Political Science and the Study of Corporate Power: A Dissent from the New Conventional Wisdom

Abstract

Over the last fifteen years political scientists have become much more critical of the role that business plays in American politics. Two decades ago business was primarily regarded as another interest group; now many scholars perceive a tension between the large business corporation and the principles and practices of pluralist democracy.This article challenges this new ‘conventional wisdom’ by critically examining the recent writings of Robert Dahl and Charles Lindblom. Dahl regards the corporation as undemocratic because its managers are not accountable to its employees. Yet, the corporation is hardly unique in this regard: not one single institution in our society – including the government itself – is governed by those who work for it. Lindblom contends that business occupies a privileged position in capitalist democracies. But he exaggerates the role investment decisions play in the performance of the economy, underestimates the options available to politicians to manipulate business decisions and fails to appreciate that businessmen are not unique in requiring inducements to perform their social role. The article concludes by suggesting that while corporations do exercise considerable political power, both its scope and magnitude can be satisfactorily analysed within the framework of interest-group politics.