Economic or Political Outcomes: Corporate Political Activity in a Populist Setting

Abstract

Research on corporate political activity has traditionally emphasized how businesses leverage economic outcomes, such as job creation and tax contributions, to influence policy decisions vis-à-vis the government. However, with the surge of populism in liberal democracies, we argue that businesses can no longer rely solely on economic outcomes. Through a qualitative analysis of information presented by the automotive and fishery sectors during Brexit negotiations, we find that businesses opposing populist policies highlight the economic consequences of proposed policies. These businesses aim to encourage populist governments to act responsibly, urging them to heed the concerns of influential companies and prioritize economic stability. In contrast, our contribution to existing research reveals that businesses supporting populist policies prioritize political outcomes, for example, by linking policy proposals to electoral success. This focus on political outcomes is unique to populist settings, where populist governments are particularly responsive to public sentiment.