global chapter 12 – Flashcards
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Government is not a central stakeholder of business.
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false
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The way in which most legislation gets passed is through special-interest politics.
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true
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For large corporations today, political involvement is not optional and government has granted them more power to do so.
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true
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Lobbyists are generally interested in the common good.
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false
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Lobbying takes place only at the federal government level.
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false
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Lobbyists are affectionately known as "influence peddlers."
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false
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To be effective, grassroots lobbying must be genuine.
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true
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Because of the difficulty in coordinating the effort, grassroots lobbying is no longer used extensively.
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false
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Because it represents a homogenous group of businesses, the NFIB is able to present a unified message when lobbying Congress.
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true
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An umbrella organization has a broad base of membership that represents businesses in several different industries.
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true
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Recent Supreme Court decisions have restricted the activity of PACs
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false
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The money that PACs donate to political candidates has brought about great benefit to the political system.
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false
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PACs allow labor to organize their giving.
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true
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Leadership PACs are connected PACs.
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false
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Today, many major U.S. corporations avoid paying taxes by utilizing offshore tax loopholes.
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true
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PACs are uniformly well thought of in American society.
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false
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Unlimited corporate political spending was made legal by the Citizens United decision of the U.S. Supreme Court.
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true
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The argument in favor of unlimited corporate political spending based on the right to free speech.
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true
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A political strategy for public activism is keeping an issue off the public agenda by providing no information to policyrnakers.
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false
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One strategy for corporate political action is constituency building.
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true
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One effective strategy used by the NRA was its shutting down of scientific studies involving gun injuries.
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true
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Astroturf lobbying is massively regulated.
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false
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Lobbyists often provide all of the following services, except: a. create slick advertisements. b. conduct indirect-mail campaigus. c. provide access to lawmakers. d. draft legislation.
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b. conduct indirect-mail campaigus.
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When a business assumes an advocacy role for its interests, it is a. doing what is normal and expected. b. breaking the law. c. operating at the trade association level. d. allowing government to influence it.
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a. doing what is normal and expected.
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The power of businesses to drive the political agenda in Washington, D.C. is now a. subject to special interests. b. virtually unchecked. c. largely impeded. d. in government's interest.
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b. virtually unchecked.
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Participation in the formulation and execution of public policy at various levels of government is a. available only to individual citizens. b. required by the constitution. c. the defmition oflobbying. d. the defmition of political involvement.
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d. the defmition of political involvement.
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Which of the following is not a major approach that business uses to influence government? a. lobbying b. PACs c. coalition building d. vigilance
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d. vigilance
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The process of influencing public officials to promote or secure the passage or defeat of legislation is known as a. bribery. b. activism. c. lobbying. d. suffrage.
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c. lobbying.
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Lobbying takes place at all of the following levels except a. umbrella organizations. b. PACs. c. trade associations. d. company lobbying.
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b. PACs.
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Lobbying organizations that represent the collective business interests of the United States are called a. umbrella organizations. b. trade associations. c. labor unions. d. company lobbying.
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a. umbrella organizations.
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Lobbying organizations that are composed of many fmns in a given industry or line of business are called a. umbrella organizations. b. trade associations. c. labor unions. d. company lobbying.
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b. trade associations.
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When a firm advocates for its own special interest, it is a. acting as an umbrella organization. b. representing its trade association. c. harming it labor union. d. company lobbying.
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d. company lobbying.
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The central product of the new breed of lobbyist is a. influence. b. access. c. advice. d. information.
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b. access.
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Which of the following is not usually a function that lobbyists serve for their clients? a. monitoring legislation b. helping members of Congress get reelected c. organizing grassroots efforts d. helping former members of Congress fmdjobs
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d. helping former members of Congress fmdjobs
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Business lobbyists do all of the following things for their clients except a. establish communications channels with regulatory bodies. b. protect firms against surprise legislation. c. audit the effects of passed legislation. d. help draft legislation.
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c. audit the effects of passed legislation.
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The process of mobilizing individual citizens who might be most directly affected by legislative activity to political action is called a. grassroots lobbying. b. astroturflobbying. c. cyberadvocacy. d. company lobbying.
