The instrumentalization of advanced capitalism and how to stop it
Corporate capture is a fundamental strategy of private economic power. It is also one of the worst evils plaguing people and planet.
What is it?We understand corporate capture as the influence exerted — legally or illegally — by a private economic elite, particularly large corporations, over State functions, policies, laws, and resources.
Based on an investigation by the U.S. Department of Justice, we now know that the Brazilian construction company Odebrecht paid bribes to sitting and former presidents and other public officials in at least 10 countries in Latin America in order to obtain public contracts and other favors. This enormous scheme of illicit financial flows involving an entire region resulted in billions of dollars worth of transfers from the public coffers of those countries involved into the hands of private interests. This is a clear example of corporate capture of the State. There are thousands more.
Themain characteristicsof corporate capture are:
- This concept shifts the focus from the State as the object of capture to the corporation or economic elite as the subject exerting undue influence. Thus, corporate capture is distinguishable from similar terms such as “State capture” or “political capture.”
- The pressure exerted on the State extends beyond small-scale corruption and leads to the consolidation of corporate power, which results in economic benefits for the wealthy while undermining the public interest.
- It has negative implications for democratic governance worldwide, but its consequences on issues of underdevelopment, income inequality, and human rights are even more severe in the Global South.
It is extremely important to address and end the corporate capture of the State, which is the purpose of this site centered on the Global South. This phenomenon constitutes a fundamental component of corporate power, an antidemocratic force that has emerged from advanced capitalism and neoliberalism, and now threatens to exacerbate the climate crisis. It is precisely our reliance on goods and services provided by powerful corporations, along with the impacts on human rights and environmental damage they cause, that we seek to address. Here, we gather information on corporate capture that, until now, had remained scattered across different languages, sources, and fora. Defining and speaking clearly about the problem are part of its solution.
Through various forms of capture, the economic elite gains control of the State and shapes the “rules of the game” in its favor, thereby weakening public institutions. Some of themain mechanismsof corporate capture are:
- Lobbying or influencing publicofficials and legislators to adopt public policies and laws that favor the interests of the economic elite.
- Therevolving doorrefers to the movement from positions in the government to those in the private sector, and vice versa. Individuals who transition between these sectors bring with them contacts and privileged information, thereby increasing the influence of corporations.
- Thepayment of bribesto public officials and judges in order to secure substantial benefits, such as public contracts or favorable judicial rulings for private entities.
- Theprivatization of State assets,such as the sale of State-owned enterprises or the concession of public services to private companies, involves the transfer of public resources into private hands.
- Regulatory chill,or the pressure exerted through lawsuits in national and international tribunals to dissuade states from implementing policies or legislation that affect business interests.
- Ideological captureoccurs when universities, scientific research centers, or media outlets are co-opted to propagate a narrative that legitimizes the power of the economic elite.
At Empower, we specialize in understanding and tracking corporate capture, and assisting civil society organizations and social movements to combat it. Here, we provide an in-depth understanding of the phenomenon, its main manifestations, and mechanisms. Additionally, we present areas of opportunity and strategic innovations implemented by civil society to counteract it.
Economic elite, we have you in our sights
As a result of research conducted by Empower, we have compiled a report where we outline our understanding of corporate capture and present a summary of our key findings. Accompanying this report is a reference document where readers can delve deeper into our findings, including specific cases and examples. Both documents are available for download at this site.
The aim of our research is to identify the main challenges posed by corporate capture, the gaps between how it should be addressed and how it actually is, the opportunities for public policy to tackle it, and the strategies and innovations by civil society to address it. For instance, this includes the work of organizations across different regions that currently contribute to countering capture through strategic research, the implementation of information tools, name-and-shame campaigns, and mobilization among others.
For our analysis, we prioritize countries in the Global South where the effects of capture are often more severe, given the threats it poses to national sovereignty and its collusion with authoritarian regimes. Additionally, we highlight the risks of corporate capture within the energy transition, which is positioned as a solution to arguably the greatest threat humanity faces today: the climate crisis.
