Evidence of a transnational capitalist class‐for‐itself: the determinants of PAC activity among foreign firms in the Global Fortune 500, 2000–2006

Transnational capitalist class (TCC) theory is rooted in the claim that the globalization of the economy has led to a globalization of economic interests and of class formation. However, systematic evidence linking the indicators of transnational class formation with political behaviour is largely missing. In this article, I combine data on board of director interlocks among the 500 largest business firms in the world between 2000 and 2006 with data on the political donations to US elections of foreign corporations via the corporate political action committees (PACs) of their subsidiaries, divisions or affiliates. Controlling for the various interests of individual firms, I find that foreign firms that are highly central in the transnational intercorporate network contribute more money to US elections than do the less central foreign firms. Given prior research on board of director interlocks, this finding suggests that a segment of the transnational business community has emerged as a class‐for‐itself.     

Corporate interests within transnational advocacy networks: The International Coalition Against Plain Packaging

Most of the research on transnational advocacy networks documents progressive, voluntary movements, motivated by values associate with human rights and public goods. There is little critical reflection on the role of corporations within such networks or on the material motivations behind movements. Meanwhile literature on corporate political strategies related to partnerships with civil society is limited to national level analysis. This article presents a case study of the International Coalition Against Plain Packaging, which is conceptualized as a transnational advocacy network, and documents its links to the tobacco industry. We find that, not only have tobacco companies provided network members – publicly presented and perceived as independent – with financial resources, but they have also been involved in producing the information used by the network to debate the benefits of plain packaging. In return, the tobacco industry is able to propagate ideas favorable to its interests through organizations perceived as legitimate experts, and to maintain a network of allies ready to counter tobacco control regulations when and where they arise. Considering the multiple benefits corporations might derive from engaging with transnational advocacy networks, there is need for greater research on private actors’ influence within advocacy networks and on those networks that aim to counter or advance alternatives to progressive ideals.     

Politicization of corporations and their environment: Corporations’ social license to operate in a polarized and mediatized society

Societies are increasingly characterized by polarization and fragmentation on a variety of socio-political issues. With the heightened social visibility of corporations, as a result of processes of mediatization, firms are pressured to engage with such social issues that are part of broader political discourses. Against the backdrop of these broad socio-political shifts, this study conceptually addresses the contribution of public relations to understanding the politicization of corporations and their environment. We argue that corporations have become inherently intertwined with their mediatized and polarized socio-political surroundings. As a result, corporations are increasingly pressured to speak out and take a stance on social issues to engage with their environment and renew their social license to operate (SLO) in a context characterized by political divides. By relying on concepts like issue arenas and corporate political advocacy, we argue that corporations can use public relations to publicly promote one ideal over another, by being guided by the corporation’s own intrinsic values and moral standpoints rather than efforts to balance competing interests of multiple stakeholders.     

Corporations and the State in the Global Era: The Case of Seaboard Farms and Texas*

Abstract Employing the case of the expansion and regulation of hog confined animal feeding operations (CAFO) in Texas combined with the actions of the transnational agri‐food corporation Seaboard Farms, Inc., this paper probes the relationship between the state and corporations in the global era. It specifically investigates the ability of the state to control agri‐food corporations in a context in which the hyper‐mobility of capital has increasingly allowed corporations to by‐pass state regulations and requirements. Salient literature is reviewed by grouping it into three camps: the first views the state as largely controlled by corporations; the second stresses the powers left to the state and the fact that corporations need state assistance to successfully operate in the current global economy; and the third acknowledges the crisis of the nation‐state under globalization but maintains that the state has retained some ability to resist globalization forces. The case study documents the expansion of Seaboard Farms' hog operations in the Panhandle Region of Texas and nearby states and its interaction with local and state governments and agencies. The article indicates that the relationship between transnational corporations and the state is contradictory. Its source rests on the fracture between varying postures maintained by the state and the relatively homogenous behavior of the CAFO corporations. The case also reveals that the state's limited control of corporate actions is facilitated by state strategies; that corporate actions are successful if corporations enlist the cooperation of the state; and the state is able to control resistance and legitimize its actions to its constituencies. These conditions, however, do not prevent the emergence of anti‐corporate resistance at local and state levels. In the search for new forms of socioeconomic development, local residents and their leaders should be aware of corporations' ability to affect state action, state postures that favor corporate designs, and the fact that successful opposition to corporate designs can be, and is, carried out.     

