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Lobbying

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Lobbying is a form of advocacy , which lawfully attempts to directly influence legislators or government officials, such as regulatory agencies or judiciary . Lobbying involves direct, face-to-face contact and is carried out by various entities, including individuals acting as voters , constituents, or private citizens; corporations pursuing their business interests; non-profits and NGOs through advocacy groups to achieve their missions; and legislators or government officials influencing each other in legislative affairs.

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131-531: Lobbying or certain practices that share commonalities with lobbying are sometimes referred to as government relations , or government affairs and sometimes legislative relations, or legislative affairs. It is also an industry known by many of the aforementioned names, and has a near complete overlap with the public affairs industry . Lobbyists may fall into different categories: amateur lobbyists, such as individual voters or voter blocs within an electoral district ; professional lobbyists who engage in lobbying as

262-440: A contract to a company that is not the best bidder, or allocate more than they deserve. In this case, the company benefits, and in exchange for betraying the public, the official receives a kickback payment, which is a portion of the sum the company received. This sum itself may be all or a portion of the difference between the actual (inflated) payment to the company and the (lower) market-based price that would have been paid had

393-506: A 1949 law, people who had public concessions had the right to keep them if there was no opposition from third parties. In 2009 this law is abolished under menace of legal procedure from the Eu for infraction of a 2006 directive, that established mandatory public procedures that were impartial and transparent. Anyhow, since then, governments continuously postponed any decision regarding modifying laws on public concessions for beach establishments. Under

524-530: A Regulation of interest representation. The Regulation expired in late 2017, when the term of the sitting Parliament expired. With the rising of the new parliamentary term in 2018, the Regulation was not being readopted. At the subnational level, only six regions have legislations about lobbying: Tuscany (2002), Molise (2004), Abruzzo (2010), Calabria (2016), Lombardy (2016) and Puglia (2017). These regional legislations have similar structure, but only Tuscany took

655-572: A ban on Airbnb in the country. The lack of competitive markets is one of the main reasons Italy has not experienced economic growth in recent years. However, pressure groups continue to defend their privileges, hindering economic liberalization . The International Monetary Fund study indicates that true liberalization could grow Italy's GDP in a few years, but lobbies seem to be able to prevent such changes. A 2016 study found evidence of significant indirect lobbying of then-Prime Minister Silvio Berlusconi through business proxies. The authors document

786-500: A business or profession; and government relations support staff who work on behalf of professional lobbyists but may not actively engage in direct influencing or face-to-face meetings with targeted individuals to the extent required for registration as lobbyists, operating within the same professional circles as registered lobbyists. Professional lobbyists are people whose business is trying to influence legislation, regulation, or other government decisions, actions, or policies on behalf of

917-599: A contract, job or exemption from certain tasks in the case of junior worker handing in the gift to a senior employee who can be key in winning the favor. Some forms of corruption – now called " institutional corruption " – are distinguished from bribery and other kinds of obvious personal gain. For example, certain state institutions may consistently act against the interests of the public, such as by misusing public funds for their own interest, or by engaging in illegal or immoral behavior with impunity. Bribery and overt criminal acts by individuals may not necessarily be evident, but

1048-410: A court, typically by parties to a lawsuit. Amici curiae briefs are briefs filed by people or groups who are not parties to a suit. These briefs are entered into the court records and give additional background on the matter being decided upon. Advocacy groups use these briefs both to share their expertise and to promote their positions. The lobbying industry is affected by the revolving door concept,

1179-399: A dissociation makes the prosecution of bribery offences easier since it can be very difficult to prove that two parties (the bribe-giver and the bribe-taker) have formally agreed upon a corrupt deal. In addition, there is often no such formal deal but only a mutual understanding, for instance when it is common knowledge in a municipality that to obtain a building permit one has to pay a "fee" to

1310-611: A distinct or expressly mentioned objective. The Romanian Lobby Registry Association (ARRL) was founded in June 2010 to popularize and promote lobbying activity. ARRL is a non-profit legal entity that works under private law. The majority of lobbying companies represent non-governmental organizations which activities include education, ecology, fundamental freedoms, health, consumer rights etc. Other entities that deal with lobby practice are multinational companies, Romanian companies, law firms and specialized lobby firms. In India , where there

1441-494: A distinction between this form of corruption and some forms of extreme and loosely regulated lobbying where for instance law- or decision-makers can freely "sell" their vote, decision power or influence to those lobbyists who offer the highest compensation, including where for instance the latter act on behalf of powerful clients such as industrial groups who want to avoid the passing of specific environmental, social, or other regulations perceived as too stringent, etc. Where lobbying

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1572-469: A group or individual who hires them. Nonprofit organizations whether as professional or amateur lobbyists can also lobby as an act of volunteering or as a small part of their normal job. Governments often define "lobbying" for legal purposes, and regulate organized group lobbying that has become influential. The ethics and morals involved with legally lobbying or influence peddling are controversial. Lobbying can, at times, be spoken of with contempt , when

1703-531: A growing issue. The current situation in Italy regarding taxi services is regulated by Law No. 21 of 1992. According to this law, the responsibility for determining the number of taxi licenses, shifts, and fares is given to the municipalities. Taxi licenses are held by artisan business owners who have passed a driver's exam and are registered with the Chamber of Commerce. After holding a license for five years, reaching

1834-458: A higher negative impact on firms' activity than taxation. Indeed, a one percentage point increase in bribes reduces firm's annual growth by three percentage points, while an increase in 1 percentage point on taxes reduces firm's growth by one percentage point. Corruption also generates economic distortion in the public sector by diverting public investment into capital projects where bribes and kickbacks are more plentiful. Officials may increase