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a. grassroots lobbying.
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Lobbying efforts that do not represent the genuine concerns of the citizens supposedly involved is called a. grassroots lobbying. b. astroturflobbying. c. cyberadvocacy. d. company lobbying.
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b. astroturflobbying.
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Using the Internet to communicate with grassroots supporters and enable them to contact their legislators is termed a. grassroots lobbying. b. astroturflobbying. c. cyberadvocacy. d. company lobbying.
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c. cyberadvocacy.
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One recommendation to make cyberadvocacy more effective is for advocates to a. make their e-mails targeted to the recipient and specific in nature. b. send their e-mails to all members of Congress. c. include attention-grabbing subject lines in their e-mails. d. provide no identifying information in order to protect their privacy.
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a. make their e-mails targeted to the recipient and specific in nature.
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In lobbying, a trade association often uses a. written phone banks. b. use grassroots lobbying support. c. lagging promotion. d. limited spending.
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b. use grassroots lobbying support.
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Political contributions from undisclosed donors are called: a. soft money b. hard money c. easy money d. dark money
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d. dark money
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Which of the following is not an umbrella organization? a. Chamber of Commerce b. National Association of Manufacturers c. Pharmaceutical Research and Manufacturers of America d. Business Roundtable
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c. Pharmaceutical Research and Manufacturers of America
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One of the ways that the Chamber of Commerce has regained its power is by a. making large campaign contributions on its own behalf. b. dispensing favors to individual businesses that do not want their company name associated with lobbying efforts. c. hiring outside lobbyists to help it attract more members. d. focusing on international trade issues.
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b. dispensing favors to individual businesses that do not want their company name associated with lobbying efforts.
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The National Association of Manufacturers (NAM): a. receives accolades from its small and medium-sized members for focusing on their particular needs. b. advocates for protectionist trade policies. c. voted to act against the wishes of its membership, which led to the creation of a new organization, the AAF. d. is credited with helping create the gain in manufacturing jobs.
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c. voted to act against the wishes of its membership, which led to the creation of a new organization, the AAF.
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The Business Roundtable is an association of a. Fortune 500 companies. b. CEOs of leading companies. c. leading consulting fmns. d. human resource executives.
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b. CEOs of leading companies.
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The primary focus of the Business Roundtable is a. free trade policies. b. opposing shareholder empowerment. c. the economic well-being of the nation. d. executive compensation.
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b. opposing shareholder empowerment.
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The National Federation oflndependent Businesses (NFIB) attributes its newfound power to a. the growth of multinational companies. b. globalization. c. its new status as a trade association. d. its success at grassroots lobbying.
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d. its success at grassroots lobbying.
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Distinct groups or parties that realize they have something in common, so that it makes sense for them to join forces, typically form a. joint ventures. b. partnerships. c. coalitions. d. limited liability corporations.
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c. coalitions.
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The principal instruments through which business uses its fmancial resources to influence government are a. umbrella organizations. b. political action committees. c. trade associations. d. lobbyists.
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b. political action committees.
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The Golden Rule of Politics is a. do unto others before they do unto you. b. do unto others as you would want done to you. c. he who has the gold, rules. d. do unto others as they would want done to them.
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c. he who has the gold, rules.
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The top PAC contributor during 2011-2012 was: a. National Association of Realtors. b. Teamsters. c. Service Employees International Union. d. Lockheed Martin.
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a. National Association of Realtors.
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The channels through which corporations can make political contributions are. a. limited. b. many and varied. c. difficult to navigate. d. primarily tax loopholes.
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b. many and varied.
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Studies offrnancial performance outcomes on political spending a. show a strong correlation between contributions to PACs, and corporate financial performance. b. show a weak correlation between contributions to PACs, and corporate financial performance. c. are inconclusive. d. apply only to political outcomes.
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c. are inconclusive.
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Universities do more lobbying when congressional appropriations committee members serve the districts in which they are located. This targeted lobbying is: a. successful b. unsuccessful. c. mixed. d. untested.