Corporate social responsibility and conflicts of interest in the alcohol and gambling industries: a post‐political discourse?

The corporate pursuit of social goals – known as Corporate Social Responsibility or ‘CSR’ – has been subject to critique on a number of grounds. However, a hitherto underexplored potential consequence of CSR has been suggested in a recent paper by C. Garsten and K. Jacobsson (‘Post‐Political Regulation: Soft Power and Post‐political Visions in Global Governance’ (2013), Critical Sociology 39: 421–37). They suggest that CSR is part of an international trend towards ‘post‐political’ governance discourses, where an emphasis on different actors’ common goals obscures conflicts of interest, subverting the open political conflict necessary for a well‐functioning democracy. This paper examines whether such post‐political discourses – including an outright denial of conflict of interest – can be found within the alcohol and gambling industries, where conflicts of interest are likely to be particularly acute given the addictive nature of the goods/services in question. Based on interviews with CSR professionals in these industries in Italy, the UK, and at EU‐level, we do indeed find evidence of a post‐political discourse. In these discourses, alcohol/gambling industry staff deny potential conflicts of interest on the basis that any small benefits from sales to a small number of addicts are seen to be outweighed by the reputational damage that addicts cause. Crucially, however, this coexists with another, less post‐political discourse, where addictions CSR professionals emphasize ‘common ground’ as a basis for CSR, while accepting some instances of possible conflict of interest. Here interviewees make considerable efforts to differentiate good (sustainable) from bad (short‐term) self‐interest in order to stress the genuineness of their own actions. We conclude the paper by considering whether CSR embedded within a ‘common ground’ discourse still hides conflicts of interests and subverts democratic debate, or overcomes the problems identified by Garsten and Jacobsson.     

Nostalgia critique

Abstract

Nostalgia is a widespread structure of feeling in Western modernity. While critique of nostalgia has tended to be hostile and dismissive, associating the phenomenon with dominant and conservative forces in society, this paper argues that nostalgia is a valuable way of approaching the past, important to all social groups. Acknowledging the diversity of personal needs and political desires to which nostalgia is a response, the critique offered here focusses on the limitations that the nostalgic structure of rhetoric may place on effective historical interpretation and action.     

When corporate actors take over the game: the corporatization of organic,recycling and breast cancer activism

Social change endeavors are increasingly shaped by corporate interests and, in some instances, large corporations take over ideas and practices initiated by social change advocates. We label this process ‘corporatization’ and argue that, while it is clearly a variant of co-optation, it has specific qualities that warrant a separate analytical framework. Using existing research to examine the cases of breast cancer activism, organic food, and recycling in the United States – all extreme examples of corporatization – we conceptualize corporatization as a subset of co-optation in which: (1) corporations come to dominate fields initiated by activists; (2) corporatized versions become widespread; and (3) alternative, ‘response,’ movements emerge to oppose corporatized versions. We posit that, in each case, ‘corporate takeover devices’ allowed corporate entities to ‘join the game’ and eventually come to dominate fields initiated by social movements.     

CORPORATE TAX LAWS, CORPORATE RESTRUCTURING, AND SUBSIDIARIZATION OF CORPORATE FORM, 1981–1995

Between 1981 and 1995 the dominant form of Fortune 500 firms changed from the multidivisional form to the multisubsidiary form (Zey and Camp 1996). The explanation for the movement toward subsidiarization originates in changes during the late 1970s and 1980s in the political economy, the relationship between corporations and capital, and the regulation of corporations. As a result of the declining capital accumulation of the 1970s, the federal government instituted two measures of corporate welfare, the Tax Reform Act of 1986 (TRA86) and the Revenue Act of 1987 (RA87), that provided corporations with nontaxable ways to restructure their acquisitions and divisions as subsidiaries. Thus, by the process of subsidiarization, corporations were able to continue capital flows. We examine the increase in subsidiarization from 1981–1995 as a means of assessing the utility of four theoretical perspectives to explain change in corporate form. A one-way random effects panel analysis demonstrates how corporate financial conditions, national business laws, and organizational characteristics combine to affect the rate of subsidiarization of U.S. corporations. Separate panel models for 1981–1985 (pre- TRA86) and 1986–1995 (post- TRA86) reveal that changes in corporate tax laws affect capital accumulation and result in significant change in corporate form. This analysis supports the structural political economy contingency theory arguing that change in capital accumulation, brought about by macro changes in political legal conditions of corporations, leads to the transformation of corporate form.     

