Advertisement

Big Business Bias? European Policy at the Expense of Small and Alternative Ventures

  • Volker Rundshagen
  • Markus Raueiser
Chapter
Part of the Contributions to Management Science book series (MANAGEMENT SC.)

Abstract

This chapter contributes a critical perspective on EU policy and the challenges it imposes on SMEs in general and alternative businesses in particular. The recent financial and Euro crises have undermined public trust in the business world and the political system. Reorientation and/or innovation towards more viable business practice could come from—and inspires—many SMEs, particularly alternative ventures. However, lobbyists of the large corporation scenery exercise substantial influence undermining meaningful policy shifts at EU level. We illustrate resulting dilemmas in the areas of banking and agriculture.

Keywords

Big business Alternative ventures SMEs Corporate lobbyism Agriculture Banking 

References

  1. Admati AR (2016) It takes a village to maintain a dangerous financial system. Rock Center for Corporate Governance Working Paper Series, no. 219. http://www.valuewalk.com/wp-content/uploads/2016/06/SSRN-id2787177.pdf. Accessed 17 Jan 2017
  2. ALTER-EU (2016) National representations in Brussels: open for corporate lobbyists. https://www.alter-eu.org/sites/default/files/documents/NationalRepresentationBrussels%20FINAL_0.pdf. Accessed 08 Jan 2017
  3. Attac (2017) Alternativbanken. http://attac.de/kampagnen/bankwechsel/bank-wechseln/alternativbanken/. Accessed 16 Jan 2017
  4. B Lab (2017) Certified B corps and benefit corporations. https://www.bcorporation.net/what-are-b-corps/certified-b-corps-and-benefit-corporations. Accessed 25 January
  5. Bank M (2016) TiSA: Hochprozentige Lobbypower. https://www.lobbycontrol.de/2016/12/tisa-hochprozentige-lobbypower/. Accessed 02 Feb 2017
  6. Barker J, Asare K, Brickman S (2017) Transfer pricing as a vehicle ın corporate tax avoidance. J Appl Bus Res 33(1):9–16CrossRefGoogle Scholar
  7. Binder E (2017) Wegen Anforderungen des Handels Milchbauern in NRW sorgen sich um ihre Existenz. Kölner Stadtanzeiger, 12 January. http://www.ksta.de/2552 8930. Accessed 15 Jan 2017
  8. BMEL = Bundesministerium für Ernährung und Landwirtschaft (2017) Nitratbericht .2016. http://www.bmub.bund.de/fileadmin/Daten_BMU/Download_PDF/Binnenge-waesser/nitratbericht_ 2016_bf.pdf. Accessed 28 Jan 2017
  9. Bohn F, de Jong E (2011) The 2010 euro crisis stand-off between France and Germany: leadership styles and political culture. IEEP 8(1):7–14CrossRefGoogle Scholar
  10. Bouwen P (2002) Corporate lobbying in the European Union: the logic of access. J Eur Public Policy 9(3):365–390CrossRefGoogle Scholar
  11. Brady M, Kellermann K, Sahrbacher C, Jelinek L (2009) Impacts of decoupled agricultural support on farm structure, biodiversity and landscape mosaic: some EU results. J Agric Econ 60(3):563–585CrossRefGoogle Scholar
  12. Branson R (2013) Screw business as usual: turning capitalism into a force for good. Virgin Books, LondonGoogle Scholar
  13. Brazys S, Regan A (2015) These little PIIGS went to market: enterprise policy and divergent recovery in European periphery. UCD Geary Institute For Public Policy Discussion Paper Series, WP2015/17Google Scholar
  14. Breuer H, Lüdeke-Freund F (2015) Values-based ınnovation framework – innovating by what we care about. https://www.researchgate.net/profile/Florian_Luedeke-Freund/publication/278683 806. Accessed 25 Jan 2017
  15. Bucher M, Neyer U (2015) Der Einfluss des (negativen) Einlagesatzes der EZB auf die Kreditvergabe im Euroraum. DICE Ordnungspolitische Perspektiven, No. 64 [rev.]Google Scholar
  16. Busch K, Troost A, Schwan G, Bsirske F (2017) Ausgleich statt Austerität: Für eine solidarische Europäische Union. Blätter für deutsche und internationale Politik 62(1):93–104Google Scholar
  17. Busse T (2016) Die Milchmaschine. ZEIT online, 30 June. http://www.zeit.de/2016/26/landwirtschaft-milchbauern-kuehe-produktion. Accessed 07 Feb 2017
  18. Butzbach O, von Mettenheim K (2014) Introduction. In: Butzbach O, von Mettenheim K (eds) Alternative banking and financial crisis. Routledge, AbingdonGoogle Scholar
