It's how communities keep the companies in line yes. When you have a bad actor (corporations trying to extract money) you have the community (voters) elect reps who put constraints on the companies to keep tax revenue and worker pay within the community, which motivates the company to stay for the economic/infrastructure quality of the area, which motivates the community to elect people that continue to keep the companies in line.
Lobbying fights to destroy this by buying politicians to ignore their communities and instead let them extract resources and tax revenue from the communities they are using to earn it.