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Business & Society 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 2
Learning Outcomes © 2012 South-Western, a part of Cengage Learning 1. Describe the evolution of corporate political participation. 2. Differentiate among the different levels at which business lobbying occurs. 3. 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. 4. Define coalitions and describe the critical role they now assume in corporate political involvement. 5. Discuss the Bipartisan Campaign Reform Act and other issues surrounding campaign financing. 6. Outline the principal strategic approaches to political activism that firms are employing. 3
Chapter Outline Corporate Political Participation Coalition Building Political Action Committees Summary Key Terms Discussion Questions 4 © 2012 South-Western, a part of Cengage Learning
Corporate Political Participation Political Involvement Participation 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 5
Corporate Political Participation (continued) Lobbying The 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 6
Organizational Levels of Lobbying 7 © 2012 South-Western, a part of Cengage Learning
Grassroots 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 Learning
Grassroots Lobbying (continued) Astroturf Lobbying/Grasstops Lobbying Fake 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 Learning
Trade Association Lobbying What are Trade Associations? How do they help companies conceal donations? 10 © 2012 South-Western, a part of Cengage Learning
Umbrella Organizations Two major U.S. umbrella organizations Chamber of Commerce of the United States National Association of Manufacturers (NAM) Other umbrella organizations Business Roundtable National Federation of Independent Businesses (NFIB) 11 © 2012 South-Western, a part of Cengage Learning
Coalition Building Coalition 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 Learning
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 Learning
Political Action Committees Argument 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 Learning
The Hard Facts About Soft Money Soft 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 Learning
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 Learning
Strategies for Political Activism Managers 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: 1.Keep an issue off the public agenda and out of the limelight. 2.Help to define the public issue. 17 © 2012 South-Western, a part of Cengage Learning
Key Terms Astroturf lobbying Bipartisan Campaign Reform Act (BCRA) Bundling Coalitions Company lobbying Contingency approach Cyberadvocacy 527s Golden Rule of Politics Grassroots 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 18
Business & Society Business & Society Ethics, Sustainability, and Stakeholder Management Eighth Edition Archie B. Carroll Ann K. Buchholtz © 2012 South-Western,
Chapter 11-1 Chapter 11 BUSINESS & SOCIETY Ethics and Stakeholder Management Carroll & Buchholtz 6e Business and Society: Ethics and Stakeholder Management,
1 Business Influence on Government and Public Policy Business and Society: Ethics and Stakeholder Management, 7e Carroll & Buchholtz Copyright ©2009 by.
Chapter 12 Business Influence on Government and Public Policy © 2012 South-Western, a part of Cengage Learning 1.
Business and Society: Ethics and Stakeholder Management, 5E Carroll & Buchholtz Copyright ©2003 by South-Western, a division of Thomson Learning. All.
© 2015 Cengage Learning1. Chapter 12 Business Influence on Government and Public Policy © 2015 Cengage Learning2.
1 Business Influence on Government and Public Policy Professor Craig Diamond BA 385 November 4, 2009 Chapter 12.
Copyright © 2011 by The McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin chapter 9 Influencing the Political Environment.
INTEREST GROUPS AND CAMPAIGN FINANCE Interest Groups *A group of people who share common goals and organize to influence government. *Usually concerned.
Aim: What role do special interest groups play in our government? Do Now: Examine the list of interest groups. Which ones best represent you interests?
Campaign Financing STEPHANOW, The Federal Election Commission (FEC) is the independent regulatory agency charged with administering and enforcing.
Interest Groups in American Politics An organized group of people with shared goals and a desire to influence government action Some groups have explicitly.
This well known political scientist developed the disturbance theory, hypothesizing that interest groups form to counteract the activities of other groups.
MONEY IN POLITICS Review & Update LWV Money in Politics Review and Update “This political system is awash in money... The effect of all this, unfortunately,
Financing Campaigns. Running for office is very expensive; for example, presidential candidates spend about 1 billion dollars each in the 2012 election.
Campaign Finance 527s, PACs, and Super PACs. Purpose of Today’s lesson: Define the appropriate vocabulary/political- speak that accompanies Campaign Finance.
Unit 3 – Parties, Interest Groups and Public Policy.
Campaign Finance Sources of Campaign Money Presidential Candidates –Private Donors –Federal Government Congressional Candidates (& all other) –Private.
Money and Politics Reference Ch 7.3. How much money do Americans spend on campaigns? Do wealthy contributors “buy” government influence? Should the government.
Journal: Discuss with a partner What type of “groups” do you belong to? – Think…clubs, sports, band, charity organizations, etc… Why did you join these.
Homework: PP and IGs test on Friday FrontPage: OL on your desk. Describe two ways that interest groups can influence public policy.
CAMPAIGN FINANCE. MONEY Politicians need money to win elections election cost over $1.1 billion!
Homework: PP and IGs test on Friday FrontPage: Turn in FP; make sure to vote BoR…
ELECTING THE PRES. CHAPTER 10. I. The Preliminaries (4 years) A.All Candidates have to do three things 1. Establish record 2. Develop power base 3. Strategy.
Interest Groups. The Role of Interest Groups Where do you stand on gun control? What about school prayer? Abortion? How would you increase your chances.
Today’s Agenda Any Announcements? Any Questions? Let's Review our Bellwork.... Now... Let’s Begin Today’s Lesson…..
Chapter 9. Interest groups have no legal status in the election process Do not nominate candidates, but may support candidates sympathetic to their.
Chapter 9 Influencing the Political Environment McGraw-Hill/Irwin Copyright © 2008 The McGraw-Hill Companies, All Rights Reserved.
Incumbents and Elections Free speech and Campaign Finance Reform.
Summary of the Rules Governing Campaign Financing The New Rules of the Game.
Campaign Financing. Major Issues How much can candidates raise How much can donors contribute How does the government influence campaign spending How.
Interest Groups. Political and social organizations Represent special interests Range from very liberal to very conservative Lobby officials to improve.
THE FEDERAL ELECTION COMMISSION AND CAMPAIGN FINANCE REGULATION Campaign Finance.
Campaign Finance Reform. Federal Election Campaign Act (1974) FEC created Contributions disclosed to FEC Limit on campaign contributions Public.
Money and Elections Running for office costs a lot of money. Items spent on campaigning range from radio and television commercials to office rent. Parties.
Influencing the Political Environment Participants in the Political Environment Influencing the Business-Government Relationship Political Action Tactics.
CAMPAIGN FINANCE How to fund a race for government office.
1Copyright © 2014 Cengage Learning. What is an Interest Group? Members share common views and objectives Seek to influence government officials.
© 2014 Routledge, Inc., Taylor and Francis Group. All rights reserved. PowerPoint Presentation Design by Charlie Cook CHAPTER 7 Strategies of Societal.
Chapter 7 The Electoral Process Section 2 Money and Elections.
Homework: RQs due tomorrow; test Friday FrontPage: NNIGN.
Clarabelle Santos. Independent Expenditures Individuals and groups are allowed to spend unlimited amounts for and against candidates as long as the expenditures.
527s, PACs, and Super PACs Or, “How the billionaires are taking full control of our government”
Interest Groups Chapter 7. Interest Groups Interest groups are organized groups of individuals sharing common objectives, who actively attempt to influence.
Money and Elections Objective 26H. Campaign Spending Total spending for all party efforts in the 2004 presidential election reached over $2 billion. Sums.
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