Monday, June 18, 2007
WHAT'S NEW IN PUBLIC AFFAIRS
If you're dealing with environmental issues, be sure to read "It's Not Easy Pleasing Greens" in the June 8 Wall Street Journal. You'll learn about some of the surprising partnerships between activists and corporations. Since environmental issues always seem to involve energy, it's easy to understand why both the U.S. Chamber and the Business Roundtable are stepping up their advocacy on energy policy, reports The Hill. On the ethics/lobbying reform front, find out the latest twists and turns as the House and Senate continue to debate how much to tighten the rules. These stories and more in this edition of the Public Affairs News Monitor.
HEADLINES AT A GLANCE
"It's Not Easy Pleasing Greens"
"Big Business Wants Bigger Voice in Energy Policy Debate"
"Dems to Further Tighten Ethics Rules"
"Fast-Track Set to Expire, Congress Yawns"
"Finding Their Groove on the Democratic Hill"
"Court Rules Against Labor Unions in Lawsuit Challenging Use of Worker Fees"
"When Wrist-Slapping Won't Do for Execs"
"The Empty Boardroom"
"The Quagmire of Inequality"
"Group Turns Governance Spotlight on Pension Plans"
"Ignoring Society's Changed Expectations Can Imperil Your Business"
UPCOMING CONFERENCES
Teleconference: State Lobbying and Gift Laws
June 26, 2007
State laws can be tricky to navigate. 50 states, 50 different sets of lobbying and gift laws that you need to know.
Corporate Community Involvement Conference
July 25-27, 2007 - Chicago, IL
The largest and most comprehensive conference of its kind! At this conference, you'll have the opportunity to learn about best practices in corporate community involvement and network with over 200 of the country's top corporate contributions executives. You'll return to your office with a sophisticated collection of ideas, strategies and resources for improving your company's community involvement program. The unique sponsorship of this meeting by the Public Affairs Council and The Conference Board -- allows us to bring you the largest and best international conference for corporate grantmakers.
Public Affairs Management in Asia/Professional Development Institute
August 20-22, 2007 - Hong Kong
The Professional Development Institute is designed to help you and your staff to navigate complex political issues, refine your global management strategies, and build a network of contacts across the region. This seminar, which is cosponsored by Australian Centre for Corporate Public Affairs and the Public Affairs Council, covers all aspects of public affairs management in Asia.
COUNCIL SERVICES
Did you know that the Council's staff experts are available for customized presentations to your senior leadership, employees or association? Learn more at
www.pac.org/speakers
copyright 2007
INFORMATION, INC.
Public Affairs News Monitor may be reproduced in hard copy form or electronically for internal circulation to Public Affairs Council member companies and associations.
"It's Not Easy Pleasing Greens"
Wall Street Journal (06/08/07) P. W11; Levy, Collin
Environmental politics is evolving, as evidenced by the fact that Stanford University--known for being in favor of eco-friendly policies and a hotbed for student activism--has forged a partnership with ExxonMobile and accepted a $100 million research endowment from the oil giant for its Global Climate Energy Project. Another example of the changing agenda of the environmental movement is an announcement by Greenpeace co-founder Patrick Moore that nuclear energy must be supported as a means of curtailing harmful climate changes. A number of environmentalists also came out in support of the Clean Alternative Energy Act proposed in California that would have imposed taxes on oil exported out of the state and put the funds toward the development of alternative energy technologies; alternative fuel research institutes were launched on college campuses in the state by major oil companies even though the measure was defeated. These developments are forcing true environmentalists to question whether the goal of reducing consumerism and scaling back industrial society should be abandoned and their energy refocused on technological solutions to climate change.(www.wsj.com)
"Big Business Wants Bigger Voice in Energy Policy Debate"
The Hill (06/13/07); Snyder, Jim
As lawmakers continue to mull new energy legislation, the U.S. Chamber of Commerce and the Business Roundtable are working to exert more influence in the energy policy debate. For its part, the U.S. Chamber of Commerce announced on Tuesday that it was forming an legislative action committee similar to the one it used for tort reform that would spends millions of dollars on energy policy. The primary objective of the group will be work to highlight the flaws in current energy policy, says Chamber President Tom Donohue. Meanwhile, the Business Roundtable hopes to shape the outcome of the debate with results from a newly released report that underscores the need to step up domestic energy supplies and outlines several of the energy-efficiency initiatives it backs. Both business groups have a long history of engaging in energy policy debate, but each says it feels compelled to boost its activity amid mounting support for new restrictions on greenhouse gas emissions, rising costs for natural gas and other energy sources, and concern over the future access to foreign oil.(www.thehill.com)
"Dems to Further Tighten Ethics Rules"
The Politico (06/05/07); Cummings, Jeanne
