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India’s First Corporate ezine Issue No 56– Oct 2010

Published by Prime Point Foundation

Theme of this Issue

Public Affairs (PA)

In this Issue:

P3 Doug Pinkham

P5 PRince Toon

P6 Larry Ottinger

P7 Graham Watson

P8 Roger Hayes

P9 Narendra S

P10 Deepak Kannular

P11 N Vittal

P12 Important links

P13 Tehelka Report

Contact

www.corpezine.com

editor@corpezine.com

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PR-e-FACE: From the desk of Editor-in-Chief

Indian PA Agencies should be more transparent

The concept of Public Affairs (PA) is being

practiced in India from days of Ramayana

and Mahabharata. Ancient Kings also

welcomed the advocacy to

bring people-friendly policies.

In developed countries, PA

has become one of the

reputed professions, though

there are controversies about

‗lobbying‘.

Though in India, PA is being practiced by

many individuals and NGOs, to get some

of the Government policies changed, it

has not received the official recognition of

a profession.

Some of the over enthusiastic individuals

from the PR Agencies started practicing

the PA in an unethical manner and

brought dis-repute to the profession itself.

Taking the lesson from the past episodes,

Indian PA professionals are required to

follow ethical practices to avoid such

negative perception. They also need to be

more transparent in their PA practices.

Many PR Agencies in India declare that

they offer PA services. When we wrote to

such CEOs, for their views on this theme

for this ezine, none of them (excepting

two) responded to us. On the other hand,

when we mailed to International experts,

we could get their response within few

hours.

We have attempted to bring some of the

important aspects of Public Affairs as

perceived globally in this issue. We hope

you will enjoy this edition, as usual.

ACKNOWLEDGEMENT

We thank

all the contributors of the articles and useful information

on Public Affairs;

members of the prpoint group who have helped us to

source the data and information; and

corbisimages.com and creator William Thornton for the

cover page cartoon

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PreSTIGE:

Introduce laws to increase transparency, to avoid bribery

In an exclusive

interview with Ms

Shvetha Sridhar,

Consulting Editor of

PreSense at US Mr

Doug Pinkham,

President, Public

Affairs Council,

Washington explains

the role of Public

Affairs at global level.

Public Affairs Council is the largest body of

PA professionals in the world. This

Council was founded in 1954 at the

suggestion of President Eisenhower, who

felt the business community needed to

learn to be more strategic in its

relationship to government and society.

Council’s website is www.pac.org.

Excerpts from his interview:

How do you see the emerging role of

Public Affairs professionals at global level both in developing and developed nations?

Throughout the world, public affairs is becoming more important than ever. There are four major reasons for this trend. First of all, in both developing and developed nations, the era of ―big government‖ is certainly not over. Even before the global financial crisis, government involvement in business had been increasing. This trend is of strategic

importance to companies because government decides many things, including: how commerce is conducted, who owns intellectual property, who acquires or merges with other companies, who imports or exports goods and

services, and who pays taxes.

Secondly, in a free-market society, politics is a competitive sport. Most public policy

debates are not conflicts that pit large corporations against helpless consumers. They are debates between companies in the same industry or in different industries. In the U.S., our political

system encourages this free and open debate. The First Amendment to the U.S. Constitution states that the U.S. Congress is prohibited from making laws that limit our right to ―petition the government for a redress of grievances.‖ The third reason why public affairs is gaining importance is the new challenges created by globalization and technology. As companies look to expand overseas, they are finding they have to rethink their corporate strategies. As we all know, different cultures and different political systems require different approaches to advocacy, communications and corporate citizenship. The nexus of globalization and technology has created a host of public policy

dilemmas. These are not problems that can be solved easily through legislation because the trade-offs are problematic. For example:

How do we encourage free trade

while protecting workers?

How do we safeguard personal

privacy while protecting national

security?

How do we encourage

advancements in biotechnology

while maintaining our intellectual

property laws?

In addition, advances in information technology have revolutionized the world of politics. Back in the late 1990s, while the whole world was marveling at the birth of e-commerce, the real revolution was occurring in the business of ―idea-

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commerce‖ – that is, in the ―marketplace of ideas.‖ The fact is that the Internet is the most effective tool ever created for organizing people.

