04/2008Nucleus-International.net1 Lobby and Advocacy of Business Chambers and Associations Nucleus-International.net

04/2008Nucleus-International.net2 Who decides what? Enterprises Entrepreneurs Chamber Servic e Decision Taker Chamber Entrepreneurs Other Actors Lobby Chamber Entrepreneurs Other Actors Chamber Entrepreneurs Objective: to improve the member enterprises Objective: to influence / improve the entrepreneur’s framework conditions

04/2008Nucleus-International.net3 Objective of Lobby : Improvement of the framework conditions for economic activities... Infrastructure Statistics Labour market Taxes, fees Finance Suppliers Markets Public tenders Industrial location policy Education,training, research Chamber Public Institutions Transport Security Public support Environment Communication Culture Privatisation Cooperation, networks Building sites Market promotion Media

04/2008Nucleus-International.net4 Framework conditions for enterprises Local, district, regional government and relevant departments –Policy and objectives: Defined, clear, stable? –Development plan for the town and the district / region? Elaborated, implemented? –Public services: Efficient, public servants are qualified and oriented to objectives? –Degree of bureaucracy? –Degree of corruption?

04/2008Nucleus-International.net5 Framework conditions for enterprises Data –Socio-economic statistics –Maps Markets –Purchase power of consumers, companies, public institutions Infrastructure –Streets / roads –Harbour –Airport –Water / sewage / garbage –Energy

04/2008Nucleus-International.net6 Framework conditions for enterprises Taxes and Fees –Tax system: simple, fair, easing and rewarding investments –Fees: low, simple, justified Public Support –Financial subsidies, tax relief –Provision of land –Support in training employees

04/2008Nucleus-International.net7 Framework conditions for enterprises Building Sites –Quantity –Access –Quality –Price –Infrastructure prepared Transport –Of goods –Of persons  in the town (pedestrian, bicycle, car, public transport)  national / international (airplane, ship)

04/2008Nucleus-International.net8 Framework conditions for enterprises Public Tenders –Rules –Public investments  participation of local enterprises  size of bids (small / big) Supply of Goods and Services –Raw material –Pre-products –Services –Outsourcing

04/2008Nucleus-International.net9 Framework conditions for enterprises Bank System and Financing –Banks: fast, efficient –Services: deposits, credits, leasing etc. –Credits: access, costs / interest rates, grace periods Privatisation –of enterprises and public services –of training institutions Market Promotion Activities –Trade fairs –Congress’ –Tourism

04/2008Nucleus-International.net10 Framework conditions for enterprises Education, Training, Research –Schools –Training institutions –Universities –Research institutions Labour Market –Qualification and quantity of employees in reference to the present and future requirements Chambers and Associations –Quality of services –Efficiency of lobby Cooperation and Networks –Functioning networks between all actors –Positive mood and constructive relationship

04/2008Nucleus-International.net11 Framework conditions for enterprises Communication / Media –Communication: Phone, mobile phone, internet –Media: TV, radio, newspapers Environment Protection –Balance between ecology and economy Culture –Events –Institutions (cinema, theatre, etc.) Security –Security level

04/2008Nucleus-International.net12 Objective of Lobby : Improvement of the framework conditions for economic activities... Infrastructure Statistics Labour market Taxes, fees Finance Suppliers Markets Public tenders Industrial location policy Education,training, research Chamber Public Institutions Transport Security Public support Environment Communication Culture Privatisation Cooperation, networks Building sites Market promotion Media

04/2008Nucleus-International.net13 The Target Group of Chamber Lobbying

04/2008Nucleus-International.net14 Who lobbies in favour of what and where? District Chamber Federation National subjects which can be solved only on the national level by national institutions Local and district subjects which can be solved on the local /district level by local / district institutions

04/2008Nucleus-International.net15 Why? District Chamber Federation National subjects Local and district subjects The influenced person / institution must have the competence to decide about the subject! Otherwise the lobbying is inefficient!

04/2008Nucleus-International.net16 Examples District Chamber Federation National subjects - Income tax - Import- / export levies Local and district subjects - Local tax - Local tenders - Building sites

04/2008Nucleus-International.net17 Who lobbies whom? District Chamber Federation National level -Government - Parliament - Administration - Political parties - Other institutions - General public Local and district level -Government - Parliament - Administration - Political parties - Other institutions - General public

04/2008Nucleus-International.net18 Strategies for Lobbying

04/2008Nucleus-International.net19 Lobby means To influence stakeholders with the power to make decisions relevant for the development of the economy and society. Lobbying can be understood as –A continuous task in order to represent the chamber’s and entrepreneurs’ interests on a subject area –An isolated campaign in order to – as an example - to create a new law

04/2008Nucleus-International.net20 Fundamental Principles for efficient lobbying: 1 Profound knowledge of the subject is the most important aspect to justify a proposal or claim.

