VideoCorporate Political Responsibility Taskforce

“Pro-Business” Political Influence, Shareholders & The Economy

Anat Admati and Jerry Davis

Video 1 of 3

 

April 21, 2022, we spoke with Anat Admati of Stanford Graduate School of Business and Jerry Davis of the Ross School of Business at the University of Michigan to explore “Corporate Political Responsibility & the Economy: Revisiting ‘Pro-business’ Advocacy”

In the debate over whether businesses should take a stand on broad civic, political and societal issues, few have explored how companies influence policy and narratives on issues related to their core businesses and shareholder returns. As the economy, and particularly corporate governance practices, become “financialized,” ”pro-business” political influence has had a major impact on public discourse and economic outcomes.

Does the status quo truly benefit all --- or only a few --- ultimate shareholders of corporations and the economy as a whole? What is the impact on democracy, and what might true “corporate political responsibility” (CPR) look like in practice?

In this module, we explore:

  • Does “pro-business” political influence, as currently practiced, truly benefit shareholders and the economy?
  • What is the role of corporate political influence in economic challenges such as short-termism, excessive debt or market concentration?

The Corporate Political Responsibility Taskforce (CPRT)’s Expert Dialogues are in-depth, recorded conversations with academic experts, stakeholder advocates and business practitioners to provide our members and other CPR champions with the expertise and context they need to develop principled, proactive CPR strategies. We invite those interested in a constructive, non-partisan, principles-based discussion.

Anat Admati, George G.C. Parker Professor of Finance and Economics at the Stanford Graduate School of Business, Faculty Director of the Corporations and Society Initiative at Stanford University, Senior Fellow, Stanford Institute for Economic Policy Research, and author of The Bankers’ New Clothes: What’s Wrong with Banking and What to Do about It.

Jerry Davis, Gilbert and Ruth Whitaker Professor of Business Administration at the Ross School of Business, Professor of Sociology at the University of Michigan, Faculty Director of Business + Impact, and author of Taming Corporate Power in the 21st Century.

The full transcript for this module is available here

Keywords: #CorporatePoliticalResponsibility #ESG #SystemicRisk #CPR_Transparency #CPR_Accountability #CivicInstitutions #EnterpriseRisk #Injustice

More Resources

Sort by type
161 – 180 of 285 results showing
VideoCorporate Political Responsibility Taskforce
Video Details
ArticleChatham House

Using the exodus of companies from Russia due to the war against Ukraine, Bennett argues that, with influential economic power worldwide, multinational companies should consider a new geopolitical corporate responsibility to help support international rules-based order when it is under stress or faces challenges. He explains that this order defines the international community in which nations should respect individual sovereignty and obey the law. 

View Details

The article maps out a non-partisan, principled conception of good corporate citizenship drawing on shared assumptions of the right and the left about the place of corporations in our society and the realities of corporate governance. That conception concentrates on how corporations’ own conduct affects the best interests of their stockholders, workers, communities of operation, consumers, taxpayers, and the environment. 

View Details
VideoCorporate Political Responsibility Taskforce
Video Details
VideoCorporate Political Responsibility Taskforce
Video Details
ArticleHarvard Business Review

This article explores how political identity is increasingly shaping workplace dynamics and offers a leadership strategy grounded in setting clear norms, proactively addressing tensions, and fostering inclusive dialogue—an approach aligned with Third Side principles of navigating conflict through shared understanding and long-term organizational strength.

View Details
VideoCorporate Political Responsibility Taskforce
Video Details
ArticleDirectors & Boards

Provides a framework for boards to manage the reputational, legal, and financial risks of political spending, including misalignment with public commitments, shareholder backlash, and regulatory scrutiny. Emphasizes the need for transparency and alignment with a company’s stated objectives and strategic goals. 

View Details
VideoCorporate Political Responsibility Taskforce
Video Details
ToolOECD

This report reviews how 17 jurisdictions regulate corporate political engagement, highlighting gaps in transparency, oversight, and accountability. It calls for stronger governance and investor involvement to prevent undue influence.

View Details
VideoCorporate Political Responsibility Taskforce
Video Details
VideoCorporate Political Responsibility Taskforce
Video Details
VideoCorporate Political Responsibility Taskforce
Video Details
ReportPrinciples for Responsible Investment

In partnership with Chronos Sustainability, this article reflects a survey about (i) how investors identify and assess political engagement activities; (ii) how investors integrate political engagement into their stewardship activities; and (iii) challenges to engaging on responsible political engagement with investees.

View Details
ArticleHarvard Business Review

Based on the fact that the assumption that business and politics can and even should be kept separate is no longer realistic, the authors outline steps that effective leaders should take to ensure strategic decisions in the space, which include: (1) develop robust principles to guide strategic choices; (2) address ethical issues early; (3) consistently communicate and implement their choices; (4) engage with and beyond the industry to shape the context; and (5) learn from mistakes to make better choices in the future.

View Details
VideoCorporate Political Responsibility Taskforce
Video Details
ArticleMIT Sloan Management Review

This article discusses how businesses can thrive by achieving a net positive impact on people and the planet, and avoiding achieving returns by creating problems for people and planet. Calls on businesses to recognize that investing in healthy systems -- economic, civic and natural -- is the key to his positive impact. 

View Details
ReportUN PRI

PRI sets out to create the case for investors to encourage responsible corporate political engagement. PRI shares precedent-setting principles followed by detailing the risks faced from irresponsible political engagement practices (e.g. the revolving door), which burden companies, investors, and society alike.

View Details
ReportCouncil for Inclusive Capitalism

This framework is a comprehensive guide for institutions to justly transition to net-zero emissions, including four core pillars and 20 building blocks that provide practical examples for implementation, with alignment to just transition assessment methodologies.

View Details
VideoCorporate Political Responsibility Taskforce
Video Details
Share.

Do you have a resource to recommend for The CPR Hub? Please reach out and we will review it for future updates!

Receive Updates from The CPR Hub

Learn about new tools, insights and events to help you consider how CPR can help your company, clients or members.

Stay in the loop.