Government Relations (GR)

Contents

• What is Government Relations (GR)?
• Differences between GR and lobbying
• Why is GR needed?
• Who engages in GR?
• Methods and tools of GR
• Stages of developing a GR strategy

What is Government Relations (GR)?

Government Relations (GR) is a strategic process of managing relationships between a company and government authorities. The main goal of GR is to create a positive image of the organization and increase loyalty from the authorities, which in turn helps achieve business goals. For example, the recent opening of a parts manufacturing plant in Moscow, attended by the mayor of the capital, is a vivid example of successful GR implementation. The government provided the company with land, subsidies, and loans, made possible by effective relationship management with the state.

The concept of "government relations" emerged as an analogy to "public relations" (PR); however, unlike PR, which is aimed at engaging with a broad audience and the public, GR is exclusively focused on interaction with government structures. This interaction allows the company to shape a positive brand image and maintain its reputation by building communication with both individual officials and the government as a whole.

Differences between GR and lobbying

It is important to understand that GR and lobbying are different concepts. Lobbying involves actively influencing decision-making processes by officials to promote the interests of a company or industry. This can include sponsoring political campaigns or using media to pressure government officials. In contrast, GR employs softer and more constructive methods, such as organizing socially-oriented events and working with expert councils.

Unfortunately, in Russia, the relationship between business and government is often perceived negatively, associated with corruption and opaque dealings. However, in countries such as the USA and the UK, lobbying is officially permitted and strictly regulated, allowing companies to legally promote their interests.

Why is GR needed?

Managing Government Relations helps companies address a number of key tasks:

• Attracting government attention to business issues;
• Initiating changes in legislation;
• Reducing risks associated with changes in the industry;
• Obtaining exclusive information affecting the business;
• Access to grants, subsidies, and investments;
• Participation in government contracts and projects.

Company experts actively engage with officials, providing their comments and feedback on draft laws, as well as developing initiatives for new legislation. Large corporations, such as Ozon and the Big Data Association, actively participate in legislative initiatives, highlighting the importance of GR for business.

Who engages in GR?

In large companies, full-fledged GR departments are created, where specialists from various fields work together to implement the GR strategy. This is particularly relevant for industries with strict government regulation, such as tobacco, pharmaceuticals, and telecommunications. Meanwhile, medium-sized businesses develop relationships with the state at the regional level, participating in projects of local or regional significance.

Additionally, non-profit organizations (NPOs) also actively participate in GR, offering ideas for social programs and legislative proposals. For example, charitable foundations use GR to protect the interests of their beneficiaries, emphasizing the importance of dialogue between the government and public organizations.

Methods and tools of GR

There are many methods and tools that help build and maintain relationships with government authorities. Let’s consider the most effective among them:

• Legislative initiatives: Participation in the development and evaluation of bills, providing analytical reports.
• Building relationships with officials: Establishing contacts through participation in conferences and personal meetings.
• Working with tenders: Participation in competitions for the supply of goods and services for government needs.
• Participation in government projects: Obtaining grants and subsidies to address social issues.
• Promotion through media: Media coverage of the company's activities to form a positive image.
• Implementation of social projects: Supporting government initiatives and helping socially vulnerable groups.
• Organizing professional communities: Creating communities to collaboratively solve problems and protect interests.

Stages of developing a GR strategy

To successfully develop and implement a GR strategy, it is necessary to follow several key stages:

1. Analysis of the external environment: Studying the political situation and legislative framework.
2. Defining goals and objectives: Compiling a list of issues requiring attention.
3. Understanding the needs of the state: Developing initiatives that contribute to solving government tasks.
4. Developing an action plan: Defining methods and activities necessary to achieve the goals.