Business Strategies for Influencing Congress & Regulatory Agencies

Business Strategies for Influencing Congress & Regulatory Agencies
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  • 0:01 Business' Strategies
  • 0:39 Campaign Contributions
  • 1:13 Lobbying
  • 2:09 Grassroots Lobbying
  • 3:30 Lesson Summary
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Lesson Transcript
Instructor: Jennifer Lombardo
In this lesson, you will learn business' strategies for influencing Congress and regulatory agencies are campaign contributions, lobbying and grassroots lobbying.

Business Strategies

Although the government has a great deal of power to influence business, there are also many strategies that businesses utilize for influencing Congress and regulatory agencies. In this lesson, you will learn about the different strategies that businesses embrace, such as the use of campaign contributions, lobbying, grassroots lobbying and testimony strategies to influence Congress and regulatory agencies. Business strategies are a corporation's long-term plans to achieve specific objectives. Let's take a look at real case study examples where business' influence won over a legal decision.

Campaign Contributions

Campaign contributions are political monetary donations from a business to either the Democratic or Republican Party in order to secure beneficial relationships. As the saying goes, 'money talks!' And companies use their financial influence to help protect their business interests. For example, a very large aerospace corporation has donated hundreds of thousands of dollars to both political parties and was rewarded with 17 billion dollars-worth of business contracts - more than any other company.


Another method for businesses to adopt in order to gain congressional or regulatory influence is through lobbying, or trying to persuade legislators or regulatory agencies to act in favor of a specific cause or idea. Lobbying allows legal experts hired by companies to gain the ear of Congress to put forth their views on specific legislative topics. For example, a top social media company has even started to spend millions of dollars lobbying on digital privacy issues and online advertising to make sure new legislation is not passed that would hamper their business.

Lobbyists are also highly skilled at explaining policies and legislation, so they are also called upon by Congress to testify to help explain certain viewpoints. For instance, a lobbyist could be called to testify to Congress on why extensive new privacy laws in the online world would hamper business for social media companies.

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