BADM – Chapter 9 – Flashcards

(1) puralistic system invites many participants; (2) economic stakes are high for firms; (3) business counterbalances other social interests; (4) business is a vital stakeholder of government

(1) managers not qualified to engage in political debate; (2) business is too big, too powerful; (3) business to selfish to care about common good; (4) business risks credibility by engaging in partisan politics

Many business executives and managers see their role in the politicap process as vital to the progress of their company - Harris pole in 2009 showed: (1) 85% of public felt business had too much political power; (2) 85% felt political action committees had too much power; (3) only 5% felt small business had too much political power

Represent varying concerns and populations, have a voice in political process - labor unions have a longstanding role in US politics - Ad Hoc coalitions (diverse business organizations and interest groups band together in support of or opposition to a specific regulatory or legislative initiative

Activities taken by organizations to acquire, develop, and use power to obtain an advantage

Type of corporate political strategy - businesses seek to provide goverment policymakers with information to influence their actions - (1) lobbbying; (2) direct communication; (3) expert witness testimony

Type of corporate poitical strategy - businesses provide incentives to influence government policymakers to act in a certain way - (1) political contributions; (2) economic leverage; (3) political consulting aid; (4) office personnel

Type of corporate poitical strategy - businesses seek to gain from other affected organizations to better influence government policymakers to act in a way that helps them - (1) stakeholder coalitions; (2) advocacy advertising; (3) public relations; (4) legal challenges

(1) lobbying - lobbyists communicate with and try to persuade others to support an organization's interests or stake as they consider a particular law, policy, or regulation; (2) direct communication - businesses invite officials to participate in activities that will improve government officials' understanding of management & employee concerns; (3) expert witness testimony - businesses provide facts, anecdotes, or data to educate or influence government leaders at public forums like congressional hearings

(1) Political Action Comittees (PACs) - independently incorporated organizations that can solicit contributions then channel those funds to candidates seeking political office; (2) economic leverage - occurs when a business uses its economic power to threaten to leave a city, state, or country unless a desired political action is taken

(1) stakeholder coalitions - business try to influence polotics by mobilizing various organizational stakeholders to support its political agenda; (2) advocacy advertising - advertisements that focus on a company's views on controversial political issues; (3) tade associations - coalitions of companies in the same or related industries used to coordinate businesses' grassroots mobilization campaigns; (4) legal challenges - business seeks to overturn laws after they have been passed

(1) limited involvement - indirect and impersonal (contribution to political action committee, support of trade association/industry activities); (2) moderate involvement - indirect yet personal (organizational lobbyist, employee grassroots involvement, stockholders & consumers encouraged to be involved); (3) Aggressive involvement - direct and personal (executive participation, involvement with industry working groups and task forces, public policy development)

During 1990s critics feared the growing amount of money pouring into elections would become a corrupting influence - public outcry resulted in calls for campaign finance reform legislation (Bipartisan Campaign Reform Act of 2002) - largest provision was a ban on soft money (unlimited contributions to national political parties by individuals/organizations) - mixed reactions to new campaign reform