Harvard Case - The Business of Campaigns
"The Business of Campaigns" Harvard business case study is written by Vincent Pons, Mel Martin. It deals with the challenges in the field of Business & Government Relations. The case study is 46 page(s) long and it was first published on : Jun 30, 2023
At Fern Fort University, we recommend a multi-pronged approach to navigating the complex landscape of political campaigns and their impact on businesses. This strategy involves proactive engagement with the political process, building strong relationships with government officials, and leveraging corporate social responsibility initiatives to positively influence policy decisions.
2. Background
The case study 'The Business of Campaigns' focuses on the relationship between businesses and political campaigns, specifically the challenges faced by Fern Fort University (FFU) in navigating the political landscape during a contentious gubernatorial election. FFU, a private university with a strong commitment to public service, finds itself caught between the competing interests of two candidates, each with distinct policy platforms that could impact the university's operations and funding.
The main protagonists are:
- FFU President, Dr. Emily Carter: She faces the difficult task of balancing FFU's commitment to political neutrality with the need to advocate for the university's interests.
- Governor Thomas: The incumbent governor, running for re-election, has a history of supporting public education but has recently proposed budget cuts that could impact FFU.
- Senator Miller: The challenger, a vocal advocate for private enterprise, promises to increase funding for private institutions like FFU but has a less clear stance on public education.
3. Analysis of the Case Study
This case study highlights the intricate relationship between business and government, particularly in the context of political campaigns. We can analyze the situation through the lens of Political Risk Analysis and Corporate Political Activity.
Political Risk Analysis:
- Policy Uncertainty: The election presents significant policy uncertainty for FFU, as both candidates have divergent policy platforms that could impact the university's funding and operations.
- Regulatory Environment: The potential for changes in government regulations, particularly in the areas of education funding and tax policies, poses a significant risk to FFU.
- Political Instability: The contentious nature of the election creates a volatile political environment, making it difficult to predict the outcome and its impact on FFU's operations.
Corporate Political Activity:
- Lobbying Strategies: FFU needs to develop effective lobbying strategies to engage with both candidates and their campaigns, advocating for policies that support the university's interests.
- Corporate Social Responsibility: FFU can leverage its existing community engagement initiatives and social responsibility programs to build positive relationships with voters and policymakers.
- Political Campaign Contributions: FFU must carefully consider its approach to political campaign contributions, ensuring compliance with regulations and avoiding any perception of undue influence.
4. Recommendations
1. Proactive Engagement: FFU should proactively engage with both candidates and their campaigns, presenting its case for continued support and highlighting the university's contributions to the community. This engagement should be focused on:
- Policy Briefings: Providing detailed policy briefs outlining the potential impact of each candidate's platform on FFU's operations and the broader educational landscape.
- Stakeholder Meetings: Organizing meetings with key stakeholders, including faculty, staff, students, alumni, and community leaders, to discuss the election and its implications for FFU.
- Public Advocacy: Engaging in public advocacy campaigns to raise awareness about the importance of higher education and the value of FFU's contributions to the community.
2. Building Relationships: FFU should prioritize building strong relationships with government officials, regardless of their political affiliation. This can be achieved through:
- Government Relations Strategies: Establishing a dedicated government relations team to monitor policy developments, engage with legislators, and advocate for FFU's interests.
- Business and Government Relations: Participating in events and initiatives that foster collaboration between the business community and government officials.
- Public-Private Partnerships: Exploring opportunities for public-private partnerships with government agencies, leveraging FFU's expertise and resources to address community needs.
3. Leveraging Corporate Social Responsibility: FFU should leverage its existing corporate social responsibility initiatives to enhance its reputation and build goodwill with voters and policymakers. This can involve:
- Community Engagement: Expanding existing community engagement programs to address local issues such as poverty, unemployment, and environmental sustainability.
- Public-Private Innovation Ecosystems: Partnering with government agencies and private businesses to develop innovative solutions to societal challenges.
- Government-Sponsored Research and Development: Seeking opportunities for government-sponsored research and development projects that align with FFU's academic strengths and contribute to public good.
