Chapter 8 - Corporate Political Strategy

Benefits of Direct Communications [Pg. 170-171]

- Can promote an information strategy - Gov officials visit local plant facilities to understand management and employee concerns - Helps humanize the distant relationship that can otherwise develop between gov officials and the public

Three strategic types of political actions

- Informational Strategy - Financial-incentives - Constituency-building

Three mechanisms businesses can use to direct money to election officials

- Super PACs - Tax-exempt Organizations - Direct Contributions by organizations and their executives and employees - Influencing employees and executives to make personal contributions to the campaigns of candidates they align with

Why businesses should, and should not, be involved

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Advocacy Advertising (Issue Advertisements) [Pg. 178]

A political tool used by companies to promote their viewpoint through the media - Focused not on a particular product or service, by rather on an organization's or company's views on controversial political issues

The Business Roundtable [Pg. 171]

An organization of chief executive officers (CEOs) of leading corporations - They study various public policy issues and advocates for laws that it believes "foster vigorous economic growth and a dynamic global economy"

Legal Challenges [Pg. 179]

Businesses seeks to overturn a law or portions of a law after it has been passed or threatens to challenge the legal legitimacy of the new regulation in the courts

Trade Associations [Pg. 178]

Coalitions of companies in the same or related industries-to coordinate their grassroots mobilization campaigns, such as the: - National Realtors Association (real estate brokers) - National Federation of Independent Business (small businesses) - National Association of Manufacturers (manufacturers only) - U.S. Chamber of Commerce (broad, diverse membership)

Lobbying [Pg. 168]

Direct contact with a government official to influence the thinking/actions of that person on an issue or public policy

Super PACs [Pg. 174]

Independent expenditure-only committees who can receive unlimited contributions from individuals, corporations, unions, and more AS LONG AS, they do not contribute directly to candidates or parties

Political Action Committees (PACs) [Pg. 172]

Independently incorporated organizations that can solicit contributions and then channel those funds to candidates seeking public office. - Political campaigns can accept contributions from them - Their contributions are limited

Grasstops Strategy [Pg. 177]

Its objective is to influence local opinion leaders

Moderate Political Involvement [Pg. 180]

Managers might directly employ a lobbyist to represent the company's political strategy in Washington or the state capital to push the firm's political agenda

Limited Organizational Involvement [Pg. 180]

Managers of the organization are not ready or willing to become politically involved by giving their own time or getting stakeholders involved, but they want to do something to influence the political environment

Grassroots Strategy [Pg. 177]

Seeking support from organizations or people affected by the public policy or sympathetic to business's political position - Objective is to shape policy by mobilizing the broad public in support of a business organization's position

Proponents of business involvement in the political process often argues that...

Since other affected groups (such as interest groups) are permitted to be involved, it is only fair that business should be, too.

Corporate Political Strategy [Pg. 166]

The activities taken by organizations to acquire, develop, and use power to obtain an advantage.

Revolving Door [Pg. 170]

The circulation of individuals between business and government - Potential for abuse with this concept as it invites favoritism and quid pro quo

Bundling [Pg. 180]

The collection of political contributions made by an organization's stakeholders to increase the organization's ability to influence a political agent

Why must businesses participate in politics?

The stakes are too high for businesses not to be involved

Public Affairs Development [Pg. 181]

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

Soft Money [Pg. 174]

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

Dark Money [Pg. 174]

Used to describe contributions made to 527 organizations since the donors' names and amount of their contributions were not reported to the Federal Election Commission

Economic Leverage [Pg. 176]

When a business uses its economic power to threaten to leave a city, state, or country unless a desired political action is taken - Also used to persuade a government body to act in a certain way that would favor the business

Financial Incentives Strategy

Where businesses provide incentives to influence government policymakers to act in a certain way, such as supporting a political action committee that contributes to a policymaker's campaign

Constituency Building Strategy

Where businesses seek to gain support from other affected organizations to better influence government policymakers to act in a way that helps them

Information Strategy

Where businesses seek to provide government policymakers with information to influence their actions, such as lobbying

Aggressive Organizational Involvement [Pg. 180]

Where managers become personally involved in developing public policy

What is a common method of providing information to legislators?

[Expert Witness Testimony] Having CEOs and other executives give testimonies in various public forms, like through public congressional hearings