Before lobbying and ethics reform issues can be laid to rest, the House must decide whether to beef up its ethics enforcement procedures, and the lobbying reform bill must be clarified during House and Senate negotiations. Speaker Nancy Pelosi's task force is anticipated to relax the rules for filing ethics complaints by suggesting that the House allow outsiders to file complaints. A four-person panel of outsiders would then assess the complaints' worthiness, and it would pass on significantly serious complaints to the ethics committee. However, questions remain about the panel's composition and its power in evaluating complaints. In terms of the lobby reform bill, the aspect most likely to survive negotiations is the mandate that lobbyists divulge the results of their fundraising for candidates and incumbents. Other provisions are expected to be cut, such as the "revolving door" component and an amendment to prohibit law firms involved in federal work from also lobbying. While some "boutique lobbying shops" fear that new transparency requirements may hurt business, other lobbyists are unconcerned about the legislation, and some even support the heightened disclosure of campaign financing to the American public.(www.politico.com)
"Fast-Track Set to Expire, Congress Yawns"
Roll Call (06/13/07); Ackley, Kate
The White House's trade promotion authority (TPA) is set to expire in about two weeks, and the likelihood that the president will be too involved with other issues to concentrate on its renewal is seen as a boon to numerous labor organizations and trade critics. "Any time we can buy time, it's good," reported U.S. Business & Industry Council fellow Alan Tonelson. "It enables Members and the public to learn more about these trade policies, and the more they learn, the less they like them." Democrats in general are harboring greater doubt of free-trade agreements than their equivalents in the Republican Party, while Christopher Wenk of the U.S. Chamber of Commerce said there is little discussion among Members about fast-track's renewal. Tonelson noted that on Tuesday he briefed House Members and staffers who are part of a trade working organization chaired by Rep. Mike Michaud (D-Maine) that is against the current free-trade model. Michaud's opposition to TPA renewal was cited by his chief of staff, Peter Chandler. "If there's a lapse, everyone can take a breath, take a pause and say, 'yes we need trade, but it needs to be fair, and how can we go about doing that,'" Chandler explained. "This administration has a certain view of it, and it's a view that we do not share. Why would we continue to give a blank check to continue down that path for another two years?"(www.rollcall.com)
"Finding Their Groove on the Democratic Hill"
Roll Call (06/07/07) P. 1; Pierce, Emily; Newmyer, Tory
With Democrats in control of Congress, Republican lobbyists are finding it difficult to adapt. Republican lawmakers generally are business-friendly, and observers note that many GOP lobbyists have yet to recognize that Democrats value the concerns of labor, environmental, and consumer groups. According to an unnamed GOP lobbyist, "Republican lobbyists are used to walking into an office and just saying, 'I'd like you to do this.' With Democrats, you really have to hone your arguments, and you really have to sell them on policy." Some Democratic staffers believe a lack of regard for Democrats' concerns on the part of GOP lobbyists is not in the best interests of their clients; and while they are willing to meet with GOP lobbyists presently, some think such meetings might soon become a waste of time. "This is a tribal town now. You're either Red Sox or Yankees," says Democratic lobbyist Scott Parven.(www.rollcall.com)
"Court Rules Against Labor Unions in Lawsuit Challenging Use of Worker Fees"
Associated Press (06/14/07); Sherman, Mark
The U.S. Supreme Court Thursday unanimously ruled that states may force public sector labor unions to get consent from workers before using their fees for political activities. "We hold that it does not violate the First Amendment for a state to require that its public-sector unions receive affirmative authorization from non-member before spending that nonmember's agency fees," Justice Antonin Scalia wrote in the court's majority opinion on a case involving a Washington State law. "The contention that this amounts to unconstitutional content-based discrimination is off the mark." The ruling overturns an opinion from the Washington State Supreme Court and sends the case back for further proceedings. The Washington State law, which defines a mechanism unions must follow, is unique, limiting the immediate impact of the ruling. But other states could adopt a similar restriction on the use of union dues in the public sector. Prior Supreme Court rulings have already established that public employees protesting union membership have a right to a refund for all union spending that isn't related to collective bargaining. At issue in the case was the survival of a 1992 Washington ballot initiative that required unions to ask nonunion employees - individuals who have refused union membership but still pay dues because they benefit from collective bargaining - whether it can spend part of those dues to fund political campaign giving. After right-to-work groups protested the teacher union was violating the law, the Washington Supreme Court struck it down on the grounds it violated the First Amendment rights of unions to participate in the election process.(www.ap.org)
"When Wrist-Slapping Won't Do for Execs"
Investor's Business Daily (06/11/07) P. A6; Detar, James
A recent report from Challenger, Gray & Christmas reveals an increase in the number of fired CEOs from 24 in 2005 to 31 last year, and eight of those were removed from the top post because of their personal behavior. John Challenger, CEO of the consulting firm, says companies need to have plans in place to deal with executives' bad behavior. Nell Minow, shareholder advocate and founder of the Corporate Library, says companies would be wise to make known all of the information related to the scandal themselves, rather than allow the media to present the story. Both Minow and Intel corporate responsibility director Dave Stangis believe companies need to treat top executives and lower-level employees equally; but Atheros CFO and Chief Ethics Officer Jack Lazar thinks upper-level executives need to be held to higher standards because they are "the face of the company." Stangis insists corporate culture plays a role, noting that Intel provides training courses for new employees on constructive confrontation.(www.investors.com)
"The Empty Boardroom"
Strategy Business (06/01/07) No. 47, P. 56; Neff, Thomas; Daum, Julie Hembrock
