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India’s First Corporate ezine Issue No 56– Oct 2010 Published by Prime Point Foundation
Theme of this Issue Public Affairs (PA)
In this Issue: P3
Doug Pinkham
P5
PRince Toon
P6
Larry Ottinger
P7
Graham Watson
P8
Roger Hayes
P9
Narendra S
P10 Deepak Kannular P11 N Vittal P12 Important links P13 Tehelka Report
Contact www.corpezine.com editor@corpezine.com
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PR-e-FACE: From the desk of Editor-in-Chief Indian PA Agencies should be more transparent The concept of Public Affairs (PA) is being practiced in India from days of Ramayana and Mahabharata. Ancient Kings also welcomed the advocacy to bring people-friendly policies. In developed countries, PA has become one of the reputed professions, though there are controversies about ‗lobbying‘. Though in India, PA is being practiced by many individuals and NGOs, to get some of the Government policies changed, it has not received the official recognition of a profession. Some of the over enthusiastic individuals from the PR Agencies started practicing the PA in an unethical manner and brought dis-repute to the profession itself. Taking the lesson from the past episodes,
Indian PA professionals are required to follow ethical practices to avoid such negative perception. They also need to be more transparent in their PA practices. Many PR Agencies in India declare that they offer PA services. When we wrote to such CEOs, for their views on this theme for this ezine, none of them (excepting two) responded to us. On the other hand, when we mailed to International experts, we could get their response within few hours. We have attempted to bring some of the important aspects of Public Affairs as perceived globally in this issue. We hope you will enjoy this edition, as usual.
ACKNOWLEDGEMENT We thank all the contributors of the articles and useful information on Public Affairs; members of the prpoint group who have helped us to source the data and information; and corbisimages.com and creator William Thornton for the cover page cartoon
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PreSTIGE: Introduce laws to increase transparency, to avoid bribery In an exclusive interview with Ms Shvetha Sridhar, Consulting Editor of PreSense at US Mr Doug Pinkham, President, Public Affairs Council, Washington explains the role of Public Affairs at global level. Public Affairs Council is the largest body of PA professionals in the world. This Council was founded in 1954 at the suggestion of President Eisenhower, who felt the business community needed to learn to be more strategic in its relationship to government and society. Council’s website is www.pac.org. Excerpts from his interview: How do you see the emerging role of Public Affairs professionals at global level both in developing and developed nations? Throughout the world, public affairs is becoming more important than ever. There are four major reasons for this trend. First of all, in both developing and developed nations, the era of ―big government‖ is certainly not over. Even before the global financial crisis, government involvement in business had been increasing. This trend is of strategic importance to companies because government decides many things, including: how commerce is conducted, who owns intellectual property, who acquires or merges with other companies, who imports or exports goods and services, and who pays taxes. Secondly, in a free-market society, politics is a competitive sport. Most public policy
debates are not conflicts that pit large corporations against helpless consumers. They are debates between companies in the same industry or in different industries. In the U.S., our political system encourages this free and open debate. The First Amendment to the U.S. Constitution states that the U.S. Congress is prohibited from making laws that limit our right to ―petition the government for a redress of grievances.‖ The third reason why public affairs is gaining importance is the new challenges created by globalization and technology. As companies look to expand overseas, they are finding they have to rethink their corporate strategies. As we all know, different cultures and different political systems require different approaches to advocacy, communications and corporate citizenship. The nexus of globalization and technology has created a host of public policy dilemmas. These are not problems that can be solved easily through legislation because the trade-offs are problematic. For example:
How do we encourage free trade while protecting workers? How do we safeguard personal privacy while protecting national security? How do we encourage advancements in biotechnology while maintaining our intellectual property laws?