How to understand and end corporate capture
These are some of themost common manifestationsof corporate capture, as well as some of themost innovative strategiesto address it. Anyone looking to delve further into these topics can refer to the downloadable report and reference document, which provide additional details, examples, and specific cases. Click on the buttons to open the menu for each topic, where you’ll find an explanation with links to information sources.
Challenges and Gaps
Common types of corporate capture and the power vacuums exploited by the economic elite.
- Capture is often legal
- Lobbying and money in politics
- Legal, regulatory and judicial gaps
- Revolving door phenomenon
- Corporate interlock
- Beneficial ownership
- Privatization and public procurement
- Narrative and ideological capture
- Agenda setting in international and multilateral spaces
- Corporate philanthropy and CSR
- Lack of taxation
- Investor protection and regulatory chill
- Anti-protest, anti-speech repression
- Macro-crime
- Development capture
Opportunities
Areas where governments can intervene to curb corporate capture.
- Progressive industrial policy
- Transparency
- Treaty-level agreements
- International and multilateral institutions
- Business and human rights framework
- Due diligence laws
- Remedy mechanisms
- Tax reform
- Anti-capture, anti-corruption reform
- Judicial and litigation reform
- Commissions of public inquiry
- Whistleblowing
Strategies and Innovations
Innovative and replicable actions and strategies undertaken by civil society.
Civil Society Organizations
Leading CSOs from both the Global South and North at the forefront of addressing corporate capture.
Information Tools
Methods of data management and visualization addressing corporate capture.
Strategic Corporate Research
CSOs that conduct research on the structure and operation of corporations.
Financial Sector
Challenges posed by capture in the financial sector and opportunities to stop it.
Energy Transition
Risks and modes of capture of the energy transition, as well as opportunities and strategies to confront it.
- Renewable energy transition
- Critical minerals and supply chains
- State-owned enterprises
- Climate finance
- Greenwashing and false solutions
- Emerging legislation and regulation
- Litigation to stop climate change
- Multi-stakeholder groups / partnerships / cooperation mechanisms
- Voluntary corporate compliance
- Free, prior, and informed consent (FPIC) and Community solutions
- Advocacy, ground-truthing, and popular measures
Cases in the Global South
Examples of issues associated with corporate capture in the Global South, with a focus on the energy transition.
Exploitation and Opacity: The Hidden Reality of Mexican Coffee in Nestlé and Starbucks Supply Chains
The coffee industry, an economic and social engine for millions of small producers, faces a web of inequalities exacerbated by the dominance of large corporations and the concentration of the market in just a few hands. Nestlé and Starbucks, with certification systems designed to project sustainability, have structured supply chains that perpetuate dependence on producers, price controls, and the precariousness of coffee-growing communities. At the same time, these practices put biodiversity at risk and exacerbate the environmental crisis in vulnerable regions such as Chiapas and Veracruz, Mexico.
At Empower, together with Coffee Watch and ProDESC, we have analyzed public and private data, conducted interviews with producers, auditors, and experts, and reviewed hundreds of sources. We concluded that certifications and practices promoted as “sustainable” often operate as greenwashing tools. These strategies not only reinforce existing power structures, but also overshadow the real causes of the crisis in the coffee industry.
This research report seeks to unmask the power dynamics in the sector, exposing the connections between corporations, intermediaries, and public policies. We analyze how these relationships shape supply chains and certifications to prioritize corporate interests at the expense of the rights of small-scale producers and the environment. We also identify emerging strategies and actions led by cooperatives, civil society organizations, and international networks that seek to transform the system towards a more just and sustainable model.
Our objective is to provide clarity and tools for those working for justice in the coffee industry: activists, journalists, researchers, cooperatives, funders, and policy makers. If we are to revert the corporate capture of the sector and build a more sustainable economic model that prioritizes the common good, it is essential to act collectively, transversally, and globally. This report is an invitation to action to dismantle the corporate capture of the State and harmful practices, strengthen sustainable alternatives, and ensure a more just future for those who grow the coffee that sustains so many communities, both in Mexico and around the world.