  19. Chang H-J (2010) 23 things they don’t tell you about capitalism. Penguin, LondonGoogle Scholar
  20. Christians A (2014) Lux leaks: revealing the law, one plain brown envelope at a time. Tax Notes Int 76(12)Google Scholar
  21. Copelovitch M, Frieden J, Walter S (2016) The political economy of the euro crisis. Compar Polit Stud 49(7):811–840CrossRefGoogle Scholar
  22. Crane A, Matten D (2016) Business ethics: managing corporate citizenship and sustainability in the age of globalization, 4th edn. Oxford University Press, OxfordGoogle Scholar
  23. da Costa E (2001) Global e-commerce strategies for small businesses. The MIT Press, Cambridge, MAGoogle Scholar
  24. Demsetz H, Lehn K (1985) The structure of corporate ownership: causes and consequences. J Polit Econ 93(6):1155–1177CrossRefGoogle Scholar
  25. Dillon PJ, Back RM, Manz CC (2014) Authentic corporate social responsibility based on authentic empowerment: an exemplary business leadership case. J Values-Based Leadership 7(1):Art. 7Google Scholar
  26. Eichengreen B (2012) European monetary integration with benefit of hindsight. J Common Mark Stud 50(S1):123–136CrossRefGoogle Scholar
  27. EthikBank (2016) Wege aus der Zinslosigkeit. Ethikker, Herbst. https://www.ethikbank.de/fileadmin/ethikbank/dokumente/Die_EthikBank/E-Thikker.pdf. Accessed 28 Jan 2017
  28. EUR-Lex (2016) A ‘small business act’ for European SMEs. http://eur-lex.europa.eu/legal-content/EN/ALL/?uri=URISERV:et0001. Accessed 04 Jan 2017
  29. European Commission (2005) The new SME definition: user guide and model declarationGoogle Scholar
  30. European Commission (2015) User guide to the SME definitionGoogle Scholar
  31. European Commission (2016) Mythen und Fakten. http://ec.europa.eu/budget/ex-plained/myths/myths_de.cfm. Accessed 01 Feb 2017
  32. European Union (2017) Taxation. http://europa.eu/european-union/topics/taxation_en. Accessed 30 Jan 2017
  33. Eurostat (2015) 9 out of 10 enterprises in the EU employed fewer than 10 persons. Eurostat news release, 201/2015, 17 NovemberGoogle Scholar
  34. Eurostat (2017a) Agriculture statistics – family farming in the EU. http://ec.europa.eu/eurostat/statistics-explained/index.php/Agriculture_statistics_-_family_farming_in_the_EU. Accessed 16 Feb 2017
  35. Eurostat (2017b) Milk and milk product statistics. http://ec.europa.eu/eurostat/sta-tistics-explained/index.php/Milk_and_milk_product_statistics#Milk_production. Accessed 06 Feb 2017
  36. Faltin G (2015) Wir sind das Kapital. Erkenne den Entrepreneur in Dir. Aufbruch in eine intelligentere Ökonomie. Murmann, HamburgGoogle Scholar
  37. Felber C (2010) Gemeinwohl-Ökonomie: Das Wirtschaftsmodell der Zukunft. Deuticke, WienGoogle Scholar
  38. Ferber M (2004) Proportionalitätsprinzip in der europäischen Kreditwirtschaft – Verdienen kleine Banken eine Sonderbehandlung? http://www.markus-ferber.de/verschiedenes/presse-aktuell-single-view/article/proportionalitaetsprinzip-in-der-europaeischen-kreditwirtschaft-verdienen- kleine-banken-eine-so.html. Accessed 15 Jan 2017
  39. Freeman RE, Wicks AC, Parmar B (2004) Stakeholder theory and “the corporate objective revisited”. Organ Sci 15(3):364–369CrossRefGoogle Scholar
  40. Gemeinwohlökonomie (2017) Community. https://www.ecogood.org/de/community/. Accessed 29 Jan 2017
  41. George S (2015) Shadow sovereigns: how global corporations are seizing power. Wiley, Hoboken, NJGoogle Scholar
  42. Goss D (1991) Small business and society. Routledge, AbingdonGoogle Scholar
  43. Gray KR, Clark GW, Frieder LA (2005) Corporate scandals: the many faces of greed. Paragon House, St. PaulGoogle Scholar
  44. Guay TR (2014) The business environment of Europe: firms, governments, and ınstitutions. Cambridge University Press, CambridgeGoogle Scholar
  45. Hall PA (2014) Varieties of capitalism and the euro crisis. West Eur Politics 37(6):1223–1243CrossRefGoogle Scholar
  46. Harrabin R (2016) Farm subsidies: payment to billionaire prince sparks anger. http://www.bbc.com/news/uk-politics-37493956. Accessed 05 Jan 2016
