11: Business, Gov And Regulation Flashcards
Policy
Theories about the world, action taken by government to solve a problem
Gov involvement in business
Gov is a central stakeholder of business and it’s interest is broad and multi faced. Gov power is derived from its legal and moral right to represent the public in its dealing with business.
Non market strategy
Way to pursue strategic goals through political and social leverage. Helps groups gain soft power and influence and use them to their CA. It’s developed towards gov, press, and influential groups.
Lobbying
Process of influencing public officials to promote/secure passage/ defeat of legislation. Lobbyists are intentionally self interested. Their goal is to promote public policy that is in the interest of their organisation, and to defeat public policy that runs counter to that goal.
Lobbying levels
Umbrella trade organisations: broad, e.g. chamber of commerce, Nat banking unions/trade associations.
Sector trade associations - midrange, Nat association of home builders, Nat association of realtors, bankers association.
Company lobbying - narrow/specific, e.g. banks, public affair specialists, grassroots lobbying (individual citizens who might be most directly affected by legislative activity)
Political strategy
Information strategy (provide info) - to policy makers through lobbying, research, etc.
Financial incentives strategy (making contributions) - to policy makers.
Constituency building strategy (mobilising others to work together) - grassroots/business cohort.
Reasons for regulation
Controlling natural monopolies, controlling negative externalities, achieving social goals