11 - SBM in Society

Summary

In this chapter I address two related questions: would it be desirable to restrict the business sectors ability to advocate? And, should corporations be encouraged to interface with society in a different way? I make the case that, if business was restricted in its ability to communicate with government officials, the officials would likely make decisions less accurately, but not any more independently of business. Furthermore, I argue that allowing relatively unfettered business advocacy can help ensure that regulations are innovation-friendly and, moreover, that in comparison to other political systems, the USs openness to business advocacy actually promotes innovation. These two arguments, when taken together, amount to a cautious case against restricting business advocacy. I then discuss a different way in which business organizations operate in the political arena: namely, the leveraging of the business organizations relationship with its customers, suppliers, or workers to pursue societal goals not directly tied to its own business. I argue that this behavior, despite being well-intentioned and popular with a segment of public opinion, should be approached with some caution by business corporations.