It depends a lot on the label and on the people at the label with whom you are working. The "big majors" are more notorious for engaging in "artistic development" than some of the smaller, more indy-flavored labels, but even with these there's always the "input" factor ... and sometimes the label execs can actually keep you from making poor or foolish marketing decisions (I've seen this happen first-hand).
As an artist, you want to produce something the "powers that be" at the label are gonna want to get behind and promote aggressively (and after all, that's what a label is good for: they have the resources and connections to get your music out there, heard, reviewed, and [if it finds its market and catches on] sold), but of course you also want to retain creative control over your music ... so it's a bit of a balancing act. When a band produces a project that the label reps feel isn't up to snuff, they generally have the option to say, "no thanks." Then - depending on the contract - a band might be entitled to release the project independently (or even shop it to another label), OR they might find their project shelved indefinitely (as happened with the new Mr. Mister album, "Pull," which was finally released last Tuesday after languishing at RCA for 20 years).
Often up-and-coming artists will go with a label for awhile, build up their fan base, and then go independent, hoping to bring that fan base along with them (as might be the case with 12 Stones - I don't really know). This is MUCH easier to do now than it was 20 years ago (because of the internet, Facebook, etc.), but it's still a LOT of work. Packing and shipping your own CDs is one thing when you're moving five to ten units per week, and quite another when you're moving hundreds.
peace,
rob