Article Abstract:
Corporate political strategy can be approached systematically by using the regulatory life cycle method. This method recognizes that the possibilities of influencing the enactment or enforcement of laws and regulations change with time, and each cycle has uniquely appropriate strategies for effecting change. Corporations wanting to accelerate regulatory change should be aware of four factors affecting their chances to effect such changes; these are: demonstrating collective good properties of the desired change, issue plasticity, uncertainty and risk, and strategic focus. A study of environmental regulations in Germany further supports the regulatory life cycle approach to corporate political strategy as a way to focus on legislative action during certain laws' lives with well-developed strategies for change.
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Article Abstract:
Corporations are beginning to emphasize the importance of political participation by their executives, due to increased government activity affecting the business sector, the increasing importance of special interest groups as voter participation declines, and the realignment of power in Congress. Political education is becoming more common among corporations that want to develop a 'grass roots' capacity to influence legislation. The growth in government activity directly influencing industry is evidenced by the fact that in the 1970s, 120 regulatory bills passed Congress, while in the 1950s only 30 bills of this kind passed Congress. Other factors that have motivated corporate grass roots political programs are also discussed.
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Article Abstract:
Corporate political entrepreneurs are primarily interested in exploiting the opportunities of politics to the advantage of their companies. Two highly successful companies in their political entrepreneurship are American Express and MCI. Both of them developed a political strategies in Washington that allowed them to expand and secure markets. Asserting their presence in enabled these companies to change laws, while enrolling the help of government to meet their corporate objectives. These two cases indicate that CEO involvement in political issues is crucial for the effectiveness of the corporate political strategy.
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