Search results

Unlike other types of corporate disclosure, corporate political disclosure (CPD), which is the disclosure of corporate political contributions and the related governing policies and oversight mechanisms, does not provide completely new information to stakeholders. Some of the information disclosed in CPD is available from other public records (e.g. the Federal Election Committee website or OpenSecrets website). Given this unique feature of CPD, it is interesting to investigate the cost and benefit tradeoff for firms of altering their CPD practice in response to policy and political uncertainty.

This study employs recently developed indexes of aggregate economic policy uncertainty (EPU) and a novel dataset of CPD transparency to examine the impact of EPU on CPD transparency and how the proprietary cost of corporate political activities moderates this association. The sample consists of S&P 500 companies from the 2012 to 2019 period.

The authors document that firms mitigate the heightened information asymmetry associated with higher aggregate EPU by increasing CPD transparency. The positive association between EPU and CPD is less pronounced for firms that are more sensitive to EPU, for firms that more actively manage EPU through corporate political contributions or lobbying activities and for firms that are followed by more analysts. The authors also find that more transparent CPD helps to mitigate the information asymmetry caused by heightened EPU. This study’s results hold when the authors control for other types of voluntary corporate disclosure.

This study contributes to the emerging literature on the determinants of CPD transparency by identifying EPU's positive impact on CPD transparency. This study also provides empirical evidence that the proprietary costs arising from the controversial nature of corporate political activities dampen firms' incentives to provide transparent CPD in response to heightened EPU, and that information on corporate political activities gathered and processed by financial analysts seems to lower the marginal benefit to companies of publicizing CPD on their own website.

The objective of this paper is to investigate the emergence of corporate political activities (CPAs) in the form of social responsibility in the banking sector in Bangladesh. The use of institutional logics allows the authors to explore not only the motivations underlying this sudden shift in corporate approach towards corporate social reporting (CSR) disclosure but also to investigate whether a logical plurality exists in this new approach.

The analysis is based on 21 in-depth interviews with policymakers, regulatory bodies and top management and members of boards of directors in the banking sector.

The findings of this study are both consistent with and different to those of Uddin et al. (2018). While their findings show that Bangladeshi companies engage in CSR activities primarily to demonstrate their allegiance with the ruling political regime driven by notions of traditionalism, this study’s findings show the existence of a logical pluralism across industries in the manner they engage with CSR activities and disclosures. In addition to the dominant market logic, the authors also find the co-existence of community and family logics shaping the nature of CSR disclosures made by banking companies in Bangladesh.

The authors contribute to the accounting and management literature by providing first-hand evidence of the motivations underlying the emergence of CPAs in the context of a developing country. The adoption of an alternative theoretical framework allows the authors to identify the multiple logics that dictate corporate attitude towards CSR engagement and disclosure.

The purpose of this paper is to present a conceptual framework of corporate political performance (CPP) in corporate political activity. In fact, CPP refers to political benefits obtained by firms when they formulate and implement political strategies to influence the public policy process though the investment of political resources. This paper focuses on answering what is perhaps the most fundamental question to strategy researchers: “How do firms engage in political strategies to improve their performance?”

In building a theoretical framework, this paper, first, provides a historical analysis of political efficiency and effectiveness. Then, this paper attempts to illustrate conceptually our understanding of political performance process by a generalized and contingent approach. Finally, this paper discusses the framework, its theoretical contribution and practical implications for Chinese management, and comments on limitations for future research.

The paper presents a conceptual CPP model that integrates political efficiency and effectiveness approach. In the conceptual framework, three phases of CPP include sources of political advantage, political competitive advantage and political performance outcome, and three dimensions are identified as political efficiency, effectiveness and adaptiveness. CPP approach is not a “generalized” nature of political performance measurement, as the difference among firms and industries in this area may be significant, which reflects the effect of context, reaction and outcome factors.

While it provides a strong theoretical foundation, this paper still has almost little empirical evidence concerning CPP process. However, how to measure CPP has increasingly begun to focus on an important research domain in corporate political strategy literature. This paper believes that this model has a need for future research to test its feasibility by using the measurement scales in Chinese context.

