustainability · Hidden Voices: The CBI, corporate lobbying and sustainability I. About this report This report is about business lobby

Influencing Power Reviewing the conduct and content of ... · corporate responsibility issues, such as climate change and human rights. Benchmarking Corporate Lobbying This report

Qureshi (2013) Does Corporate Tax Lobbying Affect a Firm’s Tax … · 2018-09-06 · 2 Abstract Corporate lobbying has undergone a large amount of growth in the past decade and

Corporate lobbying in Brussels

From NAFTA to CETA: Corporate lobbying through the back door · from NAFTA to CETA: Corporate lobbying through the back door 8 This pressure for common rules in favour of cross-border

How and Why Do Corporations Combine Lobbying with Social ... · corporate non-market strategies. While research on corporate political activity has mainly focused on corporate lobbying

Interest Group Lobbying and Corporate Strategyeconweb.ucsd.edu/~carsonvs/papers/840.pdf · 2014-02-13 · Interest Group Lobbying and Corporate Strategy Thomas P. Lyon and John W

PICKET SIGNS VERSUS POCKET BOOKS: USING U.S. SECURITIES ... · disclosure of lobbying information.14 Consistent with this position, this Note argues that corporate lobbying activities

Corporate Lobbying on Tax Extenders and the GE Loophole · Corporate Lobbying on Tax Extenders Page 5 The size and intensity of the lobby on the GE Loophole (Active Financing Exception):

The revolving doors spin again | Corporate Europe …corporateeurope.org/.../revolving_doors_spin_again.pdfCorporate Europe Observatory Exposing the power of corporate lobbying in

Corporate Partnerships and Community development in …httpAuxPages)/C... · Corporate Partnerships and Community Development in the Nigerian Oil ... Niger Delta, Nigeria. Analysis

Qureshi (2013) Does Corporate Tax Lobbying Affect …econ-server.umd.edu/~edinger/undergraduate/Qureshi...By matching corporate lobbying expenses with firm-level data of 740 firms

Tax-Exempt Lobbying: Corporate Philanthropy as a Tool for ... › files › 2018 › 01 › ... · Tax-Exempt Lobbying: Corporate Philanthropy as a Tool for Political In uence Marianne

INVESTOR EXPECTATIONS ON CORPORATE CLIMATE LOBBYING · investor expectations on corporate climate lobbying As long-term investors, we recognise the threat of climate change to our

Corporate Codes of Conduct: Self-Regulation in a Global ...httpAuxPages)/E3B3E78BAB9A8… · Corporate Codes of Conduct Self-Regulation in a Global Economy Rhys Jenkins Technology,

The Influence of Corporate Social Responsibility on ...€¦ · The Influence of Corporate Social Responsibility on Lobbying Effectiveness: Evidence from Effective Tax Rates Joanna

Determinants and Effects of Corporate Lobbyingfaculty.bus.olemiss.edu/rvanness/Working Papers/Lobbying.pdf · 1 Determinants and Effects of Corporate Lobbying Matthew D. Hill, G

The Business of America is Lobbying · The Business of America is Lobbying: The Expansion of Corporate Political Activity and the Future of American Pluralism ... Beth Leech, Suzanne

Board Book - Mississippiiv 33. MUW – Approval of Corporate Relations Management as In-State Lobbying Consultant 153 34. USM – Approval of Capitol Resources, LLC as In-State Lobbying

The Corporate Value of (Corrupt) Lobbying › nagupta › BGG_slides.pdf · 2014-09-12 · The Corporate Value of (Corrupt) Lobbying . Borisov, Goldman, Gupta The value of (corrupt)

CORPORATE SOCIAL RESPONSIBILITY AND SOCIAL POLICY …httpAuxPages... · CORPORATE SOCIAL RESPONSIBILITY AND SOCIAL POLICY IN ZAMBIA BY ... corporate social responsibility has influenced

The E ects of Firms’ Lobbying on Resource Misallocationweb.mit.edu/insong/www/pdf/misallocation.pdf · Next, we contribute to the political economy literature on corporate lobbying

CORPORATE SOCIAL RESPONSIBILITY AND DEVELOPMENT: …httpAuxPages)/5FE3FFAE56E… · Corporate Social Responsibility and Development: Towards a New Agenda? 17 November 2003Œ18 November

Corporate Lobbying – The Tradeoff Between …Thisreative c corporate lobbying continues to haunt the U.S. today, from the formation of the Washington Consensus, to the repeal of