Three traditional approaches to Government Relations (GR) include:
Rational egoism
The founder of the concept of rational egoism is Nobel laureate Milton Friedman. He argued that the main duty of business is to generate income for shareholders. According to his theory, any other goals can be destructive for business.
Within this approach, GR is used primarily to grow revenues and attract shareholders, while the company's social focus remains in the background.
Corporate care
This concept is the complete gansu phone data opposite of the theory of rational egoism. V. Evan and R. E. Freeman emphasized the social and moral responsibilities of business, which became especially popular in Western Europe and Japan.
Corporate care
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The key thesis of the theory is that every company has its own stakeholders, who should not be used only as a means to achieve corporate goals. All participants should contribute to the development of the company with which they are associated.
Selfishness with calculation
The essence of the theory is expressed in the formula "ethics + profit". It is important not only to achieve income growth, but also to improve conditions in your field. A striking example is the Sustainable Agriculture Initiative, where Danone, Unilever and Nestle promote the introduction of the best technologies to optimize the use of land by farmers.
Joining such alliances allows companies to raise production standards and limit the risks of price wars.
Case: VT-metall
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Stages of GR manager's work
To build and implement a GR strategy in a company, a GR manager needs to complete the following steps:
Steps Review
Assessment of external factors It is necessary to conduct an analysis of the political environment and legislative norms related to the company's activities. Identify key stakeholders and their positions, including politicians, public organizations, government agencies and competing companies
Definition of strategic goals and objectives Developing a list of issues and threats that require primary attention and identifying key tasks for GR. This may include, for example, obtaining government support in the event of economic sanctions or initiating changes in industry legislation
Assessment of public needs The state provides the entrepreneur with certain advantages in exchange for solving specific problems. All business initiatives must bring social or economic benefits. When developing proposals, keep in mind that you are helping the state save resources (money, time and labor costs) and achieve the required results
Developing a roadmap Combining business goals and government issues requires creating a coordinated plan. It is necessary to make a list of the necessary means and methods, then define an action plan, detail the stages and actions
The final step is to present the prepared proposal to stakeholders and beg