Government regulations protect society, such as the Environmental Protection Agency’s (EPA) emissions controls that protect the environment, but often hinder profitability of corporations and small businesses (Ferrell, Thorne, & Ferrell, 2016). Recent regulations were the government’s responses that triggered by economic crises caused by financial servicesthe Lehman Brothers’ bankruptcy, deceptive mortgage lending practices, and a failing automotive industry in the U.S. (Ferrell et al., 2016).
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Government regulations, past and present, place strict controls on employee safety in the workplace environment, employment security, mandatory employer-provided health insurance, sales taxes, and corporate double taxation that result in soaring man hours and financial expenditures for organizations. Regulatory Reform
The U.S. has the highest corporate tax rate in the world with direct and indirect impacts on organizations. In addition to federal regulations, organizations are subject to statutes and taxes in the state, city, and locality of operation. According to a recent college study of Goldman Sachs 10,000 Small Businesses (as cited in Greene, 2017), nearly all businesses conclude that government regulations are complex and time consuming. With variants in federal, state, city, and local regulations, streamlining rules and simplifying the tax code will enable organizations to efficiently comply with regulations and focus on growth (Greene, 2017). Political Strategies
Principal decision makers in an organization influence the course of its political activities (Bonica, 2016). In 2012, corporations donated $75 million to election campaigns with $20 million contributed by shell corporations that individuals used to shield their identities and donations (Bonica, 2016). Corporate executives use social media or request meetings with lawmakers and regulatory agency chairpersons to report on the impacts of regulatory authority on organizations. Top corporations affiliate with political candidates not only in support of a favored nominee but also to buy influence that will support the corporate agenda. Significance
Many corporations participate in a cooperative tactic in sharing resources to obtain policy-intended goals (Lu, Shailer, & Wilson, 2014). Lobbying efforts are regularly recompensed in the political environment; thus, corporate alliances have more powerful lobbying pursuit to obtain information (Insider Inc, 2015). Corporations have put greater effort on hiring lobbyists that specialize in specific policy issues, as well as investing in academic research (Insider Inc, 2015). Corporate Pressure Corporations seek to leverage financial resources to influence the outcome of elections of preferred candidates (Bonica, 2016). Contrarily, expenditures on lobbying aim to influence legislation that may not necessarily sway in their favor (Bonica, 2016). As reported by Durkee (2018), the corporate elites are ideological and lean towards directing funds to new candidates rather than support tenured candidates. Corporations are major contributors to political action committees (PACs) that endorse or oppose political candidates whose platforms align with their business interests (Ferrell, 2016; Lu, 2014). Conclusion
The approach of lobbying is the main tactic of corporate influence on governmental policy. Numerous articles reveal that Disney lacks transparency in lobbying activities with shareholders and the public, and its lobbying expenditures are not revealed through research. The American multinational Disney Company is a global dominance in which its political contributions may be overlooked by its investors (Durkee, 2018).
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