Sunbelt XXXI International Network for Social Network ... - INSNA

From Whitehall To Leadenhall: Business Connections Of The British Civil ServiceCronin, BruceBusiness & Entrepreneurial NetworksCorporate Elites, Interlocked Directors, Political Networks, Corruption, Corporate GovernanceTHURS.PM2The separation of private interest and state is a high virtue in liberal democracies. In Britain, the codes of civil service were forged on the ashes of the GreatCorruption of the 18th and 19th centuries where government office was purchasable. But to condense a large literature, government is limited without thecooperation of private interest in providing information and action and this dependence opens doors to influence. In recent years, attempts have been madeto limit such channels through disclosure requirements. The United States has long had extensive restrictions and disclosure requirements on politicaldonations and lobbying activity. In the UK, disclosure of politician’s private interests, donations, subsequent employment and meetings with external bodieshas been only recently mandated. This study examines the interactions of business and the civil service in the UK revealed by recently published registers todetect persistent patterns of interaction. It demonstrates that large British firms , particularly the finance sector, are extensively and centrally engaged in directlobbying of civil servants and points to an important secondary network formed when retiring politicians and civil servants are employed in industry. It isargued that these networks are much more significant communication channels than those highlighted in media portrayals of ‘cash for influence’, that they arean inevitable product of a liberal democracy, and that this raises important issues for business governance.