Business and Government: Campaign Contributions and Lobbying in the United States

By: Sandra J. Sucher and Karthik Ramanna and Ian Mckown Cornell

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Synopsis: This note on business-government relations introduces students to the state of campaign contributions and lobbying by corporations in the United States. The note develops two hypotheses as to the impact of corporate political engagement: (i) a vehicle to facilitate good government; and (ii) an instrument of special-interest capture. The note can be used to generate a discussion on the following issues: (1) In a democratic capitalist society, what is the appropriate role of business in government? (2) When it comes to political contributions, should corporations have the same rights and responsibilities as individuals? The note also describes the various practical choices businesses face on political engagement, including disclosure options and options to engage through trade or ideological associations. This description can be used to encourage business students to develop an aspiration for their companies' political engagement strategies