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Lobby and Advocacy of
Business Chambersand Associations
Nucleus-International.netNucleus-International.net
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Who decides what?
Enterprises Entrepreneurs
Chamber
Service
DecisionTaker
ChamberEntrepreneurs
OtherActors
Lobby
ChamberEntrepreneurs
Other Actors
ChamberEntrepreneu
rs
Objective:to improve
the memberenterprises
Objective:to influence / improve the
entrepreneur’sframeworkconditions
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Objective of Lobby : Improvement of the framework conditions for economic activities ...
Infrastructure
Statistics
Labour marketTaxes, fees
FinanceSuppliers
Markets
Public tenders
Industriallocationpolicy
Education,training, research
Chamber
Public Institutions
Transport
Security
Public support
EnvironmentCommunication
Culture
Privatisation
Cooperation, networks
Building sites
Market promotion
Media
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Framework conditions for enterprises
• Local, district, regional government and relevant departments– Policy and objectives: Defined, clear, stable?– Development plan for the town and the
district / region? Elaborated, implemented?– Public services: Efficient, public servants are
qualified and oriented to objectives?– Degree of bureaucracy?– Degree of corruption?
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Framework conditions for enterprises
• Data– Socio-economic
statistics– Maps
• Markets– Purchase power of
consumers, companies, public institutions
• Infrastructure– Streets / roads– Harbour– Airport– Water / sewage /
garbage– Energy
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Framework conditions for enterprises
• Taxes and Fees– Tax system: simple, fair, easing and rewarding
investments– Fees: low, simple, justified
• Public Support– Financial subsidies, tax relief– Provision of land– Support in training employees
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Framework conditions for enterprises
• Building Sites– Quantity– Access – Quality– Price– Infrastructure
prepared
• Transport– Of goods– Of persons
in the town(pedestrian, bicycle, car, public transport)
national / international (airplane, ship)
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Framework conditions for enterprises
• Public Tenders– Rules– Public investments
participation of local enterprises
size of bids (small / big)
• Supply of Goods and Services– Raw material – Pre-products– Services– Outsourcing
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Framework conditions for enterprises
• Bank System and Financing – Banks: fast,
efficient– Services: deposits,
credits, leasing etc.– Credits: access,
costs / interest rates, grace periods
• Privatisation– of enterprises and
public services– of training
institutions
• Market Promotion Activities– Trade fairs– Congress’ – Tourism
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Framework conditions for enterprises
• Education, Training, Research
– Schools– Training institutions– Universities– Research institutions
• Labour Market– Qualification and
quantity of employees inreference to the present and future requirements
• Chambers and Associations– Quality of services– Efficiency of lobby
• Cooperation and Networks– Functioning
networks between all actors
– Positive mood and constructive relationship
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Framework conditions for enterprises
• Communication / Media– Communication:
Phone, mobile phone, internet
– Media: TV, radio, newspapers
• Environment Protection– Balance between
ecology and economy
• Culture – Events– Institutions
(cinema, theatre, etc.)
• Security– Security level
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Objective of Lobby : Improvement of the framework conditions for economic activities ...
Infrastructure
Statistics
Labour marketTaxes, fees
FinanceSuppliers
Markets
Public tenders
Industriallocationpolicy
Education,training, research
Chamber
Public Institutions
Transport
Security
Public support
EnvironmentCommunication
Culture
Privatisation
Cooperation, networks
Building sites
Market promotion
Media
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The Target Group of Chamber Lobbying
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Who lobbies in favour of what and where?
DistrictChamber
Federation
National subjectswhich can be solvedonly on the nationallevel by nationalinstitutions
Local and district
subjectswhich can be solvedon the local /districtlevel by local /district institutions
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Why?
DistrictChamber
Federation National subjects
Local and district
subjects
The influenced person / institution must have the competence to decide about the subject!
Otherwise the lobbying is inefficient!
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Examples
DistrictChamber
FederationNational subjects- Income tax- Import- / export levies
Local and district
subjects- Local tax- Local tenders- Building sites
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Who lobbies whom?
DistrictChamber
Federation
National level-Government- Parliament- Administration- Political parties- Other institutions- General public
Local and district level-Government- Parliament- Administration- Political parties- Other institutions- General public
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Strategies for Lobbying
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Lobby means
• To influence stakeholders with the power to make decisions relevant for the development of the economy and society.
