Political strategies, tactics, and characteristics: Information strategy

1. Figure 9.2a Political strategies, tactics, and characteristics: Information strategy Tactics • Lobbying • Direct communication • Expert witness testimony Characteristics • Targets government policymakers by providing information. Source: Adapted from Amy J. Hillman and Michael A. Hitt, “Corporate Political Strategy Formulation: A Model Approach, Participation, and Strategy Decisions,” Academy of Management Review, 24 (1999), Table 1, p. 835.

2. Figure 9.2b Political strategies, tactics, and characteristics: Financial-incentive strategy Tactics • Political contributions • Economic leverage • Political consulting aid • Office personnel Characteristics • Targets government policymakers by providing financial incentives. Source: Adapted from Amy J. Hillman and Michael A. Hitt, “Corporate Political Strategy Formulation: A Model Approach, Participation, and Strategy Decisions,” Academy of Management Review, 24 (1999), Table 1, p. 835.

3. Figure 9.2c Political strategies, tactics, and characteristics: Constituency-building strategy Tactics • Stakeholder coalitions • Advocacy advertising • Public relations • Legal challenges Characteristics • Targets government policymakers indirectly through constituent support and coalitions Source: Adapted from Amy J. Hillman and Michael A. Hitt, “Corporate Political Strategy Formulation: A Model Approach, Participation, and Strategy Decisions,”Academy of Management Review, 24 (1999), Table 1, p. 835.

4. 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.

5. “A Quiet Revolution in Business Lobbying” • Chamber of Commerce is at forefront of quiet revolution in business lobbying • Corporate groups now raise big money to advance broad issues (largely to help President Bush enact fiscal agenda) • Chamber now #1 organization in lobbying expenditures • Trade associations traditionally concentrated on narrow concerns, shunning partisan issues • When Thomas Donohue became Chamber president in 1997, group took in ~$600k from largest corporate members – last year, $90m • Some concern that if Chamber abandons President on big issues, risk losing administration support for parochial matters critical to their industries • Critics argue that superior funding by corporate sources in unfair • Looming battles: vs. trial lawyers lobby on legal reform and vs. AARP on Social Security private accounts • Source: Washington Post, 2/5/05

6. “U.S. Lobbying Tab Hits a Record” • U.S. corporations and interest groups spent record total of $1.16b to lobby Washington in first half of 2005 • AARP spent ~$28m mainly to defeat Social Security plan • Three major tort-reform bills that Congress debated last year also spurred lobbying (asbestos, bankruptcy overhaul, class-action legislation) • Top labor-union spender was American Federation of State, County, and Municipal Employees, which ranked 223rd • As a whole, organized labor spent 1.4% of total • Health-care industry led other sectors by spending $173m on lobbying during period • Source: Wall Street Journal, 2/14/06