Government Policy-Making Process and Business-Government Relations

Question 1

What are the 6 central control agencies in Federal Government?

Answer 1

Cabinet, PCO, PMO, Treasury Board, Department of Finance, Agenda/Results Committee

Question 2

What is the role of the PMO?

Answer 2

To provide PM with partisan, political advice.

Question 3

What is the role of the PCO?

Answer 3

To develop and coordinate overall government policy and provide technical policy advice from PM and Cabinet.

Question 4

What is the role of the Treasury Board?

Answer 4

A cabinet committee that authorizes government spending and allocates financial and human resources

Question 5

What does the department of Finance do?

Answer 5

Monitors economy and determines tax revenues need to run government.

Question 6

Fill in the blank: Contingencies determine the extent to which you can _______ your power sources and convert your potential power to actual power over others.

Answer 6

Leverage

Question 7

What are the 5 sources of power?

Answer 7

Legitimate, reward, coercive, expert, referent

Question 8

Do all Prime Minister have all 5 sources of power?

Answer 8

Not necessarily. All PMs have legitimate, reward, coercive, and expert power. Only some have referent power (depends on how likeable they are)

Question 9

Describe the 5 sources of power using the Prime Minister.

Answer 9

Legitimate power is from the title and role of PM,
Reward power is from having the power to appoint officials/ being paid
Coercive power is from the ability to fire people
Expert power is gained through the knowledge and support of the PMO and PCO (indirectly have expert power)
Referent power is from how likable and popular PM is. ie. Trudeau currently has referent power

Question 10

What are the 4 contingencies of power?

Answer 10

Substitutability, centrality, discretion, visibility

Question 11

Describe the 4 contingencies of power

Answer 11

Substitutability - are there alternatives/replacements for a resource you control? Can others do what you do?
Centrality - is your position percieved as important?
Discretion - how free are you to exercise your judgement? Are there constraints
Visibility - Do others know you have power?

Question 12

What are some of the constraints to the PM?

Answer 12

Public opinion, news media, business or interest groups, courts, provincial government, existing laws (hard to change; laws with other nations)

Question 13

What is the role of the court?

Answer 13

To interpret the Charter of Rights/Freedom. They may disallow laws that they interpret as contrary to the Charter.
Parliament can override theses courts but dont.

Question 14

What are the 3 government decision making styles and generally who uses them?

Answer 14

Rational - used by lower/mid level bureaucrats when making new policies
Incremental - used by politicians and bureaucrats when making changes to existing policies
Public Decision - used by senior level politicians/bureaucrats when dealing with outside interest groups; usually concerning sensitive political issues.

Question 15

True or False: Government in Canada plays a more significant role in businesses than in the US.

Answer 15

True.

Question 16

What are 5 ways government influences business?

Answer 16

1. Architect of economic growth (taxation, spending)
2. Prescribes “rules of the game” for businesses (competition law, intellectual property)
3. Major buyer of business goods and services
4. Promotes and subsidizes certain businesses (ie. tax credits)
5. Finances some businesses in key industries (strategic position for gov.)
6. Rescues failing businesses (sometimes; mostly banks/firms with strategic importance)
7. Protects business interests (tariffs, foreign trade)
8. Owns some businesses directly (CBC, BC Hydro)
9. Partners with business to do joint projects
10. Regulates business activities
11. Protects some groups in society from businesses
12. Redistributes wealth (taxes)

Question 17

Describe laissez-faire regulation.

Answer 17

Right wing view - do not want government intervention in business and markets. Believe consumers can force companies to behave in particular ways (through boycotts, buying behaviour)

Question 18

What are the various types of self-regulation?

Answer 18

1. Corporate self-discipline regulation (standards are voluntarily developed and enforced)
2. Industry self-regulation - voluntary codes of conduct that are industry wide (ie advertising standards)
3. Self-regulation involving stakeholders
4. Negotiated self-regulation
5. Government mandated self-regulation (via legislation)

Question 19

What are the supporting government regulation on businesses?

