April 1, 2010 Lobbying: The Scarlet “L” or Democracy in Action?

April 1, 2010

Lobbying:

The Scarlet “L” or

Democracy in Action?

April 1, 2010page 2 /

Introduction

• Who We Are

• What We Do

• Today’s Discussion

• Role of Lobbyist

• Role of grassroots program

• Role of political giving

• Putting it all together


An Overview of Tyco Electronics (TE)We Serve Large Attractive Markets

And Extensive Global Resources100

Manufacturing Sites Serving Every Region

With a Broad Range of Connectivity Products and Technology

Transportation Communications EnergyConsumerProducts

IndustrialEquipment

Aerospace& Defense

Connectors Fiber Optics Touch Systems Circuit Protection

WirelessSealing & Protection

Healthcare

PrecisionWiring

7,000 EngineersClose to our Customers

5,000 Salespeople Advising our Customers

125 Countries Served

Consumer Industrial and Infrastructure


What is Global Government Affairs?

The TE Office of Global Government Affairs

• promotes and safeguards TE’s business objectives by interfacing with federal/central/state/local government officials in an ethical manner

• influences legislation and regulations that are aligned with the company’s strategic business priorities


Government Affairs: Three-Legged Approach

GrassrootsPolitical Action

Committee(U.S. Only)

Direct Lobbying/ Relationship

Building

Policy

&

Business Priorities


Policy Priority Setting Process

Issue Critical toCompany / Organization

No Yes

No Action Unique toCompany/Org.

Other Companies and/orIndustries Impacted

ModeratelyEffective LeadershipProvided by Others

Highly EffectiveLeadership Providedby Other Companiesand/or Associations

No LeadershipProvidedby Others

Priority #2 Priority #3Priority #1

Priority #1

Compelling external (PR) orother reason to get involved

Priority #1

AFFECTED LEGISLATIVEPRIORITY INDUSTRY

LEAD___________

1) High Company Company

2) High Industries Others / Company

3) Medium All Industries Others / Associations


Direct Lobbying / Relationship BuildingInteraction with:

• U.S. Congress

• U.S. Administration

• U.S. State Legislatures

• U.S. State Governors

• Foreign Ministries

• Members of Parliament

• European Commissioners


Tools for Lobbying• Credibility

• Corporate Reputation• Personal Integrity• The Facts

• Advocacy• Direct Lobbying• Grassroots• Trade Associations• Coalitions

• Political Relationships• Leadership: Executive and Congressional• Political Parties• Think Tanks• Political Action Committees


HEARINGSHEARINGSMARK-UP, VOTEMARK-UP, VOTE

HOUSEHOUSE

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FULLFULLCOMMITTEECOMMITTEE

COMMITTEECOMMITTEEASSIGNMENTASSIGNMENT


BILLBILLINTRODUCTIONINTRODUCTIONBILL NUMBERBILL NUMBER

HEARINGSHEARINGSMARK-UP, VOTEMARK-UP, VOTE

NEGOTIATIONNEGOTIATION

DRAFTINGDRAFTING

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COMMITTEECOMMITTEEASSIGNMENTASSIGNMENT


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HOUSEHOUSEFLOORFLOOR

SENATESENATE(same procedure with the(same procedure with the

exception of the role of theexception of the role of theRules Committee)Rules Committee)

MARK-UP, VOTEMARK-UP, VOTE

MARK-UPMARK-UPVOTEVOTE

SUSPENSIONSUSPENSIONOF THE RULESOF THE RULES

RULERULE

RULESRULESCOMMITTEECOMMITTEE

How a Bill Becomes a Law ...

CONFERENCECONFERENCECOMMITTEECOMMITTEE

RESOLVERESOLVE

DIFFERENCESDIFFERENCESCONFERENCECONFERENCE

REPORTREPORT

SENATESENATEFLOORFLOOR

HOUSEHOUSEFLOORFLOOR

FINALBILL

VOTEVOTEVOTEVOTE

SENATESENATEFLOORFLOOR

VOTE TOVOTE TO

OVERRIDOVERRIDEE

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PUBLICLAW

PUBLICLAW

VETOVETOSIGNSIGN

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VOTEVOTE

VOTEVOTE


Ethics Rules

• U.S. congressional gift / lobbying disclosure rules

• Administration rules – ban on lobbyists; post- employment lobbying restrictions

• Each state has individual ethics rules

• Outside the United States: compliance with Foreign Corrupt Practices Act (FCPA)

• Corporate Ethics Policies


Grassroots• "Grassroots advocacy“ - efforts by people and organizations at the local level to influence public policy at the state, national and international levels for a common cause

• Individual constituents writing letters, sending emails and faxes, or visiting legislators to "petition the government"

• Organizations try to educate supporters, employees, local communities and others about key public policy issues that affect them

• Then when a legislative debate ensues, these people are encouraged to communicate with their elected officials


U.S. Political Action Committees• Federal law and some state laws prohibit corporate contributions to candidates for elected office

• Companies and other organizations are able to participate in the political process by establishing a Political Action Committee (PAC) - PAC is legal, transparent, federally regulated organization - Pools voluntary contributions of a company’s U.S. employees and shareholders

• Support candidates / committees who support the philosophy and values of the PAC


Grassroots: A TE Case Study

Step 1: Define Issue Stimulus Funds for “Alaska” Project

Step 2: Create Coalition / Develop Strategy Consultants / Suppliers / Internal Support

Step 3: Identify Congressional Champions Constituent Members of TE and TE Suppliers

Step 4: Support Congressional Champions Develop talking points / sample letters

Step 5: Implement Strategy / Follow Up Updates to Suppliers / Congressional Champions


Tying it All Together

Identify / Manage Issue Develop lobbying strategy Identify Stakeholders Target Legislators - must have integrity - make a credible case Use grassroots network to communicate message Build a “war chest” of political funds Implement Strategy to Achieve Goal


So You Want to Be a Lobbyist

Where to Begin:

• Capitol Hill• Internship

• Legislator’s Office of Committee

• Campaign• Volunteer

• Paid Staff

• Graduate Degree• Willingness to start at bottom and work your way up

Documents

April 1, 2010 Lobbying: The Scarlet “L” or Democracy in Action?