Because of the Internet, like-minded activists can find each other, organize themselves, and carry out a political movement. It has flattened the playing field in politics. The result has been an explosion in the number of NGOs, higher levels of citizen involvement, a greater push for transparency, and a generally more robust – but less predictable – political environment. The fourth reason for growth in the public

affairs field is the simple maxim that ―life isn‘t fair.‖ When companies are big and successful, they inevitably become targets of competitors, unhappy customers, groups with political differences and others. No matter how much effort you

put into managing your reputation, you are bound to make mistakes sooner or later. In a global economy with global media, these mistakes become news headlines within a matter of minutes. If you don‘t make the effort to build positive relationships and a strong

reputation before you face a crisis, you may not survive. At the same time, it is a fact that every new law or regulation always has unintended consequences. Companies – and NGOs – have learned that you have to be engaged in the process of public-policy decision-making. Sometimes you take the offense, sometimes your role is to keep bad things from happening. But, as we say in the U.S., you have to be ―at the table.‖ Generally Public Affairs is perceived negatively in the developing nations?

What do you feel about this? How we can correct the perception? The advocacy role – what we call

―lobbying‖ – is the most controversial role in public affairs for a host of reasons that include political scandals, varying laws and levels of enforcement, and public distrust of large institutions. I‘ve come to the conclusion that the only ways to improve the image of lobbying is (1) avoid scandals at all costs and (2) become more transparent. Developing nations need laws governing lobbying that increase transparency and prevent all quid pro quo deals (bribery),

but still allow the public policy development process to work in a way that benefits society. While the U.S. system of regulation has been criticized over the years, most of the rules at the federal level achieve these goals. (The

results are mixed at the state level.) But keep in mind that the public affairs profession consists of more functions than lobbying. It includes policy monitoring, issues

management, corporate

citizenship and strategic communication.

Taken together, these functions help a company or an NGO better manage the environment in which it operates. In the long-term, this will translate into higher productivity, economic growth and the emergence of stronger countries that empower their citizens to be engaged in policy-making. As I said earlier, the profession is increasing in importance throughout the world. My hope is that business leaders, government officials and the general public will come to understand this trend so that that the negative perception in the developing world will subside.

Developing nations need laws

governing lobbying that

increase transparency and

prevent all quid pro quo deals

(bribery)

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PreSTIGE: Strengthen lobbying for and by the charities

In an exclusive interview for PreSense, Larry Ottinger, President

of ‘Centre for Lobbying in the Public Interest’,

(http://www.clpi.org/) Washington shares the ground reality in

USA. Excerpts:

In the United States, lobbying has become the scapegoat for systemic problems related to the outsized influence of money in

our political system. In addition, many of our states have systems whereby judges are elected and can receive huge contributions from the very interests that appear before them in court. In the 2008 election, then Senator Obama

and Senator McCain both railed against the lobbyists as the source of public disenchantment with politicians and government. In addition, there was a corrupt lobbyist named Jack Abramoff who flagrantly violated the law for money and

to help the Republican Party. He was convicted and with his help some Congressmen were indicted which is very rare. The Democratic Party

also had a Congressman who was indicted related to a personal money scheme. The Obama

Administration continued its attack against lobbyists by adopting a well-intentioned but misguided order saying it effectively would not hire anyone who was a registered lobbyist as defined by an earlier law called the Lobbying Disclosure Act (LDA). However, the LDA was designed merely for disclosure and transparency, not to restrict public service. The LDA is

substantially over- and under-inclusive: thus, lobbyists with and for charities are included even where they are only lobbying for an issue or cause, while executives, lawyers and public relations professional for the largest businesses are not covered. Thus, the Obama order is ineffective at deterring the influence of money on politics, has led to less transparency as lobbyists "de-register" from the LDA, and undermines public service and civic participation by charities which can provide accountability. As

claims are made that this ineffective order is "cleaning up" Washington, it breeds cynicism among the public. The "tea party" conservatives, independents and progressives alike all

watch the money spent by special interests on legislation to address health care, environmental and bank regulation issues and know that

the system has not been cleaned up. While multifaceted, any solution must address the influence of large financial interest on

our political system. While the Supreme Court is making it more difficult, public financing of elections is one important reform. A few individual states have moved to public financing for elected state officials with very good results. Some states have stopped electing judges and either allow for appointment from a list recommended by committee or public

Lobbying by and for

charities must be

strengthened as charities

and their constituents

represent broader segments

of the public.

