Chapter 12: Gov Stakeholder Flashcards
Business Influence on Government and Public Policy
The focus of this chapter is
how we impact the government
Political involvement
participation in the formulation and execution of public policy at various levels of government
Two major approaches to corporate political activity
Lobbying
Political Spending
Lobbying (self-interested)
the process of influencing public officials to promote or secure the passage or defeat of legislation
Lobbying in 2016 presidential election
Trans-pacific partnership (encourages fossil fuel production)
Puerto Rico (restructure debt)
Criminal Justice Reform (reduce minimum sentence for drugs offenders)
Mega Mergers (bring up antitrust issues)
Environmental Regulation (waters of the U.S., Clean Power plan and tougher ozone standards)
Organizational Levels of Lobbying
Umbrella Trade Associations
Sectoral Trade Associations and Coalitions
Company Lobbying
What amendment is the reason that companies are allowed to petition the government
First Amendment
Umbrella Trade Associations (broad representation)
Represent the collective business interests of the United States. (ex. Chamber of Commerce, National Association of Manufacturers, Business Roundtable, National Federation of Independent Businesses, State/City Chambers of Commerce)
Sectoral Trade Associations and Coalitions (midrange representation)
Composed of many firms in a given industry or line of business. (ex. National Automobile Dealers Association, National Association of Home Builders, National Association of Realtors, American Petroleum Institute American Trucking Association, National Association of Medical Equipment Suppliers, Tobacco Institute, Health Benefits Coalition, U.S. Telecom Association)
Company Lobbying (narrow/specific representation)
Where companies lobby on their own behalf. (ex. Washington and State Capital Offices, Law Firms Specializing in Lobbying, Public Affairs Specialists, Political Action Committees, Grassroots Lobbying, Company-Based Coalitions, Former Government Officials)
Lobbyists (influence peddlers) are
lawyers, government affairs specialists, public relations consultants, or public affairs consultants
Revolving door lobbyists (former government official)
Former congressional staff members or former members of Congress. Former presidential staff assistants or other highly placed government officials.
Stealth (Shadow) Lobbying
To be formally considered a lobbyist, an ex legislator must be engaged in lobbying activities 20 percent or more of his or her time for an individual client. By spreading services among many clients, or by providing “strategic advice” rather than “lobbying services,” any ex-lawmaker can effectively evade the ban.
What Business Lobbyists Do for their clients
Get access to key legislators (connections)
Monitor legislation
Establish communication channels with regulatory bodies
Protect firms against surprise legislation
Draft Legislation, sick ad campaigns, direct mail camp.
Provide issue papers on anticipated effects of legislative activity
Communicate sentiments of association or company on key issues
Influence outcome of legislation (promote helpful legislation, defeat harmful legislation)
Assist companies in coalition building (common issues)
Help members of congress get reelected
Organize grassroots efforts
Grassroots lobbying
The process of mobilizing the “grassroots” - individual citizens who might be most directly affected by legislative activity - to political action
Cyberadvocacy
computer-based form of grassroots campaigning
Astroturf Lobbying
Some organizations and trade groups have created fake groups that appear to be grassroots but are largely created and funded by an organization or trade association. Phony efforts that give the impression of a genuine public groundswell but are actually orchestrated and funded by professional organizations.
Coalition (political involvement in public policy process)
A coalition forms when distinct groups or parties realize they have something in common that might warrant their joining forces, at least temporarily, for joint action. (Ex. FlyersRights.org)
Political Action Committee
Committees that are organized to raise and spend money for political candidates, ballot initiatives, and proposed legislation
Federal Election Campaign Act
Prohibits corporations from making direct contributions to candidates
Connected PAC (separate segregated fund)
Associated with a specific group or organization and can only raise money from that group. The FEC permits the company or organization sponsoring the PAC to absorb the cost of soliciting contributions, as well as administrative overhead
Nonconnected PAC
Can accept funds from any individual or organization, as well as from a connected PAC - as long as those contributions are legal. Typically formed around a specific issue or by specific political leaders
Leadership PAC
Nonconnected PACs formed by political leaders to support other candidates for office
Super PACs (Independent Expenditure Only Committees)
Resulted from judicial decisions. May raise unlimited amounts of money to support or oppose political candidates.
