Monday, July 2, 2007
WHAT'S NEW IN PUBLIC AFFAIRS
To no one's surprise, the Supreme Court has weakened the McCain-Feingold campaign finance act's restrictions on advertising -- and the effects of its ruling will certainly be felt in the 2008 elections. Meanwhile, reports Roll Call, the U.S. House Committee on Standards of Official Conduct has attempted to clarify Democrat-enacted gift rules. And Google provides a case study of how tech companies are approaching government relations in Washington, D.C. These stories and more in this edition of the Public Affairs News Monitor.
HEADLINES AT A GLANCE
"Court Loosens Limits on Election Ads"
"Ethics Clarifies Maze of Gift Rules"
"Learning From Microsoft's Error, Google Builds a Lobbying Engine"
"A Brave New Policy World"
"Washington's Oddest Tag Team"
"CEOs Under Fire"
"Seeking to Soften Blows of Globalization"
"Bush Gets his Way at the Supreme Court"
"Senate Kills Bill to Let Unions Organize With Check-Off Cards"
"Call to Register EU Lobbyists Triggers Chorus of Criticism"
UPCOMING CONFERENCES
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.
Membership Orientation
Sept. 11, 2007 - Public Affairs Council - Washington, DC
Learn how to get the most out of your Council membership during this free lunchtime session. We'll review all the Council's major services, including information assistance, conferences, communications, benchmarking, networking and online services.
COUNCIL SERVICES
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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.
"Court Loosens Limits on Election Ads"
Associated Press (06/25/07)
The Supreme Court has substantially weakened the McCain-Feingold campaign finance act's restrictions on the kinds of ads corporations, unions, and special interest groups may run in the days before an election. Chief Justice John G. Roberts Jr. wrote the 5-4 opinion for the court, saying that the act's prohibition against groups naming federal candidates in ads broadcast before an election was unconstitutional in some cases. But he and Justice Samuel A. Alito Jr. did not, as some other conservatives wanted, rule that the restrictions in the act were always unconstitutional. Roberts said that the difference between so-called "issue ads," which are allowed, and those that "express advocacy," which are banned, is often hard to define. "In drawing that line, the First Amendment requires us to err on the side of protecting political speech rather than suppressing it," he wrote. The decision to loosen the restrictions surrounding the use of "issue ads" could have a major impact on the 2008 elections, with rival groups ready to spend millions of dollars. The portion of the law in question says corporate entities cannot use money from their general treasuries to broadcast ads that run 30 days before a primary or 60 days before a general election, are aimed at a relevant electorate and mention a federal candidate by name. The naming restriction was particularly important, because Congress was trying to do away with "sham" issue ads that purported to be about a controversy but amounted to an attack on a candidate. The groups are free to run such ads if a separate political action committee pays for them. (www.ap.org)
"Ethics Clarifies Maze of Gift Rules"
Roll Call (06/20/07); Davis, Susan
The U.S. House Committee on Standards of Official Conduct released a memo on new, Democrat-enacted gift rules that recommend a policy of non-acceptance in instances where doubts about a lobbyist's gift prevail. One of the new rules permits members and staff to go to "widely attended" events; but the House ethics committee's memo classifies such events as those where a minimum of 25 attendees are expected, where a "range of persons" interested in the issue are present, where the event dovetails reasonably with the official responsibilities of members or staffers, and where more than just "members, officers, or employees of the Congress" are included on the invite list. Members or staff are exempted from the new gift rules when attending fundraisers or other political events; attendance at charitable functions also is permissible under the new rules, provided members and aides are invited by event sponsors rather than lobbyists and the event's goal is to generate funding for 501(c)(3) organizations. The rules have affected lobbyists' engagement with Congress, albeit sometimes in unexpected ways. Emily Sheketoff with the American Library Association (ALA) reported her organization has been discouraging representatives from bringing gifts to Washington lobbying events, and it has reduced the poster size for the ALA's famous READ poster campaign in order to stay under the new rules' monetary limitations. "I think the net effect of the rules definitely has been to limit dramatically the social interchange [with lobbyists] in the sense of the meals and activities," remarked former American League of Lobbyists head Wright Andrews of Butera & Andrews. But he also noted that "what all of this has done has continued to drive people to the fundraising process."(www.rollcall.com)
"Learning From Microsoft's Error, Google Builds a Lobbying Engine"
Washington Post (06/20/07) P. D1; Birnbaum, Jeffrey H.
