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Lecture 7

ADM1301 lecture 7-8- chapter 8

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Rumaisa Shaukat

Chapter 8: Collaboration and Interaction Part 1 Business-Government Relations  The prevailing view that business and government rarely agree and that each is of the view the other “doesn’t get it” o Most the research will say that business and government rarely agree with each and do not understand the other view point Business-Government Relations: Understanding one another  Does business understand government?  Does government understand business?  Recall: unique characteristics of government:  multiplicity of goals, difficulty in measuring performance, need to address difficult problems, multiple accountabilities, public visibility, many stakeholders, complexity  try to maintain a mutually beneficial relationship  Difficulties has a structural, contextual, environmental perspective  Business have a limited focus, stakeholders are much smaller in business sector than in gov’t org. o Gov’t is expected to solve problems that there are not even responsible for Business-Government Relations: Understanding one another Survey says See themselves Sees industry Government Respondents - open, responsive - does not understand - industry representatives govt decision-making have impact - proposals do not respond to needs of public/govt beyond self interest See themselves Sees government Corporate Respondents - believe they understand - do not believe they are how government works adequately consulted - believe their proposals - do not believe their are balanced representations have real impact on govt decisions  No co-orientation. No-one understands the other person view point How can this difference be explained?  Some models: o Jane Jacobs o W.T. Stanbury  Note: paradigm means a theory or a group of ideas about how something should be done, made or though about. Business-Government Relations: Paradigms: Jane Jacob’s Two “Syndromes The “Guardian” (Gov‟t) The “Commercial” (Industry)  authority and rules (hierarchy &  voluntary agreements, (negotiate, obedience) bargain)  shunning of trade & coercion  collaboration & exchange  power as given: power is given to  power as contested: the org. w/ gov’t by voters power are the one who are doing really well in the market that there in  public interest  private interest: Business org. view themselves as autonomous individuals  tradition: gov’t is based on following  innovation: business thrives on set tradition that has been around for creating new things a long time  protectors  investors: Business focuses on self- interest or limited stakeholders  willing to take vengeance  work ethic  Risk averse gov’t org. do not take  Risk-takers: business org. are more many risks willing to take risks  Collectivism view: helping everyone  Individualistic approach: about helping oneself  Not v. thrift: because there is little  Thrifty incentive to make money, gov’t is  Optimistic not as efficient as business organisation Business-Government Relations: Paradigms  W.T. Stanbury o Factors affecting business and its successes: Stanbury identified five factors that affect business and eight factors that affect government. He suggests that these factors will affect the ability of government and business to interact with one another. 1. Nature of relations between business and its primary stakeholders (government could be a primary stakeholder) 2. Extent of government intervention in the sector  Org. that are more proactive, less intervention 3. The degree to which government actions determine success or failure  When business sectors are more proactive with what directly affects them, they have more control 4. Characteristics of members in the business interest group  i.e. who is investing and how active your public is o if you’re operating in an environment where people don’t care, there would be less accountability; in an environment where people are interested, there is more accountability 5. The perceptions of the public  Positive public perception = ease in influencing gov’t decision making  W.T. Stanbury o Factors affecting government 1. Size of government’s majority  Majority gov’t have more control in what they want to do 2. Regional distribution of seats in the legislature  Who has the power to regulate and establish things 3. Actions of other governments 4. Prevailing extent of government intervention instruments 5. Behaviour of the media 6. Legal and constitutional allocation of powers between different levels of government 7. Action of opposition parties 8. Public opinions, attitudes and perceptions Business-Government Relations: Paradigms--Stanbury’s Framework:  Two Worlds - Bus. and Gov‟t o Consistent with Jacobs  Expect the two to work together for the good of society  Different Variables/ Processes/ Factors o policy evolves along different trajectories o FYI look at exogenous & endogenous factors  They Clash in the “Policy Arena” o Business “lobbying” Government o Gov’t “regulating” Business  Business-gov’t sector communicate with each other w/ a clashing