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2. Influencing the Political Environment Participants in the Political Environment
Influencing the Business-Government Relationship
Political Action Tactics
Levels of Political Involvement
Campaign Finance Reform: A Special Issue
Business Political ActionA Global Challenge
3. The arguments for and against political involvement by business Why Business Should Be Involved
A pluralistic system invites many participants.
Economic stakes are high for firms.
Business counterbalances other social interests.
Business is a vital stakeholder of government. Why Business Should Not Be Involved
Managers are not qualified to engage in political debate.
Business is too big, too powerful.
Business is too selfish to care about the common good.
Business risks its credibility by engaging in partisan politics.
4. Corporate political strategy Corporate political strategy
Involves the activities taken by organizations to acquire, develop, and use power to obtain an advantage.
Three strategic types
Information strategy: where businesses seek to provide government policymakers with information to influence their actions.
Financial-incentives strategy: where businesses provide incentives to influence government policymakers to act in a certain way.
Constituency-building strategy: where businesses seek to gain from other affected organizations to better influence government policymakers to act in a way that helps them.
5. Political strategies, tactics, and characteristics: Information strategy Tactics
Expert witness testimony
Targets government policymakers by providing information.
8. Political action tactics Lobbying
Lobbyists communicate with and try to persuade others to support an organizations interest or stake as they consider a particular law, policy, or regulation.
Direct communications with policymakers
Businesses often participate in activities that will improve government officials understanding of management and employee concerns.
Expert witness testimony
Businesses may want to provide facts, anecdotes, or data to educate or influence government leaders through public congressional hearings.
9. The Business Roundtable One of the most effective organizations for promoting direct communication between business and policymakers.
It is an organization of CEOs of leading corporations.
It studies various public policy issues and advocates for laws it believes foster vigorous economic growth and a dynamic global economy.
Considers issues like corporate governance, education, health care, and civil justice reform.
10. Top 15 business lobbyist expenditures for 2000
11. Top 10 association lobbyist expenditures for 2000
12. Promoting a financial-incentive strategy Political action committees
Independently incorporated organizations that can solicit contributions and then channel those funds to candidates seeking political office.
Occurs when a business uses its economic power to threaten to leave a city, state, or country unless a desired political action is taken.
13. Political action committee activity
14. Promoting a constituency-building strategy Stakeholder coalitions
Businesses try to influence politics by mobilizing various organizational stakeholders to support its political agenda.
Advertisements that focus on a companys views on controversial political issues.
Public relations and trade associations
Businesses may include a politically charged comment in a speech given by a senior company executive or even run a well-funded, long-running public relations campaign.
Business seeks to overturn a law after it has been passed.
15. Levels of business political involvement Level 3: Aggressive Organizational Involvement
Involvement with industry working groups and task forces
Public policy development
Level 2: Moderate Organizational Involvement
Employee grassroots involvement
Stockholders and customers encouraged to become involved
Level 1: Limited Organizational Involvement
Contribution to political action committee
Support of a trade association or industry activities
16. Campaign finance reform Soft money
Unlimited contributions to the national political parties by individuals or organizations for party-building activities.
17. Top soft money contributors to both political parties, 2001-2002
18. Top soft money overall donors, 2001-2002
19. Campaign financing reform abroad Limits on expenditures
Bans against certain types of contribution
Bans against certain types of expenditures
Measures designed to encourage donations