1. Role of Lobbyists and Advocacy Strategy in Business Washington Campus Program January 8, 2009 Nicholas E. Calio Executive Vice President Global Government Affairs

2. 2January 8, 2010 Bryce Harlow Foundation “ dedicated to enhancing the quality of professional advocacy and increasing the understanding of its essential role in the development of sound public policy.”

3. 3January 8, 2010 Goals of this Session To familiarize you with the role of lobbying and advocacy in supporting business strategy To illustrate that lobbying and advocacy have an essential role in the development of sound public policy To engage you in discussing issues concerning the lobbying profession and business-government affairs

4. 4January 8, 2010 “Corporate representatives who are effective and principled advocates of their company’s interests, and or the business community as a whole, help government arrive at better informed decisions.” Bryce Harlow

5. 5January 8, 2010 Definition of Lobbying and Lobbyist Lobbying –To promote or secure the passage of (legislation) by influencing public officials –To attempt to influence (a public official) toward a desired action –Source: Merriam-Webster Lobbyist –“Any individual who is either employed or retained by a client for financial or other compensation whose services include more than one lobbying contract; and whose lobbying activities constitute 20% or more of his or her services’ time on behalf of that client during any three- month period.” –Source: Lobbying Disclosure Act (LDA) of 1995

6. 6January 8, 2010 What is Government Affairs? What it is not

7. 7January 8, 2010 Government Affairs and Business Strategy The purpose of government affairs is to enhance the profitability and reputation of the corporation by advocating for its interests in the public policy process. Specifically, the role of this function is to shape public policy proactively in order to open markets and create business opportunities and to defend against punitive legislation and regulatory initiatives. Fighting Fires Building Relationships Shaping Policy

8. 8January 8, 2010 Citi’s 2010 Global Footprint 265,000 employees 200 million customers On the ground in 100 countries Operate in 140 countries 95% of Fortune 500 85% of Global Fortune 1,000 Move $4-8+ trillion daily, more than the Federal Reserve 60% of profit outside of the U.S. $89.9 million in charitable contributions from the Citi Foundation (2008) –89 countries and U.S. territories in which Foundation grants were made

9. 9January 8, 2010 Our Global Government Affairs Reach Global Government Affairs staff are based in: U.S. – DC, Albany, Sacramento, Minneapolis, Atlanta, Boston, Indianapolis, Madison, and Denver International – London, Brussels, Tokyo, Shanghai, Mumbai, Moscow, Seoul, Istanbul, Warsaw, Sao Paulo, and Toronto Corporate Country Officers – public policy partnership with Global Government Affairs

10. 10January 8, 2009 Our Organization

11. 11January 8, 2010 Government Affairs Goals Influence legislation, regulation and policies that build or protect Citi’s global business interests Connect government affairs goals to business strategy by focusing on opportunities and challenges indentified in close consultation with our business partners Building the company’s reputation in the public policy arena Position the company as a leader on priority issues –Be part of the policy dialogue –Technical expertise Building ongoing relationships with legislators and executive decision-makers Cost Savings – Cost Avoidance – Business Growth

12. 12January 8, 2010 How to Identify, Prioritize, and Track Issues Forecast – provide advice on emerging issues and business impact Gather Information – develop an understanding of the legislative and regulatory issues of interest to the businesses Set Business Priorities – review issues and assist in setting priorities and developing positions Set Advocacy Priorities – lobby Reporting Systems – status reports, updates

13. 13January 8, 2010 Rules of the Game Know your issue –Strategy vs. tactics Know your audience Marshall your assets Messenger is key Strange bedfellows –Coalitions and alliances

14. 14January 8, 2010 Government Affairs Tools Government Affairs staff Company executives Company technical experts Political Action Committees Trade Associations Coalitions Grassroots Third Party Validators

15. 15January 8, 2010 Benefit of lobbying from the decision-maker’s perspective Issues are huge, complex, and protracted –Nobody has all the answers or all the time –Sound public policy depends on: Diverse sources of information Accuracy, relevance, and timeliness Delivered by a trusted messenger –Consistent with ethical and legal prescriptions for behavior

16. 16January 8, 2010 Lobbying in the New Washington Vilification of lobbying and lobbyists New lobbying and ethics rules –Honest Leadership and Open Government Act (HLOGA) –Obama Administration Political Action Committees as a tool

17. 17January 8, 2010 Concluding thought Lobbying: an 18 th century right a 21 st century responsibility!