Google seeks to erect a strong lobbying presence to avoid unpleasant surprises, like the government antitrust lawsuit that was especially detrimental to competitor Microsoft. "The entire tech industry has learned from Microsoft," stated Alan B. Davidson with Google's Washington office. "Washington and its policy debates are important. We can't ignore them." Google's Washington office assisted in the drafting of an antitrust complaint to the Justice Department and other federal authorities claiming that Microsoft's Vista operating system discriminated against Google software, and Microsoft agreed to revise Vista's operations as part of a compromise with state and federal regulators. Google currently has a dozen lobbyists and lobbying-affiliated professionals on staff at its Washington office; and among its personnel are seasoned government insiders such as former speechwriter and Clinton administration foreign policy adviser Robert Boorstin, who serves as communications director. Google also has recruited the Podesta Group and the law firms of King & Spalding and Brownstein Hyatt Farber Schreck for lobbying aid. To cultivate relationships with lawmakers, Google plans to launch Google 101--tutorials for congressional staffers that will educate them on more effective use of the Google search engine. Last year, Google set up a political action committee and raised more than $57,000. (www.washingtonpost.com)
"A Brave New Policy World"
Politico (06/25/07); Frates, Chris
Many companies and trade groups have launched blogs to make their policy positions known to the masses. Cisco Systems made congressional testimony from a hearing about the role of U.S. technology firms on censorship in China available on its blog, where it also responded to questions from the public and clarified its business practices. Cisco, Google, Verizon, the National Association of Manufacturers (NAM), and others are turning to the blogosphere to ensure their voices are heard, especially considering not all bloggers discuss both sides of an issue. Verizon Blog Editor John Czwartacki says, "Absent a blog, absent an online voice, it's happening completely without us." These blogs have attracted the attention of Capitol Hill staffers and even lawmakers themselves; Fleishman Hillard Senior Vice President of Digital Public Affairs Pat Cleary, a major player in the development of NAM's shopfloor.org blog, was invited to speak with Republican lawmakers at "blog rows" and to meet with then-Interior Secretary Gale Norton. However, Cisco spokesperson John Earnhardt thinks lobbyists will have to work harder when dealing with complicated matters because of the boundaries created by blogs.(www.politico.com)
"Washington's Oddest Tag Team"
Business Week (07/02/07) No. 4041, P. 88; Dunham, Richard S.
Treasury Secretary Henry Paulson, a conservative when it comes to fiscal matters, and U.S. House Ways & Means Committee Chairman Charles Rangel (D-N.Y.), a liberal, have forged a partnership on many issues since the Democrats took control of Congress. While they continue to butt heads on such issues as reforming Medicare, Social Security, and the Alternative Minimum Tax, they have made much headway in regards to trade. Rangel was instrumental in securing an agreement with labor and business organizations calling for renegotiated trade deals with Colombia and South Korea, as well as forward movement on deals with Peru and Panama. Rather than fight the deals, the labor and business groups said they would offer retraining programs for workers whose jobs went overseas and request help from the federal government. Additionally, Rangel thinks he can push through legislation that would reauthorize fast-track trade negotiations, enabling the President to put trade pacts before Congress for a vote without the addition of amendments. In exchange, Paulson has agreed to make the Earned Income Tax Credit form easier for taxpayers to understand as a means of boosting participation among those who qualify for the credit; legislation also might be considered if participation rates remain low.(www.businessweek.com)
"CEOs Under Fire"
National Journal (06/16/07) Vol. 39, No. 24, P. 42; Maggs, John
High-profile corporate scandals, among other issues, have helped to greatly reduce CEOs' standing in the public eye. Concurrent with CEOs' declining esteem is an increasingly jaundiced view of business overall, with 58 percent of Americans surveyed in a 2007 Pew Research poll claiming corporations do not fairly balance profits with the public interest. The public is particularly unhappy about the enormous compensatory packages CEOs are awarded, which taps directly into growing turmoil about a profound lack of equality in the United States. Congress is advancing toward a mandate that companies give shareholders clout in deciding levels of executive compensation, with University of Delaware's Weinberg Center for Corporate Governance Director Charles Elson noting, "There is a shift in most boardrooms toward real independence. This is being backed up in the courts, which are being much tougher." Harvard University Professor Lucian Bebchuk argues CEOs are not entitled to the compensation they are getting because the market is not working, mainly because the CEOs are hiring allies as board members and engaging in other tactics to effectively muzzle shareholders. Congressional action being taken as a result of such findings and other developments include Sen. Carl Levin's (D-Mich.) call to make corporations take deductions for stock options the year they are granted rather than when they are cashed in.(www.nationaljournal.com)