1965-482: A movement of personnel between roles as legislators and regulators and roles in the industries affected by legislation and regulation, as the main asset for a lobbyist is contacts with and influence on government officials. This climate is attractive for ex-government officials. It can also mean substantial monetary rewards for lobbying firms , and government projects and contracts worth in the hundreds of millions for those they represent. The international standards for

2096-511: A politician's acceptance of bribes. Gombeenism refers to an individual who is dishonest and corrupt for the purpose of personal gain, often monetary, while parochialism, which is also known as parish pump politics, relates to placing local or vanity projects ahead of the national interest. For instance in Irish politics, populist left wing political parties will often apply these terms to mainstream establishment political parties and will cite

2227-426: A portion of their advertising budgets to Mediaset during Berlusconi's tenure. Despite higher prices for advertising space on Mediaset channels during Berlusconi's tenure, companies continued to advertise, suggesting that they expect significant political benefits from supporting the network. Mediaset's advertising partners are estimated to have paid about 1.9 billion euros more during Berlusconi's three terms, indicating

2358-464: A profit. The 20th century is full of many examples of governments undermining the food security of their own nations – sometimes intentionally. The scale of humanitarian aid to the poor and unstable regions of the world grows, but it is highly vulnerable to corruption, with food aid, construction and other highly valued assistance as the most at risk. Food aid can be directly and physically diverted from its intended destination, or indirectly through

2489-634: A register for representatives of interest groups and lobbyists who intend to lobby the MPs. In Germany, lobbying has existed since 1956, when the Federal Constitutional Court issued a ruling legalizing it. A mandatory lobby register (German: Lobbyliste) was introduced in Germany effective 1 January 2022, along with a code of conduct. These rules were criticized as insufficient by several opposition party members and representatives from

2620-798: A relatively lower number of taxis available compared to its population. In August 2019, the then Transport Councillor Marco Granelli acknowledged the need to increase the number of taxi licenses by 450 to meet the demand. Data showed that a significant percentage of calls for taxis were going unanswered during peak hours and weekends. However, the issue was put on hold due to the COVID-19 pandemic, and it remains uncertain when it will be addressed. Romanian legislation does not include an express regulation on lobbying activity. The legislative proposals initiated by various parliamentarians have not been finalized. Attempts to regulate lobbying in Romania have appeared in

2751-715: A report by The Guardian , which involved the name of a senior Czech MEP Tomáš Zdechovský . The controversy concerned the European Parliament's "friendship groups", the unofficial bodies operating with no formal regulations and sometimes under sponsored lobbyists and foreign governments. The European Parliament was preparing to vote on a resolution to call for a release of a Bahraini political prisoner Abdulhadi al-Khawaja . However, chair of European Parliament's Bahrain friendship group, Zdechovský came under questions for visiting Bahrain in April 2022, without declaring. In

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2882-427: A sector leads others in the sector to engage in corruption. It is argued that the following conditions are favorable for corruption: Thomas Jefferson observed a tendency for "The functionaries of every government ... to command at will the liberty and property of their constituents. There is no safe deposit [for liberty and property] ... without information. Where the press is free, and every man able to read, all

3013-464: A separate resolution, Zdechovský's EPP failed to call for Khawaja's release and instead called him a "political opponent". Director of BIRD , Sayed Ahmed Alwadaei accused the Czech MEP of acting as a mouthpiece for Bahrain. Canada maintains a Registry of Lobbyists. Over 5,000 people now working as registered lobbyists at Canada's federal level. Lobbying began as an unregulated profession, but since

3144-486: A significant pro- Mediaset (the mass media company founded and controlled by Berlusconi) bias in the allocation of advertising spending during Berlusconi's political tenure, in particular for companies operating in more regulated sectors. Using advertising data from the Nielsen AdEx database, the behavior of companies buying advertising space on Mediaset television channels during Berlusconi's tenure as prime minister

3275-529: A step forward to implement this legislation and create a public register. In Italy, over the years, lobbies and power groups have obstructed the liberalization of markets and favored the protection of existing privileges. Despite various attempts to promote competition, such as the Law for the Market and Competition passed a year ago, the process has been riddled with delays, amendments and compromises that have weakened

3406-742: A stronger ethics framework were established at the EU level, including an independent ethics body and longer cooling-off periods for MEPs. In the wake of the Jack Abramoff Indian lobbying scandal in Washington, D.C., and the massive impact this had on the lobbying scene in the United States, the rules for lobbying in the EU—which until now consisted of only a non-binding code of conduct—may also be tightened. Eventually, on 31 January 2019

3537-519: A tiny niche market and get mostly re-classified into another industry using new techniques. At the same time, entirely new industries may branch off from older ones once a significant market becomes apparent (as the semiconductor industry became distinguished from the wider electronics industry ). Industry classification is valuable for economic analysis because it leads to largely distinct categories with simple relationships. Through these classifications, economists are able to compare companies within

3668-551: Is (sufficiently) regulated, it becomes possible to provide for a distinctive criteria and to consider that trading in influence involves the use of "improper influence", as in article 12 of the Criminal Law Convention on Corruption (ETS 173) of the Council of Europe . Patronage refers to favoring supporters, for example with government employment. This may be legitimate, as when a newly elected government changes

3799-574: Is a form of illegitimate private gain. This may be combined with bribery , for example demanding that a business should employ a relative of an official controlling regulations affecting the business. The most extreme example is when the entire state is inherited, as in North Korea or Syria . A lesser form might be in the Southern United States with Good ol' boys, where women and minorities are excluded. A milder form of cronyism

