Writing Assignment
PA 315 Government Business Relations Chapter 7 Lobbying
Professor Sharon Pierce
Relationship between government and business
Government as a regulator of business
The government regulates the activities of businesses in five core areas:
advertising, labor, environmental impact, privacy and health and safety
Business imposes its will on government
Business can influence government through:
campaign funding, lobbying, and regulatory agencies
Participation Questions:
What is lobbying?
What role does it play in the relationship between government and business?
What is lobbying?
According to Ni (2016), “lobbying can be defined as the process by which representatives of certain groups are attempting to influence – directly or indirectly – public officials in favor of or against a particular cause.” (p. 202)
The term “lobbyist” harkens back to the days when people hung around in lobbies waiting to get a word in with legislators heading to vote.
https://represent.us/action/is-lobbying-good-or-bad/
Lobbyist
Represent a professional group that specializes in legislative or administrative advocacy
Services purchased (like lawyers or contractors) by any individual, organized interest, organization, or government
Lobbyist can effect legislative actions
Promoting candidates
Raising money
Engaging in strategic advertising
Building advocacy coalitions
Polling
Developing get-out-and-vote strategies
Recruiting volunteer
Provide critical information/data used by legislators to reach informed and educated decisions
Different types of lobbying
Direct lobbying
refers to attempts to influence a legislative body through communication with a member or employee of a legislative body, or with a government official who participates in formulating legislation. (IRS.GOV, 2019)
Grass root lobbying
refers to attempts to influence legislation by attempting to affect the opinion of the public with respect to the legislation and encouraging the audience to take action with respect to the legislation. (IRS.GOV, 2019)
Lobbying in the United States
Since 1876, Congress has required all professional lobbyist to register with the Office of the Clerk of the House of Representatives
First Amendment of the US Constitution
“right of the people…to petition the government for a redress of of grievances.”
U.S. Supreme Court (1967): [The] rights to assemble peaceably and to petition for a redress of grievances are among the most precious of the liberties safeguarded by the Bill of Rights. These rights, moreover, are intimately connected, both in origin and in purpose, with the other First Amendment rights of free speech and free press.
What must a lobbyist do…
Disclose the amount of money they are paid
File quarterly reports identifying contacts made with elected officials
File semi-annual reports listing contributions made to political campaigns or elected officials
Not allowed to give money or gifts directly to members of Congress
What is lobbying and can it be good?
Lobbying: Local, National, and International
Local level
Limited in scope and more specific in terms of outcomes
Targets procurement practices and ordinances (directly and indirectly)
Scope of influence includes: council members, city administrators, public opinion
National level
More professionalized
Cultivates personal relationships over a period of time
Scope of influence includes: all three branches and in the federal bureaucracy
International level
Difficult and expensive
Long term oriented
Scope of influence includes: non-governmental organizations (NGOs), foreign governments
Business engaging in lobbying
Determine what kind of lobbying strategy is preferred
Active
Anticipatory
Passive
Decide what issues to lobby and desired outcomes
Entity engaged in the lobbying activity
Total lobbying spending in the US from 1998-2017 (in billion US dollars)
https://www.statista.com/statistics/257337/total-lobbying-spending-in-the-us/
Number of registered active lobbyist in the US from 2000-2017
https://www.statista.com/statistics/257340/number-of-lobbyists-in-the-us/
Ranking of the top lobbying firms in the United States in 2017, by expenses (in million U.S. dollars)
https://www.statista.com/statistics/257372/top-lobbying-firms-in-the-us-by-expenses/
Top lobbying industries in the United States in 2017, by total lobbying spending (in million U.S. dollars)
https://www.statista.com/statistics/257364/top-lobbying-industries-in-the-us/
Lobbyists tend to get a bad rap — is lobbying bad?
Hiring former officials from and into businesses: The “revolving door”
The practice of hiring former officials into and from businesses is known as the “revolving door.” (Ni, 2016).
It is a legal and accepted practice for a number of governments around the world.
https://represent.us/action/is-lobbying-good-or-bad/
Return on Investment for lobbying.
In 2017 alone, private interests spent $3.37 billion on lobbying — and they did it because they get an unbeatable return on their investment (ROI).
There’s actually a correlation between how much a company spends on lobbyists and how much they get from the federal government. This has been dubbed the “Return On Investment For Lobbying” (ROIFL)
https://represent.us/action/is-lobbying-good-or-bad/
Lobbyists Raise Millions for Congressmembers’ Campaign Funds.
On average, a candidate has to raise more than $14,000 a day, 7 days a week to win a Senate seat. A candidate needs upwards of $1.6 million to win a seat in the House.
https://represent.us/action/is-lobbying-good-or-bad/
Lobbying in an ethical manner
Fairness
Rewarding those with more money
Revolving door – easier access to lawmakers, colleagues, access codes to office, facilities, and friendships
Transparency
State and Federal requirements to register and file reports
Access to appointment books at a local level
Earmarks –requiring names of sponsors be published at least 24 hours before a bill is to be voted on
Provisions benefiting particular industries or organizations that lawmakers insert into appropriation bills …” (Nadler & Schulman, 2019, p. 1)
Common Good
Advocates
Promoting an agenda ethically…
“Trust lies at the foundation of the smooth and effective operation of any country, its business, and its government.”
(Ni, 2016, p. 219)
1995 Lobbying Disclosure Act (LCA) – defined a federal lobbyist as someone who is employed or retained by a client for compensation, has made more than one lobbying contact for his or her client, and spends at least 20 percent of his or her time working on lobbying activities for a client during a three month period.
2006 Lobbying Transparency and Accountability Act (LTAA) amended the LDA’s language and requirements and added further restrictions and disclosure obligations on lobbyists and their lobbying activities.
2007 Honest Leadership and Open Government (HLOGA) attempted to limit or even exclude revolving door practices, to increase transparency, and to minimize the use of privately funded gifts and travel.