• Lobbying can be understood as– A continuous task
in order to represent the chamber’s and entrepreneurs’ interests on a subject area
– An isolated campaign in order to – as an example - to create a new law
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Fundamental Principles for efficient lobbying: 1
• Profound knowledge of the subject is the most important aspect to justify a proposal or claim.
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Fundamental Principles for efficient lobbying: 2
• The subject must be stated precisely and clearly.
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Fundamental Principles for efficient lobbying: 3
• The lobbying chamber as well as its representatives must be trustworthy.
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Fundamental Principles for an efficient lobby work: 4
• The chamber’s partners interests must be known and understood as reference point, in order to allow a realistic evaluation.
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Fundamental Principles for an efficient lobby work: 5
• Self-interests of the entrepreneurs should not be presented as demands. Instead, the arguments– Have to be self-convincing– Have to provide additional information.
• Therefore, the partner must perceive that he / she received an information advantage.
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Fundamental Principles for an efficient lobby work: 6
• Use a step by step approach. • Do not aim to achieve immediate “great
impact” results.
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Fundamental Principles for an efficient lobby work: 7
• The chamber should not confront the partner with proposals and claims– For which he / she is not responsible– Which he / she objectively cannot address.
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Fundamental Principles for an efficient lobby work: 8
• It is a must for the chamber to develop a close relationship network to public and private institutions and its stakeholders.
• Lobby is a constant exchange of information (give and take).
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Fundamental Principles for an efficient lobby work: 9
• The chamber must not perform like a “branch” of the partner’s political opposition.
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How to lobby
The instruments
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1 : Personal talks
• Permanent personal talks with the partners– Chairperson, directors, CEO, eventually other
staff members
• … in order to develop a personal relationship– … I inform you, you inform me
• Networking through “Body to Body” work
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1 : Personal talks
• Strategy: The more I know someone as trustworthy personthe more– I listen to his / her arguments– I trust his / her information– I follow his / her proposals
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2. Permanent presence
• The chamber shows presence on as many events of stakeholders as possible.
• Message: “We are here !!!”• Important: If the subject of the event is
known then the chamber representative should be prepared to say:This is the position of the chamber!
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2. Permanent presence
• A honorary member of the chamber’s board normally does not have the time and it is not his / her job to elaborate a qualified statement
• This the job of the chamber’s professionals task or of external experts
• Afterwards they have to brief the chamber representative
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2. Permanent presence
• Observations: – Nothing is more counter productive for the
chamber than an unqualified statement– Avoid ad hoc statements based on feelings!
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3 Participation in workgroups
• Active participation in workgroups with participants– from the private sector
(different chambers, sector companies and other institutions)
– From the public and private sector(Examples: Energy Forum, Tourism Task Force, Environment Protection for our Town, etc.
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3 Participation in workgroups
• Observations: – Take care that always the same chamber
representative participates in the workgroup!Nothing is more frustrating than to be always confronted with different participants who have different ideas where the workgroup is at present
– The chamber representative has be prepared for the workgroup
Eventually: link a director plus the CEO. The preparation, the elaboration of papers, the collection of data etc. is done by the professional
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3 Participation in workgroups
• Be prepared for the discussion of the subject and prepare adequate papers
• Example: Energy forumThen the chamber must know– Who of the members use which kind of
energy?– How much energy?– What are the problems for the enterprises?– How often do electric blackouts occur?– Which economic damages are caused by the
blackouts?
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3 Participation in workgroups
– For which member enterprises could alternative energy sources be interesting?
• Present operational proposals– Public campaign: “We save energy!”– Private Public Partnership:
- Training of energy counselors- Invitation of specialists to advice the biggest energy consumers- etc. etc.
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4 Chamber events
• Regular public events in the chamber to discuss subjects
• Invite and present the chamber’s proposals– The mayor / governor
twice per year - only once is useless– Public departments– Representatives of training schools and similar
institutions– Specialists– Etc.
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4 Chamber events
• Observations– Take care that the hall is filled with chamber
entrepreneurs– Define a well prepared subject about which the
invited person should talk. – Take care that the invited person does not do
only a boring self-presentation– Prepare questions– Let someone who is qualified for this and
knows something about the subject do the moderation
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4 Chamber events
• Messages: – “We are here!”– “We speak in the name of many
entrepreneurs!”– “We participate and take care of the economic
development of our community!”– “We have concrete proposals
and recommendations!”
