What makes a company run? Sales. Sales of a product to the right customer. In the business environment today, politics plays a major role to dictate the environment that a company must operate in. A manager is then charged with the task of creating value for customers within the limits of the political sphere. Customers play the most important role in making a company either a success or a failure. Most of these customers are also voters, constituents of multiple representatives. These representatives are charged with the task of building a society that the majority of their constituents desire. A successful company therefore must also understand what their customers desire and operate within the boundaries the customers have set.
Companies that create false value such as Enron are the foundation for legislation that protects customers from company malpractice. The representatives that choose these laws must act above the influence of the wealth their society creates. When they do not, politics creates an environment that benefits powerful companies rather than the customers/constituents. This has happened multiple times in the US in the past, for example, the powerful food companies of the 1920’s needed to be broken up because their influence on society was far too great.
Today, lobbying has created a societal structure that allows for powerful companies to influence politics. The more wealthy the company, the stronger their lobbying influence. This has allowed companies to alter legislation making the business environment more favorable for them. While this can increase wealth in countries, it reduces the value of society because the politics operate in the interest of business rather than the people and creates externalities such as the environment. The separation of business and politics is vital to building a lasting society, and companies need to work within the limits of politics rather than attempt to bend politics to their will.