NucleusInternational net Lobby and Advocacy of Business Chambers

Nucleus-International. net Lobby and Advocacy of Business Chambers and Associations 04/2008 Nucleus-International. net 1

Who decides what? Objective: to influence / improve the entrepreneur’s framework conditions Objective: to improve the member enterprises 04/2008 Decision Taker Other Actors Lobby Chamber Entrepreneurs Servic e Chamber Entrepreneurs Enterprises Entrepreneurs Nucleus-International. net 2

Objective of Lobby : Improvement of the framework conditions for economic activities. . . Public Institutions Transport Statistics Culture Markets Security Finance Industrial Suppliers Media location Privatisation Building sites policy Public support Public tenders Taxes, fees Labour market Environment Communication 04/2008 Infrastructure Education, training, research Market promotion Cooperation, networks Chamber Nucleus-International. net 3

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? 04/2008 Nucleus-International. net 4

Framework conditions for enterprises • Data • Infrastructure – Socio-economic statistics – Maps • Markets – Purchase power of consumers, companies, public institutions 04/2008 – – Streets / roads Harbour Airport Water / sewage / garbage – Energy Nucleus-International. net 5

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 04/2008 Nucleus-International. net 6

Framework conditions for enterprises • Building Sites – – – 04/2008 Quantity Access Quality Price Infrastructure prepared • Transport – Of goods – Of persons Ø in the town (pedestrian, bicycle, car, public transport) Ø national / international (airplane, ship) Nucleus-International. net 7

Framework conditions for enterprises • Public Tenders – Rules – Public investments Ø participation of local enterprises Ø size of bids (small / big) 04/2008 • Supply of Goods and Services – – Nucleus-International. net Raw material Pre-products Services Outsourcing 8

Framework conditions for enterprises • Bank System and Financing – Banks: fast, efficient – Services: deposits, credits, leasing etc. – Credits: access, costs / interest rates, grace periods 04/2008 • Privatisation – of enterprises and public services – of training institutions • Market Promotion Activities – Trade fairs – Congress’ – Tourism Nucleus-International. net 9

Framework conditions for enterprises • Education, Training, Research – – Schools Training institutions Universities Research institutions • Labour Market – Qualification and quantity of employees in reference to the present and future requirements 04/2008 • Chambers and Associations – Quality of services – Efficiency of lobby • Cooperation and Networks – Functioning networks between all actors – Positive mood and constructive relationship Nucleus-International. net 10

Framework conditions for enterprises • Communication / Media – Communication: Phone, mobile phone, internet – Media: TV, radio, newspapers • Environment Protection • Culture – Events – Institutions (cinema, theatre, etc. ) • Security – Security level – Balance between ecology and economy 04/2008 Nucleus-International. net 11

Objective of Lobby : Improvement of the framework conditions for economic activities. . . Public Institutions Transport Statistics Culture Markets Security Finance Industrial Suppliers Media location Privatisation Building sites policy Public support Public tenders Taxes, fees Labour market Environment Communication 04/2008 Infrastructure Education, training, research Market promotion Cooperation, networks Chamber Nucleus-International. net 12

The Target Group of Chamber Lobbying 04/2008 Nucleus-International. net 13

Who lobbies in favour of what and where? Federation District Chamber 04/2008 National subjects which can be solved only on the national level by national institutions Local and district subjects which can be solved on the local /district level by local / district institutions Nucleus-International. net 14

Why? Federation National subjects The influenced person / institution must have the competence to decide about the subject! Otherwise the lobbying is inefficient! District Chamber 04/2008 Local and district subjects Nucleus-International. net 15

Examples Federation District Chamber 04/2008 National subjects - Income tax - Import- / export levies Local and district subjects - Local tax - Local tenders - Building sites Nucleus-International. net 16

Who lobbies whom? Federation District Chamber 04/2008 National level -Government - Parliament - Administration - Political parties - Other institutions - General public Local and district level -Government - Parliament - Administration - Political parties - Other institutions - General public Nucleus-International. net 17

