Nature of public issue

An issue is a trend or condition, either internal or external which can significantly affect a company’s operations over a period of its business plan

Any issue may present either a threat to the corporation or an opportunity to shape the issue to an advantage .

three broad categories of public issues are:

Current issue

Emerging

issue

Societal trends

Two benchmarks that determine the nature and timing of response to an issue:

Threat benchmark: the level of loss beyond which the survival

of firm, a division or a product will be endangered.

Opportunity benchmark: the point before which a corporation must

take action to control the issue. Beyond that point, the cost of acting late

can no longer be recovered through profit.

Current issuePublic questions currently being

acted or debated by governmental bodies.

Such issues generally are subject only to reactive public affairs responses.

Emerging issuesIssues of public policy that are

likely to be the subject of legislation in the two-five years period ahead , but that have not yet been fully formulated, nor the position is different

It is in this evolving stage that issues can best be influenced or controlled.

Operational• That effect

key financial statements :

• P & l• Balance

sheet• Flow of fund

corporate• That

effects mgt right to run the co. it wants:

• Corporate’s disclosure

• Director’s responsibility

societal• Energy

policy• Inflation• Employment

policy

3 categories of emerging issues:

Societal trends

These involve changing attitudes and human behavior and are the most difficult to influence or reverse.

They include demographic, social, resource related and technology related trends, all of which may have political and economic effects.

Who makes issues?

General public

Pressure groups

News media

Government

bureaucracies

Elected officials

Pressure Groups- These groups form the most important elements of issues. The significant factors are its ability to capture media attention and the alliances it can make beyond its own membership.News media- They call attention to public issues. They may build up pressures on one side or another, or drop the issue if interest is minimal.

General Public- The greatest power of the general public is the passive veto- the non acceptance of laws and regulation.

Government Bureaucracies- The government bodies formulate rules and regulation which affect the business in one or the other way.Elected Officials- Often a politician or

local legislator will pick up an issue just to get attention.

name is given

Crystallisation of

ideas

emerging of

solutionIntroducti

on of legislation

adjustments

new life cycle

Life cycle of public

issue

The path that developing issue takes is important in a management, because the extent of control that can be exercised depends on stage of its evolution.

A n undefined problem is there: there is a general sense of frustration & recognition that a problem exists but that cannot be defined.

The issue is identified & given name: a co. Can first identify & name an emerging issue that can effect its operation . it has major opportunities at this stage.

Ideas begin to crystallize on the nature and causes of problem and public attitude begin to form with attention from the media.

Solutions emerge: on an issue of importance hundreds of solutions emerge and eventually reduce to a few.

Legislation is introduced & enacted: at this stage a company can only react to some influence on the legislation may be effected, but control is no longer possible.

Adjustments are made ,via regulation or judicial services: here also the company’s position is one simply of reacting, although it may affect the interpretation of regulations. court action is often an effective issue mgt technique.

Formerly non existed or unnoticed problems often arise after an issue has completed its life cycle,perpetutaing in a new contact.

Dimensions of the issue

Technical issues

Broad impact issues

Broad impact but relatively

abstract issues

Narrow impact issues

Broad impact but relatively abstract issues-Fewer people feel these issues directly although many may be aware that they are potentially affected.

Narrow impact issues- These generally effect an identifiable minority or a geographical area.(tba * example)

Technical issues-These issues are identified and crystallized by the leadership. For Example- multinational taxation.

Broad impact issues- These directly affect a large segment of the people. For example- inflation, air and water pollution.

Issue ManagementAn effective issue management program enables a company, an association or a group to influence the development of public issues or trends that may affect it – rather than merely react to issues after they have developed

The earlier a company can identify a potential threat, or opportunity and commit itself to appropriate actions, the more able it will be to shape the issue.

Its like a war where the focus is not on the weapons but it requires a strategy to make decisions as to whether the issue requires a combat, on what ground the battle will be fought, and when will it be enraged.

Building an issue management system:

Identifying the issue

Screening the issue

Evaluating the impact

Identifying the issuesA Critical step that includes

identification of all issues or trends that may touch corporations or its divisions.

A broad variety of tools available for monitoring and identifying issues & trends are :

scanning of public materialPublic opinion polling

Techniques for predicting what will happen includes:

extrapolation techniqueshistorical analysisIntuitive reasoningScenario buildingCross impact matricesMathematical model buildingDelphi techniques

Cross matrix method

Delphi technique

Numerous publications are involved in scanning process.

Social issues tend to move from one country to another and trends may sometimes be spotted overseas .

Scanning involves close attention to legislature proposals, not only nationally , but in states and key cities.

Issues not only move from state to state & city to city , but are inflicted by legislative action in any location.

Screening of the issues

It is likely to uncover a large no. of possible issues/trends that could affect the company.

Perhaps as many as 2 0 0 or 3 0 0 .

at this stage list has to be narrowed down to the actual or the probable

Evaluating the impactEach actual issues are now analyzed,

for its likely and , where appropriate , worst can impact to determine which issues should be programmed into an action plan, & which merely tracked.

Cost is a principal factor. If the cost of managing an issue will

warrant the eventual return on investment, it will fall into the category of those to be attacked.

.how much is preventing damage five years from now worth to the company today?