3930-846: Is a result of the growing recognition of lobbying as a critical discipline at the intersection of politics, economics, and society. In 2003 there were around 15,000 lobbyists (consultants, lawyers, associations, corporations, NGOs etc.) in Brussels seeking to influence the EU's legislation. Some 2,600 special interest groups had a permanent office in Brussels. Their distribution was roughly as follows: European trade federations (32%), consultants (20%), companies (13%), NGOs (11%), national associations (10%), regional representations (6%), international organizations (5%) and think tanks (1%), (Lehmann, 2003, pp iii). In addition to this, lobby organisations sometimes hire former EU employees (a phenomenon known as

4061-478: Is an " old boy network ", in which appointees to official positions are selected only from a closed and exclusive social network – such as the alumni of particular universities – instead of appointing the most competent candidate. Seeking to harm enemies becomes corruption when official powers are illegitimately used as means to this end. For example, trumped-up charges are often brought up against journalists or writers who bring up politically sensitive issues, such as

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4192-532: Is based on personal connections than professional achievements. This has led to dramatic increase in the number of professors and exhibits their rapid status loss. Utmost the flawed processes in the academic institutions has led to unbaked graduates who are not well fit to the job market. Corruption hinders the international standards of an education system. Additionally, Plagiarism is a form of corruption in academic research, where it affects originality and disables learning. Individual violations are in close relation to

4323-512: Is called white corruption; this level of corruption is mostly viewed with tolerance and may even be lawful and legitimate; typically based on family ties and patron-client systems. The type of corruption often occurring in constitutional states or state transitioning to a more democratic society is called grey corruption is considered reprehensible according to a society's moral norms, but the persons involved are still mostly lacking any sense of doing something wrong. The third category, black corruption

4454-587: Is director of Barton Deakin Government Relations. His colleagues there include David Alexander (former Costello staffer), Sallyanne Atkinson (former Lord Mayor of Brisbane and former federal Liberal Party candidate), Howard staffer John Griffin and former New South Wales Liberal Party leader, Peter Collins. The Labor "sister" company is Hawker Britton, so named as both firms are owned by STW Group. In 2013, Hawker Britton had 113 client companies on its books. In 2013, there were just under 280 firms on

4585-416: Is estimated to involve over 1 trillion US dollars annually. A state of unrestrained political corruption is known as a kleptocracy , literally meaning "rule by thieves". Trying to influence voters by promising freebies, facilities or favours to a particular section (race, religion, economic level etc) of society is also a kind of political corruption. Perhaps the highest level of corruption occurs when bribe

4716-481: Is government action or inaction that determines its severity, and often even whether or not a famine will occur. Governments with strong tendencies towards kleptocracy can undermine food security even when harvests are good. Officials often steal state property. In Bihar , India , more than 80% of the subsidized food aid to poor is stolen by corrupt officials. Similarly, food aid is often robbed at gunpoint by governments, criminals, and warlords alike, and sold for

4847-557: Is heavily dependent on accountable and transparent systems, proper management of both financial and human resources and timely supply of services to the vulnerable populace of the nation. At the basic level, greed skyrockets corruption. When the structure of the health care system is not adequately addressed beginning from oversight in healthcare delivery and supply of drugs and tendering process, mismanagement and misappropriation of funds will always be observed. Corruption also can undermine health care service delivery which in turn disorients

4978-408: Is in power and that the mix of advertisers on Mediaset channels shifts toward regulated firms during his tenure. To assess the impact of Berlusconi's political influence, industries were ranked according to their regulatory score, obtained from a survey of Italian economists. Highly regulated industries, such as telecommunications, pharmaceuticals, and manufacturing, showed a greater tendency to allocate

5109-579: Is involved in policy-making, rest assured that the most effective control measures will be downplayed or left out entirely. This, too, is well documented, and dangerous. In the view of WHO, the formulation of health policies must be protected from distortion by commercial or vested interests. Lobbying can be categorized as inside lobbying, which directly interacts with decision-makers, or outside lobbying, which pressures decision-makers through mobilization of public opinion. In pre-modern political systems, royal courts provided incidental opportunities for gaining

5240-757: Is kept by the Australian Government and is accessible to the public via its website. Similar registers for State government lobbyists were introduced between 2007 and 2009 around Australia. Since April 2007 in Western Australia, only lobbyists listed on the state's register are allowed to contact a government representative for the purpose of lobbying. Similar rules have applied in Tasmania since 1 September 2009 and in South Australia and Victoria since 1 December 2009. A criticism of

5371-755: Is no law regulating the process, lobbying has traditionally been a tool for industry bodies like the National Association of Software and Service Companies , the Confederation of Indian Industry , the Federation of Indian Chambers of Commerce and Industry , the Associated Chambers of Commerce and Industry of India and other pressure groups to engage with the government ahead of the national budget and legislation in parliament . Lobbying activities have frequently been identified in

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5502-431: Is not restricted to these activities. Over time, corruption has been defined differently. For example, in a simple context, while performing work for a government or as a representative, it is unethical to accept a gift. Any free gift could be construed as a scheme to lure the recipient towards some biases. In most cases, the gift is seen as an intention to seek certain favors such as work promotion, tipping in order to win

5633-524: Is often most evident in countries with the smallest per capita incomes, relying on foreign aid for health services. Local political interception of donated money from overseas is especially prevalent in Sub-Saharan African nations, where it was reported in the 2006 World Bank Report that about half of the funds that were donated for health usages were never invested into the health sectors or given to those needing medical attention. Instead,