Strategies for Lobbying 04/2008 Nucleus-International. net 18

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 04/2008 Nucleus-International. net 19

Fundamental Principles for efficient lobbying: 1 • Profound knowledge of the subject is the most important aspect to justify a proposal or claim. 04/2008 Nucleus-International. net 20

Fundamental Principles for efficient lobbying: 2 • The subject must be stated precisely and clearly. 04/2008 Nucleus-International. net 21

Fundamental Principles for efficient lobbying: 3 • The lobbying chamber as well as its representatives must be trustworthy. 04/2008 Nucleus-International. net 22

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. 04/2008 Nucleus-International. net 23

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. 04/2008 Nucleus-International. net 24

Fundamental Principles for an efficient lobby work: 6 • Use a step by step approach. • Do not aim to achieve immediate “great impact” results. 04/2008 Nucleus-International. net 25

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. 04/2008 Nucleus-International. net 26

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). 04/2008 Nucleus-International. net 27

Fundamental Principles for an efficient lobby work: 9 • The chamber must not perform like a “branch” of the partner’s political opposition. 04/2008 Nucleus-International. net 28

How to lobby The instruments 04/2008 Nucleus-International. net 29

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 04/2008 Nucleus-International. net 30

1 : Personal talks • Strategy: The more I know someone as trustworthy person the more – I listen to his / her arguments – I trust his / her information – I follow his / her proposals 04/2008 Nucleus-International. net 31

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 the chamber representative should be prepared to say: This is the position of the chamber! 04/2008 Nucleus-International. net 32

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 04/2008 Nucleus-International. net 33

2. Permanent presence • Observations: – Nothing is more counter productive for the chamber than an unqualified statement – Avoid ad hoc statements based on feelings! 04/2008 Nucleus-International. net 34

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. 04/2008 Nucleus-International. net 35

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 Ø Eventually: link a director plus the CEO. The preparation, the elaboration of papers, the collection of data etc. is done by the professional 04/2008 Nucleus-International. net 36

3 Participation in workgroups • Be prepared for the discussion of the subject and prepare adequate papers • Example: Energy forum Then the chamber must know – – – 04/2008 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? Nucleus-International. net 37

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. 04/2008 Nucleus-International. net 38

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. 04/2008 Nucleus-International. net 39

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 04/2008 Nucleus-International. net 40

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!” 04/2008 Nucleus-International. net 41

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 04/2008 Nucleus-International. net 42

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 04/2008 Nucleus-International. net 43

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 04/2008 Nucleus-International. net 44

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 04/2008 Nucleus-International. net 45

Excurse : The Brassware Nucleus • This example shows: The Nuclei can be an imported source for concrete lobby activities of the chambers ! 04/2008 Nucleus-International. net 46

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 04/2008 Nucleus-International. net 47

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? 04/2008 Nucleus-International. net 48

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? 04/2008 Nucleus-International. net 49

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! 04/2008 Nucleus-International. net 50

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 04/2008 Nucleus-International. net 51

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 04/2008 Nucleus-International. net 52

8 Public relations • Objective: – To inform the public – To influence the public About 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 04/2008 Nucleus-International. net 53

8 Public relations • Instruments – – – 04/2008 Press release Press talk TV and radio interviews Prepared articles, stories etc. for newspapers Regular / weekly columns in newspapers Nucleus-International. net 54

8 Public relations • Message: Play the drums and make “noise” – 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!” 04/2008 Or: Each day the chamber does not appear in the media is a lost day! Nucleus-International. net 55

The main requirement for successful lobby and public relations • Each publication • Each phrase • Each. . . needs a Message 04/2008 Nucleus-International. net 56

Key question What is the message? Who is the target group? 04/2008 Nucleus-International. net 57

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 04/2008 Nucleus-International. net 58