© 2014 Routledge, Inc., Taylor and Francis Group. All rights reserved. PowerPoint Presentation Design by Charlie Cook CHAPTER 7 Strategies of Societal and Business Interest Groups © Routledge

Learning Outcomes After studying this chapter, you should be able to: 1.Describe the objectives and roles of societal activists 2.Compare and contrast societal interest groups’ and business interest groups’ operations and financing 3.Explain the difference between peak and trade groups and their advantages and disadvantages 4.Describe the objectives and roles of business interest groups 5.List and briefly explain seven strategies activists use against business 6.List and briefly explain eight nonmarket strategies business interest groups use against activists 7.Compare and contrast strategies used by activists and businesses against each other 8.Define the key terms in the chapter

Societal Interest Group Activists SocietySociety  Interest groups and the communities affected by business Societal interest group activistsSocietal interest group activists  Advocates of nonprofit or nongovernmental organizations (NGOs) that aggressively pursue social issues with business and government to promote their interests ActivistsActivists  Societal interest groups, their members, and anyone interested in their causes © Routledge

The Objectives and Roles of Activists Roles of Activists Provide information about business activities Develop nonmarket agenda issues for business Set voluntary standards and influence laws and regulations Pressure business and government to change activities, policies, and procedures

© Routledge Figure 7.1Societal Interest Groups and Their Functions Public Citizena consumer advocate to the government Consumer Federation of America (CFA) a consumer advocate, source of information and education, and service activist group Common Causea public advocate for the public interest in the political process, holding elected leaders accountable Center for Public Integrity a nonadvocacy institute that provides investigative journalism on issues of public concern

Business Interest Groups Business interest groupsBusiness interest groups  Nonprofit organizations comprised of groups of firms joined together to advocate their interest on issues. Peak associationsPeak associations  Represent businesses from several industries on a broad range of general business interest issues. Trade groupsTrade groups  Represent businesses on a narrower range of industry- or business-specific interest issues. © Routledge

The Objectives and Roles of Business Interest Groups Roles of Business Interest Groups Provide information Set voluntary standards and influence laws and regulations Advocate the business side of the issue Advocate to society and government and to provide services to their members Provide member services

© Routledge Figure 7.2Peak Business Interest Groups and Their Functions Better Business Bureau (BBB) a neutral third-party interest group that helps consumers and businesses maintain an ethical marketplace U.S. Chamber of Commerce the largest business advocate to government and society Business Roundtablean association of chief executive officers of leading U.S. corporations that serves as a business advocate to government National Federation of Independent Business (NFIB) a small and independent business advocate to government that serves as a key resource to its members

© Routledge Figure 7.3Activist Strategies Against Business Grassroots Efforts Demonstrations: Picketing and Rallies Boycotts News Media Relations and Advocacy Advertising Building Coalitions Appeal to Government Litigation

© Routledge Activist Grassroots Efforts Preprinted letters and postcards Grass-topsGrass-tops Internet, s, and cyber activity Grass Roots Efforts to Mobilize Support VisitsVisits CallsCalls LettersLetters

Business Strategies Against Activists 5 Is Strategic Analysis5 Is Strategic Analysis 1.Identification of the issue and its life cycle stage 2.Identification of interested strategic stakeholders 3.Incentive of stakeholders determination 4.Information—communication objectives and strategies 5.Interaction (nonmarket) strategy selection © Routledge

Figure 7.4Nonmarket Strategies Businesses Use Against Activists Gaining Community Public Sentiment for Being Socially Responsible Grand Nonmarket Strategies Lockouts Grassroots Efforts News Media Relations and Advocacy Advertising Building Coalitions Appeal to Government Litigation

© Routledge Grand Nonmarket Strategies for Dealing with an Activist Issue

© Routledge Business Nonmarket and Market Strategies and Ethics Use facts and figuresUse facts and figures Clearly state assumptionsClearly state assumptions Gain public sentiment with a good corporate reputationGain public sentiment with a good corporate reputation Use outside sources, experts, and stakeholders to support the accuracy and legitimacy of the firm’s side of an issueUse outside sources, experts, and stakeholders to support the accuracy and legitimacy of the firm’s side of an issue Use facts and figuresUse facts and figures Clearly state assumptionsClearly state assumptions Gain public sentiment with a good corporate reputationGain public sentiment with a good corporate reputation Use outside sources, experts, and stakeholders to support the accuracy and legitimacy of the firm’s side of an issueUse outside sources, experts, and stakeholders to support the accuracy and legitimacy of the firm’s side of an issue Information Strategies Be socially responsibleBe socially responsible Voluntarily self-regulateVoluntarily self-regulate Maintain ethical relations with all stakeholdersMaintain ethical relations with all stakeholders Implement the eight nonmarket strategies against activistsImplement the eight nonmarket strategies against activists Employ an opposing grand strategyEmploy an opposing grand strategy Be socially responsibleBe socially responsible Voluntarily self-regulateVoluntarily self-regulate Maintain ethical relations with all stakeholdersMaintain ethical relations with all stakeholders Implement the eight nonmarket strategies against activistsImplement the eight nonmarket strategies against activists Employ an opposing grand strategyEmploy an opposing grand strategy Societal Strategies

© Routledge Key Terms activists Better Business Bureau (BBB) boycotts business interest groups business roundtable center for public integrity coalitions common cause Consumer Federation of America (CFA) grand nonmarket strategies grassroots efforts lockouts National Federation of Independent Business (NFIB) peak interest groups public citizen societal interest group activists trade groups U.S. Chamber of Commerce