Chapter 09 – Government Relations
Teaching Notes
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Chapter 9
Government Relations
When I wrote this chapter for the first time in the Second Edition of the text, my
guess was that over the next decade government relations would become more
rather than less important as business got bigger, technology got more complex, and
both the public and private sector started to realize how critical it is to work
together in a global marketplace. Please look at the chapter on government
relations in The Power of Corporate Communication for a more managerial approach
to this topic as well as additional examples for you to use in your class.
My predictions about the increasing importance of the relationship of government
and business continue to be well founded; much has happened since the 2nd edition
of this textbook and I have since updated this chapter with new data and more
examples. The Sarbanes-Oxley Act altered the accountability of corporations by
dramatically changing the way companies must handle their financial activities.
Microsoft continued to be hounded by charges of anti-competitive behavior. Merck
A company does not have to be as large as General Motors, Microsoft, or Merck to
need to pay careful attention to their government relations. In the local communities
where you live, how does government affect business? For example, if you have a
manufacturing facility or a utility nearby, what does local government do that can
either help or hurt the company? For companies like Disney, dealing with local
government is a fact of life for any expansion plans such as the one described in the
You might also want to contact the government affairs office at both the local and
national level for a major company near your school. You will get firsthand
information from people who are used to schmoozing to get their point across. You
will find them extremely interested in helping you. Lobbyists are also sources
worth tapping for information.
Chapter 09 – Government Relations
Teaching Notes
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Teaching Note
Disney
Synopsis
In the A case, Disney CEO Michael Eisner ponders whether to go forward with his
plans for a U.S. history theme park called Disney’s America, located in Prince
William County, Virginia. The case depicts the origins of the Disney idea, one that
Eisner hoped would distinguish his personal legacy, and the company’s work with
local and state governmental officials. Alongside of these “progrowth” efforts,
Teaching Objectives
This case may be used in a module or course on Corporate Communication,
particularly on the topic of Government and Community Relations. The case
provides students with an opportunity to:
1. Study Disney’s government and community relations through the example of
proposing the Disney’s America theme park.
2. Study the anatomy of a public controversy and citizen action.
3. Appreciate the power of rhetorical framing, visual imagery, and symbolism.
Chapter 09 – Government Relations
Teaching Notes
Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the
prior written consent of McGraw-Hill Education9-3
© 2013 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or
distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in
whole or part.
Formatted: Font: 10 pt
Suggested Advanced Assignment
For many students the outcome of this case may already be known or could be
easily discovered, so the value in reading it is for understanding how public
controversies work and considering whether anticipating them should have an
impact on business decision-making.
1. What were the early terms of the controversy?
2. How did the terms of the controversy change following the vote in Virginia’s
General Assembly?
3. Why were the historians and journalists so invested in opposing Disney’s
project?
4. Could Eisner and Disney have anticipated or avoided this controversy?
Case Analysis and Hypothetical Teaching Plan
1. What were the early terms of the controversy?
The original terms of the controversy were economic growth versus
environmental preservation, and were relatively civil in tone. One could say
that both sides were concerned with the commonwealth” though they had
different ideas about what the term meant.
2. How did the terms of the controversy change following the vote in
Virginia’s General Assembly?
Community activists realized they needed to broaden their base of support.
By reframing the controversy as subject of national concern could do just
that. The dominant theme changed from a local land use issue to a national
An interesting tangent might be explored here about what counts as
authentic. Possible questions might include: Who decides what is authentic?
Why is commercialism widely seen as antithetical to authenticity? Do you
buy the argument that people might use Disney’s America to bridge to the
“real thing”?
Chapter 09 – Government Relations
Teaching Notes
Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the
prior written consent of McGraw-Hill Education9-4
© 2013 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or
distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in
whole or part.
Formatted: Font: 10 pt
3. Why were the historians and journalists so invested in opposing
Disney’s project?
Some students might complain that the Protect Historic America group was
desperate, just masking the environmental issue with the historical issue.
You might point out that both the environmental and historical objections
were actually raised from the start. The difference was really a matter of
emphasis, of foregrounding and backgrounding. Others may say PHA was just
a bunch of elitists who didn’t like people invading their turf, literally and
figuratively. These views have some merit, but encourage students to dig
deeper.
Disney stepped into the middle of an on-going debate about the
representation of history, public memory and national identity. You might
remind or inform students about other squabbles that occurred in the U.S.
around the time. One was over how to present the Enola Gay exhibit at the
Smithsonian. The Enola Gay is the name of the airplane that dropped one of
the atomic bombs on Japan during World War II. Originally, the exhibit was
planned to view the event from the U.S. and Japanese points of view.
Materials that depicted the devastation wreaked on the Japanese people
At this point, the instructor might ask the class for other examples of these
kinds of historical controversies. Particularly draw out examples from
international students to counter balance the U.S.-centric nature of this case.
At another level, the Disney’s America controversy tapped into other cultural
controversies too. This controversy could be characterized as a cultural war
of low brow versus high brow treatments of history. It could also be
Chapter 09 – Government Relations
Teaching Notes
Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the
prior written consent of McGraw-Hill Education9-5
© 2013 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or
distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in
whole or part.
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women felt that their own professional identities and reputations were at
stake.
4. Could Eisner and Disney have anticipated or avoided this controversy?
Students may want to talk about what Eisner should have done at the end of
the A case. Disney could continue on with the Disney’s America project,
continuing to work on building public support and possibly hiring more
historian consultants, while hoping that the media publicity would die down
over time. Another option would be to end the project at its current location,
This question is easier to answer with 20/20 hindsight than it was for
Disney, so ask students to speculate fairly. Students may begin to answer this
question by suggesting that Disney should have been more sensitive to the
values and sensibilities of people living in the Washington area. The company
might have anticipated that well-connected and powerful members of the
community could mount a negative publicity campaign. With a little research
Many students will probably suggest that “involving” the historians or the
people from the area early on could improve community relations. Challenge
students to be more specific about what they mean. What would a company
need to do to be inclusive and effective? What are the pros and cons? Where
does a company or the community draw limits? Some may venture that if
Disney had anticipated community response and included it in the planning
stages, the company might have changed its course or strategy to build in a
different location or to modify the concept.
Chapter 09 – Government Relations
Teaching Notes
Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the
prior written consent of McGraw-Hill Education9-6
© 2013 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or
distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in
whole or part.
Formatted: Font: 10 pt
Chapter 09 – Government Relations
Teaching Notes
Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the
prior written consent of McGraw-Hill Education9-7
© 2013 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or
distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in
whole or part.
Formatted: Font: 10 pt
If students do not bring it up, prompt them to think about the consequences
of taking a multiple stakeholder and communication approach from the very
beginning. A possible result would be that the company would recognize that
this business idea, at least in its original form, was untenable, especially in
5. Distribute the B case and discuss.
Allow students some time to read the B case before resuming discussion.
What does this case teach us about creating, maintaining and protecting
corporate reputation? Draw on insights from the Carmichael and Rubin
article on oppositional crises listed below.
Suggested Reading
Barie Carmichael and James Rubin, “Dow Corning—A New Model for Crisis
Management,” Strategic Communication Management, December/January 2002, 22-
25. Carmichael and Rubin argue that oppositional crises need to be handled
differently than external crises.
Visual Supplements
Disney is very protective of its brand, and consequently visual supplements are
somewhat hard to come by. With a little Internet searching you may be able to find