Promoting Business-Friendly Regulations

How to Work Productively with Town Officials

Abstract: Policies and programs out of Washington can have profound effect on businesses large and small. Even so, municipal ordinances very often have a more immediate impact on profits. Business owners need to cultivate productive relationships with town officials to promote “business friendly” regulations.

It’s a Presidential election year, and everyone’s mind is on politics. What’s going to happen in Washington, and how will that affect the business operating environment?

While federal laws and regulations are important, experts caution against getting distracted from events closer to home. Profits, after all, are more often affected by ordinances passed in the town hall than by what comes out of the White House and the United States Capitol.

“National politics tends to get all the headlines,” said Cliff Ennico, an attorney who counsels on business matters. “But the fact of the matter is that the vast majority of political decisions that affect businesses are local in nature.”

Municipal ordinances can touch business operations in a remarkable number of ways. A partial list includes taxation, business licensing, zoning laws, street and traffic patterns, parking regulations, building design and signage, environmental and health regulations, and even the installation of unsightly utility poles and cell phone towers.

And that’s not all. “Local governments have been expanding their role into employee benefits and rights,” said Marc H. Pfeiffer, Assistant Director at the Bloustein Local Government Research Center. “In many cases, cities are establishing minimum wages.”

Speaking up

Given the stakes involved, it’s important for every business to promote favorable local ordinances and protest damaging ones. Being an effective business ambassador, though, requires laying a bit of groundwork. And that means acquiring a solid grounding in a town’s political dynamics. “Business owners should get to know the structure of their local government and who is responsible for making what decisions,” said Dr John P. Pelissero, Director of Government Ethics at the Markkula Center for Applied Ethics at Santa Clara University. “Knowing what each official’s duties are, and whether they have a role in regulating a certain area, will facilitate efficient interactions and the provision of useful information.”

Identifying the “movers and shakers” who should get the business perspective on a proposed ordinance is one thing. Reaching them in time is another. To get wind of proposed legislation in advance of its passage into law requires some kind of “early warning system” that issues an alert when controversial proposals first arise.
There are many ways to create such a system. One is to get on mailing lists maintained by local and state legislators, community and trade associations, and towns themselves. “Local communities are required by law in most states to publish their calendars of events and information on what they’re doing,” said Ennico. “So find your town’s website, bookmark it, and make a point to check in and see what’s going on at least once a week. What committees are meeting?

Civic associations such as the Jaycees, Rotary, Lions Club, and Kiwanis can also provide conduits to news about proposed regulations. “Local organizations are often made up of business owners and can provide a platform to discuss legislation,” said Nancy Bocskor, Development Director of Business For America. So-called “hyperlocal” websites, often maintained by weekly digital newspapers, also publish alerts about town proposals.

Reaching out

Establishing an early dialog with politicians can facilitate effective communication down the road when controversial regulatory proposals arise. The good news is that local officials are a lot easier to deal with than their federal counterparts. “People who run for local office are very approachable, because most of them really do care about their communities,” said Ennico. “For most of them, politics is not a steppingstone to higher office. Many times, they are business owners themselves, so already you share some common interests. Other times, they are attorneys looking to expand their network.”

One way to get known among local representatives is to speak up at town meetings, where every effort should be made to shake hands and make a personal introduction. “Maybe it seems old fashioned in this digital age, but in-person communication with local public officials can be a very powerful way to get things done,” said attorney Sean W. Hadley, a lecturer of public policy at Rutgers University.

Effective business ambassadors are knowledgeable about local affairs. “Business owners should be as knowledgeable and informed as possible about what’s going on in city government,” said Pelissero. “Members of the city council and county boards want to make sure the people that they’re interacting with are able to demonstrate awareness of current issues in local government and how they impact both the business and the broader communities.”

Once a dialog is established, experts advise setting up a regular meeting with legislators or local city council member. “You want to get to the point where the public officials view you as a trusted source of information,” said Hadley. “They may call you for your perspective on proposed resolutions. Keep in mind that these local politicians are not experts on everything. To make good laws, they need people in the community to offer unique perspectives.”

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Driving home

You may be convinced of the wisdom of your position for or against a certain ordinance. But how can you convince the public official?

Effective business ambassadors understand and address their town’s larger concerns. Maybe a certain proposal will promote trade. But how will it affect homeowners, schools and the public in general? “Public officials need to determine what regulations are in the long-term public interest versus what may only satisfy the business community,” said Pelissero. “When speaking up against a proposed zoning change, for example, it’s important to show how it might negatively affect the local community as well as business profits.”

An effective presentation requires the support of facts, figures and stories. Do the math. Be able to show the official how a proposed regulation will affect employment, commercial enterprise, or a certain industry. And then drive home your point with a powerful anecdote that illustrates the problem. Is parking bad in your area? Then tell how a local citizen needed to get to your business but couldn’t find a place to park.

Finally, drive your point home by offering a solution to a perceived problem. “A businessperson shouldn’t be just a complainer,” said Hadley. “Public officials want to hear from people who are community problem solvers.”

Doing right

Promoting a point of view is good. Creating the impression of bribery is bad. “Many state and local governments have very clear codes of conduct for their public officials, which will restrict what they can and cannot do or accept from the public,” said Pelissero. “These are intended to limit the opportunities for something to occur that doesn’t appear to be proper. But even if there’s not a legal requirement or restriction, business owners should be mindful of ethical concerns when they interact with local public officials.”

It’s not a good idea, for example, to offer free tickets to some event while at the same time seeking something for your business. And avoid offering to spring for lunch. “In most cases, the politician can’t accept payment of meals,” said Pelissero. “They need to avoid doing anything that creates the appearance of a gift, for which something was expected in return.”

The trick here is to avoid both the reality and the appearance of shady conduct. “Business owners should find opportunities to speak to their representatives in ways that don’t appear compromising,” said Pelissero. Speaking up at city council meetings or public gatherings sponsored by civic organizations such as the Rotary Club is always acceptable. Those are good venues in which to interact with public officials and get to know them and maybe have a chance to talk with them about issues that are of concern to business.

“If you do happen to meet privately with a public official, make sure you are there to provide useful information to help them reach a decision,” said Pelissero. “You’re not there to find out what it is you can do to come to some arrangement about an issue, because that can be perceived as unethical.”

Bonus tip: It’s okay to send a thank you letter to a politician who has done a business-friendly action, and who may want to post your message on their website.

Keeping perspective

Becoming an effective player in local politics can go a long way toward promoting business-friendly regulations. Local politicians want to hear from businesses, just as they want to hear from other area stakeholders. “Many small business owners think that no one will listen to them,” said Bocskor. “But that’s not true. Studies show that small businesses are among the most highly trusted entities in the nation.”

While speaking up in support of business-friendly regulations is important, the effective business ambassador moves slowly and carefully, sending out feelers while avoiding any step that might transcend ethical boundaries. “Keep things in perspective,” said Hadley. “This is a situation where you want to kind of crawl before you walk. Listen to your local public officials and learn about their perspectives, before you jump into local politics full force.”

At the end of the day, achieving a favorable business operating environment boils down to effective communication. While professionals advise treading carefully, they do encourage taking action. “Don’t wait until a law is passed and then write a letter to the editor complaining about it,” said Ennico. “That’s an absolute waste of time. Get involved. Go to meetings. Be part of the solution.”

Phillip M. Perry is an award-winning business journalist based in New York City. He covers management, employment law, finance and marketing for scores of business magazines.