Abstract

Background: The South African agricultural sector is facing regulatory uncertainty relating to land reform and distribution, restrictive labour policies and minimum wages. Corporate agribusinesses play an important role in the agricultural industry. Increasing political influence on their activities manifested in the lack of government support, and the uncertainty surrounding public policy threatens investment and growth in the sector. This calls for an intelligent integrated enterprise strategy that includes corporate political activity (CPA). Setting: Four South African agribusinesses and two agricultural associations. Aim: The purpose is to explore the CPA adopted by corporate agribusinesses and agricultural associations in terms of enterprise strategy during times of regulatory uncertainty. Method: Qualitative data were collected through semi-structured interviews. A questionnaire, consisting of sections focused on regulatory uncertainty, responses to regulatory uncertainty and strategy, was completed during the interviews. Results: The participants experience significant regulatory uncertainty. There is a clear distinction between the strategic approach to CPA followed by corporate agribusinesses and agricultural associations. The parties surveyed pursue a combination of CPA strategies. A desire for greater cooperation and shared prosperity with government is evident, supported by a strong sense of conducting business ethically, traced across the results. Conclusion: This article addresses the role that CPA plays in an integrated enterprise strategy – especially in times of regulatory uncertainty – such as the agricultural industry in South Africa is experiencing. It not only reports on the CPA approach of both corporate agribusiness and agricultural associations, but also describes the strategies agribusinesses follow during times of uncertainty.

Highlights

  • The South African agricultural landscape is facing regulatory uncertainty with the government having influence over restrictive labour policies, minimum wages, as well as land reform and distribution (Chamberlain & Anseeuw 2018; Hall 2004; Middelberg 2013; Ortmann 2005)

  • Increasing political influence on South African agribusinesses, manifested in the apparent lack of government providing support services (Khapayi & Celliers 2016:39) and policy uncertainty (Hendriks 2013:3), threatens development in the sector (Smith 2016). This calls for an intelligent integrated enterprise strategy that includes corporate political activity (CPA) – concisely defined as activities aimed at influencing governmental regulations and policies in favour of corporate agribusiness (Hillman, Keim & Schuler 2004; Lawton, McGuire & Rajwani 2013; Mbalyoherea & Lawton 2018:369)

  • The aim of this article is to explore the CPA adopted by selected South African agribusinesses in terms of an integrated enterprise strategy, especially during times of uncertainty

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Summary

Introduction

The South African agricultural landscape is facing regulatory uncertainty with the government having influence over restrictive labour policies, minimum wages, as well as land reform and distribution (Chamberlain & Anseeuw 2018; Hall 2004; Middelberg 2013; Ortmann 2005). Increasing political influence on South African agribusinesses, manifested in the apparent lack of government providing support services (Khapayi & Celliers 2016:39) and policy uncertainty (Hendriks 2013:3), threatens development in the sector (Smith 2016) This calls for an intelligent integrated enterprise strategy that includes corporate political activity (CPA) – concisely defined as activities aimed at influencing governmental regulations and policies in favour of corporate agribusiness (Hillman, Keim & Schuler 2004; Lawton, McGuire & Rajwani 2013; Mbalyoherea & Lawton 2018:369). Increasing political influence on their activities manifested in the lack of government support, and the uncertainty surrounding public policy threatens investment and growth in the sector This calls for an intelligent integrated enterprise strategy that includes corporate political activity (CPA).

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