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financing. A proposal in Congress now would provide matching dollars for small donations thus empowering ordinary citizens who understandably feel

overwhelmed by large companies. The recent Citizens United v. FEC decision allowing businesses and unions to spend unlimited amounts of their general treasury funds for or against candidates and political parties has gotten the attention of the public, as well as the President. Media reform (limiting wealthy individuals' ability to control a vast majority of media outlets and public information), election and voter registration reforms, and

policies that will empower the nonprofit sector and ordinary citizens also are

critical parts of the solution. These reforms would restore public trust in government and remove much of the stigma surrounding lobbyists by reducing

their role in the money in politics game. After all, in its purest, ideal form, lobbying is a quintessential First Amendment activity in which people can provide their representatives with important information. In particular, lobbying by and for charities must be strengthened as charities and their constituents represent broader segments of the public. Finally, these types of reforms would strengthen the democratic process and improve public policy so that our

government would work as intended - of, by and for the people.

Public Affairs (PA) helps to get the best out of

politicians

In an exclusive message to PreSense, Graham

Watson Member of European Parliament (MEP),

Chairman of European Parliament's Delegation for

relations with India said,

―Public Affairs is a vital part of social and political

life. Members of parliament have to make decisions

about issues on which frequently they are not

experts in. They have to listen to people of

different views so that they can reach a balanced

decision and public affairs companies are a part of

that process which is essential in helping their

clients to express themselves properly to get best

advantage of politicians.‖

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Best practises should be shared globally

Roger Hayes, Senior Counsellor, APCO Worldwide, Delhi

This is a very critical and topical debate to have in India. Traditionally Public Affairs was a sub-set of Public Relations, specialising in dealings with government and public policy, but due to the failure of the latter to respond to the environmental activism of the 80's resulting in the growth of corporate responsibility, Public Affairs has tended to tread its own path, albeit

with few 'models' other than Issue Management and tending to disown its older brother. This is a pity as a greater interdisciplinary approach could raise the game for both disciplines.

Having worked in both disciplines in other emerging countries facing similar controversy and misunderstanding, but also in London, Brussels and DC,

where there are still debates about the ethics of lobbying and the extent to which the practice should be regulated, it is important that best practice is shared globally, not just in the traditional centres. The European Centre for Public Affairs tries to do this and it is good if the Public Affairs Council is also prepared to do so.

It is a pity that the industry here, such as it is has the reputation it does, but there are lessons to be learned from government as much as from industry. At least the media is giving the topic an airing, including this important initiative. I know that like us, some corporate players are keen to move the practice, indeed both practices onto a higher level by further research leading to more theory, investing in education and training, documenting case studies and above all global knowledge sharing.

Podcast Interview

On behalf of PodUniversal, we recorded his podcast interview over telephone. Please listen to his full interview in the following link:

http://su.pr/2FYi5z

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Public Affairs gains attention post 1991 reforms S. Narendra, Former Information Advisor to Prime Minister of India

Economic competition and globalization has

pushed Public Affairs (PA) into prominence. The

business chambers like CII, especially its Director

General Das, Nasscom (representing IT software)

and its president late Dewang Mehta flighted the

full range of Public Affairs to promote conducive

policy environment for their industry & business.

The government itself had to use some aspects of Public Affairs to win

political and business support for joining the WTO, that replaced GATT.Initally

Indian business feared India‘s entry into WTO.The union government

considered using PA to win states‘ and business support for its move to

introduce Value Added Tax(VAT) and later GST but this idea got lost in

bureaucracy.

