Ethicality of Corporate Lobbying

Lobbying is defined as an act of trying to influence someone having authority. Corporate Lobbying is defined as the act of a corporate to try to influence decisions made by government or any regulatory authority. Lobbyists are experts who help an organization to communicate with the government and act as a bridge between the regulatory authority and corporates. They analyze the priorities of a corporate and the politics. These experts help the corporates to interact with the government in an efficient way. They help in getting the support and finding a window of opportunity for the corporates.

We can relate to the ethicalities of corporate lobbying with two different theories:

1. Utilitarian: Consequential Decision Making

According to this theory before taking any action, all the consequences of the action should be considered. This approach stresses on better consequences that promote human well-being i.e., happiness, health, dignity, integrity, freedom, respect of all the people affected. A decision that promotes the greatest amount of these values for the greatest number of people is the most reasonable decision from an ethical point of view.

On applying this theory, it can be inferred that corporate lobbying can be either ethical or unethical depending upon the end results. If lobbying is done for the betterment of the society, lobbying is ethical. On the contrary, if lobbying is done keeping in mind the interests of only a few corporates, it is unethical.

Considering the case of Niira Radia tapes, it is a well-known fact that the end result of A. Raja being the Telecom Minister was the 2-G Scam. A. Raja was given the Telecom Ministry due to the corporate lobbying practices of Niira Radia and other lobbyists. Now when we see the end result and apply the utilitarian theory, it is understood that unethical practices were involved in this case.

2. Deontological: Rules based Decision Making

According to this ethical and unethical practices are defined by the code of conduct as mentioned in the books. If the rules and regulations as mentioned in the code of conduct or law are followed, these practices are considered to be ethical while any deviations from that are considered to be unethical.

On applying this framework to corporate lobbying, it is considered to be ethical in those nations where proper rules and regulations are drafted for it. For example in USA, there are laws which govern corporate lobbying and it is considered to be ethical till all the laws are followed. In India, we do not have any laws pertaining to corporate lobbying.

Considering the present case, we found out that there are no proper laws and code of conduct which are mentioned in our country for corporate lobbying. In fact corporate lobbying is strictly illegal in India. Thus on applying deontological theory, it can be considered that this is the case of unethical practice and what Niira Radia did was wrong.