ABSTRACT
Logic suggests that what a company makes or what services it provides is a critical driver of corporate political behavior. Literature evidence shows those firms whose products are highly regulated or highly dependent on government procurement view politics differently from firms that face little government regulation or do not have the government as a significant revenue source. The degree of political involvement by companies propelled by their commercial objectives can be deep and sustained. Engagement in political activities has become, for many companies, as important as the product innovation. Then, the more a corporation’s product depends on international or global trading relationships, the more involved that corporation is likely to be with government and politics. This chapter reviews the relationships between firm offerings and political involvement. It examines the core competencies of firms, what happens when companies go outside the core, and how much political risk tolerance a firm does have.