5764-710: Is one for the European Union where French lobbyists are able to register themselves. For example, the internal rule of the National Assembly (art. 23 and 79) forbids members of Parliament to be linked with a particular interest. Also, there is no rule at all for consultation of interest groups by the Parliament and the Government. Nevertheless, a recent parliamentary initiative (motion for a resolution) has been launched by several MPs so as to establish

5895-400: Is paid by business houses to make state policy skewed towards them. Corruption is a difficult concept to define. A proper definition of corruption requires a multi-dimensional approach. Machiavelli popularized the oldest dimension of corruption as the decline of virtue among political officials and the citizenry. The psychologist Horst-Eberhard Richter's modernized version defines corruption as

6026-626: Is represented by both ECG Consulting and Bespoke Approach, while its own parent company, Wesfarmers , has former West Australian premier Alan Carpenter in charge of corporate affairs. Competitor Woolworths has a government relations team composed of former Labor and Liberal advisers, under the direction of a former leader of the National Party, Andrew Hall. Aldi engages GRA (Government Relations Australia), one of Australia's largest lobbying firms, whose staff includes former Federal Labor treasurer, John Dawkins . A register of federal lobbyists

6157-415: Is seen as one of the causes of a democratic deficit . Politicians tend to vote against the preferred position of their constituency when there is more special interest money and less attention to politics. That architectural sense of lobby is believed to originate from the medieval Latin lobia or lobium , which refers to a gallery, hall, or portico. This architectural sense was later adopted to describe

6288-402: Is so severe that it violates a society's norms and laws. The final dimension is called "shadow politics;" this is part of the informal political process that goes beyond legitimate informal political agreements to behavior that is purposefully concealed. Political corruption undermines democracy and good governance by flouting or even subverting formal processes. Corruption in elections and in

6419-760: Is that in Africa, corruption has primarily taken the form of rent extraction with the resulting financial capital moved overseas rather than invested at home (hence the stereotypical, but often accurate, image of African dictators having Swiss bank accounts ). In Nigeria , for example, more than $ 400 billion was stolen from the treasury by Nigeria's leaders between 1960 and 1999. University of Massachusetts Amherst researchers estimated that from 1970 to 1996, capital flight from 30 Sub-Saharan countries totaled $ 187bn, exceeding those nations' external debts. (The results, expressed in retarded or suppressed development, have been modeled in theory by economist Mancur Olson .) In

6550-418: Is the quid pro quo. Corruption always is an exchange between two or more persons/parties where the persons/parties possess economic goods, and the other person/parties possess a transferred power to be used, according to fixed rules and norms, toward a common good. Fourth, there are also different levels of societal perception of corruption. Heidenheimer divides corruption into three categories. The first category

6681-418: Is the use of powers by government officials or their network contacts for illegitimate private gain. Forms of corruption vary, but can include bribery , lobbying , extortion , cronyism , nepotism , parochialism , patronage , influence peddling , graft , and embezzlement . Corruption may facilitate criminal enterprise such as drug trafficking , money laundering , and human trafficking , though it

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6812-550: Is typically used by industry classifications to classify it within a specific industry. For example the International Standard Industrial Classification (ISIC) – used directly or through derived classifications for the official statistics of most countries worldwide – classifies "statistical units" by the "economic activity in which they mainly engage". Industry is then defined as "set of statistical units that are classified into

6943-582: The Australian National University noted that over this time, retired politicians have increasingly turned political lobbyists to leverage their networks and experience for private gain. In 2018 he noted that two of the top three Howard government ministers had become lobbyists: Alexander Downer and Peter Costello , and that the trend could be traced back to the Hawke Government of 1983. Mick Young stated that by 1983

7074-411: The Council of Europe , who argued that they did not adequately address issues of transparency and potential conflicts of interest. Stricter rules are scheduled to come into effect on January 1, 2024. Italy does not have a lobbying legislation at national level nowadays, even though there have been proposals by lawmakers during the years. In 2016, the Chamber of deputies added an addendum that introduced

7205-494: The European Parliament adopted binding rules on lobby transparency. Amending its Rules of Procedure, the Parliament stipulated that MEPs involved in drafting and negotiating legislation must publish online their meetings with lobbyists. The amendment says that "rapporteurs, shadow rapporteurs or committee chairs shall, for each report, publish online all scheduled meetings with interest representatives falling under

7336-867: The Grant Administration , the OED cites numerous documented uses of the word well before Grant's presidency, including use in Pennsylvania as early as 1808. The term "lobbying" also appeared in print as early as 1820: Other letters from Washington affirm, that members of the Senate, when the compromise question was to be taken in the House, were not only "lobbying about the Representatives' Chamber" but also active in endeavoring to intimidate certain weak representatives by insulting threats to dissolve

7467-466: The legitimacy of government and democratic values such as political trust . Recent evidence suggests that variation in the levels of corruption amongst high-income democracies can vary significantly depending on the level of accountability of decision-makers. Evidence from fragile states also shows that corruption and bribery can adversely impact trust in institutions. Corruption can also impact government's provision of goods and services. It increases

7598-744: The nomenklatura in the Soviet Union , or the Junkers in Imperial Germany ) that support the regime in return for such favors. A similar problem can also be seen in Eastern Europe, for example in Romania , where the government is often accused of patronage (when a new government comes to power it rapidly changes most of the officials in the public sector). Favoring relatives (nepotism) or personal friends (cronyism) of an official