In addition, advances in information technology have revolutionized the world of politics. Back in the late 1990s, while the whole world was marveling at the birth of e-commerce, the real revolution was occurring in the business of ―idea-
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commerce‖ – that is, in the ―marketplace of ideas.‖ The fact is that the Internet is the most effective tool ever created for organizing people. Because of the Internet, like-minded activists can find each other, organize themselves, and carry out a political movement. It has flattened the playing field in politics. The result has been an explosion in the number of NGOs, higher levels of citizen involvement, a greater push for transparency, and a generally more robust – but less predictable – political environment.
What do you feel about this? How we can correct the perception? The advocacy role – what we call ―lobbying‖ – is the most controversial role in public affairs for a host of reasons that include political scandals, varying laws and levels of enforcement, and public distrust of large institutions. I‘ve come to the conclusion that the only ways to improve the image of lobbying is (1) avoid scandals at all costs and (2) become more transparent. Developing nations need laws governing lobbying that increase transparency and prevent all quid pro quo deals (bribery), but still allow the public policy development process to work in a way that benefits society. While the U.S. system of regulation has been criticized over the years, most of the rules at the federal level achieve these goals. (The results are mixed at the state level.)
The fourth reason for growth in the public affairs field is the simple maxim that ―life isn‘t fair.‖ When companies are big and successful, they inevitably become targets of competitors, unhappy customers, groups with political differences and others. No matter how much effort you put into managing your reputation, you are bound to make mistakes sooner or But keep in mind Developing nations need laws later. In a global that the public economy with affairs profession governing lobbying that global media, these consists of more increase transparency and mistakes become functions than news headlines lobbying. It prevent all quid pro quo deals within a matter of includes policy minutes. If you monitoring, issues (bribery) don‘t make the management, effort to build corporate positive relationships and a strong citizenship and strategic communication. reputation before you face a crisis, you Taken together, these functions help a may not survive. company or an NGO better manage the environment in which it operates. In the At the same time, it is a fact that every long-term, this will translate into higher new law or regulation always has productivity, economic growth and the unintended consequences. Companies – emergence of stronger countries that and NGOs – have learned that you have to empower their citizens to be engaged in be engaged in the process of public-policy policy-making. As I said earlier, the decision-making. Sometimes you take the profession is increasing in importance offense, sometimes your role is to keep throughout the world. My hope is that bad things from happening. But, as we business leaders, government officials and say in the U.S., you have to be ―at the the general public will come to understand table.‖ this trend so that that the negative perception in the developing world will Generally Public Affairs is perceived subside. negatively in the developing nations?
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PreSTIGE: Strengthen lobbying for and by the charities
In an exclusive interview for PreSense, Larry Ottinger, President of ‘Centre for Lobbying in the Public Interest’, (http://www.clpi.org/) Washington shares the ground reality in USA. Excerpts: In the United States, lobbying has become the scapegoat for systemic problems related to the outsized influence of money in our political system. In addition, many of our states have systems whereby judges are elected and can receive huge contributions from the very interests that appear before them in court.
substantially over- and under-inclusive: thus, lobbyists with and for charities are included even where they are only lobbying for an issue or cause, while executives, lawyers and public relations professional for the largest businesses are not covered. Thus, the Obama order is ineffective at deterring the influence of money on politics, has led to less transparency as lobbyists "de-register" from the LDA, and undermines public service and civic participation by charities which can provide accountability. As claims are made that this ineffective order is "cleaning up" Washington, it breeds cynicism among the public.
