Chapter Objectives

Businesses face complicated issues in managing their relationships with government. Managers must recognize, and know how to respond to, public issues as they emerge. The dynamics of the public policy process demand that managers understand the political environment and have a strategic view of how stakeholders will behave on specific issues. In most nations, businesses have rights to participate in the political process. Managers need to ensure that their company is seen as a relevant stakeholder when government officials make public policy decisions. Political pressures can also produce ethical dilemmas for managers. The world of politics operates by different rules than the world of business. Sound decisions depend on an understanding of those differences and sound rules of judgment.

This chapter focuses on these key questions and objectives:

2 What form does corporate political activity take?

3 What role does business play in electoral politics?

4 What does strategic management of business-government relations mean?

5 Why is it important for business to be involved in public policy decision making?

6 How do the problems of the American political system affect business?