Business Ethics and Corporate Governance, Second Edition

ECONOMIC POWER AND POLITICAL INFLUENCE

Regulatory and private restraints on the competitive process have a deeper ramification. Existing firms tend to be relatively large in size and few in number. They have a definite organizational and financial advantage in influencing the legislative and regulatory agenda. In advanced countries, where there is a depth of informed opinions, competing interests and independent media, powerful commercial interests may not always prevail. But, in most developing countries, competing opinions are more limited. In this context, interest groups are more likely to succeed in furthering their own agendas. It is often alleged that street-smart present generation companies like Reliance, wielding enormous political ...