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Book Review Essay: Wealth, Power, and Political Influence: Organizations as ToolsMayerJane: Dark Money: The Hidden History of the Billionaires behind the Rise of the Radical Right. New York: Anchor Books, 2017. 547 pp. $17.00, paper.
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This article focuses upon answering the following question: Does corporate political activity (CPA) stand as an academic field? Following Hambrick and Chen, we consider three elements of the emergence of an academic field—differentiation, mobilization, and legitimacy. Utilizing a variety of data sources, we find CPA to be well differentiated from other academic fields; to have undertaken a number of activities to mobilize CPA as a field, but short of large-scale unification; and to have earned low to moderate legitimacy within management, but little legitimacy outside of management. All in all, at this time, CPA does not squarely meet the elements necessary to emerge as a field.
This essay examines factors that produce political unity among large U.S. corporations advocating free trade. Expanding on old debates, these data and analyses validate the importance of organizational and class cohesion approaches to corporate political action. Methodologically, the political unity of pairs (dyads) of firms in trade policy activism is analyzed with quadratic assignment procedure regression. Shared membership in prominent policy networks and board interlocks positively predict corporate political unity across three areas of trade policy influence, from the executive branch to the legislature. Non-network organizational indicators also significantly predicted corporate trade policy activism. The findings support business unity accounts of corporate political action and suggest that higher levels of firm embeddedness within intercorporate networks facilitate collective corporate political action.
"Howard Aldrich and Martin Ruef’s tour de force shows us how the evolutionary approach can explain change not only in organizational populations, but within sectors and within organizations. Aldrich and Ruef display an astonishing command of the management literature, using vivid illustrations from cutting edge research to show how the processes of variation, selection, retention, and struggle operate within organizations and across them. A lucid and engaging book that should appeal both to the newcomer to organization theory and to the old pro."- Frank Dobbin, Harvard UniversityA keenly anticipated Second Edition of an award winning classic, Organizations Evolving presents a sophisticated evolutionary view of key organizational paradigms that will give readers a unified understanding of modern organizations. This Second Edition is up-to-date in its survey of the literature, as well as an overview of the new developments across organization studies. It contains new sections on organizational forms, community evolution and methods for studying organizations at multiple levels. The field of organization studies contains many contending paradigms that often puzzle and perplex students. This book is a stunning synthesis of the major organizational paradigms under the umbrella of organizational theory. Scholars and students will find it an excellent guide to the strengths and weaknesses of the various approaches, as well as an outstanding review of the best recent empirical research on organizations. The book includes many helpful features, such as: " Review questions and exercises that will consolidate reader's learning " A methodological appendix that assesses common research methods " Engaging cases that bring principles and concepts to lifeThis Second Edition is a rich resource for study, discussion and debate amongst organizational scholars and postgraduate students of organizations.
The revenues of large companies often rival those of national governments, and some companies have annual revenues higher than many national governments. Among the largest corporations in 2015, some had private security forces that rivaled the best secret services, public relations offices that dwarfed a US presidential campaign headquarters, more lawyers than the US Justice Department, and enough money to capture (through campaign donations, lobbying, and even explicit bribes) a majority of the elected representatives. The only powers these large corporations missed were the power to wage war and the legal power of detaining people, although their political influence was sufficiently large that many would argue that, at least in certain settings, large corporations can exercise those powers by proxy. Yet in economics, the commonly prevailing view of the firm ignores all these elements of politics and power. We must recognize that large firms have considerable power to influence the rules of the game. I call attention to the risk of a “Medici vicious circle,” in which economic and political power reinforce each other. The possibility and extent of a “Medici vicious circle” depends upon several nonmarket factors. I discuss how they should be incorporated in a broader “Political Theory” of the firm.