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Excurse : The Brassware Nucleus
• The brassware entrepreneurs suffered: – Non availability of raw materials
because some traders are exporting all the material they can get their hands on to another country
– Effect: In some cases this led to even the closedown of enterprises that have existed for generations
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Excurse : The Brassware Nucleus
• The brassware Nucleus decided that it need to take action– It organized a demonstration
(one of the areas renowned for the brassware) – The chamber counselors introduced the
Nucleus members to various media representatives to get publicity for the event
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Excurse : The Brassware Nucleus
• Effects:– Some members of the Nucleus were invited for
a meeting with a Deputy Minister of the Central Government
– The Deputy Minister in turn invited them to parliament and got them an appointment with a delegation of Ministers from related Ministries, including the Prime Minister
– The Government delegation promised to take immediate action
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Excurse : The Brassware Nucleus
– First step: Passing of a cabinet paper prohibiting the export of this metal
– The budget speech of the Finance Minister has taken up the issue and proposed to impose a tax of 25 percent on export of scrap or any form of metal
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Excurse : The Brassware Nucleus
• This example shows:
The Nuclei can be an imported source for concrete lobby activities
of the chambers !
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5 Political elections
• The chamber invites the candidates for the local / regional elections for a sequence of public events– One after the other, never all together !!!
• The chamber presents a list of proposals and recommendations to the candidate for discussion and– To hear the positions and opinions of the candidate– To see who of the candidates will best support the
development of the enterprises and the economy– To help the members to take the “right” decision
in the election
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5 Political elections
• After the elections:– Maintain permanent contact with the elected
candidates– Invite them again for public discussions:
- What did you promise?- What did you do up to now?- What will happen next?
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6 Internal Chamber discussions
• Discussion amongst members to identify the chamber’s opinion / stand point – Allow arguments, ideas, opinions, needs,
experiences etc. to be exchanged amongst members
– Integrate members when defining and defending the chamber’s and entrepreneur’s interests
• Key question – The subject is important / relevant / interesting
for the members?
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6 Internal Chamber discussions
• Example: “The Municipal Council’s intention to move the local food market elsewhere”
This is the chamber’s opinion! This is what the chamber’s members
propose!
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7 Information of members
• The member entrepreneurs have to know for what the chamber stands for– The members learn that the chamber is active– They are informed about the chamber’s
opinion which he / she make as his / her own opinion
– The members serve as messenger to disseminate the chamber’s opinion
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7 Information of members
• Instruments– Member events– Chamber newsletter / printed journal ---
expensive– Weekly chamber information letter by e-mail ---
cheap (examples: Joinville, Blumenau, Brazil)– Nucleus information letter / e-mail– Notice and photo board
(examples: Matale and Badulla, Sri Lanka)– Flyers and other material
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8 Public relations
• Objective: – To inform the public– To influence the publicAbout the chambers opinion and its activities
• Purpose:– To show that the chamber and its
entrepreneurs are working in favour of the development of society
– To attract more entrepreneurs to apply for membership
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8 Public relations
• Instruments– Press release– Press talk– TV and radio interviews– Prepared articles, stories etc. for
newspapers– Regular / weekly columns in newspapers
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8 Public relations
• Message:– The chamber participates in society’s interests
& discussions– The chamber is heard– The chamber is respected
• Example: ”The Chamber’s president meets the governor & the chief minister!”
Play the drums and make “noise”
Or: Each day the chamber does not appear in the media
is a lost day!
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The main requirement for successful lobby and public relations
• Each publication• Each phrase• Each ...needs a
MessageMessage
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Key question
What is the message?What is the message?
Who is the target group?Who is the target group?
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Nucleus-International.net
• This file is part of our material to present and illustrate our activities to professional and elected officials of business associations, personnel from technical cooperation projects, and other people with an interest in this field. We are involved in a constant process of elaborating and improving this material, and targeting it to the demands of specific groups.
• You may use, copy, and change this file as you like (we do not insist on a copyright).
• We would, however, like to ask you for the following: please send us a copy (as a file or printout) and additional information if you use the file or parts of it.
• Thank you!• The Nucleus-International.net team