bb211 - chapter 7 - government relation (1)

8/12/2019 BB211 - Chapter 7 - Government Relation (1)

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Government Relations

Government & business tend to havean adversarialrelationship

Business attempts to minimize

governmentinvolvement in privatesector

Exert government power over thecorporate realm to mange the needso f all c i t izens

Government influences businessactivities through regulat ions

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Government Regulation

Government regulations managedmarket competition

Government regulations set high

barr iers to entry- facilitating theemergence of monopolies that couldhurt the consumers

To protectcitizens from high price,bad services and discrimination

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The Reach of the RegulatoryAgencies

Regulatory agencies has evolved intosophisticated organizations

Many enterprise cannot begin

operations until they receive l icensefrom regulatory agencies likeConsumer Product SafetyCommission (CPSC)

Government in f luencesthe prices Government efforts toprevent

monopolies and other anticompetitive

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How Business Manages Government:

The Rise of Government Relation

Instead of fighting with governmentregulations- business began to protecttheir interest with wellcrafted

lobby ingand negot iat iontactics Example Philip Morris- 1987- 88

contributor of elect ion cycle

American Political Science Review,December 2000 reveal the survey

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The Ways of ManagingGovernment Relationship

Coalition Building

CEO involvement in GovernmentRelations

Lobbying on Individual Basis

Political Action Committees

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Coalition Building Coalitions refer to the temporaryformation of

persons, groups, or even nations for some typeof joint or common action.

In business, coalitions have been present formany years as a means of bringing togetherpeople, departments within an organization,

entire companies, or industries with somecommon purpose.

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CEO involvement in GovernmentRelations Large or small companies alike strengthen their

government relations programs through activelyinvolving senior management in political activity.

CEO stepping intopolicy debate

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Lobbying on Individual Basis Lobbying (also lobby) is the act of attempting to

influence decisions made by officials in the

government,most often legislators or membersof regulatory agencies.

Lobbying is done by many different types ofpeople and organized groups, including

individuals in the private sector, corporation,fellow legislators or government officials, oradvocacy groups (interest groups).

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Political Action Committees A political action committee (PAC) is any

organization in the United States that

campaigns for or againstpolitical candidates,ballot initiatives or legislation.

At the federal level, an organization becomes aPAC when it receives or spends more than

$1,000 for the purpose of influencing a federalelection, according to the Federal ElectionCampaign Act.

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bb211 - chapter 7 - government relation (1)

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