1. Chapter 12 Business Influence on Government and Public Policy © 2012 South-Western, a part of Cengage Learning 1

2. Corporate Political Participation (continued) Lobbying The process of influencing public officials to promote or secure passage or defeat of legislation. PACs Instruments through which business uses financial resources to influence government. Coalition Building Business and other groups joining forces to achieve common goals. Political Strategy To secure position of advantage regarding a given regulation or piece of legislation. © 2012 South-Western, a part of Cengage Learning 2

3. The Purposes of Lobbying Primary goal is to promote legislation that is in their organization’s interests and defeat legislation that is not. To target the election or defeat of national, state, and local legislators.  More businesses, as well as other special- interest groups, are turning to lobbyists. 3 © 2012 South-Western, a part of Cengage Learning

4. Top 10 PAC Contributors to Federal Candidates Operating Engineers Union International Brotherhood of Electrical Workers AT&T, Inc. National Beer Wholesalers Association Honeywell International American Association for Justice National Community Pharmacists Association American Bankers Association Teamsters Boeing Co. Lockheed Martin 4 © 2012 South-Western, a part of Cengage Learning

5. Political Action Committees Argument for PACs PACs are a reasonable means for business to organize their contributions to candidates for office. Business giving is offset by labor giving and by the multitude of other special-interest groups that also have formed PACs Argument Against PACs PACs expect something in return other than good government and this can lead to differing treatment for those who give and those who cannot, such as the poor. 5 © 2012 South-Western, a part of Cengage Learning

6. The Hard Facts About Soft Money Soft money is a contribution made to political parties instead of political candidates. The Bipartisan Campaign Reform Act of 2002 was a sweeping change of U.S. campaign finance. The BCRA removed the influence of soft money on candidates running for national office. 6 © 2012 South-Western, a part of Cengage Learning