Although ‘grassroots’ conjures up images of independent citizen organizing, much mass participation today is sponsored by elite consultants working for corporations and powerful interest groups. This book pulls back the curtain to reveal a lucrative industry of consulting firms that incentivize public activism as a marketable service. Edward Walker illustrates how, spurred by the post-sixties advocacy explosion and rising business political engagement, elite consultants have deployed new technologies to commercialize mass participation. Using evidence from interviews, surveys and public records, Grassroots for Hire paints a detailed portrait of these consultants and their clients. Today, Fortune 500 firms hire them to counter-mobilize against regulation, protest or controversy. Ironically, some advocacy groups now outsource organizing to them. Walker also finds that consultants are reshaping both participation and policymaking, but unethical ‘astroturf’ strategies are often ineffective. This pathbreaking book calls for a rethinking of interactions between corporations, advocacy groups, and elites in politics.
What are the political motivations behind firms' decisions to adopt policies that self-regulate their behavior in a manner that is beyond compliance with state, federal and local law? Public Forces and Private Politics in American Big Business advances a new understanding of the firm as a political actor that expands beyond the limited conceptualizations offered by economists and organization theorists. Timothy Werner develops a general theory of private politics that is tested using three case studies: the environment, gay rights and executive compensation. Using the conclusions of these case studies and an analysis of interviews with executives at 'Fortune 500' firms, Werner finds that politics can contribute significantly to our understanding of corporate decision-making on private policies and corporate social responsibility in the United States.
The Civil Rights movement of the 1960s seemed to mark a historical turning point in advancing the American dream of equal opportunity for all citizens, regardless of race. Yet 50 years on, racial inequality remains a troubling fact of life in American society and its causes are highly contested. In The American Non-dilemma, sociologist Nancy DiTomaso convincingly argues that America's enduring racial divide is sustained more by whites' preferential treatment of members of their own social networks than by overt racial discrimination. Drawing on research from sociology, political science, history, and psychology, as well as her own interviews with a cross-section of non-Hispanic whites, DiTomaso provides a comprehensive examination of the persistence of racial inequality in the post-Civil Rights era. DiTomaso sets out to answer a fundamental question: if overt institutionalized racism has largely receded in the United States, why does racial inequality remain a national problem? Taking Gunnar Myrdal's classic work on America's racial divide, The American Dilemma, as her departure point, DiTomaso focuses on "the white side of the race line." To do so, she interviewed a sample of working-class whites about their life histories, political views, and general outlook on racial inequality in America. She finds that while the vast majority of whites profess strong support for civil rights and equal opportunity regardless of race, they continue to pursue their own group-based advantage, especially in the labor market. This "opportunity hoarding," as DiTomaso calls it, leads to substantially improved life outcomes for whites due to their greater access to social resources from family, neighborhoods, schools, churches, and other institutions with which they are engaged. At the same time, the subjects of her study continue to harbor strong reservations about public policies"such as affirmative action"intended to ameliorate racial inequality. In effect, they accept the principles of civil rights but not the implementation of policies that would bring about greater racial equality. DiTomaso also examines how whites understand the persistence of racial inequality in a society where whites are, on average, the advantaged racial group. Most whites see themselves as part of the solution rather than part of the problem with regard to racial inequality, but, due to the unacknowledged favoritism they demonstrate toward other whites, DiTomaso finds that they are at best uncertain allies in the fight for racial inequality. Weaving together research on both race and class, along with the life experiences of DiTomaso's interview subjects, The American Non-dilemma provides a compelling exploration of how racial inequality is reproduced in today's society, how people come to terms with the issue in their day-to-day experiences, and what these trends may signify in the contemporary political landscape.
