Corporate Lobbying
Corporate Lobbying is when firms carry out some activities intending to influence the government in a way to receive interest. As per the First Amendment, lobbying is legal and supported by the U.S Supreme Court. The relevance of lobbying to the success of businesses in America can not be overlooked. Among others, It serves as a creative way to cut on undesired impacts of products and service value chains.
Relevance of Lobbying to Businesses
Fortunate Convergences
Lobbying may be used to improve social working conditions affecting the firm’s operating environment. The highest strategic value is obtained with this type. Although social conditions are an external factor, they greatly boost or constrain the company’s success. For example, the Alliance for Science & Technology Research in America (ASTRA) and the Government-University-Industry Research Roundtable (GUIRR) partner to influence training and technological research. In addittion, they strive to raise women and other minority groups in these technology-related careers. Although Hewlett-Packard’s success depends on this factor, the United State’s economic prosperity is also dependent on it.
How Leaders Embed Their Beliefs, Values and Assumptions Into Organizations
As a leader, personal beliefs and values affect how business is carried out in an organization. Leaders should exemplify the desired culture. By being a role model, believes, values and assumptions are incorporated into the firm since employees follow the example set (Abdullah, & Anwar, 2021). Empowering employees could also help embed these factors. Employees judge their leaders by how they lead and follow their principles to avoid strife. Offering workers a culture of autonomy makes them understand that the leader believes in their accountability, driving them to perform beyond expectations.
How Leaders Directly Create the Climate In Organizations
Organizational climate refers to how staff perceives their organization which greatly influences their behavior. A leader may boost employees’ perception of the business by doing the following, first, supporting and recognizing hard work. If employees know that improving their productivity will get them noticed and possibly earn them more benefits, they will appreciate the working conditions more (Park & Kim,2018). In contrast, if leaders overwork employees to generate more business profits without proportionate renumeration, the employee’s perception is negatively steered.
How organizational culture affects a company’s ability to build relationships with local, state and national government sources
to successfully have beneficial relations with local, state or governmental sources, a healthy relationship needs to exist between the targeted stakeholders and the organization. The firm’s culture will dictate how it relates to the local community, nation, or government. For example, a firm that carries out corporate social responsibility will have an easier time fostering relations with the locals, state and the government.
How Leaders Can Overcome Obstacles in Organizational Cultures
Improving employee competence such as through training, offering rewards and motivation helps foster good relationships internally. If employees feel that they matter, their loyalty to the organization grows. External factors such as government regulations should be maintained to foster good governmental relations. An example of this is upholding all tax regulations.
Is lobbying beneficial for organizations?
Lobbyists help firms solve real problems. Once major issues have been identified, lobbyists along with lawmakers and politicians seek ways to solve them. In addittion, they influence laws made which help create the desired changes. For example, lobbying firms have been responsible for major reforms in social security and childcare (Constitution Annotated). While making laws, politicians depend on information gathered by lobbyists. All these are beneficial for organizations since their pleas get tackled.
Does lobbying create a competitive disadvantage for organizations?
In some scenarios, lobbying may serve as a competitive disadvantage. For example, a research study showed that increased lobbying reduced a firm’s effective tax rate. Lobbying expenditures equating to 1% reduced the firm’s tax rate between 0.5- 1.6 points (Center for American Progress, 2021)). Small companies benefit from lobbying since policies positively affecting the business benefit them too.
Revenues
Abdullah, N. N., & Anwar, G. (2021). Global Financial Outlook during the COVID-19 Pandemic: The role of effective leadership styles on Financial outlook. Available at SSRN 3824670.
How Campaign Contributions and Lobbying Can Lead to Inefficient Economic Policy – Center for American Progress. (2021). Retrieved 20 May 2021, from https://www.americanprogress.org/issues/economy/reports/2014/05/02/88917/how-campaign-contributions-and-lobbying-can-lead-to-inefficient-economic-policy/
Lobbying | Constitution Annotated | Congress.gov | Library of Congress. (n.d.). Constitution.congress.gov. https://constitution.congress.gov/browse/essay/amdt1_2_10_1_2/
Park, S., & Kim, E. J. (2018). Fostering organizational learning through leadership and knowledge sharing. Journal of Knowledge Management.
Primary Pros and Cons of Lobbying – 1 | LFA Holdings INC. (2019, January 11). LFA Holdings Inc. http://lfaplc.com/primary-pros-and-cons-of-lobbying-1/
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