Business' Influence on Advisory Panels & Committees

Business' Influence on Advisory Panels & Committees
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  • 0:01 Advisors
  • 0:29 Why Businesses Serve on Panels
  • 3:30 Lesson Summary
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Lesson Transcript
Instructor: Jennifer Lombardo
Business' influence on advisory panels and committees help determine whether proposed regulations are viable or need changes. In addition, there are additional benefits that businesses acquire when offering support to Congress on regulations.

Advisors

Government occasionally needs additional insight, help, and guidance in determining regulatory rules. In this lesson, you will understand the role of advisors and the reasons why businesses serve on advisory panels and committees. An advisor is a person selected by the government to help provide scientific or economic expert advice in regards to regulations. Lastly, an advisor usually serves on an advisory panel.

Why Businesses Serve On Panels

Why would a seasoned executive or business CEO serve on an advisory panel? Do they receive a free jet? The answer is, of course, no. They do receive many other non-material benefits by providing their services through an advisory panel, or a group of business people who offer opinions, insights, and suggestions to Congress regarding regulation considerations. Usually the panel is formed with each individual coming to the table with specialized talents, such as a marketing, accounting, financial, and operations, based on an industry.

We are going to take a look at a new advisory panel for the Food and Drug Administration. The FDA is considering extending the length of drug trials. The FDA believes it will provide better results on the drug's ability to work, while the pharmaceutical industry is afraid the added time will hurt their new drug business. All panels are overseen by the GSA, or General Services Administration, who ensures that a fair representation of individuals is added to each panel. Let's take a look at the advantages for businesses to serve on advisory panels or committees:

Expose panel members to potential new regulation:
Trish is a high-powered executive for a pharmaceutical company, and serving on panels has exposed her to potential new industry regulation. She is testifying to Congress on the impact that extended drug trial lengths would have on her company's new drug pipeline. She has explained to Congress it would impede fast tracking drug approvals for consumers who need access in order to survive. She also is able to let her own company know the potential proposal, the status, and what needs to be done to discourage approval so it does not hurt their pharmaceutical business.

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