Should business support 'grassroots lobbying' by employees?

It has long been the practice of business to employ lobbyists in an attempt to influence policy makers and regulators about such issues as environmental laws, trade policies and government spending programs. Amid the current media frenzy over the bribery scandal involving lobbyist Jack Abramoff, a researcher at the W. P. Carey School of Business discusses a new strategy for businesses: the cultivation of employee involvement in lobbying through education and solicitation of workers' feedback. Gerry Keim, associate dean of MBA programs, suggests that employers invest in educating employees about how the public policy process affects them. Employee-supported business lobbying promises to be more effective than traditional business lobbying, Keim says, and could bring about government policies that benefit more people all along the economic scale.

Over the 200-plus years since the Constitution granted Americans the right "to petition the Government for a redress of grievances," the exercise of that right — known as lobbying — now and then has been tainted by scandal, the most recent involving Jack Abramoff and his assorted political and corporate cronies. Legitimate advocacy, however, will continue.

In fact, lobbying on behalf of business would benefit by evolving into a more employee-involved and employee-aware process, according to research by Gerry Keim, associate dean of MBA programs at the W. P. Carey School of Business. Employee-supported business lobbying promises to be more effective than traditional business lobbying, and also may bring about government policies that benefit more people all along the economic scale.

"James Madison certainly understood that groups of people with like interests — he called them factions and today we call them special interests or NGOs [non-governmental organizations] — would actively seek to advance their interests in the public policy process," Keim said in a recent interview. "Madison also understood that organized groups have advantages in terms of their ability to monitor and exert influence in the political arena that the unorganized general citizenry does not."

It has long been the practice of business to hire lobbyists in an attempt to influence policy makers and regulators about such issues as environmental laws, trade policies and government spending programs that expand demand for business products and services. Lobbying involves three phases: gaining access to, providing information to and influencing results from policy makers, according to Keim's 2005 chapter in "The Book of Public Affairs."

The promise of grassroots feedback

The cultivation of employee involvement through education and solicitation of workers' feedback is a promising and relatively new strategy. "Employee involvement in grassroots programs to provide feedback to legislators only occurs when employees understand the issue at hand and believe that it is in their interests to become active and express their sentiments to government officials," Keim says.

"While this grassroots feedback occurs more often than it did 20 years ago, it is still not a common occurrence relative to the large number of policy decisions made by legislators and regulators." Keim says many firms are not willing to make the investment to educate employees about how the public policy process affects them and about how grassroots feedback from employees and other stakeholders of business can bring across-the-board benefits.

"Some firms may be reluctant because employee interests and top management interests may not coincide on some issues," Keim says. "The result is that on many issues businesses still rely on lobbyists as their primary means of influence, and most lobbyists will advocate any issue chosen by their clients."

In the chapter titled "Managing Business Political Advocacy in the United States," Keim points out legislators are not solely interested in technical information from business lobbyists; they also want to know how much general political interest exists on a given issue — which can be gauged from employee input.

"Advocates that can provide both types of information will be more effective than those that can provide only one type," Keim writes. "Better access to policy makers and enhanced capabilities to supply information, particularly about political interest among constituents in issues of concern to business firms, can be accomplished by learning from the people most affected by the success or failure of advocacy efforts: employees ... Employee populations usually represent the broader electorate in terms of party affiliation and self-described political ideology."

Enlist employee self-interest

Keim suggests that companies tell their employees when a public policy decision is going to affect the firm's success. "Doing so is the first step in enlisting employee self-interest in the cause of business advocacy," he writes. He says companies should invite House of Representatives district staffers to their facilities to conduct discussions with employees and record workers' concerns and level of awareness.

"This information will be conveyed to the Washington office of the member of Congress, and this company and its employees are likely to be identified as politically active constituents [read: probable voters] and therefore important political customers."

Keim says such a practice exploits two realities of the business and political worlds: that effective managers listen to their employees and that more informed citizens are more likely to vote. He says employee-involved lobbying also makes it more likely for a company to wisely choose its battles — and to succeed.

Employee involvement also increases the likelihood of company lobbying being bipartisan. "Even employees from different parties and with different ideological lenses often will see common ground when discussing issues that affect job growth and business opportunities for their firm," Keim writes. Does from-the-bottom-up lobbying by business lessen the tendency of corporations to focus on short-term profits while setting the stage for long-term problems by exporting jobs and seeking tax advantages that may increase government deficits?

Scope of involvement limited

"It could, but the problem is that this [employee-involved lobbying] tactic is still not used on a wide scale by corporations," Keim says. "Elected officials as well as political appointees and career civil servants need information about these effects of existing public policy issues and proposals for change. They also need to understand the priorities of their constituents because the budget of government is limited."

There has been a surge in lobbying in recent years. Keim estimates there are now 35,000 lobbyists in Washington. Meanwhile, President Bush has not exercised a single veto, the rate of discretionary spending by Congress exceeds that of the LBJ years and the national debt has risen by $3 trillion in the past five years. Are these factors related?

"I think so," Keim says. "The Republican Party controls both houses of Congress and the executive branch of government. This single-party control of the machinery of government makes it easier for well-organized groups who are active supporters to get what they want."

Is there just too much lobbying going on, and wouldn't we all be better off if people backed off from so much lobbying? "Definitely not," Keim says. "Ours is a representative democracy ... Lobbying by interested parties provides valuable information." Can lobbying be limited and how?

"My only recommendation is that lobbying be as transparent as possible," Keim says. "Making campaign contributions is an important part of the lobbying process. Those who contribute to help elected officials and their challengers raise money for every increasing campaign expenses often do so to gain access to present their concerns and analysis to officials and their staff. The provision of money must be subject to transparency to avoid the problems highlighted by the current Abramoff scandal."

Does our current, elaborate form of lobbying seem like a far leap from what the nation's founders intended? "No," Keim says. "It is primarily different only in the way it is organized — especially the use of the Internet to transmit information and find like-minded individuals who can coordinate their feedback to government officials." Although lobbying on behalf of special interests can be perceived as hurting the "public interest," Keim offers perspective.

"I think it is useful to think of democracy as an institution to resolve conflicting interests among different groups in a peaceful way," he says. "Each group seeks to advance or protect their own interests. There are relatively few policy issues where it is a clear case of everyone being better off if the issue passes or is defeated. Most issues have winners and losers. The concept of the 'public interest' is a much-used phrase that arouses emotions but is not so helpful in talking about most issues of practical politics."

"I never use the term but instead attempt to teach our students and business clients to determine who is for and who is against an issue and try to understand why and what tactics are being used by the opponents and proponents," Keim continues. "This will help them understand what is likely to happen in the political arena on a given issue. Whether it is a 'good or bad' issue is a value judgment that each of us can determine on our own — and we will likely disagree on most issues."

Is reform feasible?

How is the Abramoff controversy likely to change business lobbying? "I am skeptical that actual reform will take place," Keim says. "There is so much at stake in the current system. And by the way, this is the nature of democratic governments in all countries ... The interests of organized groups are important factors in all democratic countries." Does employee-involved lobbying ensure better management?

"I think it does," Keim says. "Employees will not support issues that they do not perceive to be consistent with their interests and values. As a consultant I have often told businesses, 'If you cannot convince your employees of the merits of an issue you will be unlikely to make much progress on it in the political arena.' "

His writing offers this advice to management: "In company-sponsored discussions and educational sessions many employees seem eager to think about public policy issues that effect them," Keim writes. "Company executives miss this important source of information when they design and operate their companies' advocacy efforts from the top down rather than from the bottom up."