Similarity of Political Behavior Among Large American Corporations
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 ...
And what are the implications for the banks’ “ethical makeover”? Can conduct cost levels be reconciled with this? Some commentators have, for example, observed that it seems inappropriate to worry about the Co-operative Group potentially losing control over the Co-operative Bank, for fear it will not be able to hold on to its “ethical policies”, when that bank’s ethics are already under suspicion due to the scale (a £269M provision)of its product mis-selling. Do provisions like this reflect on ethics? It’s hard to argue that there is no relationship at all. But perhaps the conduct costs reflect the “bad old days” and, under new management, we can expect banks to improve?