role of lobbyists and advocacy strategy in business washington campus program january 8, 2009...
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Role of Lobbyists and AdvocacyStrategy in Business
Washington Campus ProgramJanuary 8, 2009
Nicholas E. CalioExecutive Vice PresidentGlobal Government Affairs
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Bryce Harlow Foundation
“dedicated to enhancing the quality of professional advocacy and increasing the understanding of its essential role in the
development of sound public policy.”
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Goals of this Session
• To familiarize you with the role of lobbying and advocacy in supporting business strategy
• To illustrate that lobbying and advocacy have an essential role in the development of sound public policy
• To engage you in discussing issues concerning the lobbying profession and business-government affairs
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Definition of Lobbying and Lobbyist
• Lobbying– To promote or secure the passage of (legislation) by
influencing public officials– To attempt to influence (a public official) toward a desired
action– Source: Merriam-Webster
• Lobbyist– “Any individual who is either employed or retained by a
client for financial or other compensation whose services include more than one lobbying contract; and whose lobbying activities constitute 20% or more of his or her services’ time on behalf of that client during any three-month period.”
– Source: Lobbying Disclosure Act (LDA) of 1995
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What is Government Affairs?
What it is not
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Government Affairs and Business Strategy
The purpose of government affairs is to enhance the profitability and reputation of the corporation by advocating for its interests in the public policy process.
Specifically, the role of this function is to shape public policy proactively in order to open markets and create business opportunities and to defend against punitive legislation and regulatory initiatives.
Fighting Fires Building Relationships Shaping Policy
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Citi’s 2010 Global Footprint
• 265,000 employees• 200 million customers• On the ground in 100 countries• Operate in 140 countries• 95% of Fortune 500• 85% of Global Fortune 1,000• Move $4-8+ trillion daily, more than the Federal Reserve• 60% of profit outside of the U.S.• $89.9 million in charitable contributions from the Citi
Foundation (2008)– 89 countries and U.S. territories in which Foundation
grants were made
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Our Global Government Affairs Reach
• Global Government Affairs staff are based in:• U.S. – DC, Albany, Sacramento, Minneapolis, Atlanta, Boston, Indianapolis,
Madison, and Denver• International – London, Brussels, Tokyo, Shanghai, Mumbai, Moscow, Seoul,
Istanbul, Warsaw, Sao Paulo, and Toronto• Corporate Country Officers – public policy partnership with Global Government Affairs
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Our Organization
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Government Affairs Goals
• Influence legislation, regulation and policies that build or protect Citi’s global business interests
• Connect government affairs goals to business strategy by focusing on opportunities and challenges indentified in close consultation with our business partners
• Building the company’s reputation in the public policy arena• Position the company as a leader on priority issues
– Be part of the policy dialogue– Technical expertise
• Building ongoing relationships with legislators and executive decision-makers
• Cost Savings – Cost Avoidance – Business Growth
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How to Identify, Prioritize, and Track Issues
• Forecast – provide advice on emerging issues and business impact
• Gather Information – develop an understanding of the legislative and regulatory issues of interest to the businesses
• Set Business Priorities – review issues and assist in setting priorities and developing positions
• Set Advocacy Priorities – lobby• Reporting Systems – status reports, updates
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Rules of the Game
• Know your issue– Strategy vs. tactics
• Know your audience• Marshall your assets• Messenger is key• Strange bedfellows
– Coalitions and alliances
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Government Affairs Tools
• Government Affairs staff• Company executives• Company technical experts• Political Action Committees• Trade Associations• Coalitions• Grassroots• Third Party Validators
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Benefit of lobbying from the decision-maker’s perspective
• Issues are huge, complex, and protracted– Nobody has all the answers or all the time– Sound public policy depends on:
• Diverse sources of information• Accuracy, relevance, and timeliness• Delivered by a trusted messenger
– Consistent with ethical and legal prescriptions for behavior
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Lobbying in the New Washington
• Vilification of lobbying and lobbyists• New lobbying and ethics rules
– Honest Leadership and Open Government Act (HLOGA)– Obama Administration
• Political Action Committees as a tool
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Concluding thought