7729-471: The public interest . An early use of the term was by former US President Theodore "Teddy" Roosevelt : An illustrative example of official involvement in organized crime can be found from the 1920s and 1930s Shanghai , where Huang Jinrong was a police chief in the French concession , while simultaneously being a gang boss and co-operating with Du Yuesheng , the local gang ringleader. The relationship kept

7860-414: The retail trade sector contains industries such as clothing stores, shoe stores, and health and personal care stores. Companies are not limited to one sector or industry. They can reside in multiple sectors and industries. Industries, though associated with specific products , processes, and consumer markets , can evolve over time. One distinct industry (for example, barrelmaking ) may become limited to

7991-526: The Advancement of Colored People , for example, filed suits in state and federal courts in the 1950s to challenge segregation laws. Their efforts resulted in the Supreme Court declaring such laws unconstitutional. Lobbyists may use a legal device known as amicus curiae ( lit.   ' friend of the court ' ) briefs to try to influence court cases. Briefs are written documents filed with

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8122-654: The Committee on the Rules of Procedure, the Verification of Credentials and Immunities, was appointed to submit proposals for a Code of conduct and a register of lobbyists. Today lobbying in the European Union is an integral and important part of decision-making in the EU. From year to year lobbying regulation in the EU is constantly improving and the number of lobbyists increases. This increase in lobbying activity

8253-615: The Federal Australian Register of Lobbyists. Steve Carney of Carney Associated says that lobbyists "try to leave no thumbprints on the glass, no footprints in the sand. The best lobbying is when nobody knows you were there." Mark Textor of campaign advisory group Crosby Textor describes political lobbying as a "pathetic miserable industry". Supermarket chains in Australia engage lobbying firms with political weight in their ranks. Australian Supermarket giant Coles

8384-613: The Indian government made a controversial decision to permit foreign direct investment in the country's multi-brand retail sector. Successful grassroots lobbying campaigns include the Mazdoor Kisan Shakti Sangathan 's campaign to pass the 2005 Right to Information Act and Anna Hazare 's anti-corruption campaign to introduce the 2011 Lokpal Bill . There is no register for lobbying activity and no cooling off period for public officials before they can enter

8515-503: The Italian State's properties: since 2022, owners have to pay a fee of 2698 euros to keep a public concession of a beach establishment. This is an amount of money that would be paid back just by renting for three months 2 beach umbrellas for 15 euros each (and in many cases the renting prices are higher). The Court of Accounts has declared an imbalance between the fee and the gains from the beach establishment. Until 2009, according to

8646-573: The Postal Service monopoly. In addition, the rule on RCA tariffs was withdrawn after protests from insurance companies, while the diatribe between taxi drivers and Uber was postponed for a separate measure. Professional associations, such as lawyers and dentists, opposed measures that undermined their interests, such as the requirement for lawyers to have a quote or the requirement that dental companies be at least two-thirds owned by registered members. Other categories, such as hoteliers, called for

8777-451: The Union. Governments often define and regulate organized group lobbying as part of laws to prevent political corruption and by establishing transparency about possible influences by public lobby registers . Lobby groups may concentrate their efforts on the legislatures, where laws are created, but may also use the judicial branch to advance their causes. The National Association for

8908-448: The age of 60, or due to illness, license holders can transfer their license to someone else upon indicating their preference to the municipality. In case of death, the license can be passed to one of the heirs or their designated individuals. Italy has an average of one taxi for every 2,000 inhabitants, whereas countries like France and Spain have ratios of 1,160 and 1,028 taxis per 2,000 inhabitants, respectively. This suggests that Italy has

9039-401: The allocation of contracts and competition places). Cases exist against (members of) various types of non-profit and non-government organizations, as well as religious organizations. Ultimately, the distinction between public and private sector corruption sometimes appears rather artificial, and national anti-corruption initiatives may need to avoid legal and other loopholes in the coverage of

9170-454: The automotive industry in order to sell low-quality connectors used for instance in safety equipment such as airbags, bribes paid by suppliers to manufacturers of defibrillators (to sell low-quality capacitors), contributions paid by wealthy parents to the "social and culture fund" of a prestigious university in exchange for it to accept their children, bribes paid to obtain diplomas, financial and other advantages granted to unionists by members of

9301-437: The basis and the fabric in which a society is transformed and different facets of well-being are shaped. Corruption in higher education has been prevalent and calls for immediate intervention. Increased corruption in higher education has led to growing global concern among governments, students and educators and other stakeholders. Those offering services in the higher education institutions are facing pressure that highly threatens

9432-792: The bidding been competitive. Another example of a kickback would be if a judge receives a portion of the profits that a business makes in exchange for his judicial decisions. Kickbacks are not limited to government officials; any situation in which people are entrusted to spend funds that do not belong to them are susceptible to this kind of corruption. An unholy alliance is a coalition among seemingly antagonistic groups for ad hoc or hidden gain, generally some influential non-governmental group forming ties with political parties, supplying funding in exchange for favorable treatment. Like patronage, unholy alliances are not necessarily illegal, but unlike patronage, by its deceptive nature and often great financial resources, an unholy alliance can be more dangerous to

9563-500: The business interests of powerful economic operators. In my view, this is one of the biggest challenges facing health promotion. [...] it is not just Big Tobacco anymore. Public health must also contend with Big Food, Big Soda, and Big Alcohol. All of these industries fear regulation, and protect themselves by using the same tactics. Research has documented these tactics well. They include front groups, lobbies, promises of self-regulation, lawsuits, and industry-funded research that confuses