A Concealed Wrongdoing of Corporate Philanthropy: Evidence from China

The paper is trying to examine the changes between rational and irrational charitable donation of Chinese listed corporations under the background that an increasing number of Chinese listed corporations register charity foundations in recent years. Considering corporate income tax ratio as a proxy for tax preference, whether products are exposed to consumers directly or indirectly, as well as gross profit margin, debt financing scale and debt maturity structure as proxies for the reputation effect and strategic advantage, the indicators of rational charitable donation consist of the five factors mentioned above; The indicator of irrational charitable donation is disposal accrued profits calculated by Extended Jones Model. By the regression of data of charitable donations from Chinese A listed corporations during the year from 2008 to 2013, findings show that the behavior of rational charitable donation is weakened gradually, while, in contrast, the irrational charitable donation is strengthened. The listed corporations have strong motivation to transfer profits through registering and establishing charity foundations, which is a new tendency of transferring interests.     

Technology and Counter-hegemonic Movements: The case of Nike Corporation

This paper examines ways in which the Internet and alternative forms of media have been employed to enhance political struggle in contemporary society, and are in fact redefining political struggle. It uses a case study of Nike Corporation to highlight that although the power and autonomy of transnational corporations operating within the global economy has been enhanced over the past few decades, there are accompanying modes of grassroots organizing which foster globalized resistance to such hegemonic tendencies. The analysis argues that the Internet provides the resources and environment necessary for cohesive organized resistance to corporate culture across the domains of production (labor issues) and consumption issues (marketing). The Internet and independent media have facilitated organizing strategies among emerging new social movements, such as the anti-sweatshop movement and the Culture Jammers movement. This paper draws on both modern and postmodern theory to explore ways in which marginal groups can utilize the new modes of technology for their own ends, and use micro-level forms of resistance to challenge macro-level trends.     

The impact of legislator attributes on interest-group campaign contributions

Legislators possess political assets that economic interest groups may find valuable in pursuing their goals. This paper examines the effect these legislative assets have on the campaign contributions made by two large and easily identifiable interest groups: corporations and labor unions. Committee assignment, voting record, and electoral security are significant predictors of both corporate and union contributions to House incumbents, while party affiliation and years in office also influence the behavior of union political action committees.     

