Business-Society Relations in Retail Value Chain (23E54000, 6cr) 8.10.2012 Government regulation and corporate political activity. Mika Skippari Aalto University School of Business. The role of government as a regulator of business environment.
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Business-Society Relations in Retail Value Chain (23E54000, 6cr)8.10.2012Government regulation and corporate political activity
Aalto University School of Business
- Firms can act profitably in
both closed and market economies.
- Government can be both facilitative
and nonfacilitative in both cases.
Amount of regulation
Firm’s freedom of action
Wars and economic
crises have always
Source: Indicators of regulatory conditions in the retail distribution sector: OECD.
Indicator includes: barriers to entry, operational restrictions, and price controls.
Scale is 0-6 from least to most restrictive of competition
Insights to corporate political activity:How firms proactively try to influence nonmarket environment?
Aalto University School of Economics
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Foreign companies tend to be less politicaly active than domestic firms
and they tend to favor indirect influence strategies (partnerships with local
companies, using external lobbyists)