9694-462: The career paths of former EU officials and found that 30% of Members of the European Parliament who left politics went to work for organisations on the EU lobby register after their mandate and approximately one third of Commissioners serving under Barroso took jobs in the private sector after their mandate, including for Uber , ArcelorMittal , Goldman Sachs and Bank of America Merrill Lynch . These potential conflicts of interest could be avoided if

9825-500: The case of Africa, one of the factors for this behavior was political instability and the fact that new governments often confiscated previous government's corruptly obtained assets. This encouraged officials to stash their wealth abroad, out of reach of any future expropriation . In contrast, Asian administrations such as Suharto 's New Order often took a cut on business transactions or provided conditions for development, through infrastructure investment, law and order, etc. Corruption

9956-571: The comparison of business activities in North America. There is also the Global Industry Classification Standard (GICS), which is used to assign companies to specific economic sectors and industry groups. There are many industry classifications in the modern economy, which can be grouped into larger categories called economic sectors . Sectors are broader than industry classifications. For example,

10087-483: The context of corruption cases, for example the 2010 controversy surrounding leaked audio transcripts of conversations between the corporate lobbyist Niira Radia and senior journalists and politicians. Besides private companies, the Indian government has been paying for the services a US firm since 2005 to lobby, for example, in relation to the India-US civilian nuclear deal . In India, there are no laws that defined

10218-407: The context of the fight against corruption. Anti-corruption strategies adopted in 2011 and 2004 mentions the purposes of the elaboration of a draft law on lobbying, as well as ensuring transparency in the decision-making activity. In 2008 and 2011, the emphasis was mainly on transparency in the decision-making activity of the public authorities, regulation of lobbying activities no longer appearing as

10349-457: The cost of business, it also distorts the field of inquiry and action, shielding firms with connections from competition and thereby sustaining inefficient firms. Corruption may have a direct impact on the firm's effective marginal tax rate. Bribing tax officials can reduce tax payments of the firm if the marginal bribe rate is below the official marginal tax rate. However, in Uganda, bribes have

10480-434: The costs of goods and services which arise from efficiency loss. In the absence of corruption, governmental projects might be cost-effective at their true costs, however, once corruption costs are included projects may not be cost-effective so they are not executed distorting the provision of goods and services. In the private sector , corruption increases the cost of business through the price of illicit payments themselves,

10611-511: The culture of corruption extends to every aspect of public life, making it extremely difficult for individuals to operate without resorting to bribes. Bribes may be demanded in order for an official to do something he is already paid to do. They may also be demanded in order to bypass laws and regulations. In addition to their role in private financial gain, bribes are also used to intentionally and maliciously cause harm to another (i.e. no financial incentive). In some developing nations, up to half of

10742-506: The decision maker to obtain a favorable decision. A working definition of corruption is also provided as follows in article 3 of the Civil Law Convention on Corruption (ETS 174): For the purpose of this Convention, "corruption" means requesting, offering, giving or accepting, directly or indirectly, a bribe or any other undue advantage or prospect thereof, which distorts the proper performance of any duty or behavior required of

10873-414: The destruction of crops and places of cultural importance, the breakdown of economic infrastructure and of health-care facilities such as hospitals, etc., etc. Corruption plays a huge role in health care system starting from the hospital, to the government and lifted to the other institutions that promote quality and affordable health care to the people. The efficiency of health care delivery in any country

11004-447: The difference. A common type of embezzlement is that of personal use of entrusted government resources; for example, when an official assigns public employees to renovate his own house. A kickback is an official's share of misappropriated funds allocated from his or her organization to an organization involved in corrupt bidding . For example, suppose that a politician is in charge of choosing how to spend some public funds. He can give

11135-601: The diplomatic efforts to end the Syrian war will be ineffective. However, the EU nations, including France and Germany, turned down the idea of restoring ties with Syria , stating that it would legitimize the regime that is accused of massacring its own people. There is currently no regulation at all for lobbying activities in France. There is no regulated access to the French institutions and no register specific to France, but there

11266-415: The donated money was expended through " counterfeit drugs , siphoning off of drugs to the black market, and payments to ghost employees". Ultimately, there is a sufficient amount of money for health in developing countries, but local corruption denies the wider citizenry the resource they require. Corruption facilitates environmental destruction. While corrupt societies may have formal legislation to protect

11397-534: The ear of monarchs and their councilors. Since the 1980s, lobbying in Australia has grown from a small industry of a few hundred employees to a multi-billion dollar per year industry. What was once the preserve of big multinational companies and at a more local level (property developers, for example Urban Taskforce Australia ) has morphed into an industry that employs more than 10,000 people and represents every facet of human endeavour. Academic John Warhurst from

11528-511: The environment, it cannot be enforced if officials can easily be bribed. The same applies to social rights worker protection, unionization prevention, and child labor . Violation of these laws rights enables corrupt countries to gain illegitimate economic advantage in the international market. The Nobel Prize -winning economist Amartya Sen has observed that "there is no such thing as an apolitical food problem." While drought and other naturally occurring events may trigger famine conditions, it

11659-443: The evidence and keeps the public in doubt. Tactics also include gifts, grants, and contributions to worthy causes that cast these industries as respectable corporate citizens in the eyes of politicians and the public. They include arguments that place the responsibility for harm to health on individuals, and portray government actions as interference in personal liberties and free choice. This is formidable opposition. [...] When industry

11790-414: The executive board of a car manufacturer in exchange for employer-friendly positions and votes, etc. Examples are endless. These various manifestations of corruption can ultimately present a danger for public health; they can discredit specific, essential institutions or social relationships. Osipian summarized a 2008 "study of corruption perceptions among Russians ... .30 percent of the respondents marked