04/2008Nucleus-International.net21 Fundamental Principles for efficient lobbying: 2 The subject must be stated precisely and clearly.

04/2008Nucleus-International.net22 Fundamental Principles for efficient lobbying: 3 The lobbying chamber as well as its representatives must be trustworthy.

04/2008Nucleus-International.net23 Fundamental Principles for an efficient lobby work: 4 The chamber’s partners interests must be known and understood as reference point, in order to allow a realistic evaluation.

04/2008Nucleus-International.net24 Fundamental Principles for an efficient lobby work: 5 Self-interests of the entrepreneurs should not be presented as demands. Instead, the arguments –Have to be self-convincing –Have to provide additional information. Therefore, the partner must perceive that he / she received an information advantage.

04/2008Nucleus-International.net25 Fundamental Principles for an efficient lobby work: 6 Use a step by step approach. Do not aim to achieve immediate “great impact” results.

04/2008Nucleus-International.net26 Fundamental Principles for an efficient lobby work: 7 The chamber should not confront the partner with proposals and claims –For which he / she is not responsible –Which he / she objectively cannot address.

04/2008Nucleus-International.net27 Fundamental Principles for an efficient lobby work: 8 It is a must for the chamber to develop a close relationship network to public and private institutions and its stakeholders. Lobby is a constant exchange of information (give and take).

04/2008Nucleus-International.net28 Fundamental Principles for an efficient lobby work: 9 The chamber must not perform like a “branch” of the partner’s political opposition.

04/2008Nucleus-International.net29 How to lobby The instruments

04/2008Nucleus-International.net30 1 : Personal talks Permanent personal talks with the partners –Chairperson, directors, CEO, eventually other staff members … in order to develop a personal relationship –… I inform you, you inform me Networking through “Body to Body” work

04/2008Nucleus-International.net31 1 : Personal talks Strategy: The more I know someone as trustworthy person the more –I listen to his / her arguments –I trust his / her information –I follow his / her proposals

04/2008Nucleus-International.net32 2. Permanent presence The chamber shows presence on as many events of stakeholders as possible. Message: “We are here !!!” Important: If the subject of the event is known then the chamber representative should be prepared to say: This is the position of the chamber!

04/2008Nucleus-International.net33 2. Permanent presence A honorary member of the chamber’s board normally does not have the time and it is not his / her job to elaborate a qualified statement This the job of the chamber’s professionals task or of external experts Afterwards they have to brief the chamber representative

04/2008Nucleus-International.net34 2. Permanent presence Observations: –Nothing is more counter productive for the chamber than an unqualified statement –Avoid ad hoc statements based on feelings!

04/2008Nucleus-International.net35 3 Participation in workgroups Active participation in workgroups with participants –from the private sector (different chambers, sector companies and other institutions) –From the public and private sector (Examples: Energy Forum, Tourism Task Force, Environment Protection for our Town, etc.

04/2008Nucleus-International.net36 3 Participation in workgroups Observations: –Take care that always the same chamber representative participates in the workgroup! Nothing is more frustrating than to be always confronted with different participants who have different ideas where the workgroup is at present –The chamber representative has be prepared for the workgroup  Eventually: link a director plus the CEO. The preparation, the elaboration of papers, the collection of data etc. is done by the professional

04/2008Nucleus-International.net37 3 Participation in workgroups Be prepared for the discussion of the subject and prepare adequate papers Example: Energy forum Then the chamber must know –Who of the members use which kind of energy? –How much energy? –What are the problems for the enterprises? –How often do electric blackouts occur? –Which economic damages are caused by the blackouts?

04/2008Nucleus-International.net38 3 Participation in workgroups –For which member enterprises could alternative energy sources be interesting? Present operational proposals –Public campaign: “We save energy!” –Private Public Partnership: - Training of energy counselors - Invitation of specialists to advice the biggest energy consumers - etc. etc.

04/2008Nucleus-International.net39 4 Chamber events Regular public events in the chamber to discuss subjects Invite and present the chamber’s proposals –The mayor / governor twice per year - only once is useless –Public departments –Representatives of training schools and similar institutions –Specialists –Etc.

04/2008Nucleus-International.net40 4 Chamber events Observations –Take care that the hall is filled with chamber entrepreneurs –Define a well prepared subject about which the invited person should talk. –Take care that the invited person does not do only a boring self-presentation –Prepare questions –Let someone who is qualified for this and knows something about the subject do the moderation

04/2008Nucleus-International.net41 4 Chamber events Messages: –“We are here!” –“We speak in the name of many entrepreneurs!” –“We participate and take care of the economic development of our community!” –“We have concrete proposals and recommendations!”

