Lawrence Nicholson | Businesses and politics: Get in the game

The effects of party politics on family-owned businesses, FOBs, and vice versa, represent an emerging area of research in the family business literature.

There is a long history of the connection of family businesses to the political arena, some more public than others. Research has shown that there are advantages and disadvantages to FOBs aligning themselves to political parties.

However, many FOBs in Jamaica seem not to be in a hurry to be aligned to party politics, at least not in a way that it’s on the front page of any publication. The level of tribalism that is associated with party politics in Jamaica and the possible negative outcome are deterrents to any public acknowledgement of their involvement.

This is unfortunate, since the inclusion of FOBs could help to reduce the tribalism associated with party politics in Jamaica, thus helping to chart a new approach to politics. The following quotes are more akin to the views currently held by many FOBs in Jamaica:

There is no act of treachery or meanness of which a political party is not capable; for in politics there is no honour – Benjamin Disraeli

Neither political party is clean when it comes to tactics that divide our people – Roy Barnes

Insights from the literature

Research reveals that there are merits and demerits to be derived from the involvement of FOBs in the politics of a country. Many FOBs view their alignment to the politics of a country as strategic positioning. Recent research covering countries such as Brazil, Indonesia, Egypt and Tunisia, concluded that FOBs are better positioned to navigate the political game than their non-family counterparts when they align themselves to politics.

Part of the findings is that family business groups have an edge over other businesses in the areas of trust and the exchanging of favours. This is attributed to the long-term stability of FOBs and their capacity to build and sustain relationships with political actors.

In an investigation of the relationships between FOBs and political connections in Indonesia, it was concluded that establishing political connections increased the performance of the businesses. Findings from other research include FOBs as well as members of the controlling families being more likely to contribute to political parties, and more likely to obtain subsidised loans.

However, there is the contention that neopatrimonialism has emerged as a troubling outcome from the twinning of party politics with FOBs. Neopatrimonialism refers to a system of political actors in government using the resources of the country for personal gain, rather than for the benefit of the public.

The challenge is to avoid neopatrimonialism and other pitfalls from this connection. Research shows that while this a difficult undertaking, neopatrimonialism can either be eliminated or minimised with the establishment of guidelines, influenced by the input of the resources from FOBs needed for the sustainability of any political party.

The case of Jamaica

In Jamaica, the man or woman in the street does not allow the absence of data or empirical evidence to be barriers in drawing conclusions about FOBs and party politics. The conclusion is that most big businesses are politically connected to one of the ‘Ps’ and therefore cannot be trusted. The claim is that this has contributed to the political tribalism in Jamaica.

This is unfortunate, since everyone should have a right to support the political party of their choice without being labelled one way or another. On the other hand, there is the call by a significant few for FOBs to wade into the political arena to influence the political direction of the country, thus helping to cauterise the negative perception and apathy linked to party politics in Jamaica.

As a group of businesses whose combined generated revenue is equivalent to 32 per cent of GDP of the country, FOBs have the platform to insert a positive influence on the Jamaican political landscape.

The call is for a non-partisan approach by FOBs, a call that seems to be an echo from a fool’s paradise. Notwithstanding this idyllic thinking, it can be agreed that FOBs must assume leadership and address the inevitable distribution of political views among their shareholders, starting with open dialogue on the subject.

This open dialogue should include ways to reduce the tribalism that seeks to divide communities across Jamaica. There are too many instances of party politics, wittingly or unwittingly, having the effect of dividing communities and families because of the decision of families and businesses to be part of the political landscape.

Rural communities and the Coronation Market are two of the most trusted sample spaces for the collection of data on FOBs in Jamaica. Conversations within these spaces have highlighted some of the divisions consequential from the interplay between FOBs and party politics.

Two rural communities in Manchester highlighted outcomes of the tribal nature of the business and politics connection. Business owners in these communities have concluded that the “mixing of party politics and business” have forced or influenced family members to pit themselves against each other for economic survival.

In many cases, the economic benefits have proven to be short term, while the long-term ‘damage’ has continued for years. One of the long-term ‘damages’ is that members from the same family have refused to do business with each other, resulting in the community turning “its back on certain businesses” and forcing their closure.

While some agree that “politics should not be blamed” for the demise of these businesses, others have placed the “blame” at the feet of party politics and have expressed regrets that they “made the mistake” of getting their family and businesses “mixed up with politics”, a decision they claimed has “destroyed business and family”.

Many of those who have experienced negative outcomes from the “mix of business and politics” expressed the view that this needed not be the case. One suggestion is the need to cultivate “a new generation of politicians who will put country over their party politics”.

Nation-building

The role of FOBs in Jamaica goes beyond making profits and creating generational wealth. Their role should include helping to build the social, economic and political health of the country.

This cannot be done by sitting on the sidelines; FOBs must get in the game. The recommendation is that FOBs should develop a strong political influence in Jamaica, one that will lead to the elimination of the level of tribalism that has become commonplace in the communities across Jamaica.

At this critical juncture in Jamaica’s development, staying on the sideline should not be an option for FOBs. However, their involvement in politics must not be partisan. Their input, as a group with a common voice, should be driven by the need to be independent and unbiased.

Part of their agenda should be to take a stance on issues such as climate change, economic inequality, and gender inequality in the workplace.

FOBs in Jamaica are in poll position to insert themselves in the political affairs to influence and change the divisive nature of party politics. In doing this, they might be able to help to develop a new generation of politicians who will own the thought expressed by Steve Schmidt: “My fidelity is to my country, not my political party. Country first.”

One might argue that this aspiration is robed in naivety at its zenith, or nadir. If so, does this mean that we are doomed on this side of heaven?

More anon!

Lawrence Nicholson, PhD, is a senior lecturer at the Mona School of Business & Management, University of the West Indies, author of Understanding the Caribbean Enterprise: Insights from MSMEs and Family-Owned Businesses and a former director of the RJRGLEANER Communications Group. lawrence.n.08@gmail.com