In the 2008 election, then Senator Obama and Senator McCain both railed against the lobbyists as the source of public disenchantment with politicians and government. In addition, there was a corrupt lobbyist named Jack Abramoff who The "tea party" conservatives, flagrantly violated the law for money and independents and progressives alike all to help the Republican Party. He was watch the money spent by special convicted and with interests on his help some legislation to address Congressmen were health care, Lobbying by and for indicted which is environmental and charities must be very rare. The bank regulation Democratic Party issues and know that strengthened as charities also had a the system has not and their constituents Congressman who been cleaned up. was indicted related While multifaceted, represent broader segments to a personal money any solution must scheme. address the of the public. influence of large The Obama financial interest on Administration continued its attack against our political system. While the Supreme lobbyists by adopting a well-intentioned Court is making it more difficult, public but misguided order saying it effectively financing of elections is one important would not hire anyone who was a reform. A few individual states have registered lobbyist as defined by an earlier moved to public financing for elected state law called the Lobbying Disclosure Act officials with very good results. Some (LDA). However, the LDA was designed states have stopped electing judges and merely for disclosure and transparency, either allow for appointment from a list not to restrict public service. The LDA is recommended by committee or public
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financing. A proposal in Congress now would provide matching dollars for small donations thus empowering ordinary citizens who understandably feel overwhelmed by large companies. The recent Citizens United v. FEC decision allowing businesses and unions to spend unlimited amounts of their general treasury funds for or against candidates and political parties has gotten the attention of the public, as well as the President. Media reform (limiting wealthy individuals' ability to control a vast majority of media outlets and public information), election and voter registration reforms, and policies that will empower the nonprofit sector and ordinary citizens also are
critical parts of the solution. These reforms would restore public trust in government and remove much of the stigma surrounding lobbyists by reducing their role in the money in politics game. After all, in its purest, ideal form, lobbying is a quintessential First Amendment activity in which people can provide their representatives with important information. In particular, lobbying by and for charities must be strengthened as charities and their constituents represent broader segments of the public. Finally, these types of reforms would strengthen the democratic process and improve public policy so that our government would work as intended - of, by and for the people.
Public Affairs (PA) helps to get the best out of politicians
In an exclusive message to PreSense, Graham Watson Member of European Parliament (MEP), Chairman of European Parliament's Delegation for relations with India said, ―Public Affairs is a vital part of social and political life. Members of parliament have to make decisions about issues on which frequently they are not experts in. They have to listen to people of different views so that they can reach a balanced decision and public affairs companies are a part of that process which is essential in helping their clients to express themselves properly to get best advantage of politicians.‖
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Best practises should be shared globally Roger Hayes, Senior Counsellor, APCO Worldwide, Delhi This is a very critical and topical debate to have in India. Traditionally Public Affairs was a sub-set of Public Relations, specialising in dealings with government and public policy, but due to the failure of the latter to respond to the environmental activism of the 80's resulting in the growth of corporate responsibility, Public Affairs has tended to tread its own path, albeit with few 'models' other than Issue Management and tending to disown its older brother. This is a pity as a greater interdisciplinary approach could raise the game for both disciplines. Having worked in both disciplines in other emerging countries facing similar controversy and misunderstanding, but also in London, Brussels and DC, where there are still debates about the ethics of lobbying and the extent to which the practice should be regulated, it is important that best practice is shared globally, not just in the traditional centres. The European Centre for Public Affairs tries to do this and it is good if the Public Affairs Council is also prepared to do so. It is a pity that the industry here, such as it is has the reputation it does, but there are lessons to be learned from government as much as from industry. At least the media is giving the topic an airing, including this important initiative. I know that like us, some corporate players are keen to move the practice, indeed both practices onto a higher level by further research leading to more theory, investing in education and training, documenting case studies and above all global knowledge sharing.
Podcast Interview On behalf of PodUniversal, we recorded his podcast interview over telephone. Please listen to his full interview in the following link: http://su.pr/2FYi5z
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Public Affairs gains attention post 1991 reforms S. Narendra, Former Information Advisor to Prime Minister of India
Economic competition and globalization has pushed Public Affairs (PA) into prominence. The business chambers like CII, especially its Director General Das, Nasscom (representing IT software) and its president late Dewang Mehta flighted the full range of Public Affairs to promote conducive policy environment for their industry & business.
