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Business & Society Ethics, Sustainability, and Stakeholder Management

Eighth Edition. Archie B. Carroll . Ann K. Buchholtz. © 2012 South-Western, a part of Cengage Learning. 1. Chapter 12. Business Influence on Government and Public Policy. © 2012 South-Western, a part of Cengage Learning.

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Business & Society Ethics, Sustainability, and Stakeholder Management






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Slide1

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

.

3Slide4

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

5Slide6

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

6Slide7

Organizational Levels of Lobbying

7

© 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.

8

© 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.

9

© 2012 South-Western, a part of Cengage LearningSlide10

Trade Association Lobbying

What are Trade Associations?How do they help companies conceal donations?

10

© 2012 South-Western, a part of Cengage LearningSlide11

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)

11

© 2012 South-Western, a part of Cengage LearningSlide12

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?

12

© 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?

13

© 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.

14

© 2012 South-Western, a part of Cengage LearningSlide15

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.

15

© 2012 South-Western, a part of Cengage LearningSlide16

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.

16

© 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.

17

© 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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