Public affairs may not be the oldest profession in the world, but it is no longer in its infancy, say Stuart Thomson and Steve John
Thankfully, gone are the days of a few larger-than-life characters dominating the lobbying industry, and dealing with their favoured political contacts for clients. We are now an increasingly professionalised industry, but one that still struggles to be seen on a par with other communications disciplines, such as marketing. We have to accept that we still suffer from an image problem, created by outdated perceptions, in the mind of the public and some media. If public affairs is to continue to grow, then we have to come up with solutions.
The history of lobbying can be traced back for many hundreds of years, but in modern times, it has evolved rapidly over the past 20. In that time, public affairs has become less about trading upon contacts and links into a government, and has made significant strides to become increasingly professional.
The ‘cash for questions’ scandal in 1994, along with other allegations of sleaze, contributed to the downfall of the Conservative government and the historic scale of their defeat in the 1997 general election. However, it also showed that some in the lobbying industry did not behave in an ethical manner – and the whole of the industry was tarred with the same brush.
Great strides have been made to try to improve the image of public affairs, for instance through the introduction of codes of conduct, but in many ways the whole industry is still forced to act in a rather defensive manner, and remains on the back foot. This is a major challenge in an era where reputation is increasingly important. If the activity of a company’s lobbyists is likely to bring reputational damage upon it, then why would they employ them? This irony should not be lost on any of us.
The economic downturn around 2000 caused a shift in the structure of the industry. Until that point, whilst several of the ‘personalities’ had left the scene, it remained dominated by a small number of large firms. Each of these firms had around 40-50 consultants, with teams specialising in areas such as local government and planning, mergers and acquisitions. The economic downturn meant that there was less work available for these firms, and many were forced to reduce staff numbers. Rather than leaving the industry, many of these consultants started their own firms, often specialising in particular business sectors. Reduced fee income also left many independent companies and sole traders open to takeover. As a consequence, since then, a period of consolidation has taken place, with many firms being swallowed up by big public relations companies. Overall, there is now a greater level of competition in the industry than there was 10 years ago.
Lobbying has also been one of the services offered by public relations firms. Many of these firms claim to offer full communications service capabilities and, therefore, include communicating with political audiences – lobbying – as part of that service. In this sense, lobbying is part of the wider communications service offering. There are now really no firms which just lobby.
Lobbying under Labour
To understand why public affairs has grown in importance, you have to look at the political and media environments. Quite simply, there has been more legislative activity in recent years, and, therefore, more need to engage with political and policymaking audiences. Â However, alongside the increase in volume has been a corresponding reduction in the detail contained in legislation, and it is often left to civil servants to ‘fill in the blanks’. Secondary legislation, guidance, ministerial statements, as well as the act, now all require consideration.
There has also been an increase in the number, power and scope of regulators. They too are involved in policymaking, and have a direct impact on the way organisations and individuals operate. Some regulators try to ‘push’ or interpret the legislation, expanding the scope of their remit, or they lobby government to change the rules. Organisations are more aware of the level of scrutiny they are under, and individuals are increasingly personally liable for the actions they take in the name of the organisations – both tend to sharpen the minds. This also, in part, helps to explain why there are more in-house teams. The fact that companies take public affairs seriously enough to take on specialists as part of that team, can only be beneficial.
So, reputation is now a key business driver, and this means managing a range of audiences and stakeholders. There has been a growing recognition about the role that an organisation’s reputation can play. A good reputation in the media and amongst politicians can help your argument; likewise a poor reputation can hinder your case. Public affairs has entered the realm of reputation management (maintaining a good image), and all that it entails – from an organisation’s corporate social responsibility policies, through to the way it deals with difficult business decisions, such as job losses.
The rise of the 24-hour media also puts reputation in the spotlight. Increasingly, competition between journalists for stories, new media outlets (including those online), and the sheer number of undercover investigative programmes, means that a reputation has to be constantly protected. Adverse media comment can lead to unhelpful policy initiatives, regulatory investigations or statements from politicians. This in turn has serious consequences for all involved. So amongst other benefits, public affairs can:
- protect an organisation from the perceived threat of a new policy initiative or regulation, such as the impact that a new regulatory body may have;
- offer protection against adverse comment being made about the company by government, politicians or others in the industry, by being in a position to keep them informed;
- protect and enhance the reputation of the organisation, as a good name will stand you in better stead if you need to campaign against a measure;
- assist in the building of support through a wider network of contacts;
- raise the profile of the organisation;
- reduce the possibility of adverse action being taken by government or a regulator, as they are better informed about your activity;
- ensure that personal reputations are enhanced.
Devolution has been another factor in the growth of public affairs. Several operations sprung up in Edinburgh and Cardiff, some of them former Westminster lobbyists returning home to start their own operations. Others were the offices of larger firms that wanted to offer a service across all parliaments and assemblies in the UK.  The public affairs markets in both Scotland and Wales remain small. The Labour government has also created regional assemblies; this has created a further devolution of power, and the recently published local government white paper could see a rise in the power of mayors, which will again have an impact.
Until public affairs is more widely understood, both by those outside the industry, and amongst the media, there will remain a perception that it is about deals behind closed doors. By showing that there is a skills set to be developed, and a career structure, we can demonstrate that public affairs is a professional industry, up there with law or accountancy. Public Affairs in Practice tries to fill the gap.
We need to help people to get into the industry, by offering opportunities for involvement, so that it is not viewed as a ‘closed shop’, full of mystery, but as a serious career option. The rise of specialist courses, such as the Public Affairs and Lobbying Master of Science at Brunel University provides a valuable contribution to achieving this ambition.
The public affairs industry has to be better at explaining what it is we do, and the benefits of our actions. There remains a need to consider how we deal with the regulatory issue, and whether we want a statutory or voluntary code. If we don’t lead the way, then someone else will take the decision out of our hands.
One of the main changes in the industry has been the shift away from ‘pure’ lobbying to public affairs – the need to also have the ability to advise on media relations, crisis management and stakeholder relations. The industry is constantly evolving and developing. The impact of technology (blogs, podcasts etc) has still to be fully thought through, as has the nature of global clients, and how campaigns impact on one another across national boundaries.
We are a relatively young industry, and still have some growing pains to look forward to.
Public Affairs News, December 2006