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California Business Journal
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Lobbying Portfolios: The Need for Diversification

Lobbying can be defined as individuals or groups of people who share expertise and knowledge with government officials or legislators in an attempt to influence decision-making. It is both legal and acceptable, as, without input from the various sectors,…

By Ann Mazotta, California Business Journal

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Lobbying can be defined as individuals or groups of people who share expertise and knowledge with government officials or legislators in an attempt to influence decision-making.

It is both legal and acceptable, as, without input from the various sectors, government departments don’t necessarily have the expertise and knowledge necessary for making decisions.

Insights

Lobbying is usually mutually beneficial, as governments need insights into the many sectors of administration that they are responsible for.

In business and commerce, for example, lobbyists may benefit from knowledge gained about proposed policies that will ultimately affect their businesses. With this knowledge, lobbyists can prepare ahead of time for the effects that government decisions may have on their businesses. Conversely, lobbyists can also mitigate the detrimental effects that some governmental decisions may have on business and the economy by highlighting the risks and influencing decisions in a positive way.

Diversification and why it’s important

Government administration encompasses a wide spectrum of disciplines, and this necessitates a substantial diversity in lobbying portfolios. These portfolios involve a range of experts in areas such as economic and fiscal policies, social welfare, environmental issues, city and road infrastructure, labor laws, trade agreements, health and education facilities, and more.

In a dynamic environment that often experiences sudden changes in priorities and policy decisions, having a static lobbying strategy will not always work. It requires flexibility and therefore access to a diversity of lobbying options. Therefore, lobbying companies that can provide the expertise to keep up with these changes have a distinct advantage.

Diversity also helps lobbyists align with various aspects of the governing party’s goals, thus giving them visibility into more than one area of politics and policymaking. The more diversity a lobbying company can offer, the better the likelihood of them receiving invitations to attend conferences and meetings.

Early intelligence in lobbying

Lobbyists that have access to early intelligence can make informed business decisions based on proposed policy changes, thus gaining an advantage over non-lobbying organizations. Early intelligence also helps them prepare arguments and influence policy decisions.

This, of course, could be problematic. The Organization for Economic Cooperation and Development (OECD) is an international institution that works to provide evidence-based solutions to social and environmental challenges. Included on their agenda is transparency and integrity in lobbying.

However, lobbying in the US is regulated by the Lobbying Disclosure Act of 1995, requiring lobbyists to register with the Senate and the Clerk of the House of Representatives and to submit details of their lobbying activities. This act serves to ensure the required transparency in lobbying, thus providing a good level of protection for the US and its people.

How lobbying affects the different sectors

Lobbyists can have a say in economic and fiscal policy decisions. This includes taxation, trade agreements, commerce and industry, and job creation incentives.

On healthcare and social welfare issues, lobbyists can influence legislation regarding medical facilities and insurance, education programs, housing, food security and safety, community support and social grants.

Labor laws play a critical role in the economy of the country, as do good labor relations. Decisions regarding minimum wages and skills development are key to successful relations, not only in business but also in the welfare of communities. These elements provide a broad base for lobbyists who would like to make a difference.

Urban development and infrastructure are important factors when it comes to the stability of the country. Lobbyists with expertise in urban planning, roads and transport, or services such as water and electricity utilities are well placed to participate in decision-making in these areas.

In these times, legislation regarding environmental issues is of high importance to the country if it is to comply with global standards and laws. Environmental compliance, renewable energy, the phasing out of antiquated systems, water management, and sustainable land use are thus all high on the agenda, making lobbying expertise in environmental issues a much sought-after talent.

E-governance, data privacy and intellectual property rights are all high on the agenda when it comes to technology governance, in an environment that requires a high diversity of skills.

Your cut of the pie

Smaller companies generally don’t have the budget for successful lobbying, but a good option is to team up with a lobbying company that has the necessary expertise and a vast repertoire of contacts in the right places. For example, Ballard Partners is a lobbying firm that specializes in all aspects of governmental and public affairs, both in the US and in a number of countries across the globe.

Long-term strategy

There is no right time to get involved in lobbying – the sooner you begin building relationships, the better. As we know, political parties come and go, and legislation changes with the pressures that modern living dictates. Plan on having a broad range of contacts in the relevant sector of administration or partnering with a lobbying company that embraces diversity for future lobbying success.

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