Corruption In Public Relations

1081 Words5 Pages

Everyone has such a consensus that political power will be inevitably accompanied by wealth. Power and money are twin brothers. Therefore, both developed countries and developing countries are faced with corruption and abuse power for personal gains. The power can bring economic benefits for government officials, but for "power rent-seeking", another participant of the game like firms, If they can through friendly choice for the government to get the corresponding political relations to obtain more economic benefits, that means the political relationship has a corresponding "value". If we can research deeply on this question, it maybe can explain the existence of corruption in governments. Companies always establish political relations by providing …show more content…

Enterprise's fundamental purpose is to obtain maximum benefits. Since the exchange of interests with the government public relations can gain more profits, it is reasonable and necessary that enterprises set up a public relations department. In this paper, the author analyzed the political relationship by the quantitative analysis in order to verify the traditional ideas. The author mainly attempts to answer a question: how important that the political relations for companies or other economic organizations. In order to rule out the disturbance of factors such as business mind for measuring political relationship, the author selected Indonesia, a political structure stability and leadership concentration country. In addition, for quantitative analysis, the author selected four types of data:”stock market and accounting data for companies traded on the Jakarta Stock Ex-change (JSX); data on the group affiliations of all JSX firms; a measure of the political dependence of a subset of these firms; and 4) a series of "events" related to the condition of Suharto's …show more content…

In this country, political power is too concentrated. Although it ruled out a certain amount of interference factors for regression, it lead to certain limitations to the explanation of regression results. Comparing the political system in the European and American countries, power won't be completely focused on someone's hand and checks and balances system are more mature. In this case, whether political relations are still the main corporate profits is yet to be proven. You can select several different political system and leadership in countries which have different power and select the enterprise group data to analysis, then you can measure its national enterprise group of earnings for quantitative analysis. Obtained from the analysis of the results may be more interpretative. In addition, if you want to measure the value of political relations, you need to compare the profits getting from the political relations and commercial activities. Instead of simply measuring in the political impact of loss that the enterprise which have political relationships. If compared with for government relations, commercial activities will get more profits. It is not rational that companies will pay more political funding cash for political relations. However, it is a trouble that how to separate the profit gained by the business methods from political

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