Question

In: Operations Management

As the newly hired lobbyist for an international corporation in Washington, write a brief report on...

As the newly hired lobbyist for an international corporation in Washington, write a brief report on your job explaining at least the following aspects: the nature of lobbying; the importance of access to congress members; the significance of timing; and the controls on lobbying. Give specific examples.

Solutions

Expert Solution

Lobbying is the activity by which an individual, usually with political connections, represents another person or group of people to let the government know what their position regarding a matter of interest is. In recent years, the activity has been related to corruption cases because the lobbyist offered gifts to government officials attempting to influence their decision over the ruling of certain corporate processes, despite the different regulations that forbid such practices.

Explanation:

As a newly hired lobbyist for an international company, a report on lobby should include the following aspects:

  • The nature of lobbying. The practice of lobbying borns because of the need that individuals and organizations have to request the mediation of specialists so their voices and opinions regarding diverse government affairs can be heard. Lobbyists represent those people in front of the central power exposing their positions on a matter of interest, whether written or verbally. While Casual Lobbying takes place when the representation of the individuals does not imply opportunity costs for the economy, Professional Lobbying refers to paying someone, usually with political connections, to represent the interest of a certain party before the government. For example, a law firm could be hired by a steel producer to influence the government to accept an anti-dumping request. Then, the law firm will present the steel producer's arguments so the government implements such a policy to promote fair competition. If the outcome is positive, the law firm earns a percentage of the revenue the steel producer generates as a result of the approval of the policy.
  • The importance of access to congress members. Lobbying is a key component of any democratic system. Thanks to the points of view lobbyists provide to government officials, typically congressmen, they gain insight on what the nation's constituents desire so they can bend their efforts towards fulfilling those needs, if relevant and feasible. The latter is the reason why lobbyists are individuals with a political background, being sometimes ex congressmen whose connections could be of great help to fasten the process of transmitting the preferences of a group to the central power for consideration before a policy is approved or denied. The information provided to the government must be clear, consistent, and persuasive so it can be re-transmitted in the same way in the Congress where the final decision over the legislation is taken.
  • The significance of timing. The lobbyist's efforts should be made in a timely manner and disclosed to the corresponding authority to provide the public with the information that allows them to engage in a counter-lobby initiative if necessary. In the U.S., people who actively engage in the planning, supervising, or controlling of the lobbyist activities of an organization must register as such in front of the House of Representatives as requested by the Lobbying Disclosure Act (LDA) of 1995. Registered Lobbyists are to present reports every quarter about their practices to the Clerk of the House of Representatives and Secretary of the U.S. Senate.
  • The controls on lobbying. The LDA is not the only piece of legislation ruling lobbying activities in the U.S. The Honest Leadership and Open Government Act of 2007 added boundaries on the lobbying practices. The introduction of this Act forbade congressmen to contact the spouses of other government officials for lobbying purposes and enhanced the reporting obligations of the individuals involved in the interest mediation organization-government. The Act established the need to disclose who is being lobbied and for what bills. Also, receiving gifts from lobbyists was prohibited by President Barack Obama (born in 1961) in Executive Order 13490. Failure to complying with such laws implies lobbyists and congressmen being fined or even sent to prison.

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