Multinational Business Corporations Gaining More Power in Society
The world is entering a period where corporations are gaining more power in society. Multinational business corporations will ultimately become more powerful than the government. Corporations influence decisions made by the government by providing campaign funding and lobbying. Businesses strive to satisfy their consumers’ wants and needs far well than the government strives to satisfy the wants of its population. Financial crisis and recession can begin in areas where jobs provided by corporations are lost, granting businesses power over the job market and gross domestic product.
This essay will address how corporations are gaining power because of the relationship they share with the government, capability to keep consumers satisfied, and by providing the country with numerous job opportunities. Corporations share a reciprocal relationship with the government, which some may consider legal bribery. They provide campaign funding and in return receive permission for their business ventures.
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This leaves voices of the average citizen unheard and/or ignored. For example, water has been contaminated in areas where businesses were granted permission to eliminate toxic waste. State regulators in Pennsylvania are allowing millions of barrels of toxic, cancer-causing waste to be dumped directly into waterways that are the source of drinking water for millions of people” (Caruso, 2011). Local residents’ complaints were ignored for the benefit of funds provided by companies thus giving corporations more power than the public. Although state regulators claim the water is safe to drink, the “wastewater contains cancer-causing chemicals as well as barium, which causes high blood pressure, and radium, which is radioactive” (Caruso, 2011).
Therefore, corporations can buy power from the government regardless of the negative effects it may have on human life. Corporations are in a competitive business market therefore they try their best to provide customer satisfaction. The public is now looking at corporations to solve social problems. For example, corporations are providing job benefits, making charitable donations, and minimizing pollution. ‘Corporations are now sponsoring sports teams and camps, providing scholarships for student employees, and building parks’ (Wallace, 2012, p. ). Corporations make massive efforts to keep their customers happy because their reputation affects their businesses and revenue greatly.
People are constantly disappointed by false claims used to win elections and the rising prices of taxes (where applicable). In addition, governments are often at the mercy of various special interest groups (economic, civil rights, public interest groups) and representatives vote how special interest groups insist in order to keep their political lives intact. Few would argue that one person could not make a difference in American politics. But there is power in numbers, and political institutions are more likely to respond to a collective rather than to an individual voice. An interest group is an organization whose members share common concerns and try to influence government policies affecting those concerns. ” (Naoi & Krauss, 2009, p. 876) However, corporations have succeeded due to the power of consumers; by listening to customer needs and meeting their wants at competitive prices.
Therefore, the public trusts, relies, and shares a more fulfilling relationship with businesses thus granting corporations more power than the government. Influence over the job market and gross domestic product gives corporations more power than the government. Some corporations have larger revenue than the gross domestic product of some countries. Walmart makes more revenue than Norway’s GDP: “Norway is the world’s 25th largest country with a GDP at $414. 46 billion however still lower than Walmart’s revenue which is $421. 89 billion” (Trivett, 2011).
Developing countries work very hard to attract foreign investments because corporations reward thousands with jobs, benefit shareholders (rise share prices) and increase global well-being. If a corporation falls down, financial crisis and recession can begin. This power forces the government keep corporations alive and satisfied so they continue to provide jobs for local residents. In conclusion, these trends are allowing businesses to play a significantly larger role in people’s daily lives than the government. Corporations continue to grow as they invest in foreign countries thus increasing their revenue and influencing local societies. Populations are beginning to look at companies to solve social problems and corporations are doing it at a faster rate than the government. Lastly, corporations are viewed in a higher regard in the eyes of the public versus the government. Therefore, corporations will gain more power than the government if these trends continue to strive.
Caruso, D. (Jan 3, 2011). ‘Fracking’ Pollution In Water: Pennsylvania Allows Natural Gas Drilling Waste Disposal In Waterways. Retrieved from http://www. huffingtonpost. com/2011/01/03/fracking-pollution-in-wat_n_803737. tml. Naoi, M. , & Krauss, E. (2009). Who Lobbies Whom? Special Interest Politics under Alternative Electoral Systems. American Journal Of Political Science, 53(4), 874-892. doi:10. 1111/j. 1540-5907. 2009. 00406 Trivett, V. (June 27, 2011). 25 US Mega Corporations: Where They Rank If They Were Countries. In Business Insider. Retrieved October 9, 2012, from http://www. businessinsider. com/25-corporations-bigger-tan-countries-2011-6? op=1. Wallace, N. (2012). Innovation Officers Give Charities a Chance to Explore. Chronicle Of Philanthropy, 24(18), 1-11.