Month: November 2023

The Impact of Politics on Business: Understanding the Complex Relationship between Business and Politics

Business and Politics

Politics enormously impacts business, both domestically and internationally. Aspiring entrepreneurs, seasoned business leaders, and strategists in heavily regulated industries should familiarize themselves with how politics shapes the world of business.

The relationship between business and politics is more complex than is commonly assumed and is undergoing a process of change. This collection of articles explores some of the factors that influence this relationship.

Interactions of Businesses with Government

Business and politics interact in many ways. Governments formulate the basic rules of the game for market exchange via general regulations, corporate taxes, and competition law. They also represent one of the main sources of commercial activity in modern democracies, sourcing goods, services, and public works from businesses via contracting activities.

Governments fulfill a number of responsibilities that significantly impact business, for example by protecting citizens and guaranteeing a base pay for employees. They also provide economic resources that benefit business, for example by offering tax credits and lowering regulatory burdens.

Many business leaders believe they have a role to play in politics. In a survey conducted by Leadership Now in 2019, a majority of business leaders agreed that they should be involved in politics. However, some believe that their involvement may lead to cronyism. This is a concern that has been raised in the past with regard to other industries, such as banking and insurance.

Influencing Government

Many government officials and scholars argue that businesses should not mix with politics because the cronyism that can result is anti-democratic. They also point out that business is primarily concerned with making money, while politics is about governing and representing citizens.

Others point out that realpolitik often requires buy-in from economic elites to pass laws that advance the public interest. These leaders should therefore have a right and a responsibility to use their resources to lobby government.

The authors in this collection suggest that the relationship between business and politics is more complex than is commonly believed. They also point out that this relationship is undergoing a process of change. This includes the rise of populist governments and the increasing polarization of political debates on issues such as economic nationalism and protectionism.

Responses by Businesses to Their Legal, Social and Political Environment

Politics significantly impacts businesses, both locally and globally. Aside from the need for a stable legal environment to operate and invest, business leaders face a host of other political issues including increasing public polarization, lightning fast news cycles and demands that they proactively take positions on social justice issues.

Among the competing narratives on business and politics is one that assumes that businesses in market economies exist to make a profit and return to shareholders, and thus should focus only on their economic objectives. This narrative also argues that politicians should not interfere with the market economy.

A more nuanced approach, informed by the literature on Varieties of Capitalism (VoC), is to understand business-politics relations in terms of business response strategies to their political challenges and constraints. To test this, this paper presents a typology of business-politics relations and then applies it to four reform episodes in the development of social programmes and codetermination in Germany: the introduction of work injury insurance in 1880s (adaptation), the introduction of unemployment insurance in the 1920s and the introduction of board-level codetermination in the 1950s (confrontation). The results show that different response strategies facilitate very different political outcomes.

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The Intersection of Politics and Business

Politics and Business Degrees

Whether you see yourself shaping public policy, lobbying on behalf of nonprofits or creating laws that drive change in your community, a degree program can help you find the right path.

A political science major develops critical analysis, research and communication skills that are highly sought after in the business sector. Graduates have a high employment rate in fields such as marketing, media and communications.

Business Administration

A bachelor’s degree in business administration provides the skills and expertise required to manage a company. This major is popular among people who want to work for government or private businesses, and it covers topics like business ethics, leadership, and decision-making.

A business and finance degree will teach you how to analyze companies and market trends, and it can help you develop your communication and problem-solving skills. You will also learn how to calculate financial risk and understand the fundamentals of marketing. A business and finance degree is a good choice for people who want to pursue a career in politics, as it can help them learn about the professional sector.

Politics is an exciting field to study, and it can provide many opportunities to change the world. A politics degree can include subjects such as sociology, philosophy, and history, and it is often taught in a mixture of lectures and seminars. Graduates of a politics degree can find employment in the media, marketing and public affairs.


Politics graduates have a very high employment rate and can often be found in public affairs, charity and voluntary work, media and PR, the civil service and local government. Others pursue careers with supranational organisations such as the United Nations and World Trade Organisation, or with pressure groups and think tanks.

A degree in politics can provide a strong foundation for a career in business, especially because the political world and economy are closely connected. Politicians need to understand how the economy works in order to create effective policies. In addition, economics studies can teach students valuable skills such as problem-solving and communicating complex financial information clearly.

NYU Stern’s dual degree program combines liberal arts with business fundamentals, social impact learning and global experiences. Students are able to choose elective courses, minors and the Stern Track to personalize their education. They also have the option to spend two semesters abroad at an NYU global site of their choice to complete their required Global Experience for this program.

International Business

With the globalization of our modern world, international business has become a vital part of any company’s success. This field encompasses all for-profit border-crossing transactions including importing and exporting, foreign investments and the expansion of corporate operations abroad. International business students learn to understand and implement international business concepts.

Politics graduates have a high employment rate because of the transferable skills they acquire, such as critical thinking and thorough research. They are well suited for positions like parliamentary researchers, special advisers and other political posts within government agencies and local councils.

The combination of a politics degree with a business administration one gives you the best of both worlds, as it provides a comprehensive knowledge of business practices and how they interact with the evolution of politics and government. It also prepares you for the responsibilities of managerial roles in both fields. Students in this combined major take courses in both political science and business administration, such as accounting, management techniques, marketing and organizational behavior.


Entrepreneurship is a vital component of a free market economy. It creates jobs and increases economic growth, while also lowering unemployment rates. However, entrepreneurs must be willing to take risks and make difficult decisions in order to succeed. In addition, entrepreneurship can lead to financial loss and requires a lot of time and effort.

Entrepreneurial activities are inescapably political in that they take place at the margins of distributions of the sensible and are therefore bound to produce new possibilities of subjectivity, ways and styles of living, and value. This dimension can be analyzed both in terms of what Luthy and Steyeart call speculative affirmation and, more generally, as participation in the production of lasting social realities.

Unlike previous studies, which investigated entrepreneurial behavior from the perspective of entrepreneurial teams or entrepreneurial opportunities, this study empirically examines for the first time the internal influence mechanism of different types of political connections on corporate re-entrepreneurial performance. The results show that implicit political connections bear noticeable positive regression relation with entrepreneurial knowledge resources and support Hypothesis 2.

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