Management Chapter 8 Homework Page Influencing The Political Environment Introduction Businesses Face Complicated Issues Managing

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CHAPTER 8

INFLUENCING THE

POLITICAL ENVIRONMENT

INTRODUCTION

Businesses face complicated issues in managing their relationships with politicians and

government regulators. Managers must understand the political environment and be

active and effective participants in the public policy process. They need to ensure that

their company is seen as a relevant stakeholder when government officials make public

PREVIEW CASES

The Honest Ads Act

The National Cannabis Industry Association

As the first example above demonstrates, government and business must carefully

monitor online political advertisements to ensure that the public is protected from

deception, and information is transparently available. In the other opening example,

CHAPTER OUTLINE

I. PARTICIPANTS IN THE POLITICAL ENVIRONMENT

A. Business as a Political Participant

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II. INFLUENCING THE BUSINESS-GOVERNMENT RELATIONSHIP

A. Corporate Political Strategy

III. POLITICAL ACTION TACTICS

A. Promoting an Information Strategy

 Lobbying

Teaching Tip: Arguments For and

Against Business in Politics

The question of whether businesses should be allowed to be involved

in the political environment is an excellent question for an in-class

debate. Students may want to focus on the ethical aspects of the

question: businesses have the right to be involved versus it is unfair for

businesses to be involved given their potential economic power which

Teaching Tip: Business Strategies

for Influencing Government

Figure 8.2 is a good tool for students to use to identify and discuss

various political tactics used by business to influence an emerging

Teaching Tip: Revolving Door

Is it ethical for a former regulator or legislator to accept a job that

requires her or him to lobby or influence those colleagues still on the

regulatory board or in Congress? Should a former regulator or

politician be free to take any job she or he wants, or should there be

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 Direct communications

 Expert witness testimony

B. Promoting a Financial-incentive Strategy

 Political action committees

 Super-PACs

 Tax-exempt organizations

 Direct contributions by corporations

 Executive and employee personal contributions

C. Promoting a Constituency-Building Strategy

 Stakeholder coalitions

 Advocacy advertising and public relations

 Trade associations

 Legal challenges

Teaching Tip: Financing a Campaign

Student may wish to research a recent federal, state or local political

campaign and uncover how much each candidate raised and spent

during the campaign to acquire a sense of the magnitude of political

campaign financing. Perhaps a class debate could emphasize the

Teaching Tip: Political Action Tactics

Various realistic or hypothetical examples of political elections,

regulatory reforms, or other political issues could be presented to

student groups asking them to develop effective strategies emphasizing

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IV. LEVELS OF POLITICAL INVOLVEMENT

V. MANAGING THE POLITICAL ENVIRONMENT

VI. BUSINESS POLITICAL ACTION: A GLOBAL CHALLENGE

GETTING STARTED

KEY LEARNING OBJECTIVES

LO 8-1: Understanding the arguments for and against business participation in the

political process.

LO 8-2: Knowing the types of corporate political strategies and the influences on an

organization’s development of a particular strategy.

LO 8-3: Assessing the tactics businesses can use to be involved in the political

process.

Teaching Tip: Levels of Political Involvement

The investigation of a corporation’s political action history could

support or challenge the developmental levels of political involvement

Teaching Tip: Managing the Political Environment

The public affairs department is often the central focus of political

activity for a business organization. It might be helpful for students to

invite a guest public affairs officer to the class or explore on the

prior written consent of McGraw-Hill Education.

LO 8-4: Examining the role of the public affairs department and its staff.

LO 8-5: Recognizing the challenges business faces in managing business–

government relations in different countries.

KEY TERMS

advocacy advertising

bundling

Citizen’s United decision

lobbying

political action committees (PACs)

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The Business Roundtable

trade associations

INTERNET RESOURCES

www.endcitizensunited.org End Citizen United

www.nfib.com National Federation of Independent Businesses

www.politics.co.uk/ Politics.co.uk

pac.org Public Affairs Council

DISCUSSION CASE

POLITICAL ACTION BY THE U.S. STEEL INDUSTRY, 2015-2018

Discussion Questions

1. Did the steel industry act appropriately as a participant in the political environment

when it sought economic protection from foreign steel imports?

prior written consent of McGraw-Hill Education.

4. What levels of corporate political involvement, as shown in Figure 8.5, are evident in

the case?

5. Should Chinese and other country’s steel producers be permitted to engage as a

political participant in the U.S. political environment to protect their economic

interests?