The government itself had to use some aspects of Public Affairs to win political and business support for joining the WTO, that replaced GATT.Initally Indian business feared India‘s entry into WTO.The union government considered using PA to win states‘ and business support for its move to introduce Value Added Tax(VAT) and later GST but this idea got lost in bureaucracy. West Bengal government in its move to disinvest state PSU's wanted a PR/Ad led campaign. I proposed a more participatory Public Affairs campaign to win party cadre and TU support.Offcials could not understand my proposal becasue they were familiar with Ad /press relatios campaigns, not Public Affairs. Instruments with dual use capabilities like Public Affairs tend to be abused for serving short term ends and earn notoriety. Public Affairs when abused becomes lobbying with attendant corrupt practices. I was approached by an American lobbying firm on behalf of a well-known firm supplying air traffic control equipment that had a dispute with government. The proposal was to buy political support. My advice was that if the firm was interested in long term partnership with India‘s exciting airport expansion plans, it would do well to walk the right royal legal path. In the most recent past, Indian business deployed Public Affairs to delay entry of big international retail chains so that domestic players could build their own organized retail as well as win the support of traditional neighbourhood retail that felt threatened by the advent of organized big retail. Indian corporates tend to use Public Affairs as part of issue based Public Relations and generally do not have institutionalized arrangements for long range engagement with stakeholders. Public Affairs is not used for sharing a larger vision with stakeholders. Public Relations industry itself is not fully geared for Public Affairs. The latter is badly in need of advocacy to gain acceptance and grow professionally. Lastly, a relevant legal framework also has to develop along side, so that PA does not become a mask for lobbying.
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What should Public Affairs mean to Corporates? Deepak Kanulkar, CEO, Good Relations India Pvt Ltd. , On Corporate Public affairs front in India, there is both Bad News and Good News. The bad news is that most corporates look at this function (in-house or outsourced) as more of a ‗Quick fix‘ short solution to a problem or a business crisis scenario. And the Good News is that increasingly there is a great deal of awareness and Corporates have started recogonising the practice as a strategic function integral to Corporate strategy and sustainability. As the PA function exists on the boundaries between business, government and the civil society, there has to be a better understanding and collaboration between all of these key constituents thereby contributing to good governance. Today, organizations require to deal with stakeholder environment which is increasingly becoming complex and the organizations are subjected to evergrowing public scrutiny. Public affairs as a function for Corporates is like ‗eyes and ears‘ in the business and social environment in which they operate. Good Public affairs is closely linked to the creation of Corporate strategy and good governance. It has a much wider canvas than the erstwhile ‗lobbying‘ act. It is important that corporates act responsibly and adopt a holistic and a transparent approach to stakeholders and with regard to their response to public policy, government legislations and regulations. From research, consulting to implementation, Public affairs capabilities and requirements vary. The role and responsibilities of the practitioner is as important as that of a legal professional especially when addressing people or community related issues. Though, many CEO‘s of large corporates have realised this, there is a general tendency of colleagues looking at the PA man as a ‗wheeler-dealer‘ or ‗jugaad-man‘ of the top guy in the Organization. If we have to see Corporate Public affairs developing into a highly specialized function of an organization, then it is high time this approach changes – and changes for good.
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The 4 way test as a guiding principle N. Vittal, Former Central Vigilance Commissioner of India , In this age of a borderless flat world communications are the very soul of a society and every sphere of human activity. Perceptions are in fact the reality for practically every individual in today's fast paced world where the attention span of people is in microseconds. Page 3 is the direct result of this phenomenon. Hence the explosive growth of the electronic and print media. Spinmeisters and lobbyists shape public opinion and by logical extension, purchase decisions, policy options and voting in an election. The PR profession must realise the enormous power it wields and regulate itself. If any external agency like the Government or self-appointed moral policemen or a political party were to do this, there will be an enormous scope for censorship and corruption.
