Political strategies, tactics, and characteristics: Information strategy Tactics Lobbying Direct communication Expert witness testimony Characteristics Targets government policymakers by providing information. Figure 9.2a Source: Adapted from Amy J. Hillman and Michael A. Hitt, “Corporate Political Strategy Formulation: A Model Approach, Participation, and Strategy Decisions,” Academy of Management Review, 24 (1999), Table 1, p. 835.

Political strategies, tactics, and characteristics: Financial-incentive strategy Tactics Political contributions Economic leverage Political consulting aid Office personnel Characteristics Targets government policymakers by providing financial incentives. Figure 9.2b Source: Adapted from Amy J. Hillman and Michael A. Hitt, “Corporate Political Strategy Formulation: A Model Approach, Participation, and Strategy Decisions,” Academy of Management Review, 24 (1999), Table 1, p. 835.

Political strategies, tactics, and characteristics: Constituency-building strategy Tactics Stakeholder coalitions Advocacy advertising Public relations Legal challenges Characteristics Targets government policymakers indirectly through constituent support and coalitions Figure 9.2c Source: Adapted from Amy J. Hillman and Michael A. Hitt, “Corporate Political Strategy Formulation: A Model Approach, Participation, and Strategy Decisions,”Academy of Management Review, 24 (1999), Table 1, p. 835.

The Business Roundtable One of the most effective organizations for promoting direct communication between business and policymakers. It is an organization of CEOs of leading corporations. It studies various public policy issues and advocates for laws it believes foster vigorous economic growth and a dynamic global economy. Considers issues like corporate governance, education, health care, and civil justice reform.

“A Quiet Revolution in Business Lobbying” Chamber of Commerce is at forefront of quiet revolution in business lobbying Corporate groups now raise big money to advance broad issues (largely to help President Bush enact fiscal agenda) Chamber now #1 organization in lobbying expenditures Trade associations traditionally concentrated on narrow concerns, shunning partisan issues When Thomas Donohue became Chamber president in 1997, group took in ~$600k from largest corporate members – last year, $90m Some concern that if Chamber abandons President on big issues, risk losing administration support for parochial matters critical to their industries Critics argue that superior funding by corporate sources in unfair Looming battles: vs. trial lawyers lobby on legal reform and vs. AARP on Social Security private accounts Source: Washington Post, 2/5/05

“U.S. Lobbying Tab Hits a Record” U.S. corporations and interest groups spent record total of $1.16b to lobby Washington in first half of 2005 AARP spent ~$28m mainly to defeat Social Security plan Three major tort-reform bills that Congress debated last year also spurred lobbying (asbestos, bankruptcy overhaul, class-action legislation) Top labor-union spender was American Federation of State, County, and Municipal Employees, which ranked 223 rd As a whole, organized labor spent 1.4% of total Health-care industry led other sectors by spending $173m on lobbying during period Source: Wall Street Journal, 2/14/06