Influencing the Political Environment (Summary)
Introduction
The issue of relationship management between government regulators, politicians and businesses is complicated (Lawrence, and James 183). To be effective and active in the public policy process, managers must understand the political environment. They should do this by ensuring that their companies are viewed as relevant stakeholders when the officials of the government make decisions concerning public policy. They must also be familiar with the multiple ways the business can influence these decisions. There is a difference in the business afforded opportunities from nation to nation. These differences are what sound strategies depend on, and they enable businesses to take charge of global government-business relations effectively.
Role of the ALEC
The American Legislative Exchange Council (ALEC) has provided services to many businesses. It is known for its role in legislative conservative shipping and lobbying influence. It has reduced business state taxes by advocating against forums of health and limit labour unions political power (Lawrence, and James 184). It was useful in many states in law creations that gave citizens the right to own arms and defend themselves against assailants. The solar power industry has been active in the political arena because solar power has been expensive to generate that fossil fuel. It has been relying on government subsidies and incentives to level the playing field.
Participants in the Political Environment
The political environment features many participants with differing goals and objectives. This may cause them to have different political tools access and different power influence levels. These participants may argue that they have more significant needs than those of other political actors (Lawrence and James 186). It is essential to explore the legitimacy of the political process to understand the political environment dynamic nature. There are both proponent and opponents of why businesses should be or should not be involved in the affairs of the government.
Corporate Political strategies
A corporate political strategy involves those activities that the organization takes to develop and use power to gain some advantages and benefits. There are three political strategies, namely financial incentives, information and consistency building. In the information strategy, the business seeks to provide the policymakers of the government with information that is more likely to influence their actions such as lobbying (Lawrence, and James 188). In the financial incentive strategy, the business offers incentives that will impact these policymakers to act in a particular way, like in the case of contributing to a political policy support committee. Finally, in the consistency building strategy, the business seeks support from organizations that have been affected to influence policymakers to act in helpful ways to them.
Business Political Action Tactics
Businesses manage their interactions with the government through the department of public affairs. Public affairs officers report to the executive officer or higher authority even amid the considerable variation of these departments. The complexity of the political involvement of a business in the global environment arises from the differences in the national practices and rules that govern the political activity of the business (Lawrence, and James 190). Lobbying is being restricted by many as a means of promoting information strategy. In a natural pluralistic society, the political business action on whether to influence the policy of the government or an election outcome is natural. In the US, the business has the right to engage in political processes the same way environmentalists, labour unions and consumers do.
Work Cited
Lawrence, Anne T., and James Weber. Business and Society: Stakeholders, ethics, public policy. Tata McGraw-Hill Education, 2014.183-205
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