Ideally, every board would like its ranks to be filled with CEO types, guaranteeing a high level of appropriate experience and knowledge. But the time commitment required of board members following the imposition of Sarbanes-Oxley, as well as the risks associated with service, have resulted in some active board directors deciding not to seek reelection and CEOs not to seek seats on outside boards, if any board at all. The 2006 Spencer Stuart Board Index showed that while 71 percent of responding S&P 500 companies said active CEOs were important to have on a board, only 29 percent of all new directors appointed last year fit that description, compared to 47 percent five years ago. This trend, coupled with the drive for independence and the heightened awareness of the importance of making a good board appointment, has made the search for new directors a challenge. To meet that challenge, boards have begun to dig deeper into the talent pool. Retired CEOs, chief operating officers, financial experts, and second- or third-tier business leaders are being tapped more and more. At the top of the list of qualifications, boards are seeking a background in finance, international dealings, technology, marketing, and other skills to fill existing knowledge gaps. Women and minorities are being sought; 23 percent of the directors added last year were women, though the group comprises only 15 percent of all board seats today. Perhaps the richest source of new board talent has been other companies' future CEOs. Nineteen percent of respondents in the Spencer Stuart survey said they encourage top internal CEO candidates to seek outside public board positions to give them experience as part of the grooming process. (www.strategy-business.com)
"The Quagmire of Inequality"
Newsweek (06/11/07) P. 48; Samuelson, Robert J.
Columnist Robert J. Samuelson writes economic inequality could be at a crucial political juncture next year because the income gains at the top seem so outsized and gains elsewhere are so choppy. The very uncertainty means that even amid great prosperity, Americans feel anxious. MIT economists Frank Levy and Peter Temin say skill disparities generated by burgeoning computer technologies are not the only factors contributing to a widening wage gap; also culpable is a change in business practices and social norms. The Treaty of Detroit adopted by many unionized and non-unionized industries in the middle of the 20th century worked out an arrangement in which labor would behave peacefully in exchange for job security, annual salary increases, and fringe benefits; and Levy and Temin say this resulted in "market outcomes" in pay that were "strongly moderated by institutional factors." But pay gains across all skill tiers were not equalized in the decades that followed, reflecting the ever-decreasing workability of the norms and practices spotlighted by Levy and Temin. The concept that everyone's compensation should be aligned with inflation only served to exacerbate inflation as well as stability. Pattern wage setting was also killed by increased competition from imports, new technologies, and deregulation. Samuelson concludes that whether the debate becomes an empty exercise in class warfare or a genuine search for ways to reconcile economic justice and economic growth is an open question.(www.newsweekcom)
"Group Turns Governance Spotlight on Pension Plans"
Wall Street Journal (06/04/07) P. B3; Dvorak, Phred
While many institutional investors espouse good governance for companies in which they invest, critics counter that there are no uniform governance standards for pension funds, endowments, and charitable foundations. However, the Stanford Institutional Investors' Forum unveiled informal guidelines for these funds, and the best practices range from having trustees educate themselves about their roles to disclosing leadership structures. Increased transparency is expected to reduce the tension and confusion that often plagues trustee and staff members' relationships. Education sessions regarding fiduciary duties can be essential to the prevention of regulatory scrutiny and enforcement action, note experts. One member of the Illinois Teachers' Retirement System pled guilty to accepting kickbacks from investment firms in 2006, and the San Diego City Employees' Retirement System was short about $1.4 billion in assets to cover its retirement obligations in 2004. It is evident from the recent investigations of pension funds and other non-profit organizations that trustees do not understand conflicts of interest and their fiduciary duties.(www.wsj.com)
"Ignoring Society's Changed Expectations Can Imperil Your Business"
Toronto Globe & Mail (06/04/07) P. B8; Maly, Jiri
A strong business case can be made for incorporating social and political issues into corporate strategy. These issues--which include protecting consumers, protecting the environment, and providing for employees--tend to enhance a company's reputation, helping companies attract top-notch employees. The expectations that society places on companies have changed to the point where controversies and poor reputations can hobble a business or even threaten its survival. For example, the humanitarian crisis in Sudan forced the Talisman Energy oil firm to abandon a prime business opportunity in Sudan, as the company's stock price and corporate reputation were suffering. In the same vein, society has held shoe companies responsible for their suppliers' treatment of workers in Latin American and Asia, just as jewelry and luxury good companies are being scrutinized for their connections to "blood diamonds." These examples only serve to underscore the truly global nature of corporate reputations and how companies in nearly every sector are being held accountable for their actions. Companies can take proactive steps to protect their reputations. For example, Research in Motion and its top executives are investing in charities, education, and other community-based causes.(www.theglobeandmail.com)
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