This paper is original in its attempt to measure CPP to help the business practice in corporate of political activity, and broaden corporate political strategy research in mainstream strategic management.

There are no management decisions deprived of ethical or political consequences. Political corporate social responsibility (CSR) has been highlighting this assertion but research at the microlevel on this topic is scarce. This study aims to contribute to the microlevel research by proposing a behavioral framework where leaders’ political skills are determinants of engagement in strategic CSR and perceived CSR leverages their ascribed legitimacy to perform a political role outside the boundaries of the organizations.

Building upon political CSR and critical realism theories, this study offers a general review on key political CSR microlevel concepts and examines multiple dimensions of CSR to explain the indirect effect between boards' political skills and political legitimacy.

This research suggests that high politically skilled leaders are associated to more CSR adoption which fosters higher legitimacy to act as political influencers. Among these, CSR activities directed toward community members and employees are seemingly the most successful from a political standpoint.

This study proposes a contemporary form of political influence to business leaders that, in contrast with other strategies such as lobbying or financing political campaigns, does not end up damaging corporate image and reputation. Also, this study proposes that not all CSR activities leverage corporate political legitimacy per se, therefore they do need to be differentiated. This study then offers a comprehensive future research agenda, including detailed suggestions for research designs and measurements.

By incorporating the resource-based view with the dynamic capability view, this study aims to examine the link between corporate political networking strategy and firm performance in transition economies by focusing on the mediating role of corporate entrepreneurship and the moderating role of dysfunctional competition.

A large-scale questionnaire survey was conducted among 1,300 senior managers from 650 enterprises in China, and valid survey data were obtained from 401 enterprises.

Empirical results demonstrate that political networking strategy is positively related to firm performance and that this relationship is fully mediated by corporate entrepreneurship. Moderated path analysis indicates that dysfunctional competition strengthens the direct effect of political networking strategy on corporate entrepreneurship and its indirect effect on firm performance via corporate entrepreneurship.

This research is among the first to examine the mediating mechanism underlying the relationship between political networking strategy and firm performance in the context of transition economies. In addition, existing research has seldom discussed the effects on corporate entrepreneurship of external resource acquisition from government sources. This research fills this important gap and identifies the condition under which political networking benefits corporate entrepreneurship.

This paper aims to investigate the political involvement of a corporate foundation (CF) though CSR under two perspectives: CF managers and the sponsor firm managers.

A single case with a Brazilian CF was conducted. Interviews with sponsor firms and foundations managers were combined with firms’ sustainability reports data and CF’s website information.

It was found that CF acts as an ambassador and can be a source of political legitimacy for their sponsor firm. They intermediate in governance challenges as the goals and working style of the CF, firms and municipalities can be sometimes antagonistic.

The authors could not reach the municipalities officials and their perception of the Public Management Program (PMP).

The PMP creates personal and organizational relationships with public officials, a resource that can be employed to impact the political strategies of the sponsor firm.

The authors also show how CF’s may help managers to deal with the typical Brazilian peculiarity of policy discontinuity in local governments.

This case study sheds light a new phenomenon: CF’s support on public management. It adds to the CSR and corporate political activities literature, the role of foundations as ambassadors of the relationship between the firm, government and society. They are not only filling gaps left by the State but are also dealing with local governments administrative deficiencies.

This study aims to examine conditions in which firm political market performance is associated with firm efforts to influence regulatory outcomes. Applying measures of political market performance based on firm performance in government enforcement actions and a firm’s ability to obtain favorable political outcomes, the authors make the case that political market performance is a key part of competitive political markets, which is associated with particular types of firm efforts to influence policy.

Longitudinal examination of nine automobile manufacturers during National Highway Traffic and Safety Administration crash tests reveals that firm performance in government enforcement activities is associated with greater efforts to cooperate with political suppliers, while declining firm performance in efforts to influence political outcomes is associated with increased firm opposition to political supplier actions.

Firm performance in government enforcement activities is associated with greater efforts to cooperate with political suppliers, while declining firm performance in efforts to influence political outcomes is associated with increased firm opposition to political supplier actions.