West Bengal government in its move to disinvest state PSU's wanted a PR/Ad

led campaign. I proposed a more participatory Public Affairs campaign to win

party cadre and TU support.Offcials could not understand my proposal

becasue they were familiar with Ad /press relatios campaigns, not Public

Affairs.

Instruments with dual use capabilities like Public Affairs tend to be abused

for serving short term ends and earn notoriety. Public Affairs when abused

becomes lobbying with attendant corrupt practices. I was approached by an

American lobbying firm on behalf of a well-known firm supplying air traffic

control equipment that had a dispute with government. The proposal was to

buy political support. My advice was that if the firm was interested in long

term partnership with India‘s exciting airport expansion plans, it would do

well to walk the right royal legal path.

In the most recent past, Indian business deployed Public Affairs to delay

entry of big international retail chains so that domestic players could build

their own organized retail as well as win the support of traditional neighbour-

hood retail that felt threatened by the advent of organized big retail.

Indian corporates tend to use Public Affairs as part of issue based Public

Relations and generally do not have institutionalized arrangements for long

range engagement with stakeholders. Public Affairs is not used for sharing a

larger vision with stakeholders. Public Relations industry itself is not fully

geared for Public Affairs. The latter is badly in need of advocacy to gain

acceptance and grow professionally. Lastly, a relevant legal framework also

has to develop along side, so that PA does not become a mask for lobbying.

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What should Public Affairs mean to Corporates?

Deepak Kanulkar, CEO, Good Relations India Pvt Ltd. ,

On Corporate Public affairs front in India, there is

both Bad News and Good News. The bad news is

that most corporates look at this function (in-house

or outsourced) as more of a ‗Quick fix‘ short

solution to a problem or a business crisis scenario.

And the Good News is that increasingly there is a

great deal of awareness and Corporates have

started recogonising the practice as a strategic

function integral to Corporate strategy and

sustainability.

As the PA function exists on the boundaries

between business, government and the civil

society, there has to be a better understanding

and collaboration between all of these key

constituents thereby contributing to good

governance.

Today, organizations require to deal with stakeholder environment which is

increasingly becoming complex and the organizations are subjected to ever-

growing public scrutiny. Public affairs as a function for Corporates is like ‗eyes

and ears‘ in the business and social environment in which they operate.

Good Public affairs is closely linked to the creation of Corporate strategy and

good governance. It has a much wider canvas than the erstwhile ‗lobbying‘ act.

It is important that corporates act responsibly and adopt a holistic and a

transparent approach to stakeholders and with regard to their response to

public policy, government legislations and regulations.

From research, consulting to implementation, Public affairs capabilities and

requirements vary. The role and responsibilities of the practitioner is as

important as that of a legal professional especially when addressing people or

community related issues. Though, many CEO‘s of large corporates have

realised this, there is a general tendency of colleagues looking at the PA man as

a ‗wheeler-dealer‘ or ‗jugaad-man‘ of the top guy in the Organization. If we

have to see Corporate Public affairs developing into a highly specialized function

of an organization, then it is high time this approach changes – and changes for

good.

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The 4 way test as a guiding principle

N. Vittal, Former Central Vigilance Commissioner of India ,

In this age of a borderless flat world

communications are the very soul

of a society and every sphere of

human activity. Perceptions are in

fact the reality for practically every

individual in today's fast paced

world where the attention span of

people is in microseconds. Page 3 is

the direct result of this

phenomenon.

Hence the explosive growth of the

electronic and print media.

Spinmeisters and lobbyists shape

public opinion and by logical

extension, purchase decisions,

policy options and voting in an

election. The PR profession must

realise the enormous power it

wields and regulate itself.

If any external agency like the Government or self-appointed moral policemen

or a political party were to do this, there will be an enormous scope for

censorship and corruption.

What should be the guiding principles for the PR / PA

profession? The 4 way test of the Rotary can be a very

useful starting point.

Is it the Truth?

Is it fair for all concerned?

Will it build goodwill and better friendships?

Will it be beneficial to all concerned?