"Seeking to Soften Blows of Globalization"
Wall Street Journal (06/26/07) P. A8; Solomon, Deborah
A paper commissioned by the Financial Services Forum contains a number of policy suggestions for ensuring that expanding globalization of the U.S. economy has as little negative economic impact as possible on American jobs and workers. The paper recommends possible methods for mitigating stagnant wages and job losses, including wage insurance for individuals and whole communities as well as changes to the tax code that would put less of a burden on lower-income earners. Such suggestions, the report's authors hope, will help change the opinions of many workers who currently oppose globalization because of its short-term economic effects. In addition, the report discusses limitations of many frequently recommended solutions to globalization-related job loss, such as better access to education, noting that education may be effective for creating American jobs in the long term but does little to help those who are affected by globalization now. It also suggests better methods for negotiating free-trade deals in the first place. (www.wsj.com)
"Bush Gets his Way at the Supreme Court"
Financial Times (06/27/07) P. 12; Waldmeir, Patti
President George W. Bush's two appointments to the Supreme Court have significantly influenced the institution's agenda. Corporate America has been thrilled by the victories handed to business in the bulk of the current term's corporate cases. One of the court's primary goals involves battling abusive litigation, as the Bush administration feels that the competitiveness of U.S. markets is being damaged by an excess of lawsuits. For that reason, the court has acted to restrict litigation by establishing new boundaries on punitive damages and imposing a stricter standard that plaintiffs must fulfill to get their lawsuits into court. Plaintiffs must now possess significantly more than a "suspicion" of illegal behavior before bringing their cases to trial, a move which particularly punishes lawyers seeking to push the limits of U.S. litigation. (www.ft.com)
"Senate Kills Bill to Let Unions Organize With Check-Off Cards"
Wall Street Journal (06/27/07) P. A4
Senate Republicans have stopped a bill that would let labor unions organize workplaces without a secret-ballot election, ending organized labor's chance to win its top legislative priority. The bill would require employers to recognize unions after being presented union cards signed by a majority of eligible workers. Under current law, a company can demand a secret-ballot election after being presented the union cards. Proponents claim that companies now have the upper hand when it comes to union elections, while employers argue that using only a card-check system would let union organizers use their knowledge of who did not sign cards to intimidate reluctant workers. Republican Minority Leader Sen. Mitch McConnell (R-Ky.) vowed to prevent the bill from being passed, and President Bush warned that he would veto any such bill that came to his desk. (www.wsj.com)
"Call to Register EU Lobbyists Triggers Chorus of Criticism"
BNA Money & Politics (06/22/07)
The European Public Affairs Consultancies Association and the Society of European Affairs Professionals are among the leading consultancy groups in the European Union voicing opposition to the European Commission's decision to launch a voluntary lobbyist registry in March 2008, citing confidentiality agreements with clients. The voluntary registry aims to increase transparency and avoid lobbying scandals by requesting the EU's 15,000-plus lobbyists disclose financial and client information. European Commissioner for Administrative Affairs, Audit and Anti-Fraud Siim Kallas states, "Facts on funds invested in lobbying are of course a meaningful indicator of the importance of the issues at stake. Nobody would pay real money for lobbying services without expecting something in return--and that something is influence." Kallas says two things could occur if lobbyists do not voluntarily disclose information on the registry: registration could be mandated or consultancy groups could partner with the Commission to redesign the registry. (www.bna.com/moneyandpolitics)
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