5 ways your organisation should engage with government

An African telecommunications market leader, MTN was fined by Nigerian government regulators sometime in October 2015. The company eventually paid the government a hefty sum of over US$1 billion, representing about 20% of its market capitalisation.

The firm survived this regulatory action through a costly negotiation process that involved many consultants including lawyers, accountants and communications strategists. But thousands of failing small and mid size businesses in the country cannot afford this luxury. Many large corporations that are not at the scale will struggle to survive.

While the case referenced above is often not the norm, many businesses in Nigeria pay several regulatory costs in the course of running their businesses. Recently, the Nigerian government’s food and drug administration agency,  in a bid to meet revenue targets, arbitrarily raised tariffs payable by manufacturers. The decision was met with public uproar, forcing its temporary suspension. However, many similar regulatory decisions have been upheld by government in spite of strong public disapproval.

What now?

According to a McKinsey Executive Survey, government is the likeliest of stakeholders after customers that can significantly affect “companies’ economic value”. This is why organizations have to develop an effective strategy to engage with government.  These following five principles should guide your government engagement strategy:

1. Communicate how your brand is adding value to the society.  A lot of businesses presume that the public is aware of their significance and do not devote enough resources to communicating it. Businesses should regularly communicate how committed they are to their host locations. They can communicate their job creation efforts, cultural relevance, and social responsibility. For instance, manufacturing firms should announce developments such as the acquisition of equipment and expansion plans, or how they are reducing their carbon footprint. A restaurant or bar could likewise communicate how its presence is boosting retail or improving the entertainment sector in a community. Also, organizations can embark on social responsibility initiatives or strategic partnerships with local non-profits, schools etcetera. And they should ensure to communicate how such efforts are making a difference. Doing this has a positive effect on regulators. It makes them tend to be more consultative in handling issues that affect your business as a result of its significance.
2. Engage government with critical information. Many organizations believe that governments understand their issues. This is oftentimes not the case. In several African countries where data availability remains an issue, it is important for businesses to be armed with meaningful data which they can deploy in advocating to the government. Businesses should provide government with critical information to guide their decisions. Furthermore, deliberate engagement with government on a regular basis will position them as critical stakeholders in the decision making process.
3. Build strategic alliances within and beyond your industry. Businesses must come together in order to successfully engage with government to achieve their regulatory objectives. Larger organizations have mastered this game through their overwhelming influence on existing lobby and trade associations. But it is important for businesses to create niche alliances even with their competitors to engage with government. For example, Kenyan cement manufacturers came together and successfully lobbied their government to compel Chinese contractors to procure locally manufactured cement for the Standard Gauge Railway project. Companies within emerging sectors such as the FinTech or Ridesharing, can form alliances to engage government on issues. Also, public affairs officials should effectively engage with non-profit actors. NGOs are generally viewed with less suspicion and can be more effective partners in mutually beneficial advocacies.
4. Promote corporate thought leadership. Businesses must develop a thought leadership strategy centered around its key experts and leadership. This means that the leaders within the organisation should position themselves as experts with insights and ideas on their industry by publicly sharing them. That way, the business gains a reputation for being the authority. It is important to note that anybody within an organisation can be a thought leader. However, projecting leaders is a more effective strategy. Public affairs teams should support these executives in implementing this strategy. An effective thought leader who comes to mind is Taiwo Oyedele, the PWC Tax Partner in Nigeria. Oyedele’s consistent take and insights on tax and regulatory issues  has positioned him as an authority on the issue. This means that his opinions hold weight with the authorities and are generally deliberated and considered. A case in point was his effective advocacy against the National Housing Fund Establishment Bill (2018) which was rejected by the Presidency .
5. Always stay ahead of regulators.  Businesses must consistently monitor the social, political and policy developments that concern their business. This would help them to anticipate opportunities and also potential threats. Having this information is critical in order to develop an effective response. One starting point is for organizations to have a dedicated media and public sentiment monitoring function. Also, routine engagement with public officials through events and regular meetings can be beneficial. For example, several Codeine producing Nigerian pharmaceutical companies were not seen to have actively engaged on the issue around the abuse of the substance. Had they deliberately engaged the government and public on these concerns, the ban on the product would hardly come as a shock to them. Businesses should get ahead of regulators by offering solutions, information and collaboration where necessary. Before they can effectively do this, they need an intelligence driven approach to managing public information.

We must add that it is important for your organisation to have a specialized partner to support your external relations efforts. And if you are interested in exploring this subject, do not hesitate to reach out to us.