W3 - LECTURE Flashcards
What is Corporate Political Activity (CPA)?
Corporate attempts to manage political institutions and influence political actions in ways favorable to the firm.
What does Corporate Social Responsibility (CSR) aim to achieve?
Actions that advance a social agenda allowing the firm to enhance organizational performance.
What are the four types of economic systems?
- Free market/capitalist
- Planned (Communist/Socialist)
- Mixed
- Traditional
What is Resource Dependency Theory?
Businesses depend on external resources (markets and non-market) to survive and grow.
How do government decisions influence businesses?
- Alter the size of markets through regulations
- Affect the structure of markets by revising entry and exit barriers
- Alter the cost structure of businesses through legislation
- Affect demand by changing taxes and imposing regulations
What are the assumptions of Public Choice Theory?
- Different voters have different priorities
- Organized groups are better able to influence policy
What are the two main approaches to political action?
- Transactional (ad-hoc)
- Relational (long-term strategies)
What is the goal of proactive CPA?
To engage in political actions before issues become salient.
Fill in the blank: The government controls all major aspects of economic production in a _______ system.
[Planned (Communist/Socialist)]
What are the informal constraints affecting political activity?
- Informal rules
- Customs and practices
- Considerations of individual actors
True or False: Democracy is a system of exchanges where individuals vote to secure collective benefits.
True
What is the focus of relational political strategies?
Building relationships across issues to develop long-term resources.
What are the three levels of decisions in proactive CPA?
- Strategic
- Tactical
- Operational
What factors affect the choice of Corporate Political Activity?
- Conditions
- External environment
- Organizational goals
What is the impact of regulations on market structure?
Regulations can revise entry and exit barriers, influencing competition within the market.
What is a mixed economic system?
Combines elements of both market and command systems.
Define the term ‘non-market competition.’
Competition that occurs outside of traditional market mechanisms, often involving political and social factors.
What is the significance of coalition-building in CPA?
It helps to affect legislative processes and create a unified front for influencing policy.
What does monitoring public interest involve in CPA?
Tracking issues and engaging with stakeholders to align with public sentiment.
What are narrowly salient issues?
Very important to a limited number of people.
Define pre-salient issues.
Few individuals with interest or opinion of an issue; many opinions, but none with widespread support.
What characterizes widely salient issues?
Important to a large number of people; the general public has an opinion on something.
How does an issue become widely salient?
When rationally ignorant voters imitate others who have already decided the issue is important.
What is an ‘information cascade’?
A process where voters decide on a topic by imitating others.
What initiates an information cascade in public policy?
A small group of well-organized individuals persuading others about the importance of an issue.
True or False: All individuals respond the same way to persuasive efforts about salient issues.
False.
What role do experts and reporters play in public opinion?
They collect information and distribute it to the general public.
Why do voters adopt positions from experts and reporters?
To reduce search costs.
What can affect experts and reporters in their role?
Social and peer pressure, leading to ‘reputation cascades’.
What is ineffective during early denial of salient issues?
Public Relations (PR) strategies.
List strategies to tackle widely salient issues.
- Break information cascades
- Finance new research
- Self-regulate
Fill in the blank: The average voter is ‘_______’ about most issues.
rationally ignorant