11921-556: The expected political value of their indirect lobbying efforts. This study provides evidence of market-based lobbying, in which companies strategically allocate their advertising budgets to gain political influence. It also highlights the additional conflict of interest that politicians with corporate holdings face and raises important questions about the role of money in politics beyond direct campaign contributions. Another relevant case of lobbying that has been going on for at least 16 years concerns owners of beach establishments. Beaches are

12052-473: The flow of profits from the gang's gambling dens, prostitution, and protection rackets undisturbed and safe. The United States accused Manuel Noriega 's government in Panama of being a " narcokleptocracy ", a corrupt government profiting on illegal drug trade . Later the U.S. invaded Panama and captured Noriega. Some research indicates that political corruption is contagious: the revelation of corruption in

12183-481: The government of Mario Draghi the deadline for all concessions was established for 31 December 2023: anyhow, the new Prime Minister Giorgia Meloni assured in a letter of November 3, 2022, that "their government would defend the families that work in that sector", and delayed the deadline of the concessions. Some politicians claim that the families involved in the issue represent a significant and influential number of electors. Finally, lobbying from taxi drivers represents

12314-448: The implication is that people with inordinate socioeconomic power are corrupting the law in order to serve their own interests. When people who have a duty to act on behalf of others, such as elected officials with a duty to serve their constituents' interests or more broadly the public good, can benefit by shaping the law to serve the interests of some private parties, a conflict of interest exists. Many critiques of lobbying point to

12445-692: The institution nonetheless acts immorally as a whole. The mafia state phenomenon is an example of institutional corruption. An illegal act by an officeholder constitutes political corruption only if the act is directly related to their official duties, is done under color of law or involves trading in influence . The activities that constitute illegal corruption differ depending on the country or jurisdiction. For instance, some political funding practices that are legal in one place may be illegal in another. In some cases, government officials have broad or ill-defined powers, which make it difficult to distinguish between legal and illegal actions. Worldwide, bribery alone

12576-446: The instruments. In the context of political corruption, a bribe may involve a payment given to a government official in exchange of his use of official powers. Bribery requires two participants: one to give the bribe, and one to take it. Either may initiate the corrupt offering; for example, a customs official may demand bribes to let through allowed (or disallowed) goods, or a smuggler might offer bribes to gain passage. In some countries

12707-487: The integral value of higher education enterprise. Corruption in higher education has a larger negative influence, it destroys the relation between personal effort and reward anticipation. Moreover, employees and students develop a belief that personal success does not come from hard work and merit but through canvassing with teachers and taking other shortcuts. Academic promotions in the higher education institutions have been disabled by unlimited corruption. Presently, promotion

12838-416: The late 20th century has been regulated by the government to increase transparency and establish a set of ethics for both lobbyists, and those who will be lobbied. Canada does not require disclosure of lobbyist spending on lobbying activities. The first step towards specialized regulation of lobbying in the European Union was a Written Question tabled by Alman Metten, in 1989. In 1991, Marc Galle, Chairman of

12969-409: The law. Pressure from various lobbies led to the deletion of several important provisions. For example, due to pressure from pharmacists, the sale of Band C drugs in supermarkets and parapharmacies was skipped. Other provisions removed include the portability of pension funds, the sale of boxes or garages worth less than one hundred thousand euros without a notarized deed, the protected energy market, and

13100-540: The legislature reduces accountability and distorts representation in policymaking; corruption in the judiciary compromises the rule of law ; and corruption in public administration results in the inefficient provision of services. For republics, it violates a basic principle of republicanism regarding the centrality of civic virtue. More generally, corruption erodes the institutional capacity of government if procedures are disregarded, resources are siphoned off, and public offices are bought and sold. Corruption undermines

13231-499: The level of corruption as very high, while another 44 percent as high. 19 percent considered it as average and only 1 percent as low. The most corrupt in people's minds are traffic police (33 percent), local authorities (28 percent), police (26 percent), healthcare (16 percent), and education (15 percent). 52 percent of the respondents had experiences of giving money or gifts to medical professionals while 36 percent made informal payments to educators." He claimed that this corruption lowered

13362-408: The lives of the poor. Corruption leads to violation of human rights and fundamental freedoms as people supposed to benefit from the basic health care from the governments are denied due to unscrupulous processes driven by greed. Therefore, for a country to keep citizens healthy there must be efficient systems and proper resources that can tame the evils like corruption that underpin it. Education forms

13493-583: The lobbying firm Bespoke Approach, along with former Labor minister Nick Bolkus and Ian Smith , who is married to former Australian Democrats leader, Natasha Stott-Despoja . Peter Costello carried two former staffers to work with him in his lobbying firm, ECG Consulting: Jonathan Epstein and David Gazard. Politicians can become exposed to allegations of conflicts of interest when they both lobby and advise governments. Examples include Peter Costello. Political party staff often form lobbying firms or dominate their ranks. Former Howard chief-of-staff Grahame Morris

13624-641: The lobbying industry in New Zealand, allowing politicians and Parliamentary staffers to immediately become lobbyists after leaving office. Kris Faafoi joined a lobbying firm just three months after leaving Parliament, where he had been justice and broadcasting minister. Lobbyists also move directly into staffer positions. Gordon-Jon Thompson took a leave of absence from his lobbying firm to work as chief of staff to Prime Minister Jacinda Ardern for four months before returning to his lobbying firm. Andrew Kirton resigned from his lobbying company on 31 January 2023 and

