Page 53 - E1 Integrated Workbook STUDENT 2018
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Governance, regulation, ethics and corporate social responsibility
Business/government relations
Corporate political activity (CPA) refers to the involvement of
firms in the political process, with the aim of securing particular
policy preferences.
Two types of CPA
Buffering – proactive political Bridging – a more reactive form of
actions on the part of firms, e.g. by behaviour, e.g. tracking the
development of new laws/regulations
employing lobbyists or making
donations to party funds. so that compliance is in place when
the legislation is passed.
In most developed countries there is a strong business lobby consisting of individual
companies and business related organisations.
In some developing countries, CPA is far more overt. Politicians and policy-making
bodies may be persuaded to introduce, modify or remove legislation fairly cheaply.
Illustrations and further practice
Now try TYU 14 from Chapter 3.
Read illustrations 12 - 15 from Chapter 3.
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