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a. successful
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PAC contributions were more influential when given to House members than Senate members because: a. House members were elected every two years. b. House members were subject to more interest groups. c. House members were generally poorer. d. Senate members refused PAC money.
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a. House members were elected every two years.
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Which of the following conditions is not conducive to the effectiveness of PAC contributions? a. when the issue is specialized b. when the issue is narrow c. when PACs adapt lobbying techniques to their contribution strategies d. when the issue is highly visible
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d. when the issue is highly visible
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Which of the following is not a level at which businesses lobby? a. individual company. b. sectoral trade associations. c. umbrella trade associations. d. All of these are levels at which businesses lobby.
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d. All of these are levels at which businesses lobby.
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Corporations which donate to PACs may encounter. a. leadership problems. b. agency problems. c. coalition problems. d. political problems.
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b. agency problems.
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Regarding the independence of SuperPacs from the political candidates they support, it is most correct to say: a. they are completely independent of any political candidate. b. they coordinate with the political candidate of their choice behind closed doors. c. those who run the SuperPac know the candidate so well, they do not need to consult to coordinate efforts. d. None of these is true.
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b. they coordinate with the political candidate of their choice behind closed doors.
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Green rankings can be misleading because: a. they focus on compliance with regulations. b. they focus on operational impacts. c. they focus on overall practices, while iguoring the finn's political advocacy activities. d. All of these are correct.
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d. All of these are correct.
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The relationship between Congress and lobbying fmns has been referred to as: a. cordial. b. friendly. c. a back door. d. a revolving door.
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d. a revolving door.
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To fight for tort reform, the U.S. Chamber of Commerce established: a. The Institute for Tort Reform. b. The Institute for Legal Reform. c. The U.S. Chamber for Tort Reform. d. The American League for Tort Reform.
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b. The Institute for Legal Reform.
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Describe the role of political activity to the success of business.
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Simply put, in today's environment, business must be politically active and have an effective strategy for influencing goverrnnent. Because the institution of business in the most powerful portion of society, the stakes of political influence have risen. All businesses have the ability to influence government, so any one business must participate out of self defense, if for no other reason.
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Why should we be vigilant of possible abuses of power or violations of sound ethics as we investigate the political influence of business?
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As the most powerful segment of society, business has the ability to completely dominate the political process. As with any concentration of power, the ability to dominate others allows for ease of abuse.
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Are the arguments for PACs more compelling than those against these organizations? Explain your position.
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Students will be split on their responses to this question. Those who favor the arguments for PACs will see the committees as an effective means of delivering business's message to the government. Students who find the arguments against PACs more persuasive will tend to be concerned about their impact on the political process. Thus, the question will boil down to the question of whose interests are more important -the narrow self-interest of business fmns or the wider interests of the public at large. I
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Why might PACs lose their effectiveness?
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While students will ponder this response in the context of what makes PACs more effective, they should respond by indicating with the opposite opinion. For example, as issues become more and more viable to stakeholders, PACs will no longer be effective. Also, as PACs lose their allied effect and when issues become more opposed, PACs will be less than viable.
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What can be done to limit the influence of money on the political process?
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The only way to remove the poisonous taint of money in political campaigus is to eliminate all political contributions, whether from individuals, PACs, corporations, or other groups. Again, the mantra of free speech will be raised, but equating the expenditure of money with speech is both illogical and inviting the very influence we abhor. Rather than ask candidates to prostitute themselves for contributions, the federal, state, and local governments should fund all campaigus out of tax dollars. The law-making bodies would simply allocate a set an equal amount of funding for candidates for each office, and when the candidate is out of money, he or she must then rely on word-of-mouth or the time of human volunteers. As with many issues, the United States has distorted historical processes to a grotesque degree. Other countries (Britain, The Netherlands, Germany, etc.) are able to hold brief election campaigus that inform the public and do not cost billions of dollars.
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What's the danger of a company not being able to defme a public issue.
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The students should recognize that this refers to a step in defming political strategy in times of political activism. However, they should also recognize that the organization should be able to shape an issue in light of activism on the part of many stakeholders. If the organization is unable to shape the issue then the stakeholders can shape it anyway they want.