Performance in regulatory enforcement results in increased firm actions to engage regulators in the policy-making process, while performance in obtaining desired policy outcomes is associated with a greater focus on opposition to proposed standards. These results suggest that political demanders can take deliberate actions to either engage or oppose supplier actions based on political market performance.

The primary contribution of this research is to begin to examine the implications of performance dynamics within political markets. Adding the construct of political market performance to the political markets framework reveals that variations in political market performance can be associated with specific types of corporate political activity.

The purpose of this paper is twofold. First, the authors elaborate on why American businesses are often willing to advocate and deploy corporate political resources for or against specific governmental policies, but largely reluctant to engage in more general political process reform. Second, the authors introduce a set of ideas encouraging a business-driven political process reform in the USA, which the authors refer to as Corporate Political Responsibility (CPR).

This paper reviews existing literature on why firms generally avoid advocating for political process reform to identify several firm-level impediments to such action. As an outcome of that review, a CPR governance concept – a derivative from the corporate responsibility literature – is proposed and unpacked as a proposition that if adopted by firms would encourage and support business-driven process reform advocacy.

The primary findings are that American firms lack a rationale justifying business political activity into the political process arena; a willingness to assume a high level of political risk associated with political process intervention; and an executable corporate mechanism for doing so.

A second stage build out of the paper would involve at a minimum multiple research interviews with corporate executives and trade association officials to test the viability of the CPR proposal as to whether or not the proposed governance statement would liberate firms to advocate political process reform. This paper sets the predicate for additional research.

This paper may well be the first to identify the concept of CPR as a key corporate governance proposition. It is also likely the first to conceptualize CPR as more than a theoretical rendering – it is executable. Corporations can put CPR into practice through a firm’s Board of Directors endorsing a governance statement – Corporate Political Responsibility Protocol (CPR/P) – that transforms the CPR concept into a sanctioned firm activity, giving executives significant latitude to spend corporate resources advocating political process change. This paper suggests a variety of reform possibilities – electoral, campaign finance and legislative – that could benefit from business reform advocacy.

This study aims to investigate how corporate lobbying affects the relationship between collaboration networks and innovation.

The study incorporates insights from the corporate political strategy perspective into the social network research to examine how firms utilize non‐market mechanisms as a way to manage uncertainty. In particular, using data from 291 US pharmaceutical firms, the authors study the moderating effects of corporate lobbying on the relationship between collaboration networks and firm innovativeness.

The results show that corporate lobbying moderates the relationship between network centrality, structural holes, and network size, and firm innovativeness.

The study integrates social network and corporate political strategy research in the case of collaboration networks. Integrating social network and corporate political strategy literatures provides us with new insights into what determines success of firm innovativeness. The study shows that in addition to network structures, firms must consider other variables such as government regulation in fostering their innovativeness.

Despite the importance and prevalence of corporate political activities in modern organizations, there remains limited insight on the potential relationship between political contributions and companies’ risk-taking activities. This study aims to examine the relationship between monetary political contributions of firms and corporate risk-taking activities in the context of unstable political and economic environments.

The authors use a two-step system GMM estimation to investigate the subject using a cross-country sample of 307 firms from 22 countries covered over 2002–2017. In line with previous studies, the authors control for various corporate governance mechanisms, firm-level factors and country-level characteristics.

The findings demonstrate that firms that make monetary political contributions exhibit lower levels of risk as measured by different proxies for risks, namely, systematic, idiosyncratic and total risk.

The results suggest that political contributions can be a useful mechanism to mitigate risk exposure. Also, the use of different risk measures and other factors for robustness fosters a better understanding of political connectedness in a more contextualized and dynamic manner.

This study seeks to contribute to the debate surrounding corporate strategy, political connectedness and corporate risk-taking by using actual monetary political contributions as an explicit measure of political connection. This study furthers scholarly understanding on the dynamics of corporate political activities using political contributions in monetary terms as a measure of political connectedness and its impact on risk-taking. Furthermore, the authors explore this topic using insights from nonmarket strategy literature and studies on political contributions.