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37 Cards in this Set
- Front
- Back
Why business should be involved in politics
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its a pluralistic system with many participants
economic stakes are high for firms bus counterbalances other social interests bus is a vital stakeholder of gov |
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Why business should not be involved in politics
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managers are not qualified to engage in political debate
bus is too big and powerful bus is too selfish to care about common good bus risks credibility by engaging in partisan politics |
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Ad hoc coalitions
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bring diverse groups together to organize for or against particular legislation or regulation
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Corporate political strategy
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activities taken by orgs to acquire, develop, and use power to obtain an advantage
further a firm's economic survival or growth |
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Political actions by businesses
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Information strategy - bus seeks to provide gov policymakers with information to influence their actions, such as lobbying, direct communication, expert witness testimony
Financial incentives strategy - bus influences by making a contribution to a PAC to support a policymaker and economic leverage Constituency-building strategy - bus gains support from other affected orgs to better influence gov policymakers to act in a way that helps them; stakeholder coalitions, advocacy advertising, trade associations, legal challenges |
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Lobbying
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companies hire full-time reps in D.C. and cities to keep abreast of developments that may affect the company and communicate with gov officials
They represent the bus before people and agencies involved in determining legislative and regulatory outcomes |
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Temptation rules
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lawmakers and their aides are barred from accepting any gifts, meals or trips from lobbyists
this is avoided by paying into a lawmaker setup political fund-raising committee |
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Revolving door
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circulation of individuals between bus and gov
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Business Roundtable, 1972
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direct communication between bus and policymakers
organization of CEOs |
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Economic Leverage
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bus uses its economic power to threaten to leave a city, state or country unless a desired political action is taken
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Grassroots strategy
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shape policy by mobilizing the broad public in support of bus orgs position
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Grasstops strategy
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influence local opinion leaders
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Stakeholder coalitions
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mobilize various organizational stakeholders to support political agenda
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Advocacy advertising
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focus on a controversial political issue
AKA issue advertisement |
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Trade associations
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coalitions of companies in the same or related industries--to coordinate their grassroots mobilization campaigns
National Realtors Association, U.S. chamber of Commerce |
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Level of Business Political Involvement
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Level 1 - limited organizational involvement, indirect and impersonal (not ready to be politically involved, give a check only)
Level 2 - Moderate Organizational Involvement, indirect yet personal (lobbyist involvement) Level 3 - Aggressive Organizational Involvement, direct and personal (exec participation) |
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Bundling
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firms solicit stockholders to contribute to a particular candidate. the grouping of firm's stockholders contributions
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Public Affairs Department
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manage the firm's interactions with gov at all levels and promote the firm's interests in political issues
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Bipartisan Campaign Reform Act of 2002
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imposed a ban on soft money -- unlimited contributions to national political parties by individuals or orgs for party-building activities
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527 Organizations
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(named after tax code provision)
provide potential contributors with a new and legal way to influence the elction of a candidate or bring attention to a political issue |
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Reform Campaign FInancing
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Limits on expenditures
Contribution limits Disclosure regulations Bans against certain types of contributions Bans against types of expenditures Measures to encourage donations Subsidies in-kind Public subsidies |
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Conglomerate Mergers
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Combination or joining together of two or more companies in unrelated industries into a single company
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Corporate Mergers
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Combination of one company with another. Tend to lead to monopolies so antitrust regulators are involved
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Corporate Power
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strength or capability of corporations to influence gov, economy and society based on their organizational resources and size
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Harmonization
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corrdination of laws and enforcement efforts among nations
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Horizontal Mergers
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combination or joining together or companies in same industry and at the same level or stage of production in sales into a single co
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Hostile Takeover
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acquisition of one firm by another in which the target firm does not wish to be acquired
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National Competitiveness
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ability of a nation to compete effectively with other nations in international markets through the actions of its privately and publicly owned bus firms
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Predatory pricing
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practice of selling below cost for the purpose of driving competitors out of bus; usually illegal under U.S. antitrust laws
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Tying
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firm requires someone to buy an unwanted product or service in order to get another one they want. Illegal under U.S. antitrust laws
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Vertical Mergers
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joining of cos in the same industry but at different levels or stages of production or sales into a single co.
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Sherman Act
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prohibits contracts, combinations or conspiracies that restrain trade and commerce;
prohibit monopolies; enforced by Justice Department |
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Clayton Act
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prohibits price discrimination by sellers;
forbids seller from forcing someone to buy a product they don't want to get one they want; prohibits mergers if competition is lessened |
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Federal Trade Commissions Act
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created FTC to enforce antitrust laws;
prohibits unfair competition |
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Antitrust Improvements Act
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requires large corps to notify Justice Dept and FTC about impending M&A's;
expands Justice Dept's antitrust investigative powers |
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Antitrust Law Expemptions
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Some orgs are not covered (baseball)
labor unions, agricultural cooperativeness, insurance cos (state law regulated) and national defense transactions |
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1984 Cooperative Research Act (NCRA)
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sought to balance cooperative R&D with competition by instructing the courts to use a "rule of reason"
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