According to a pull survey carried out by CNBC, the public in 7 out of the 13 most developed countries in the world believe that big business influence or control the government so that they do not have to act responsibly. In Other words, big business rigs the system by controlling the governments.
Here, the term comes- lobbying; it is a fact of manipulating government decisions by use of well connected and specialized individuals or organizations. Big business enterprises generally hire lobbyists to manipulate legislative policies. The representatives of the business generally meet with the members of the legislature to provide them information about the basis of their industries and persuade officials to make the decision that is in support of their company.
These big businesses come with an additional advantage as can refer to their lobbying activities as an enterprise. It is not the situation with the public interest groups as they have to discuss about their lobbying activities. Here are some of the ways to answers how big business controls government:
Big firms generally spend huge sums of money as a fund for political campaigns. Campaign funding has been a common act. It was started in 1886 when William Mc Kinley made first such donations. Today, this act is more rampant after the Supreme Court made a ruling that allows businesses to donate a limitless amount of money to political campaigns. It is quite obvious that political parties get these huge contributions from businesses in exchange for legislative policy favors.
Most government agencies look for aid by setting up advisory committees to present those data that will support them to carry out public policies. It is because this information will be beneficial for business enterprise not for the public if it is acquired from the industry people.
A lot of companies set up Political Action Committees through which they contribute money to be utilized for the political campaigns. Firms having media houses decided to invest in issues advertisements that reinforce concerns of the candidate. And those businesses which do not own media houses spend the huge chunks of money at their disposal to carry out these political related issues advertisements.
Over the years, a lot of big companies have been growing in India without any unfavourable legislative policies. This unlimited development has caused people to wonder whether these firms can control the decisions of government.
It is a critical question as it is really tough to gain enormous profits without the legislative policies always being in your favour. In the present globalization era, corporations with immense wealth accumulation have been able to acquire political power. It has supported them to manipulate legislative laws for their own benefit.
Regulatory agencies play a major role in the favour of businesses to control the government. These agencies, politicians, and corporations make an assessment of certain problems. Big businesses target huge regulation agencies. It is because these agencies are responsible for coming up with parameters for those business entities with government contracts. These regulations generally benefit enterprises and therefore lucrative to the politicians, the regulatory agencies, businesses but not for the public.
Making the Market Competitive
Just imagine a situation where multiple lobbying firms are trying to control the government or influence government activities on the behalf of their clients. And, none of them will be able to do so and get the whole coke for themselves. And, whether they like it or not, all of them would have to suffice with a few precedes of influences.
As that happens, no single big business gets all power to dominate the entire market. That, in turn, prevents them from artificially jacking up the costs to the detriment of the common man, as doing that would allow other firms, which are offering the same goods at a lower cost, to fill in the void.
In summary, it is true that big corporations can control the government and how big business control governments include a series of much compiled processes that cannot be done without spending large sums of money. These business entities have been utilizing multiple techniques to manipulate legislative decisions.
Hopefully, you found this post helpful and interesting. For any doubt or questions, feel free to comment below. Our team is always there to answer your confusions. Don’t forget to subscribe to The CEO Magazine and get all the latest updates in your inbox.