Business restructuring,management control,and corporate organization

Conclusions After half a century of growing dominance of the large corporation by non-owning managers, the 1980s were marked by a slowing or even reversing of their quiet revolution. Professional managers had come to control the corporation on the premise that they could more efficiently produce shareholder value than the original founder-owners. They turned shareholding into a passive investment on the same premise. As companies faced increasingly competitive pressures during the 1980s, however, the legitimacy of the rule of incumbent management came under challenge. No longer could government interference be blamed for many of the problems facing business; fingers pointed at management itself. As the criticism of corporate leadership gathered momentum, a leading diagnosis focused on one of managerial capitalism's crowning achievements: the autonomous power of professional management.The critique viewed the managerial autonomy as excessively permissive, the agency system as no longer effective. Professional managers had come to show too much concern for the social welfare of various stakeholder groups, including themselves, and too little concern for the financial welfare of the only stakeholder group that should really count — the shareholders. Many of the restructuring efforts were thus undertaken in the name of returning companies to the single-minded pursuit of ownership interests. What had stood in the way of such a pursuit was less a matter of government constraint and more a matter of inadequate stockholder vigilance by their appointed agents.Mindful of the critique, incumbent managements moved during the mid- to late-1980s to improve stockholder returns by paring the workforce and cutting other costs. Corporate acquisitions and leveraged buyouts brought new management teams to the fore where others had seemingly fallen short. The resulting restructuring reached a large proportion of the nation's major companies. Half or more of the largest companies had undergone a significant reduction in their workforce. And the dollar value of company resources changing ownership hands expanded considerably. The aggregate purchase price of mergers and acquisitions of publicly-traded firms in 1988 was nearly three times greater than in 1981. Even more striking was the sharp increase in the number of publicly-traded companies and divisions that were taken private. The aggregate dollar value of such buyouts in 1988 had increased almost 25 times over that in 1981. This opening of the market for corporate control among major U.S. firms brought a significant fraction of the nation's large corporations more directly under the immediate oversight of ownership interests.The reassertion of ownership control over large corporations was usually taken in the name of improving corporate earnings. Would be takeover groups generally promised more internal discipline and stronger financial performance. Whatever the actual financial impact of the intensification of ownership interests, available research suggests that it has had organizational impact. General company strategies may come to be more centrally guided while specific operating actions are devolved further down the organization.Ownership change and other restructuring steps have also ramified into corporate social and political action. That outreach is likely to be less vigorous and more divided. It is also being redirected. During the 1970s and early 1980s, corporate energies focused on reducing government regulation and improving community opinion. Those energies are now increasingly focused on facilitating or resisting restructuring. Companies have fought legislation that would limit the process of plant closings, but they have also sought legislation to protect themselves against hostile takeovers.The evidence also suggests that considerable managerial discretion remains in shaping company response to the restructuring pressures. Although market and organizational factors are sure to act as constraints, top management, whether a relatively autonomous non-owning management group or an owner-dominated management, retains an important independent capacity to exercise strategic choice. That choice is likely to receive special shaping by the long-term ascendance of financial managers and the decline of manufacturing personnel at the executive level.Yet corporate change must not be viewed as isolated managerial responses to changing market conditions. Companies and managements frequently look to one another for guidance in coping with ambiguous circumstances. DiMaggio and Powell's analysis of organizational isomorphism, for example, suggests that firms frequently adopt organizational practices not because they are dictated by the firm's market strategies, but rather because they are already used by other companies. Similarly, Granovetter's analysis of the social embeddedness of economic action indicates that company decisions are partially shaped by top management's contacts with their counterparts in other firms. Understanding company responses to restructuring pressures therefore requires a focus on inter-company flows of ideas and doctrines as well as purely internally generated responses specific to the company. Reactions to the restructuring pressures that are collectively developed and defined in the broader business community may prove to be as critical as individually fashioned solutions in guiding management approaches to restructuring during the years to come.

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The struggle for Via Bologna street market: crisis,racial denial and speaking back to power in Naples Italy

This paper is based on ethnographic research conducted with migrant and Italian street vendors in Naples, southern Italy, in 2012. It tells the story of Via Bologna market which was nearly closed down by the City Hall at the time. Naples is a city where issues of poverty and unemployment pre‐date and have been exacerbated by manifold narratives of crisis now unfolding across Europe regarding the economy, political legitimacy, security and migration. Street markets have always been an important and visible economic survival strategy for both Neapolitans and migrants there. This article shows how the Via Bologna street vendors appropriated and adapted discourses about crisis to form their own cosmopolitan social movement that halted the closure of the market. It argues that, in the age of globalized migration, the multilingual nature of such collective action is central to understanding social struggles that must be organized between marginalized groups of people divided by race, religion, politics and legal status. This, frequently ambiguous, transcultural solidarity speaks back against a mainstream post‐racial discourse – often articulated by the Neapolitan street vendors at the market – that would reduce the complexity of such collective action to questions of poverty and class struggle.     

Updating the Critical Perspective on Corporate Social Responsibility

This paper argues that Corporate Social Responsibility (CSR) is a key element of the new neo‐liberalism as it searches for both legitimacy and new sources of innovation. Rather than simply being a fraud or a drain on resources as CSR is often portrayed, we argue that it is one of a suite of practices that corporations are deploying as they seek to shift the nature of social regulation away from collective to more individual solutions. While the criticism that CSR is corporate propaganda has purchase, we explore a deeper development. This development is one wherein as the old ways of capitalist regulation were surpassed in the 1970s and 1980s new social practices such as CSR, Human Resource Management, ethical marketing etc. were deployed as a way of engineering new forms of identity, new expectations of individuals and institutions and new sources of legitimacy and social value. Social criticism needs to take this development more seriously (than the propaganda view) since it frames CSR as a predatory facet of this new neo‐liberalist tendency.     

