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The Important Role of Government Affairs in the Corporate Structure

Government Affairs can have many different “owners” in the corporate structure.  In a piece recently published on law.com, the case is made for the General Counsel’s office to own and shape the Government Affairs function given both the serious opportunities and risks to any business that government activity poses at all levels.  The piece makes several specific observations and recommendations:

  • It’s important to proactively establish relationships with government leaders before you’re in a crisis situation.  “Even if you desire a low profile with governments, you can become front-page news overnight.”
  • Relationship development is not synonymous with political fundraising.  The government affairs function can play a big role in telling their company’s story to government leaders and regulators, helping them understand how the company is driving positive impact from job creation to environmental sustainability to community support.  Government affairs can also share the lessons it’s learned internally on issues ranging from cybersecurity to global trade with government leaders, becoming an ally that helps them better understand what’s happening on the front lines as they develop policies and regulations.
  • Understanding the competitive landscape and how your competitors might make policy or regulatory requests to harm you is imperative.  Don’t let competitors define your narrative or that of your industry.  Own and drive messaging with government leaders and regulators.
  • Housing government affairs in the General Counsel’s office may maximize opportunity for knowledge sharing across business units and geographies.  Policy and regulatory activity happening in one market may be an “early warning signal” of what may happen elsewhere as regulators share their efforts among their peers and keep tabs on what each other are doing.
  • Make sure Government Affairs has a seat in the growth strategy of the business since it’s often regulation or policy actions that can cause headaches for the C-Suite on anything from market entry to product approval to employment protections.

It’s next to impossible for the Government Affairs team to know everything it needs to know internally, especially given the growth of what the function is now expected to cover.  Executives must identify where there are any knowledge or relationship gaps and figure out the best ways to fill them, whether through staffing or hiring expert consultants.  The best Government Affairs teams will seek to understand issues through proactive consultations or other efforts before those issues are “on fire,” and they will seek to get a second or even third opinion to address any blind spots they may not have identified in their strategies.

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