Business, Politics, and Society This page intentionally left blank Business, Politics, and Society An Anglo-American Comparison Michael Moran 1 3 GreatClarendonStreet,Oxfordox26dp OxfordUniversityPressisadepartmentoftheUniversityofOxford. ItfurtherstheUniversity’sobjectiveofexcellenceinresearch,scholarship, andeducationbypublishingworldwidein Oxford NewYork Auckland CapeTown DaresSalaam HongKong Karachi KualaLumpur Madrid Melbourne MexicoCity Nairobi NewDelhi Shanghai Taipei Toronto WithoYcesin Argentina Austria Brazil Chile CzechRepublic France Greece Guatemala Hungary Italy Japan Poland Portugal Singapore SouthKorea Switzerland Thailand Turkey Ukraine Vietnam OxfordisaregisteredtrademarkofOxfordUniversityPress intheUKandincertainothercountries PublishedintheUnitedStates byOxfordUniversityPressInc.,NewYork qMichaelMoran2009 Themoralrightsoftheauthorhavebeenasserted DatabaserightOxfordUniversityPress(maker) Firstpublished2009 Allrightsreserved.Nopartofthispublicationmaybereproduced, storedinaretrievalsystem,ortransmitted,inanyformorbyanymeans, withoutthepriorpermissioninwritingofOxfordUniversityPress, orasexpresslypermittedbylaw,orundertermsagreedwiththeappropriate reprographicsrightsorganization.Enquiriesconcerningreproduction outsidethescopeoftheaboveshouldbesenttotheRightsDepartment, OxfordUniversityPress,attheaddressabove Youmustnotcirculatethisbookinanyotherbindingorcover andyoumustimposethesameconditiononanyacquirer BritishLibraryCataloguinginPublicationData Dataavailable LibraryofCongressCataloginginPublicationData Dataavailable TypesetbySPIPublisherServices,Pondicherry,India PrintedinGreatBritain onacid-freepaperby MPGBiddlesLtd.,King’sLynn,Norfolk ISBN 978–0–19–920255–3(Hbk.) 978–0–19–920256–0(Pbk.) 1 3 5 7 9 10 8 6 4 2 CONTENTS LISTOFBOXES vii LISTOFABBREVIATIONS ix PREFACE xi ACKNOWLEDGEMENTS xv 1 StudyingBusinessandPolitics 1 Comparingbusinesspolitics 1 Businesspoweranddemocraticpolitics 3 Modelsofcapitalismandbusinesspower 7 Policyissuesandthepowerofbusiness 11 Capitalism,democracy,andthepowerofbusiness 16 2 TheHistoryofBusinessandPolitics 18 Pathstothepresent 18 TheUnitedKingdom:business,oligarchies,anddemocracy 20 TheUnitedStates:business,Populism,anddemocracy 28 Varietiesofcapitalismandvarietiesofdemocracy 37 3 OrganizingBusiness 40 Businesscollectiveactionandthepoliticsofthefirm 40 TheUnitedKingdom:fragmentationandfirmautonomy 42 TheUnitedStates:organizingbusinessunderdecentralizedgovernment 50 Businesslobbyingandthecrisisofthebusinesssystem 59 4 PoliticsandtheGiantMultinationalCorporation 61 Whygiantfirmsmatterpolitically 61 ThegiantfirmandpoliticsintheUnitedKingdom:thetransformation ofaprivatepoliticalworld 63 ThegiantfirmandAmericanpolitics:greatstrengthsandgreat weaknesses 70 Thegiantfirmandglobaleconomiclobbying:theproblemof strategiccohesion 77 Theessentiallypoliticalcharacterofthegiantcorporation 82 vi CONTENTS 5 SmallBusinessandPolitics 83 Smallbusiness,collectiveaction,andpoliticalinnovation 83 Small-businesspoliticsintheUnitedKingdom:declineandrevival? 86 TheUnitedStates:smallbusinessinabenignenvironment? 