Module 23:

Proper Influence: Responsible Federal, State and Local Lobbying – What Your Directors Need to Know

Leading companies are recognizing that lobbying on public policy requires board oversight. Engaging lawmakers and government decision-makers with respect to the promulgation of laws and regulations is an important factor in business performance. At the same time, lobbying has never been more controversial, and in the wake of recent Congressional scandals, corporate lobbying is facing a crisis of legitimacy.

There is a real risk for companies unaware of their lobbying activity and for those not imposing effective oversight and quality control. Boeing and Enron are two recent examples. Boards of directors have a responsibility to be informed about their company’s lobbying practices and positions, and to oversee this activity. Decisions regarding lobbying strategy and execution are at least as subject to risk as other business strategies. The board must have a structured approach to managing lobbying risk, and assure that lobbying is both effective and aligned with important corporate objectives.

This module will discuss best practices for effective and responsible lobbying, highlight potential trouble spots, and examine how your company can be mobilized to intervene appropriately on the national, state, and local level in the development of public policy.

Issues will include:

Policy Consistency

Is your lobbying consistent with your corporation’s stated policies, commitments to shareholders, and core strategy?
Is there a disconnect between your business aspirations towards responsible corporate citizenship and your corporation’s lobbying efforts?
Are you lobbying on the important issues that affect the company?

Appropriate Disclosure

What are the mandatory disclosure requirements?
Can your company be more transparent about its lobbying positions and practices without damaging its effectiveness in the policy debate?
What may be the most appropriate voluntary methods of reporting lobbying activity?

Effective Oversight

Does the board know what positions the in-house lobbyists, contract lobbyists, and associations are advocating on behalf of the corporation?
Does your company have appropriate internal controls for government relations activities in place to assure compliance with federal, state, and local rules on lobbying and procurement?