policy error Business dealing with government- Fundamental errors 1. Dealing only with the politicians: politicians are v. busy and may not have the time to deal with individuals or one business 2. Approaching the government at the wrong time: gov’t may have a different agenda that what you’re proposing 3. Providing tome-like reports to politicians: 4. Wading in on an issue too late: when an issue has been made public, gov’t has already made a commitment to it. It is to late for business to influence them; Business need to keep their eyes and ears open for gov’t regulations 5. Assuming influence is directly proportional to company size: gov’t have fairly treat all of their stakeholders even though large business feel that they may be entitled for a greater influence 6. Using an unprepared, disorganized and uncoordinated approach: need to prepare alternatives and options an explain each one 7. Reacting to government on an issue-by-issue basis: Functions of a Government Relations Department  Legislative monitoring and analysis: looking into maintaining or establish  Regulatory agency liaison and response  International legislative monitoring and analysis  Domestic and international market development assistance  Trade association liaison  Political analysis and response  Government information services  Relations with think tanks and public interest groups Goals of Government Relations Department  Informing constituents  Ensuring active cooperation o Educating others of what rules and regulations exist o Ex. Asking people to vote o Encouraging people to wear their seatbelts  Fostering public support for established policies and programs  Serving as the public’s advocate to government administration  Managing information internally o Using internal emaida to manage and control the  Facilitating media relations  Building community and nation  International broadcasting What exactly is lobbying?  Specialised for of public relations  Lobbyist basic purpose is to influence gov’t regulations; they want to persuade gov’t regulations to benefit the firm that they are working for  Diferent types of lobbyist  “An activity, directed at decision makers, carried out on behalf of special interests to influence public policy outcomes.”  “A communication with public officials to influence their decisions in a manner harmonious with the interests of the individual or group communicating” The “Ask”  Procurement ($13 billion per year on goods and services) o Ask for flexibility over the rules and regulations  Freebies (grants & contributions)  Policy (most common and most complicated) The “Ask”- Policy  Policy concerns the “rules” that frame and influence the business environment  Joe Jordon: 4 types of “rules”: Policy Context Key Challenge Rule Good The rule is acceptable but the interpretation Getting the government to interpret the rules not rule differently Implementation is problematic Bad Rules The existing rule is not acceptable Getting the government to drop the rule New You are proposing a new rule Getting the government to adopt the new rule Rules Sad Rules The current rule is obsolete and must be Getting the government to change the rule changes No up to date The Lobbying Act  Problem with the new lobbying act, the way that lobbying is defined is problematic o Lobbyist have to register now o New lobbying act has weakened relationship between gov’t and business because there is no room for dialogue o A lot of registration is required o More beauraucratic procedures and red tape  On December 12, 2006 the Federal Accountability Act received Royal Assent.  Among the changes that this act makes to Federal statutes are several relating to the Lobbyists Registration Act (LRA), which is currently in force?  The Act now states that lobbying will consist of "any oral or written communication made to a public office holder." Type of Lobbyists  Consultant lobbyists: consultants who are paid to lobby on behalf of clients. They may be o consultants in public relations or in marketing; o lawyers, notaries, engineers or accountants whose functions include lobbying.  In-house lobbyists (corporations) and in-house lobbyists (organizations): These are salaried employees of either corporations or non-profit organizations who lobby on behalf of their employer.  There are approximately 7,483 registered lobbyists in Canada of which 5,322 are active Types of Lobbying Issues: Strategic vs. Operational Issues  Strategic  involve public resolution of broad policy directions: this requires incorporation of public opinion and involve a change in public policy though legislation o Affect corporate existence o Invite media attention o Top down decision making o must incorporate public opinion o legislative involvement o Typically proactive  Operational: technical; can be resolved without the need of public input o involve private resolution of detailed application o Affect part of the corporation o Exclude media o bottom up decisions o may be resolved without public stand o regulatory or bureaucratic decisions o Typically reactive
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