"Can a country be a democracy if its government only responds to the preferences of the rich? In an ideal democracy, all citizens should have equal influence on government policy--but as this book demonstrates, America's policymakers respond almost exclusively to the preferences of the economically advantaged. Affluence and Influence definitively explores how political inequality in the United States has evolved over the last several decades and how this growing disparity has been shaped by interest groups, parties, and elections. With sharp analysis and an impressive range of data, Martin Gilens looks at thousands of proposed policy changes, and the degree of support for each among poor, middle-class, and affluent Americans. His findings are staggering: when preferences of low- or middle-income Americans diverge from those of the affluent, there is virtually no relationship between policy outcomes and the desires of less advantaged groups. In contrast, affluent Americans' preferences exhibit a substantial relationship with policy outcomes whether their preferences are shared by lower-income groups or not. Gilens shows that representational inequality is spread widely across different policy domains and time periods. Yet Gilens also shows that under specific circumstances the preferences of the middle class and, to a lesser extent, the poor, do seem to matter. In particular, impending elections--especially presidential elections--and an even partisan division in Congress mitigate representational inequality and boost responsiveness to the preferences of the broader public.
Political sociologists have debated for decades, without resolution, whether elites in advanced capitalists societies are integrated. Rather than ask whether elites are integrated, this study examines the conditions under which convergence of political behavior occurs, focusing on campaign contributions of political action committees in the American business community. A model of similarity in corporate political behavior is proposed that draws on principles developed by resource-dependence and social class theorists of intercorporate relations. The model was supported by an examination of the 1,596 dyads created by relations among 57 large U.S. manufacturing firms in 1980. Membership in the same primary industry or several similar industries, geographical proximity of headquarters locations (but not plant locations), market constraint, and common relations with financial institutions (through either stock ownership or directorate ties) were positively associated with the similarity of political behavior between firms. Market constraint affected the similarity of political behavior primarily because it increased the likelihood that firms would produce in the same industries. The effect of indirect board interlocking throung financial institutions was a stronger predictor of similarity of political behavior than was direct interlocking between manufacturing firms. The findings suggest the simultaneous importance of organizational and social network factors in understanding common political behavior between firms.
This study uses data on the contributions of corporate political action committees to evaluate six popular theories of business political partisanship. Two theories are supported by the data: the "Yankee-Cowboy" theory of regional political differences among U.S. corporations and the regulatory environment theory, which views the differential relationship to government regulation as a primary determinant of corporate political behavior. No support is found for four other theories of business political partisanship: the core-periphery theory, the inner-circle theory, the managerialist theory, and the domestic-multinational theory. The four disconfirmed theories are all variants of a perspective known as the theory of "corporate liberalism," which hypothesizes a tendency toward greater liberalism on the part of the more dominant or central corporations in American society.
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Two alternative corporate political strategies are identified for Political Action Committee (PAC) contributions to candidates in the 1980 congressional elections: (1) a pragmatic effort to promote a particular company's best interests and (2) an ideological effort to promote conservatism. With the use of multiple regression, this article examines three theoretical explanations of corporate political strategies. The expectations of corporate liberal theory are not confirmed. Rather, there is support for both state structure and interlock theories. It is argued that, at least in 1980, business political behavior was ideologically conservative, which business understood to represent classwide rational interests.
This study uses data on campaign contributions and methods of network analysis to investigate the significance of interlocking di- rectorates for political cohesion among corporate elites. Using qua- dratic assignment procedure (QAP) regression, the author shows that social ties formed through common membership on corporate boards contribute more to similarity of political behavior than common- alities of economic interests, such as those associated with operating in the same industry or the same geographic region. Moreover, the politically cohesive effects of directorship ties remain robust even as one moves several links down the chain of indirect ties that connect top corporate officers to one another. The study thus pro- vides empirical support for the thesis that social networks among corporate elites facilitate political cohesion within the business community.
Corporate political activities, or corporate attempts to shape government policy in ways favorable to the firm, are commonly employed by firms across countries. We review recent scholarly work from management, political science, economics and sociology in the area of corporate political activity (CPA), paying particular attention to the literature published since Shaffer’s [Shaffer, B. 1995. Firm-level responses to government regulation: Theoretical and research approaches. Journal of Management, 21: 495–514] review. To integrate this literature we provide a model of the antecedents of CPA, the different types of CPA, how firms organize to implement CPA and the outcomes of CPA both for public policy and firm performance. We conclude our review by proposing an agenda for future research in the area.