04/2008Nucleus-International.net42 Excurse : The Brassware Nucleus The brassware entrepreneurs suffered: –Non availability of raw materials because some traders are exporting all the material they can get their hands on to another country –Effect: In some cases this led to even the closedown of enterprises that have existed for generations

04/2008Nucleus-International.net43 Excurse : The Brassware Nucleus The brassware Nucleus decided that it need to take action –It organized a demonstration (one of the areas renowned for the brassware ) –The chamber counselors introduced the Nucleus members to various media representatives to get publicity for the event

04/2008Nucleus-International.net44 Excurse : The Brassware Nucleus Effects: –Some members of the Nucleus were invited for a meeting with a Deputy Minister of the Central Government –The Deputy Minister in turn invited them to parliament and got them an appointment with a delegation of Ministers from related Ministries, including the Prime Minister –The Government delegation promised to take immediate action

04/2008Nucleus-International.net45 Excurse : The Brassware Nucleus –First step: Passing of a cabinet paper prohibiting the export of this metal –The budget speech of the Finance Minister has taken up the issue and proposed to impose a tax of 25 percent on export of scrap or any form of metal

04/2008Nucleus-International.net46 Excurse : The Brassware Nucleus This example shows: The Nuclei can be an imported source for concrete lobby activities of the chambers !

04/2008Nucleus-International.net47 5 Political elections The chamber invites the candidates for the local / regional elections for a sequence of public events –One after the other, never all together !!! The chamber presents a list of proposals and recommendations to the candidate for discussion and –To hear the positions and opinions of the candidate –To see who of the candidates will best support the development of the enterprises and the economy –To help the members to take the “right” decision in the election

04/2008Nucleus-International.net48 5 Political elections After the elections: –Maintain permanent contact with the elected candidates –Invite them again for public discussions: - What did you promise? - What did you do up to now? - What will happen next?

04/2008Nucleus-International.net49 6 Internal Chamber discussions Discussion amongst members to identify the chamber’s opinion / stand point –Allow arguments, ideas, opinions, needs, experiences etc. to be exchanged amongst members –Integrate members when defining and defending the chamber’s and entrepreneur’s interests Key question –The subject is important / relevant / interesting for the members?

04/2008Nucleus-International.net50 6 Internal Chamber discussions Example: “The Municipal Council’s intention to move the local food market elsewhere” This is the chamber’s opinion! This is what the chamber’s members propose!

04/2008Nucleus-International.net51 7 Information of members The member entrepreneurs have to know for what the chamber stands for –The members learn that the chamber is active –They are informed about the chamber’s opinion which he / she make as his / her own opinion –The members serve as messenger to disseminate the chamber’s opinion

04/2008Nucleus-International.net52 7 Information of members Instruments –Member events –Chamber newsletter / printed journal --- expensive –Weekly chamber information letter by --- cheap (examples: Joinville, Blumenau, Brazil) –Nucleus information letter / –Notice and photo board (examples: Matale and Badulla, Sri Lanka) –Flyers and other material

04/2008Nucleus-International.net53 8 Public relations Objective: –To inform the public –To influence the public About the chambers opinion and its activities Purpose: –To show that the chamber and its entrepreneurs are working in favour of the development of society –To attract more entrepreneurs to apply for membership

04/2008Nucleus-International.net54 8 Public relations Instruments –Press release –Press talk –TV and radio interviews –Prepared articles, stories etc. for newspapers –Regular / weekly columns in newspapers

04/2008Nucleus-International.net55 8 Public relations Message: –The chamber participates in society’s interests & discussions –The chamber is heard –The chamber is respected Example: ”The Chamber’s president meets the governor & the chief minister!” Play the drums and make “noise” Or: Each day the chamber does not appear in the media is a lost day!

04/2008Nucleus-International.net56 The main requirement for successful lobby and public relations Each publication Each phrase Each... needs a Message

04/2008Nucleus-International.net57 Key question What is the message? Who is the target group?

04/2008Nucleus-International.net58 Nucleus-International.net This file is part of our material to present and illustrate our activities to professional and elected officials of business associations, personnel from technical cooperation projects, and other people with an interest in this field. We are involved in a constant process of elaborating and improving this material, and targeting it to the demands of specific groups. You may use, copy, and change this file as you like (we do not insist on a copyright). We would, however, like to ask you for the following: please send us a copy (as a file or printout) and additional information if you use the file or parts of it. Thank you! The Nucleus-International.net team