Chapter 9

corporate political strategy details

- can simply be the business' exercising their right to voice their opiinion on governement affairs -stratedgy can be long term, short term, pre developed, or developed at time of need

Why shouldn't business be involved in business?

- managers are not qualified to engage in political debate - business is too big, too powerful. elephant dancing among chickens - business is too selfish to care about the common good - business risk its credibility by engaging in partisan politics.

why should business be involved in business?

-a pluralistic system invites many participants (more people involved) - economic stakes are high firms (businesses have a lot to lose) - business counterbalances other social interests (keeping business' point of v in mind) - business is a vital stakeholder of government

STRATEGIES...(3)

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advocacy advertising (3)

also known ass issue advert. and focus' on a company's views on contraversial political issues

business roundtable

an org of chief ceo's of leading corps. an effective organization promoting direct communicaitons between business and policymakers.

ad hoc coalitions

bring diverse groups together to organize for or against particular legislation or regulation

legal challenges (3)

business seeks to overturn a law after it has been passed or threatenes to challenge the legal legimacy of the new regulation in courts.

Information strategy (1)

businesses seek to provide governemnt policymakers with info to influence their actions such as lobbying, direct communication, expert witness testimony

trade associations(3)

coalitions of companies in the same or related industries to coordinate their grassroots mobilization campaigns.

Political Action Committies (2)

companies can't just straight up give out money and say "here is some money, do what we want" they create PAC's that are independently incoprerated orgs that can solicit contributions and then chanel those funds to candidates seeking political office.

scholars and businesspeople say businesses must be involved in politics for the simple fact that the stakes are too high. therefore, businesses must develop a ....what?

corporate political strategy

revolving door

hiring lobbyists that have been former government officials. bc they revolve in and out and back into the system

corporate political strategy

involves the activities taken by orgs to aquire, develop, and use power to obtain an advantage.

levels of business political involvement

level 1: limited organizational involvement; indirect and impersonal level 2: moderate organizational involvement; indirect yet personal (lobby, grass roots, etc) level 3 - aggressive org involv; direct and personal (executive participation, public policy development)

economic leverage (2)

occurs when business uses its economic power to threaten to leave a city, state, or country unless a desired political action is taken.

bundling

step one= send letters to stockholders and tell them to send the company money for a particular candidate(s). step two= gather funds and send but clearly indicate that they are from the company's stockholders.

stakeholder coalitions (3)

they send a strong message. its just getting normal people and stakehodlers together united under one opinion/common interest

public affairs department

to manage the firm's interactions with governments at all levels and to promote the firm's interests in the political process.

soft money

unlimited contributions to the national political parties by individuals or orgs for party building activities

lobbying

when companies hire fulltime reps in washington, DC, state capitols, etc, to keep abreast of developments that may affect the company and when necessary to communicate with goernemnt officials.

financial incentives strategy (2)

where business provide incentives to influence government policymakers to act in a ceratin way, such as making a contribution to a political action committe that supprots the policy maker, economic leverage, etc.

constituency building strategy (3)

where businesses seek to gain support from other affected organizations to better influence government poliymakers to act in a way that helps them such as stakeholder coalitions, advocasy advertising, public realtions. (grassroots strategy)

527 organizations

where soft money could be sent alternatively. named after the provisions tax code.