Organizational theorists have had much to say about how environments affect organizations but have said relatively little about how organizations shape their environment. This silence is particularly troubling, given that organizations, in general, and corporations, in particular, now wield inordinate political power. This article illustrates three ways in which corporations can undermine representative democracy and the public good: promoting legislation that benefits corporations at the expense of individual citizens, the capturing of regulatory agencies by those whom the agencies were designed to regulate, and the privatization of functions that have historically been the mandate of local, state, and federal governments.
The current economic crisis reveals just how central finance has become to American life. Problems with obscure securities created on Wall Street radiated outward to threaten the retirement security of pensioners in Florida and Arizona, the homes and college savings of families in Detroit and Southern California, and ultimately the global economy itself. The American government took on vast new debt to bail out the financial system, while the government-owned investment funds of Kuwait, Abu Dhabi, Malaysia, and China bought up much of what was left of Wall Street. How did we get into this mess, and what does it all mean? Managed by the Markets explains how finance replaced manufacturing at the center of the American economy and how its influence has seeped into daily life. From corporations operated to create shareholder value, to banks that became portals to financial markets, to governments seeking to regulate or profit from footloose capital, to households with savings, pensions, and mortgages that rise and fall with the market, life in post-industrial America is tied to finance to an unprecedented degree. Managed by the Markets provides a guide to how we got here and unpacks the consequences of linking the well-being of society too closely to financial markets.
The transformation of Southern politics over the past fifty years has been one of the most significant developments in American political life. The emergence of formidable Republican strength in the previously solid Democratic South has generated a novel and highly competitive national battle for control of Congress. Tracing the slow and difficult rise of Republicans in the South over five decades, Earl and Merle Black tell the remarkable story of political upheaval.
The Rise of Southern Republicans provides a compelling account of growing competitiveness in Southern party politics and elections. Through extraordinary research and analysis, the authors track Southern voters' shifting economic, cultural, and religious loyalties, black/white conflicts and interests during and after federal civil rights intervention, and the struggles and adaptations of congressional candidates and officials.
A newly competitive South, the authors argue, means a newly competitive and revitalized America. The story of how the South became a two-party region is ultimately the story of two-party politics in America at the end of the twentieth century. Earl and Merle Black have written a bible for anyone who wants to understand regional and national congressional politics over the past half-century. Because the South is now at the epicenter of Republican and Democratic strategies to control Congress, The Rise of Southern Republicans is essential to understanding the dynamics of current American politics.
Table of Contents:
1. The Southern Transformation
2. Confronting the Democratic Juggernaut
3. The Promising Peripheral South
4. The Impenetrable Deep South
5. The Democratic Smother
6. The Democratic Domination
7. Reagan's Realignment of White Southerners
8. A New Party System in the South
9. The Peripheral South Breakthrough
10. The Deep South Challenge
11. The Republican Surge
12. Competitive South, Competitive America
Notes
Index
Reviews of this book:
These two leading scholars of Southern politics present a rigorous investigation of how voting in the peripheral South (Florida, Arkansas, Texas, North Carolina, Virginia, and Tennessee) and the Deep South (Georgia, Louisiana, Mississippi, Alabama, and South Carolina) was realigned since Ronald Reagan was first elected president in 1980.
--Karl Helicher, Library Journal
With publication of their latest book, The Rise of Southern Republicans the Blacks, both 60, have produced a trilogy that traces an almost geologic-style evolution in the South's political landscape. They've analyzed the whys and what-fors of a region, that in the past 50 years, has gone from impenetrably Democratic to competitively Republican. Their overarching conclusion: the two-party warfare that defines the South defines the nation...The Blacks' work--a mix of political wonkery and historical perspective, cut with the deliciously illuminating anecdote--is read by academics in various disciplines and political junkies of all stripes. The books are valued for their coolly dissecting insights...Because their writing swells beyond the data-crunching lab work of most political scientists--though new readers beware: The books are littered with scary-looking charts and graphs--it travels beyond academia. Party strategists are steeped in the work. "The Blacks wrote the book on how academic political science can illuminate practical politics," says Republican pollster Whit Ayers.
