Eighth Edition Archie B Carroll Ann K Buchholtz 2012 SouthWestern a part of Cengage Learning 1 Chapter 12 Business Influence on Government and Public Policy 2012 SouthWestern a part of Cengage Learning ID: 658717
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Business & Society
Ethics, Sustainability, and Stakeholder ManagementEighth Edition
Archie B. Carroll Ann K. Buchholtz
© 2012 South-Western, a part of Cengage Learning
1Slide2
Chapter 12
Business Influence on Government and Public Policy
© 2012 South-Western, a part of Cengage Learning2Slide3
Learning Outcomes© 2012 South-Western, a part of Cengage Learning
Describe the evolution of corporate political participation.
Differentiate among the different levels at which business lobbying occurs.Explain the phenomenon of political action committees (PACs
) in terms of their historical growth, the magnitude
of their
activity, and the arguments
for and against
them.
Define coalitions and describe the critical role they now assume in corporate political involvement.
Discuss the Bipartisan Campaign Reform Act and other issues surrounding campaign financing.
Outline the principal strategic approaches to political activism that firms are employing
.
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Chapter Outline
Corporate Political ParticipationCoalition BuildingPolitical Action Committees
SummaryKey TermsDiscussion Questions
4© 2012 South-Western, a part of Cengage LearningSlide5
Corporate Political Participation
Political InvolvementParticipation in the formulation and execution of public policy at various levels of government.
A 2010 Supreme Court ruling states that the government should not regulate political
speech from corporations.
Has
strengthened business’s power in political
activities and allows for unlimited
political spending by
corporations.
© 2012 South-Western, a part of Cengage Learning
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Corporate Political Participation (continued)
LobbyingThe process of influencing public officials to promote or secure passage or defeat of legislation.PACs
Instruments through which business uses financial resources to influence government.
Coalition Building
Business and other groups joining
forces
to achieve common
goals.
Political Strategy
To secure position of advantage
regarding
a given regulation or
piece
of
legislation.
© 2012 South-Western, a part of Cengage Learning
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Organizational Levels of Lobbying
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© 2012 South-Western, a part of Cengage Learning
Umbrella
Organizations
Trade
Associations
Individual Company
Lobbying
Broad
Midrange
Narrow/
Specific
Representation
Chamber of Commerce of the US
National Association of
Manufacturers
National Automobile Dealers
Assn.
National Association of Realtors
Washington and State Capital Offices
Law firms
Public affairs specialists
PACs
Grassroots lobbying
ExamplesSlide8
Grassroots LobbyingGrassroots Lobbying
Mobilizing the “grassroots,” which are individual citizens who might be most directly affected by legislative activity, to political action.Cyberadvocacy
Using the Internet to amass grassroots support
and enable grassroots supporters to
contact
their
legislators.
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© 2012 South-Western, a part of Cengage LearningSlide9
Grassroots Lobbying (continued)
Astroturf Lobbying/Grasstops LobbyingFake groups that appear to be genuinely grassroots but are largely created and funded by a professional organization or trade association.
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Trade Association Lobbying
What are Trade Associations?How do they help companies conceal donations?
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Umbrella OrganizationsTwo major U.S. umbrella organizations
Chamber of Commerce of the United StatesNational Association of Manufacturers (NAM)Other umbrella organizationsBusiness Roundtable
National Federation of Independent Businesses (NFIB)
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Coalition BuildingCoalition
Forms when distinct groups or parties realize they have something in common that might warrant their joining forces for joint action. How does one build a coalition?
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© 2012 South-Western, a part of Cengage LearningSlide13
Political Action Committees
Political Action Committees (PACs) are groups of like-minded businesses using financial resources to influence government.The principal instruments through which business uses financial resources to influence government.What are the arguments for
and against PACs?
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© 2012 South-Western, a part of Cengage LearningSlide14
Political Action CommitteesArgument for PACs
PACs are a reasonable means for business to organize their contributions to candidates for office.Business giving is offset by labor giving and by the multitude of other special-interest groups that also have formed PACs
Argument Against PACs
PACs expect something in return other than good
government
and this can lead
to
differing treatment for
those
who give and those
who
cannot,
such as the poor.
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The Hard Facts About Soft MoneySoft money
is a contribution made to political parties instead of political candidates.The Bipartisan Campaign Reform Act of 2002 was a sweeping change of U.S. campaign finance.The
BCRA removed the influence of soft money on candidates running for national office.
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The Hard Facts About Soft Money (continued)
Law regulates hard money, which are donations made directly to candidates.Strategists established 527s, which are allowed to spend soft money on campaigns.Bundling
The collection of individual donations that are then delivered to the candidate in a lump sum.
Another way of getting around campaign finance reform.
A recent Supreme Court ruling removed all limits on campaign donations by corporations.
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© 2012 South-Western, a part of Cengage LearningSlide17
Strategies for Political ActivismM
anagers must address when and under what conditions various approaches should be used. The purpose of political strategy is “to secure a position of advantage regarding a given regulation or piece of legislation, to gain control of an idea or a movement and deflect it from the firm, or to deal with a local community group on an issue of importance
.”Two major strategies:
Keep an issue off the public agenda and out of the limelight.Help to define the public issue.
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© 2012 South-Western, a part of Cengage LearningSlide18
Key TermsAstroturf lobbyingBipartisan Campaign Reform
Act (BCRA)BundlingCoalitionsCompany lobbyingContingency approachCyberadvocacy527sGolden
Rule of PoliticsGrassroots lobbying
Grasstops lobbying
Hard money
Lobbying
Political action
committees (PACs)
Political
involvement
Positive activism
Regulatory life cycle
Soft money
Trade organizations
Umbrella organizations
© 2012 South-Western, a part of Cengage Learning
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