Corporate Internal Policy Interference : A Paramount Determinant Of The Mncs Direct Influence Over Government Policy
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Section III – Corporate Internal Policy Interference
A paramount determinant of the MNCs direct influence over government policy is the subsystem of government policy development that includes the intense cooperation and competition between external and internal interest groups. This policy subsystem includes powerful structural industry groups that utilize economic power to create alliances in government and directly influence policy development (Eisner, p. 137, 2007). This subsystem is stable in compared to the fluctuating political sphere that includes election turnovers and intergovernmental competition. Moreover this subsystem works to safeguard the interests of the powerful groups who determine policy direction and ensure that their…show more content… Roberts, 2011). Powerful corporations are able to exert direct power over government policy making process to make public policy decisions more favorable to the industry represented, giving significantly greater power to large corporate lobby groups over environmental and public interest groups who lack the financial resources and political support necessary to direct government policy decisions (J. Roberts, 2011).
Environmental regulation entails the change in behavior of relevant actors through the exercise of political power. This process encompasses a balance of power between the regulatory power and the external industry and corporate firms who are being regulated (J. Roberts, p.54, 2011). Government attempts at environmental regulation often directly conflict with corporate interests that are prioritized by conflicted governments despite their activities and practices directly contributing to the problems the environmental regulators are directed to combat (J. Roberts, p.54, 2011). Furthermore, analysis of multinational foreign direct investment (FDI) trends indicates that governments prioritizing policies favorable to the private corporate sector are more likely to receive greater foreign investment and capital from potential investors (N. Jensen, 2006). Subsequently, it is in the interest of political leaders