The lobbies of Washington are unfairly maligned. Not all of them are funded by illicit interests. Many of the causes they promote are in the greater public interest. It is time for retail stock investors to take pragmatic views of how businesses can gain from jockeying policy-makers.
Marketing is not for consumers alone. Effective communication must cover all categories of stakeholders. People at large need education on the roles of enterprises and entire industries as well. This is a global matter nowadays, so it falls on corporations to wield influence on foreign governments as well.
Trade associations and industry bodies put small business on the same plane as a large corporation. Lobbying in Washington requires deep pockets and persistence as well. Industry bodies not only make lobbying affordable but anonymous as well. Overall, stock owners must stop questioning company expenses on lobbying, and encourage this legitimate business activity instead.
The Corporate Relations function is amongst the least appreciated by the investor community. A company that does not engage the administration is vulnerable. It is not just a matter of currying favor with celebrity politicians, but a way of showing respect for the media as well. Consumers do not base purchase decisions on paid advertising alone. Famous anchors and columnists can swing brand shares as they choose.
Public relations matter at local levels as well. No corporation can thrive if its factories, warehouses, and retail outlets upset local communities in any way. The SEC does not require executives to report on public image and influence, but clever investors will use this parameter to locate top stock picks.
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