Answer 19

1. Controls natural monopolies
2. Controls negative externalities (ie. pollution)
3. Control unfair competitive practices
4. Achieve social goals

Question 20

What are the two types of Government regulation? Describe them

Answer 20

Economic which is industry specific, affects competition, quality, prices, regulation/deregulation
Social which affects all businesses (across all industries) - These include things like employee standards, occupational safety standards, human rights

Question 21

What is the purpose of deregulation of industries?

Answer 21

To reduce regulations so competition increase. This is expected to increase efficiency, lower prices, and stimulate innovation

Question 22

What are two major non-regulatory issues that government can use to influence businesses?

Answer 22

Industrial policy - government policy that promotes/inhibits a certain industry
Privatization - moving public services (originally government delivered) to the private sector

Question 23

What are some of the good lobbying strategies used by tobacco manufacturers to influence government?

Answer 23

Shifting the issue away from health focus to arts and culture focus.

Question 24

In business and government relations, there are three levels. Describe the first level.

Answer 24

Political, Social, and Economic Parameters - beyond the control of businesses and sometimes the government. This includes factors like national unity concerns (Quebec), parliamentary system, dependence on foreign trade, and industry concentration.

Question 25

In business and government relations, there are three levels. Describe the second level.

Answer 25

Firm and Business level - this includes the exogenous and endogenous factors that affect business and government. Some exo factors (outside your control) are relations with suppliers, competitors, degree of dependence on government, public perception. Some endo factors are resources that are devoted to government relations, if business group has unified voice, and the goal of the group.

In terms of government, some exo factors are majority/minority government, existing laws, news media. Some endo factors, are the choice of instruments to alter businesses (taxes, legislation, spending), what issues are priority, and how involved groups are in the policy process.

Question 26

In business and government relations, there are three levels. Describe the third level.

Answer 26

How firms and business groups influence government. Few ways include:
- treatment of stakeholders, advertising (good/bad image, issue.advocacy ads), lobbying, political activity, and think tank contributions (research)

Question 27

In general, what are the objectives of business lobbying?

Answer 27

To get favourable interpretation of exisiting legislation/policies.
To get favourable new legislation/regulations
To prevent negative changes
To obtain greater access/participation to policy process

Question 28

What are the three types of business lobbyists?

Answer 28

Business interest groups/associations (ie. tobacco manufacturers)
Government relations consultants (lobby on your behalf)
Government affairs/public affairs department (in-house lobbyist)

Question 29

Explain the strategies lobbyists should consider and use to influence government

Answer 29

Define the issue. Identify your target/targets. Decide when the best time is to get involved (earlier is better). Choose mechanism that are effective (presentation, hire consultants, join business groups).

** Generally, strength is in numbers- bigger is better!

Question 30

According to Don Wright, what are the 5 lessons to government relations

Answer 30

1. View it as a B2B relationship - take it seriously and your credability is everything
2. Understand your partner’s business - in gov. they want to be re-elected. Understand the process and who you should be talking to
3. What is your value proposition? How is it beneficial for government? Align your values with govs interest and propose solutions (dont just complain)
4. Use marketing techniques- Multiple marketing channels, repitition of message
5. Build a trusting relationship - be proactive and get involved early.

Question 31

What factors determine how effective a interest group can be?

Answer 31

Ideology orientation of the government party.
If group has access to decision makers.
Need information and expertise! Stats!
Size and representativeness of group - bigger is better and more involvement is key
Public opinion
Resources of group - $$$

Question 32

What are the possible outcomes of business-government relations?

Answer 32

1. Business dominates government (deregulation, free market)
2. Governemnt dominates business (more regulation)
3. Social gridlock
4. Businesses can effectively influence government for its own benefit, despite opposition of other groups.

Question 33

Who are the best targets for lobbying?

Answer 33

Senior bureaucrats & cabinet ministers

Question 34

How would you approach senior bureaucrats if you were lobbying?

Answer 34

Approach with information and analysis of issue, don’t be overly biased. Discuss what impacts the policy would have

Question 35

How would you approach politicians if you were lobbyinh?

Answer 35

Emphasize what your business wants but explain how it is good for the government and other stakeholders, broader community, creating jobs etc. Politicians want votes!