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Corporations Influencing Policy Changes

While multi-million-dollar cases have been won in the legal office where I work, the case that stands out to me is one we didn’t take on. The case involved a mother and her child; the mother expressed concerns regarding the school system where she was employed. As an immigrant, the mother was concerned her school district was unlawfully going to terminate her position and thus leave her family without a way to stay in the country. The attorney told her there wasn’t much the legal office could do. The mother looked at the attorney, teary-eyed, and asked what she could do. The attorney on the case advised her to understand how organizations can affect policy change and determine how she can play a role in that process. Understanding policy change and how a constituent can participate in the process is a lot to tackle.

Politicians and judges are not the only people who decide which policies need to change. Corporations are heavily involved in the process. Awareness of corporate involvement in policy can empower prospective employees to find companies that better align with their values.

Prospective employees come to know the basis by which companies create change through learning (1) the mechanics of general corporate lobbying, (2) the way internal business policies influence change, and (3) the ethical issues surrounding the realm of corporate lobbying.

Mechanics of Corporate Lobbying

Corporate Social Responsibility

Corporate lobbying can be a way to fulfill the responsibilities businesses have, though it has not always been that way. Businesses have recognized the importance of earning a profit while creating a better living environment for consumers.

This mindset shift has led to corporate social responsibility (CSR) initiatives.1 CSR is the idea that corporations have environmental, ethical, philanthropic, and economic responsibility.2

CSR is not just a good idea, but a strategic way to draw consumers in, assist in marketing, and increase employee engagement.3 CSR is a bedrock for companies to justify their direct lobbying efforts.

Direct Lobbying

Lobbying is a mechanism used to influence government decisions and has existed almost as long as the United States. James Madison, the fourth president of the United States, wrote about group lobbying in the Federalist Papers that later became foundational to the Constitution.4

The above data shows the contributions made to lobbying efforts in 2023 by the top-spending companies; taken from the New York State Commission on Ethics and Lobbying Government, the data demonstrates the breakdown of lobbying expenses versus what lobbyists receive in compensation.

Since 2022, compensation for lobbyists has increased by $17 million.6 Of the money a company spends on campaigning for policy changes, approximately 30% goes to lobbyists. Lobbying has become an important and strategic aspect of businesses today; corporations view it as an important investment. Individuals who want to understand how organizations change policies should understand the value of lobbying businesses.

Lobbying Effects on Policy Change

The amount of money corporations spend on lobbyists demonstrates that lobbying does affect policy changes. In short, lobbying works. Whether lobbying benefits society continues to be a topic under debate.

One example of a company lobbying for change is Mary Kay Inc. In 2005, saleswomen from Mary Kay Inc. went to the US Capitol to encourage Congress to reauthorize the Violence Against Women Act, which encouraged community engagement to prevent criminal and domestic violence against women.7 The lobbying efforts from these saleswomen combined with various forms of advocacy from other groups proved fruitful; President George W. Bush reauthorized the act in 2006.8 While this example may shed a positive light on corporate lobbying, other examples shed light on unfavorable lobbying efforts.

For example, in 2008, Toyota lobbied against stricter fuel economy standards meant to reduce the carbon footprint that car industries contribute to.9 The car company effectively demonstrated the power businesses use to influence policies favorable to business, even at the expense of consumers. Corporate lobbying affects policies in the United States.

Internal Business Policies as Catalysts for Change

Setting Industry Standards

An indirect way businesses can impact policy change decisions is through internal policies. One such example is Procter & Gamble. P&G ensures a starting salary that matches the industry standard, annual bonuses, retirement plans, financial education resources, childcare support, mental health support, access to fitness facilities, and paid time off.10 These practices demonstrate P&G’s care for the well-being of its employees. Additionally, P&G is highly successful and profitable; in 2024, the company reported $84 billion in net sales.11 Due to P&G’s success and profitability, other companies look to P&G as an industry standard.12

Another example is Amazon. When Amazon changed the minimum wage to $15 an hour, other firms followed.13 The initiative enabled Amazon to catalyze policy change within the labor market.14

Public Statements and Advocacy

Another indirect way corporations influence those around them is through public advocacy. For example, Ben and Jerry’s used its social media reach to share its support for the Black Lives Matter movement.15 Patagonia’s “Don’t Buy This Jacket” campaign demonstrates its advocacy for environmental sustainability.16 Nike is also known for being outspoken about social injustice. Nike celebrated Colin Kaepernick’s right to protest with an ad that said, “Believe in something. Even if it means sacrificing everything.”17 Most recently, in 2025, Nike’s Super Bowl ad with the slogan, “You can’t win, so win,”18 put female athletes on center stage. By utilizing their platform, these companies have been able to influence and react to the opinions of the consumers.

Public advocacy can, however, be risky for businesses as it may contribute to customer loss. For example, Taylor Swift endorsed Kamala Harris in the 2024 presidential election and consequently lost republican support.19 Before the endorsement, republicans that saw Swift in a negative light equated to 26%; after the endorsement, the number rose to 47%.20

Despite businesses having the potential to make meaningful changes, they can also use lobbying in harmful ways.21

Ethical Dilemmas of Corporate Lobbying

Profits Over Public Well-Being

In November 2019, a jury in Missouri found a former lobbyist guilty of both accepting bribes and bribing lawmakers.22 The practice of lobbying is in no way shielded from corruption. Many constituents worry that corporations are more concerned with making money than about genuine well-being. Although a sole focus on making money is not always the case for every business, it remains a real concern.

For example, in 2008, the Confederation of Food and Drink Industries launched a transparency in food labeling initiative but later spent $1.3 billion opposing it.23 The food industry may want to promote healthy practices, but it also doesn’t want a cut on the roughly $1.5 trillion spent yearly in the US on the industry.24

Despite the positive changes corporations can influence through lobbying, the negative outcomes may outweigh them. The following data from the Pew Research Center notes that nearly 70% of Americans want money taken out of politics (see Figure 2).

The research also shows that 84% of Americans agree that lobbyists have too much political say.26 Many share the sentiments of Michigan Law Review authors Helen Herschkoff and Luke Norris, who suggest that corporations should be governed more strictly.27

Disproportionate Influence

Another ethical concern in corporate lobbying is whether businesses are too influential in policy changes.29 As a democracy, the United States highly values the power of the individual through voting. Corporate lobbying exemplifies the battle between the vote of an individual and the vote of industries.

Despite the debate that corporations have greater influence than individual voters, an argument persists that corporations amplify what voters want. An example of a corporation amplifying the voter voice is climate change. Argentine scholar and climate policy expert Francisco Garcia-Gibson explains that corporate lobbying for climate change has increased within the past two decades.30

The debate arises: Do corporations represent the population, or do they go against it?

Taking Action

Understanding the mechanics of corporate lobbying, internal business practices affecting policy changes, and the ethical dilemma of corporate lobbying allows prospective employees to make informed business decisions.

The attorney who advised the mother to understand her role in policy change is correct. The voting booth isn’t the only place to voice opinions. Supporting businesses that practice lobbying and have internal policies consistent with their corporate social responsibility will generate tangible change in the United States.