hidden_voices

Hidden Voices: The CBI, corporate lobbying and sustainability2. How the CBI operatesIn this chapter we look at the ideological agenda of the CBI, in particular its fixation withattacking regulation, as well as their attitude to the environment. We expose the limitations ofthe voluntary approach of self-regulation. We highlight common corporate lobbying tacticsused to oppose policies to protect the environment. Finally we briefly examine the influenceof the CBI on Government policy.2.1 Profit and the free marketThe CBI supports free market theory and neo-liberal economics, and routinely opposesmeasures such as regulation and taxation, which it believes constrains their members’freedom to operate. This has evolved into a mantra focusing on regulation (dismissed as ‘redtape’) and taxation (dismissed as ‘burden on business’). This attitude is reinforced byreference to the competitiveness of UK businesses in international markets – the issue thattends to be at the heart of the CBI’s opposition to progressive legislation and policy.Neo-liberalism – what’s it all about?Neo-liberalism refers to a broad political philosophy based on the belief that individualsshould be liberated from all avoidable interference from Government. When used in thecontext of economics it is probably better known as ‘free market’ economics.The key elements of typical neo-liberal policies are:• Creating free markets by encouraging de-regulation and cutting red tape• Reducing the size of government by privatising state-owned public services• Resisting calls to ‘manage’ the economy by reducing the government’s role in it• Making people more ‘self reliant’ by cutting state benefits or assistance2.2 Red tape and taxesSociety places rules on economic activity to make sure it does not breech acceptablestandards in terms of, for example, exploitation or discrimination at work, putting people’shealth and safety at risk, or damaging the environment. Firms are also required to pay a fairshare of the taxes raised to invest in education, health and infrastructure. It is vital that thesepolicies are as effective and efficient as possible, and that they are developed to addressnew and pressing concerns. The CBI, however, routinely characterises regulation as aburden on business that constrains its ability to operate. CBI policy papers, speeches andpress releases are littered with references to the encumbrance of regulation.“The anti-profit brigade who run down business success might like to remember that whendelivering the next anti- business tirade. Weak profitability is not all the Government’s fault.But it is certainly the Government’s responsibility to do nothing to add to business costs withmore regulation and taxation.” viivii CBI press release, ‘CBI issues profit warning for UK PLC’, November 8 th 200420