BG & IS

CIA -I

Submitted by : Ankit Jani

Reg. no.: 1021020
1MBA-J
Two perspective of Business Power:
Pluralist Theory
 Pluralistic society:

A society with multiple groups and

institutions through which power is diffused.
 No entity or interest has overriding power, and each may
check and balance others
 Infused with democratic values
 American society encompasses a large population
spread over a wide geography and engaged in diverse
occupations
 The Constitution encourages pluralism
Three of the major tenets of the
pluralist school are:
 Resources and hence potential power are
widely scattered throughout society;
 At least some resources are available to
nearly everyone; and
 At any time the amount of potential power
exceeds the amount of actual power.
 American politics fits the pluralist model
quite well
 Pluralist democracy favors the well-organized
 The poor are the least likely to be interest group
members
Boundaries of Managerial Power
 Governments and laws in all countries
regulate business activity.
 Social interest groups represent every
segment of society and use many methods to
restrain business.
 Social values are transmitted across
generations, reflected in public opinion, and
embedded in the law.
 Markets and economic stakeholders impose
strong limits.
Concluding remark

 If corporate power remains generally

accountable to democratic controls,
society will accord it legitimacy.
 If rule by law and a just economy exist,
corporate power will broadly and
ultimately be directed toward public
welfare.