95 Politicalinnovationandpoliticalweaknessinthesmall-businesssector 104 6 BusinessPoliticsandPartyPolitics 106 Business,parties,anddemocracy 106 BusinessandpartypoliticsintheUnitedKingdom:theriseofa business-friendlypartysystem 108 TheUnitedStates:regulatingtheparty–businessconnection 117 Thetravailsofbusiness-friendlyparties 127 7 Business,Politics,andSociety 129 Understandingtheculturalsettingofbusiness 129 TheUnitedKingdom:thetransformationofahegemonicorder 132 TheUnitedStates:betweenGramsciandSchumpeter 140 Fromhegemonytopluralism 149 8 RestlessDemocracyandRestlessCapitalism 151 Economicchangeandthepoliticsofbusinessrepresentation 151 Restlessdemocracyandbusinesspolitics 153 Restlesscapitalismandbusinesspolitics 159 Business,democracy,andlegitimacy 164 BusinesspowerandtheAnglo-Americanmodelofcapitalism 169 BIBLIOGRAPHY 173 INDEX 191 LIST OF BOXES 2.1 Politicsandmarketbuilding:thecaseoftheEU 19 2.2 Thechanginghistoryofthedevelopmentalstateandbigbusiness: thecaseofSouthKorea 27 2.3 Anindustrialstatesmanandpolitics:HenryFordand‘Fordism’ 36 3.1 TheevolutionofbusinesslobbyingintheEU 41 3.2 HowtheFrenchbusinesseliteorganizesitselfpolitically 49 3.3 TheTransatlanticBusinessDialogueatwork:theEU–US summitofJune2008 58 4.1 TheEuropeanRoundTableofIndustrialists:avoiceofthe Europeanbusinesselite 62 4.2 BigbusinessandpoliticsinRussia 69 4.3 AnAmericanmultinationalentersUKsupermarketpolitics: thecaseofWal-Mart 76 5.1 Whatdoesbusinessdowhenitlobbies?Thecaseofthe UKFederationofSmallBusinessesinBrussels 85 5.2 Smallbusinessandpolitics:thecaseofJapanesefarmers 94 5.3 Theorganizationofthesmall-businesslobby:theUKFSB andtheUSNFIBcompared 103 6.1 InXuencingthemoodmusicintheEuropeanParliament: theEuropeanBusinessandParliamentscheme 107 6.2 ‘Clientelism’andparty–businessrelationsinIreland: CharlieHaugheylootsbusinessandthepublicpurse 116 6.3 Regulatingbusinessmoneyintheparties:astudyin contrastingnationalregulatorystyles 126 7.1 CivilsocietygroupsandtheregulationofbusinesslobbyistsintheEU 131 7.2 Lobbyingacorporationaboutitsmarketingpracticesinthe developingworld:Nestle´ andthebabymilkcampaigns 139 7.3 HowanAnglo-Americangiantrespondstothechallengefrom civilsocietygroups:thecaseofBAT 148 viii LISTOFBOXES 8.1 RepresentingbusinessintheEU:twostrategiesforcollective action–RoundTablesversusGrandConfederations 152 8.2 TheWorldEconomicForum:transnationalplanningbody ortheworld’smostlavishcocktailparty? 158 8.3 Howthegreatfinancialcrisisof2007–9changedbusiness andpoliticsinAnglo-America 168 LIST OF ABBREVIATIONS ALTER-EU AllianceforLobbyingTransparencyandEthics Regulation BAT BritishAmericanTobacco CBI ConfederationofBritishIndustry CIFE ConseildesFe´de´rationsIndustriellesd’Europe CORE CorporateResponsibilityCoalition ECSC EuropeanCoalandSteelCommunity ERT EuropeanRoundTable ESBA EuropeanSmallBusinessAlliance EU EuropeanUnion FBI FederationofBritishIndustries FEC FederalElectionCommission FSB FederationofSmallBusinesses INFACT InfantFormulaActionCoalition ITGA InternationalTobaccoGrowers’Association NAFTA NorthAmericanFreeTradeAgreement NAM NationalAssociationofManufacturers NFIB NationalFederationofIndependentBusiness NGOs Non-governmentalorganizations OFT OYceofFairTrading PACs PoliticalActionCommittees RNIB RoyalNationalInstitutefortheBlind RUIE RussianUnionofIndustrialistsandEntrepreneurs TABD TransatlanticBusinessDialogue TEC TransatlanticEconomicCouncil UNICE UniondesIndustriesdelaCommunaute´europe´enne WEF WorldEconomicForum WHO WorldHealthOrganization
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