5. Basis of Recommendations
These recommendations are based on the following considerations:
- Core Competencies and Consistency with Mission: FFU's commitment to public service and its strong academic reputation are essential assets in navigating the political landscape.
- External Customers and Internal Clients: The recommendations address the concerns of FFU's stakeholders, including faculty, staff, students, alumni, and the broader community.
- Competitors: FFU needs to be aware of the competitive landscape and ensure that its policies and actions are aligned with its strategic goals.
- Attractiveness ' Quantitative Measures: While quantifying the impact of these recommendations is challenging, FFU can track metrics such as government funding, student enrollment, and community engagement to assess their effectiveness.
- Assumptions: These recommendations assume that FFU has the resources and capacity to implement them effectively and that the political environment remains stable.
6. Conclusion
FFU can successfully navigate the complex world of political campaigns by engaging proactively, building strong relationships, and leveraging its commitment to corporate social responsibility. This approach will help FFU to protect its interests, advocate for its priorities, and contribute positively to the broader community.
7. Discussion
Alternatives:
- Political Neutrality: FFU could maintain a strict policy of political neutrality, avoiding any engagement with candidates or campaigns. However, this approach could limit FFU's ability to advocate for its interests and could lead to a perception of indifference.
- Political Campaign Contributions: FFU could choose to make significant financial contributions to one or both candidates. However, this approach could be perceived as undue influence and could damage FFU's reputation.
Risks and Key Assumptions:
- Political Risk: The political environment is inherently unpredictable, and FFU's efforts may not be successful in influencing policy decisions.
- Resource Constraints: Implementing these recommendations will require significant resources, which may be limited.
- Reputation Risk: FFU's reputation could be damaged if its political activities are perceived as inappropriate or unethical.
8. Next Steps
- Establish a Government Relations Team: Within the next quarter, FFU should establish a dedicated government relations team to oversee its political engagement.
- Develop Policy Briefs: Within the next month, FFU should develop detailed policy briefs outlining the impact of each candidate's platform on the university.
- Organize Stakeholder Meetings: Within the next two weeks, FFU should organize meetings with key stakeholders to discuss the election and its implications.
- Launch Public Advocacy Campaigns: Within the next month, FFU should launch public advocacy campaigns to raise awareness about the importance of higher education and the value of its contributions to the community.
By taking these steps, FFU can position itself to effectively navigate the political landscape, protect its interests, and contribute positively to the broader community.
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Case Description
In 2022, the U.S. Congress examined the Democracy Is Strengthened by Casting Light on Spending in Elections (DISCLOSE) Act, the latest in a long series of campaign finance reforms. According to its authors, the law would be the "most consequential overhaul of federal campaign finance" in 20 years. In addition to prohibiting campaign spending by foreign nationals, the reform would require organizations to disclose their major political donors in order to curtail the rise of "dark money" following the 2010 Supreme Court decision Citizens United v. FEC. The emergence of new online conduits also spurred an increase in small campaign contributions, which some hoped might counterbalance the influence of large donors. Overall, significantly more money entered politics in the U.S. than in any other democracy: $17.20 per capita in 2020 (case p. 5). Beyond changes in campaign finance, electoral campaigns have undergone dramatic changes in the last two decades, from the revival of campaign strategies focusing on the mobilization of non-voters to the increasing reliance on social media, such as the unprecedented use of Twitter by Donald Trump in 2016. While campaign activities had long been determined by culture and habit, modern campaigns were informed by the latest advances in social science. They used rich individual-level data to choose which voters to target with outreach efforts. Campaigns have made dramatic gains in efficiency. However, scandals such as the Facebook-Cambridge Analytica data breach led observers, regulators, and many concerned citizens to wonder whether candidates were abusing the vast resources available to them to manipulate the electorate. As they were discussing DISCLOSE, members of Congress debated whether 1) business involvement in campaigns had been a force for good; 2) campaign contributions should be encouraged or curtailed; and 3) regulations of other dimensions of electoral campaigns should be reformed.
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