State Building as a Source of Islamic Political Organization1

Previous research on political Islam in the Middle East and North Africa has been limited in providing a generalizable theory of its origins and systematically account for the cross‐national variation in the prevalence of Islamic movements. Following a state‐centered approach, this study argues that state‐building activities are a primary origin of Islamic movements. Regimes adopt religious symbolism and functions that legitimate the role of Islam in the public sphere. State incorporation of religion thus creates Islam as a frame for political action, with increased access to mobilizing resources and better able to withstand repression and political exclusion. To provide an explicit and systematic test of cross‐national variation, data on 170 political and militant organizations across the region are analyzed. Results indicate that state incorporation of religion is a crucial factor in the religiosity of movement organizations. Mixed effects of political exclusion and repression are found. No support is found for theories of economic grievances or foreign influence as causes of Islamic mobilization. In sum, analysis suggests that a state‐centered perspective is the most fitting account of political Islam.     

ENVIRONMENTAL JUSTICE AND THE POLITICAL PROCESS: Movements, Corporations, and the State

I explore two questions in this article: (1) How has the role of the U.S. state in the political process changed vis‐à‐vis corporations? (2) What tactical repertoires have movements devised to confront this changing political process? Through the lens of the U.S. environmental movement, I find that (1) the state's policy‐making authority has weakened as corporations have become both policy makers and the new targets of challengers, (2) the environmental movement has devised organizing strategies–such as corporate‐community compacts or good neighbor agreements–to respond to and influence this new political process, and (3) those segments of the movement that ignore the political economic process are likely to meet with failure. These changes in the political economy constitute a challenge for the political process model. I therefore propose a “political economic process’ perspective to extend the political process model and more accurately capture these dynamics. The political economic process perspective evaluates four state‐centric assumptions of the political process model (the state as the primary movement target or vehicle of reform, the state policy‐making monopoly, capital as just another interest group, and the primacy of the nation‐state level of analysis) and demonstrates that the political economic process has changed in dramatic ways.     

Alternative Approaches to the Governance of Transnational Labor Recruitment

As globalization advances, the governance challenges relating to cross‐border labor recruitment have also grown. Transnational companies that manage the employment‐based migration process often take advantage of individuals seeking work abroad. While some states have implemented recruitment regulations, a combination of jurisdictional constraints and economic interests have limited states’ capacity and political will to take action. Supplemental strategies are emerging led by international organizations, non‐governmental organizations (NGOs), labor unions, and corporate trade groups. This paper reviews the strengths and weaknesses of strategies led by each of these different types of actors and explores potential synergies among them.     

Prostitution: Collectives and the Politics of Regulation

The regulation of prostitution is changing as rapidly as its organization and sex workers have had more influence on this than usually recognized in either theory or research on prostitutes' rights. Using examples from the UK, Australia, the Netherlands and New Zealand, the paper shows how elements of prohibition, legalization and decriminalization are variously adopted in response to specific interests and their political representation. With the focus on law reform, the impact of collectives is compared to that of other contemporary players in the politics of prostitution, including community groups, councils, the police and the sex industry itself. But attention is also paid to health and occupational initiatives, and the conditions promoting the self‐regulation of sex work both by prostitutes and employers. The paper also argues that the role of collectives, together with changes in the wider regulatory context, reflect and reinforce increasing differentiation within prostitution.     

Neoliberal feminism: The neoliberal rhetoric on feminism by Australian political actors

Feminism seems to be experiencing a resurgence. This research examines an Australian case where this resurgence produces some bizarre outcomes and an uncomfortable mix of moderate and neoliberal feminisms, as conservative women distance themselves from the term feminist and conservative men embrace it. We rhetorically analyse the discourse of four conservative leaders using an ideographic analysis to reveal how political actors evoke ideologically laden terminology to support specific courses of action. For the conservative women, the ideograph feminist was too heavily laden with history. A more feminine‐liberal political discourse allowed them to explain their own success in individual terms and, by substituting support for feminism with a broader gender equality agenda, they could explain the government's policy approach of individualized rather than collective or state support to advance the needs of women. They are articulating a postfeminism sensibility themselves and neoliberal feminist other. For the conservative men, the ideograph feminist did not reflect on their own personal success or careers; they were happy to embrace it for purely political purposes to advance their standing with the voting public and saw no significance in terms of the government's policy approach of neoliberal feminism.