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What Is Government Relations

Business leaders and government leaders always seem to be at odds with each other

. Businesses want to run their operations without the government intruding. Governments want to have the authority to make sure businesses are run in a relatively ethical way. Each side is merely doing what it needs to do in order to satisfy the public. Government relations is a good way for each side to learn more about what the other is doing.

Businesses Don't Always Understand Politics

Most business leaders care more about making a profit than they do getting elected. What is good for the business is the only worry that the owner of a business has. How business operations may impact other people may not be part of the thinking process.

For example, an oil company may not understand why it is suddenly illegal to drill off the coast of America. Having a program that educates that company about the potential environmental impact of any potential drilling can have a positive influence. Getting an explanation on any government decision may make that decision easier to swallow in the end.


Political Leaders Don't Always Understand Business

Most politicians in Washington have little to no understanding of what a budget really is. Borrowing money to cover any cash flow issues is quite common. Raising taxes may be another way to raise money when the government needs more revenue. However, most businesses cannot afford to pass on all of their costs to the consumer. Doing so may mean a business has to close down.

Business leaders having the opportunity to speak to those in power can lead to necessary compromises. The sponsor of a bill to increase regulation on banks may be raising the cost of doing business. Any new regulation passed may actually make it more expensive for customers to borrow money. The ability to talk about those unintended consequences before a law is passed can help avoid resentment from those who own a business.

Communication Is A Vital Part Of Getting Things Done

Businesses need politicians who will pass laws that make it easy to do business. Politicians need businesses to endorse them when running for office. They both need the public to support anything they do. This can be hard when so many different viewpoints are being thrown around.


However, the willingness to talk about potential ways to iron out any disagreements is important. It shows that both sides of the spectrum can sit down like adults to work things out.

Those who work in government relations act as a liaison between business and government officials. They keep track of the various issues that are important to both sides. An ability to facilitate discussion without alienating either side is critical.

Business and government regulation will always go together like oil and water. The two sides will likely never see eye to eye on every single issue. Knowing that the lines of communication are always open means that the two sides can work together even if the relationship is uneasy. Anything is possible as long as there is dialogue.

by: Greg Newell
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