  47. Heinrich-Böll-Stiftung (2009) Urban Futures 2030: Visionen künftigen Städtebaus und urbaner Lebensweisen. https://www.boell.de/sites/default/files/Urban-Future-i.pdf. Accessed 07 Jan 2017
  48. Herrmann U (2017) Aus der Krise nichts gelernt: Die Mythen der Mainstream-Ökonomie. Blätter für deutsche und internationale Politik 62(1):71–82Google Scholar
  49. Honeyman B (2014) The B corp handbook: how to use business as a force for good. Berrett-Koehler, San FranciscoGoogle Scholar
  50. Isakson SR (2014) Food and finance: the financial transformation of agro-food supply chains. J Peasant Stud 41(5):749–775CrossRefGoogle Scholar
  51. Johnson D, Turner C (2016) European business. Routledge, AbingdonGoogle Scholar
  52. Jones E, Kelemen RD, Meunier S (2015) Failing forward? The euro crisis and the ıncomplete nature of European ıntegration. Compar Polit Stud 49(7):1–25Google Scholar
  53. Keller E (2015) Forging a new mittelstand compromise: lobbying strategies and business ınfluence after the financial crisis. EUI Working Paper, MWP 2015/9. http://cadmus.eui.eu/bitstream/handle/1814/38004/MWP_2015_19.pdf;sequence=1. Accessed 18 Jan 2017
  54. KSTA = Kölner Stadtanzeiger (2017) Wer hat die Macht über unser Essen? .11 January. http://www.ksta.de/25519808. Accessed 26 Jan 2017
  55. Low W, Davenport E (2005) Postcards from the edge: maintaining the ‘alternative’ character of fair trade. Sustain Dev 13:143–153CrossRefGoogle Scholar
  56. Mackey J, Sisodia R (2013) Conscious capitalism: liberating the heroic spirit of business. Harvard Business School Press, Boston, MAGoogle Scholar
  57. Mair J, Noboa E (2006) Social entrepreneurship: how ıntentions to create a social venture are formed. In: Mair J, Robinson J, Hockerts K (eds) Social entrepreneurship. Palgrave Macmillan, Basingstoke, pp 121–135CrossRefGoogle Scholar
  58. Marsh D (2016) Europe’s deadlock: how the euro crisis could be solved – and why ıt won’t happen. Updated edition. Yale University Press, New Haven, CTGoogle Scholar
  59. Meckl R (2010) Internationales management, 2nd edn. Franz Vahlen, MünchenGoogle Scholar
  60. Menasse R (2012) Der Europäische Landbote: die Wut der Bürger und der Friede Europas. Zsolnay, WienGoogle Scholar
  61. Milliman J, Ferguson J, Trickett D, Condemi B (1999) Spirit and community at Southwest Airlines: an investigation of a spiritual values-based mode. J Organ Chang Manag 12(3):221–233CrossRefGoogle Scholar
  62. MIV = Milchindustrie-Verband (2016) Die Milch im Überblick: Die wichtigsten Daten und Fakten. http://milchindustrie.de/fileadmin/Dokumente/Marktdaten/Da-ten_Fakten_Deutschlan dkarte_2015_Homepage.pdf. Accessed 05 Feb 2017
  63. Mügge D (2010) Widen the market, narrow the competition: banker ınterests and the making of a European capital market. ECPR, ColchesterGoogle Scholar
  64. Oxfam (2014) Working for the few: political capture and economic inequality. Oxfam Briefing Paper No 178Google Scholar
  65. Pagliari S, Young KL (2014) Leveraged interests: financial industry power and the role of private sector coalitions. Rev Int Polit Econ 21(3):575–610CrossRefGoogle Scholar
  66. Pe’er G et al (2014) EU agricultural reform fails on biodiversity. Science 344(6188):1090–1092CrossRefGoogle Scholar
  67. Posner E, Véron N (2010) The EU and financial regulation: power without purpose? J Eur Public Policy 17(3):400–415CrossRefGoogle Scholar
  68. Potter C, Tilzey M (2005) Agricultural policy discourses in the European post-Fordist transition: neoliberalism, neomercantilism and multifunctionality. Prog Hum Geogr 29(5):581–600CrossRefGoogle Scholar
  69. Pullman ME, Dillard J (2010) Values based supply chain management and emergent organizational structures. Int J Oper Prod Manag 30(7):744–771CrossRefGoogle Scholar
  70. Quaglia L (2012) The regulatory response of the European Union to the global financial crisis. In: Mayntz R (ed) Crisis and control: institutional change in financial market regulation. Campus, Frankfurt am Main, pp 171–195Google Scholar
  71. Rankin J (2016) EU petition on Barroso’s Goldman Sachs job signed by more than 150,000. The Guardian, 11 October. https://www.theguardian.com/business/2016/oct/11/eu-petition-on-barroso-goldman-sachs-job-signed-by-150000. Accessed 20 Jan 2017