What should be the guiding principles for the PR / PA profession? The 4 way test of the Rotary can be a very useful starting point. Is it the Truth? Is it fair for all concerned? Will it build goodwill and better friendships? Will it be beneficial to all concerned? If you want a single test : Follow the age old advice of the Hippocratic Oath
"Above all do no Harm�
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Important links of Prime Point Foundation www.prpoint.com
www.indiavision2020.org
www.imageaudit.com
www.action2020.co.cc
www.corpezine.com
www.eltf.co.cc
www.poduniversal.com
http://prpoint.blogspot.com
www.kural.co.cc
Important links relating to Public Affairs (PA) Important organisations www.pac.org www.asiapublicaffairs.com http://www.clpi.org/ www.epaca.org www.alldc.org/certificate/statelobbying.cfm Code of ethics http://epaca.org/en/code-of-conduct/text-of-code/ www.alldc.org/ethicscode.cfm News updates www.pac.org/blog www.publicaffairsasia.com www.publicaffairsnews.com
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The CBI creates a power list. And no one wants to be on it Source: http://www.tehelka.com/story_main47.asp?filename=Bu091010The_CBI.asp IN A nation where lobbying is still not considered an official profession, the chances are that anyone venturing into the field would be considered undesirable. For years, lobbyists have worked silently in the corridors of power in New Delhi, shaping and reshaping policies to benefit their clients for deals running into hundreds of crores.
top official in the finance ministry. Verma, say CBI officials, closely networked with his relative and also with officials of the commerce ministry and a number of public sector undertakings. The list also mentions Jatinder Pal Singh, whose name figured in the health ministry scam in the wake of fake college registration by the Medical Council of India.
But last week, the CBI, troubled by increased influence of these influence peddlers — the mobile 2G spectrum scam, which allegedly cost the exchequer several thousand crores, being a case in point — issued a two-page note on people it called Undesirable Contact Men (UCM).
―This is not a legal document and does not have any legal sanctity. It‘s just to alert government officials. But it shows the CBI is under pressure,‖ top lawyer Prashant Bhushan said. He recently backed a petition by the Centre for Public Interest Litigation, which sought serious monitoring of the CBI‘s 2G spectrum investigation that seeks to uncover the possible losses the government made by selling radio waves for mobile telephony. The agency, widely criticised for bungling the probe, has told the Supreme Court that its probe into what it is a complex and vastly spread spectrum scam, was being carried out in right earnest and sought a dismissal of the petition.
The list, for which the CBI sought inputs from the Intelligence Bureau, is a veritable who‘swho of power brokers who routinely frequent ministries to seek information for their clients. A copy of the list has been sent to Cabinet Secretary KM Chandrasekhar and to various ministries. While all ministries are in Delhi, according to the list the UCM are not only located in the capital but across India. ―And some of the names are indeed interesting,‖ a senior CBI official told TEHELKA. The list, considered top secret, has always evoked both surprise and panic. Some years ago, when The Indian Express published one, Supreme Court lawyer PC Srivastava — his name was on the list from 1973 to 2002 — wanted to know through an RTI query what ―undesirable activities‖ got him there. No one knows whether the CBI will be accosted by similar charges this time. But the list has names with some curious connections. Consider the case of Ashutosh Verma, No. 23 on the list. CBI officers found he is related to a
The petitioners have alleged that Telecom Minister A Raja as well as officials of the Department of Telecommunications, the Telecom Regulatory Authority of India, corporate entities and middlemen were involved in the Rs. 70,000 crore scam. The petition said that the CBI was more or less a department of the central government and had a ―very bad record in (investigating) politically sensitive cases‖. The issuance of the UCM list makes the case interesting, especially in light of the 2G scam, where the country‘s premier investigating agency is keen to portray the seriousness of its efforts. After all, it has the names and the addresses, right.
Courtesy: Tehelka magazine vol 7, Issue 40, Dated October 09, 2010
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PResenters of PReSENSE
K. Srinivasan Editor-in-Chief
V. Rajendran Strategic Editor
Triambak Sharma Cartoon Editor
A. Rekha Coordinating Editor
R Janani Content Editor
K. Bhavani International Editor (South Asia) Singapore
Archana Verma International Editor (USA)
Divya Sesha International Editor (UK)
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