MGT 313 - Chapter 8

Trade associations

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

A company that builds stakeholder coalition to influence government is using which strategy?

Constituency-building

Dark money

Describes contributions made to these tax-exempt organizations since the donors' names and amount of their contributions were not reported to the Federal Election Commission. Organization have no contribution or spending limits.

Super PACs

Do not contribute directly to candidates, parties, or other PACs, they could accept unlimited contributions from individuals, unions, or corporations. Known as independent expenditure-only committees. Able to raise and spend vast amounts of money, so long as they were not actually affiliated with any campaign.

Lobbyists, under U.S. law, must disclose their:

Earnings and expenses.

Businesses should stick to pursuing and have no legal right to be engaged in political activities.

False

When a manager directly employs a lobbyist to represent the company's political strategy in Washington this is called aggressive organizational involvement in politics.

False

Political action committees (PACs)

Financial-Incentive Strategy. Are independently incorporated organizations that can solicit contributions and then channel those funds to candidates seeking public office. Contributions to political campaigns are limited to certain amounts per candidate and per election. The amounts that could be donated to were also limited.

Corporate political strategy

Involves the "activities taken by organizations to acquire, develop, and use power to obtain an advantage. These strategies might be used to further a firm's economic survival or growth.

The Business Roundtable

Is one of the most effective organizations promoting direct communications between business and policymakers. Information strategy. The organization studies various public policy issues and advocates for laws that it believes "foster vigorous economic growth and a dynamic global economy." Direct Communication. Information Strategy.

Revolving door

Is the circulation of individuals between business and government. Business sometime hire former government officials as lobbyists and political advisors.

Public affairs departments

Is to manage the firm's interactions with governments at all levels and to promote the firm's interests in the political process. It is a global trend.

Citizens United decision

It allowed corporations, and also labor unions, for the first time in the history of the United States to directly contribute to candidates for public office. Corporate funds to flow directly into campaigns.

In recent annual Harris polls, which entity did Americans believe had the greatest amount of political power?

Large businesses

What method(s) did the business opposed to Arkansas "religious freedom" laws use to influence lawmakers?

Made public announcements Hired private lobbyists.

Lobbying

Many companies hire full-time representatives in Washington, DC, state capitals, or local cities (or the national capital in other countries where they operate) to keep abreast of developments that may affect the company and, when necessary, to communicate with government officials. Involves direct contact with a government official to influence the thinking or actions of that person on an issue or a public policy. Information strategy.

Advocacy advertising

Method of influencing constituents. Advocacy ads focus not on a particular product or service,, like most ads, but rather on an organization's or a company's views on controversial political issues. Can appear in newspapers, on television, or in other media outlets.

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. Financial incentive strategy. Used to persuade a government body to act in a certain way that would favor the business.

A Super PAC is a financial-incentive political strategy tool.

True

Most scholars agree that business must participate in politics.

True

Sometimes business people leave the private sector to take employment in government before returning to the corporate world.

True

Dark money:

Undisclosed contributions to tax-exempt organizations.

Soft money

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

Bundling

When firms sent letter to their stockholders soliciting their political contributions for a particular candidate or group of candidates but have asked the contribution to be made to the company. Then the company takes all of the contributions to the candidate, clearly indicating that the contribution is from the firm's stockholders.