  72. Renwick A, Jansson T, Verburg PH, Revoredo-Giha C, Britz W, Gochte A, McCracken D (2013) Policy reform and agricultural land abandonment in the EU. Land Use Policy 30:446–457CrossRefGoogle Scholar
  73. Roddick A (2005) Business as unusual. Anita Roddick Books, ChichesterGoogle Scholar
  74. Rosenberger W (2015) Agrarsubventionen: Großkonzerne und Funktionäre profitieren. Stuttgarter Nachrichten, .29 May. http://www.stuttgarter-nachrichten.de/inhalt.agrarsubventionen-grosskon zerne-und-funktionaere-profitieren.aa37c20f-d52f-429d-b7b0-0eb0b38b8130.html. Accessed 28 Jan 2017
  75. Schumann H (2013) Eurokrise: Staatsgeheimnis Bankenrettung. Der Tagesspiegel, .24 February. http://www.tagesspiegel.de/wirtschaft/eurokrise-staatsgeheimnis-bankenrettung/7826402.html. Accessed 07 Jan 2017
  76. Schumann H (2016) Die Herrschaft der Superreichen: Die Macht der Geldelite und die Kapitulation der Politik. Blätter für deutsche und internationale Politik 61(12):67–78Google Scholar
  77. Schwarcz SL (2015) Excessive corporate risk-taking and the decline of personal blame. Emory Law J 65:533–580Google Scholar
  78. Schwartz SH (2012) An overview of the Schwartz theory of basic values. Online Readings in Psychology and Culture 2(1). http://scholarworks.gvsu.edu/orpc/vol2/iss1/11. Accessed 09 Jan 2017
  79. Shiller RJ (2012) The subprime solution: how today’s global financial crisis happened, and what to do about it. Princeton University Press, Princeton, NJCrossRefGoogle Scholar
  80. SHRM = Society of Human Resource Management (2017) Values: what does it mean to be a values-based organization? https://www.shrm.org/resourcesandtools/tools-and-samples/hr-qa/pages/whatdoesitmeantobeavalues-basedorganization.aspx. Accessed 15 Jan 2017
  81. Singer DE, Day J (2014) New York benefit corporations: bringing social responsibility to business. CPA J March:40–43Google Scholar
  82. Somers FJL, van Hall SA, van Leeuwen C, Lengton EE, van der Linden RWH (2010) European business environment: doing business in the EU. Noordhoff, Groningen/HoutenGoogle Scholar
  83. Spiegel (2012) Emergency bailout German Parliament approves Spanish bank aid. Spiegel Online, 19 .July. http://www.spiegel.de/international/germany/germany-approves-euro-bailout-payment-to-spanish-banks-a-845396.html. Accessed 04 Jan 2017
  84. Stout LA (2012) The shareholder value myth: how putting shareholders first harms ınvestors, corporations, and the public. Berrett-Koehler, San Francisco, CAGoogle Scholar
  85. Strange S (2015) Casino capitalism. New edition. Manchester University Press, ManchesterGoogle Scholar
  86. Suder G (2011) Doing business in Europe, 2nd edn. Sage, LondonGoogle Scholar
  87. Super DE, Sverko B, Super CM (1995) Life roles, values and careers: ınternational findings of the work ımportance study. Jossey-Bass, San Francisco, CAGoogle Scholar
  88. Tansey R (2014) The EU’s revolving door problem: how big business gains privileged access. In: Dialer D, Richter M (eds) Lobbying in der Europäischen Union: Zwischen Professionalisierung und Regulierung. Springer VS, Wiesbaden, pp 257–268Google Scholar
  89. Tencati A, Pogutz S (2015) Recognizing the limits: sustainable development, corporate sustainability and the need for innovative business paradigms. Sinergie Ital J Manag 33(96):37–55Google Scholar
  90. van den Ven B, Nijhof A, Jeurissen R (2009) Sticking to core values: the case of The Body Shop. In: Mallin CA (ed) Corporate social responsibility: a case study approach. Edward Elgar, Cheltenham, pp 59–79Google Scholar
  91. WEF = World Economic Forum (2014) Saving globalization from itself. https://www.weforum.org/agenda/2014/10/saving-globalization-from-itself. Accessed 02 Jan 2017
  92. Welzer H (2014) Selbst denken: Eine Anleitung zum Widerstand. S Fischer, Frankfurt am MainGoogle Scholar

Copyright information

© Springer International Publishing AG, part of Springer Nature 2018

Authors and Affiliations

  1. 1.Stralsund University of Applied SciencesStralsundGermany
  2. 2.Cologne Business SchoolKölnGermany

Personalised recommendations