If you want a single test :

Follow the age old advice of the Hippocratic Oath

"Above all do no Harm”

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Important links of Prime Point Foundation

www.prpoint.com www.indiavision2020.org

www.imageaudit.com www.action2020.co.cc

www.corpezine.com www.eltf.co.cc

www.poduniversal.com http://prpoint.blogspot.com

www.kural.co.cc

Important links relating to Public Affairs (PA)

Important organisations

www.pac.org www.asiapublicaffairs.com

http://www.clpi.org/

www.epaca.org

www.alldc.org/certificate/statelobbying.cfm

Code of ethics

http://epaca.org/en/code-of-conduct/text-of-code/ www.alldc.org/ethicscode.cfm

News updates

www.pac.org/blog

www.publicaffairsasia.com

www.publicaffairsnews.com

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The CBI creates a power list. And no one wants to be on it

Source: http://www.tehelka.com/story_main47.asp?filename=Bu091010The_CBI.asp

IN A nation where lobbying is still not considered an official profession, the chances are that anyone venturing into the field would be considered undesirable. For years, lobbyists have worked silently in the corridors of power in New Delhi, shaping and reshaping policies to benefit their clients for deals running into hundreds of crores.

But last week, the CBI, troubled by increased influence of these influence peddlers — the mobile 2G spectrum scam, which allegedly cost the exchequer several thousand crores, being a case in point — issued a two-page note on people it called Undesirable Contact Men (UCM).

The list, for which the CBI sought inputs from the Intelligence Bureau, is a veritable who‘s-who of power brokers who routinely frequent ministries to seek information for their clients. A copy of the list has been sent to Cabinet Secretary KM Chandrasekhar and to various ministries.

While all ministries are in Delhi, according to the list the UCM are not only located in the capital but across India. ―And some of the names are indeed interesting,‖ a senior CBI official told TEHELKA.

The list, considered top secret, has always evoked both surprise and panic. Some years ago, when The Indian Express published one, Supreme Court lawyer PC Srivastava — his name was on the list from 1973 to 2002 — wanted to know through an RTI query what ―undesirable activities‖ got him there. No one knows whether the CBI will be accosted by similar charges this time. But the list has names with some curious connections.

Consider the case of Ashutosh Verma, No. 23 on the list. CBI officers found he is related to a

top official in the finance ministry. Verma, say CBI officials, closely networked with his relative and also with officials of the commerce ministry and a number of public sector undertakings. The list also mentions Jatinder Pal Singh, whose name figured in the health ministry scam in the wake of fake college registration by the Medical Council of India.

―This is not a legal document and does not have any legal sanctity. It‘s just to alert government officials. But it shows the CBI is under pressure,‖ top lawyer Prashant Bhushan said. He recently backed a petition by the Centre for Public Interest Litigation, which sought serious monitoring of the CBI‘s 2G spectrum investigation that seeks to uncover the possible losses the government made by selling radio waves for mobile telephony. The agency, widely criticised for bungling the

probe, has told the Supreme Court that its probe into what it is a complex and vastly

spread spectrum scam, was being carried out in right earnest

and sought a dismissal of the petition.

The petitioners have alleged that Telecom Minister A Raja as well as officials of the Department of Telecommunications, the Telecom Regulatory Authority of India, corporate entities and middlemen were involved in the Rs. 70,000 crore scam. The petition said that the CBI was more or less a department of the central government and had a ―very bad record in (investigating) politically sensitive cases‖.

The issuance of the UCM list makes the case interesting, especially in light of the 2G scam, where the country‘s premier investigating agency is keen to portray the seriousness of its efforts. After all, it has the names and the addresses, right.

Courtesy: Tehelka magazine vol 7, Issue 40, Dated October 09, 2010

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PResenters of PReSENSE

K. Srinivasan

Editor-in-Chief

VV.. RRaajjeennddrraann

SSttrraatteeggiicc EEddiittoorr Triambak Sharma

Cartoon Editor

A. Rekha

Coordinating Editor

R Janani

Content Editor

K. Bhavani International Editor

(South Asia)

Singapore

Archana Verma

International Editor

(USA)

Divya Sesha

International Editor

(UK)

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Awards