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