--Drew Jubera, Atlanta Journal-Constitution
The South's political identity has been transformed in the last half-century from a region of Democratic hegemony to a region of Republican majority. Earl and Merle Black...sedulously examine this remarkable change...This is a work of serious scholarship that lacks any hint of a partisan purpose. Committed readers will increase their understanding of both Southern and national politics. The Blacks' effort may well be the definitive statement on Southern politics over the 20th century.
--Publishers Weekly
Not since 1872, Earl Black and Merle Black point out in their third book on Southern politics, had the Republicans constructed majorities from both the North and the South in both houses, and it was the national character of their victory that made the 1994 election such a landmark...In The Rise of Southern Republicans , the Black brothers chronicle the party's history from the 1930s to the present, election by election. They illuminate the economic, racial and political dynamics that gradually moved the South toward the Republican Party, while also warning that the Republicans do not by any means own the region in the way the Democrats once did.
--Kevin Sack, New York Times Book Review
In The Rise of Southern Republicans brothers Earl and Merle Black explain the partisan realignment that has brought the South into the national political mainstream. The Blacks...focus most of their attention on the congressional arena, where voting patterns reflect long-term partisan loyalty more closely than at the presidential level...[T]he story the authors of The Rise of Southern Republicans tell is a fascinating one, with implications for American politics that are both profound and uncertain.
--David Lowe, Weekly Standard
The rise of southern Republicans is one of the most consequential stories in modern American politics. For political reporters of a certain generation...the Democratic dominance of Southern congressional politics is barely understood. The Black brothers make it all very clear.
--Major Garrett, Washington Monthly
This superb analysis of Southern politics by Earl Black...and his brother Merle Black...not only tracks the recent rise of Republicans in the South but explains why party realignment along ideological lines was so long in coming to that region... The Rise of Southern Republicans is already being rightly hailed as a political science classic. Its strength is the thorough and systematic manner in which it examines the changing ways a wide variety of factors have affected Southern voting patterns over the past four decades. The data and the rigor of the analysis are truly impressive.
--James D. Fairbanks, Houston Chronicle
This extraordinary book by the country's two leading scholarly experts on the politics of the American South could accurately have been titled "Everything you wanted to know about Southern politics, as well as everything you could ever imagine asking about it"...Their knowledge of the intricacies of particular congressional districts across the region is amazing, and their analysis of the larger partisan trends in the region makes this the most important book on Southern politics.
--Stephen J. Farnsworth, Richmond Times-Dispatch
The Black brothers have done it again. The Rise of Southern Republicans is without question the most important book ever written on the role of the South in Congress and the partisan consequences for our national legislature. Far and away the most comprehensive updating of the V.O. Key classic Southern Politics . This is a major work by extremely talented scholars.
--Charles S. Bullock, University of Georgia
The dramatic rise of the Republican Party in the South is the single most important factor in the transformation of American politics since the 1960s. Earl and Merle Black have described this process in a book that is witty, always filled with insight, and readable to the last page. The Rise of Southern Republicans is indispensable reading for anyone interested in American politics - past, present or future.
--Dan T. Carter, author of The Politics of Rage: George Wallace, the Origins of the New Conservatism, and the Transformation of American Politics
This marvelous book captures - with authority and readability - the big story of post-New Deal party politics in the United States. It is a surefire classic of political science and politics.
--Richard F. Fenno, Jr., author of Congress at the Grassroots: Representational Change in the South, 1970-1998
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Winner-Take-All Politics: How Washington Made the Rich Richer-And Turned Its Back on the Middle Class
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