Chapter 9

Why Businesses SHOULD be involved in Politics:

- A pluralistic system invites many participants - Economic stakes are high for firms - Business counterbalances other social interests - Business is a vital stakeholder of government

Why Businesses SHOULD NOT be involved in Politics:

- Managers are not qualified to engage in political debate - Business is too big, to powerful-- an elephant dancing among chickens - Business is too selfish to care about the common good - Business risks its credibility by engaging in partisan politics

Corporate Political Strategy

Activities taken by organizations to acquire, develop, and use power to obtain an advantage

Level 3 Business Political Involvement

Aggressive Organizational Involvement: - Executive Participation - Involvement with Industry Working Groups and Task Forces - Public Policy Development

Ad Hoc Coalitions

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

Trade Associations

Coalitions of companies in the same or related industries -- to coordinate their grassroots mobilization campaigns. Ex. National Realtors Association

Advocacy Advertising

Common method of influencing constituents, focus not on a particular product or service but rather on a company's views on controversial political issues.

Bundling

Company takes all of the contribution to the candidates, clearly indicating that the contributions are from the firms stockholders. Level 2

Political Action Committees (PACs)

Independently incorporated organizations that can solicit contributions and then channel those funds to candidates seeking political office.

Incumbents

Individuals running to retain their sears in the House of Representatives

Level 1 Business Political Involvement

Limited Organizational Involvement: - Contribution to political action committee - Support of a trade association or industry activities

Level 2 Business Political Involvement

Moderate Organizational Involvement: - Organizational Lobbyist - Employee Grassroots Involvement - Stockholders and Customers Encouraged to become Involved

Economic Leverage

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

The Business Roundtable

One of the most effective organizations promoting direct communications between business and policy makers

Campaign Finance Reform

Proposal sought to reform the system of campaign financing to reduce the corrupting influence of money in the political process

Lobbying

Represent the business before the people and agencies involved in determining legislative and regulatory outcomes

Financial- incentive Strategy

Targets government policy makers by providing financial incentives. Tactics: Political Contributions, Economic Leverage, Political Consulting Aid, Office Personnel

Information Strategy

Targets government policy makers by providing information. Tactics: Lobbying, Direct Communication, Expert Witness Testimony

Constituency- building Strategy

Targets government policy makers indirectly through constituent support and coalitions. Tactics: Stakeholder Coalitions, Advocacy Advertising, Public Relations, Legal Challenges

Revolving Door

The circulation of individuals between business and government

Soft Money

Unlimited contributions to the national political parties by individuals or organizations for party-building activities