Corporate Political Activity in Areas of Limited Statehood: A Governance Approach

This paper presents a response to the need for a contextual understanding of Corporate Political Activity (CPA) in contexts of limited statehood. The authors propose an analytical framework that emphasizes the unique characteristics of formal and informal institutions and actors in developing countries. We argue that the current debates on the political role of business often overlook the diversity of state capacity and stakeholder dynamics in these contexts. The authors suggest that Western conceptualizations of state-centric governance have biased CPA discussions to date. Instead, we advocate for a multi-level governance framework that recognizes the diversity of actors and their interests in relation to various political issues relevant to the CPA discourse. In result, we propose that adopting a multilevel governance perspective can facilitate a revision of existing binary notions of formality, legality, and ethics in business-society relations. Our framework can contribute to a more nuanced understanding of the political nature and role of corporations in contexts with varying degrees of statehood. The authors encourage further research in this area to challenge prevailing conceptualizations of business-government relations.