13755-530: The lobbying profession was an established part of the democratic political process in Canberra. Warhurst attests that by 2018, "political leader-lobbyists" were an established part of the same process. During the 1980s, political leaders traded on their own names, like Bob Hawke , or joined the "respectable" end of the lobbying spectrum, working for law firms or banks, like former New South Wales premiers Nick Greiner and Bob Carr . In 2008, Alexander Downer formed

13886-563: The lobbyist register is that it only captures professional third-party lobbyists, not employees of companies which directly lobby government. An example of this is BHP, which employs Geoff Walsh, a key advisor to Bob Hawke as an in-house lobbyist. In 2022, The Mercury published a complete list of lobbyists registered at the Tasmanian Parliament. The field was dominated by former politicians, advisers and journalists in 2016. In December 2022, Bahrain's lobbying efforts reflected in

14017-401: The management cost of negotiating with officials and the risk of breached agreements or detection. Although some claim corruption reduces costs by cutting bureaucracy , the availability of bribes can also induce officials to contrive new rules and delays. Openly removing costly and lengthy regulations are better than covertly allowing them to be bypassed by using bribes. Where corruption inflates

14148-679: The manipulation of assessments, targeting, registration and distributions to favor certain groups or individuals. In construction and shelter there are numerous opportunities for diversion and profit through substandard workmanship, kickbacks for contracts and favouritism in the provision of valuable shelter material. Thus while humanitarian aid agencies are usually most concerned about aid being diverted by including too many, recipients themselves are most concerned about exclusion. Access to aid may be limited to those with connections, to those who pay bribes or are forced to give sexual favors. Equally, those able to do so may manipulate statistics to inflate

14279-608: The many cases of Corruption in Ireland , such as the Irish Banking crisis , which found evidence of bribery , cronyism and collusion , where in some cases politicians who were coming to the end of their political careers would receive a senior management or committee position in a company they had dealings with. Electoral fraud is illegal interference with the process of an election . Acts of fraud affect vote counts to bring about an election result, whether by increasing

14410-421: The next day was announced as chief of staff for Prime Minister Chris Hipkins . Industry (economics) In macroeconomics , an industry is a branch of an economy that produces a closely related set of raw materials , goods , or services . For example, one might refer to the wood industry or to the insurance industry . When evaluating a single group or company , its dominant source of revenue

14541-422: The number of beneficiaries and siphon off additional assistance. Malnutrition, illness, wounds, torture, harassment of specific groups within the population, disappearances, extrajudicial executions and the forcible displacement of people are all found in many armed conflicts. Aside from their direct effects on the individuals concerned, the consequences of these tragedies for local systems must also be considered:

14672-414: The operation ways of a system. Furthermore, the universities may be in relationships and dealings with business and people in government, which majority of them enrol in doctoral studies without the undergraduate program. Consequently, money, power and related influence compromise education standards since they are fueling factors. A Student may finish thesis report within a shorter time upon which compromises

14803-427: The population has paid bribes during the past 12 months. The Council of Europe dissociates active and passive bribery and to incriminates them as separate offences: This dissociation aims to make the early steps (offering, promising, requesting an advantage) of a corrupt deal already an offence and, thus, to give a clear signal (from a criminal-policy point-of-view) that bribery is not acceptable. Furthermore, such

14934-400: The potential for conflicts of interest to lead to agent misdirection or the intentional failure of an agent with a duty to serve an employer, client, or constituent to perform those duties. The failure of government officials to serve the public interest as a consequence of lobbying by special interests who provide benefits to the official is an example of agent misdirection. That is why lobbying

15065-528: The practice of advocating or debating in such spaces. In a report carried by the BBC , an OED lexicographer has shown that "lobbying" finds its roots in the gathering of Members of Parliament and peers in the hallways ("lobbies") of the United Kingdom Houses of Parliament before and after parliamentary debates where members of the public can meet their representatives. One story held that

15196-423: The public. Ponzi schemes are an example of embezzlement. Some embezzlers "skim off the top" so that they continually acquire a small amount over a particular time interval. This method reduces the likelihood of being caught. On the other hand, some embezzlers steal a very large amount of goods or funds in a single instance and then disappear. Sometimes company managers underreport income to their supervisors and keep

15327-410: The quality of work delivered and questions the threshold of the higher education. Corruption is not specific to poor, developing, or transition countries. In western countries, cases of bribery and other forms of corruption in all possible fields exist: under-the-table payments made to reputed surgeons by patients attempting to be on top of the list of forthcoming surgeries, bribes paid by suppliers to

15458-488: The rate of economic growth in Russia, because the students disadvantaged by this corruption could not adopt better work methods as quickly, lowering thereby total factor productivity for Russia. Corruption can also affect the various components of sports activities (referees, players, medical and laboratory staff involved in anti-doping controls, members of national sport federation and international committees deciding about

15589-514: The recipient of the bribe, the undue advantage or the prospect thereof. Trading in influence, or influence peddling, refers to a person selling his/her influence over the decision-making process to benefit a third party (person or institution). The difference with bribery is that this is a tri-lateral relation. From a legal point of view, the role of the third party (who is the target of the influence) does not really matter although he/she can be an accessory in some instances. It can be difficult to make

15720-725: The regulation of lobbying were introduced at four international organizations and supranational associations: 1) the European Union; 2) the Council of Europe; 3) the Organization for Economic Cooperation and Development; 4) the Commonwealth of Independent States. In 2013, the director general of the World Health Organization , Margaret Chan , illustrated the methods used in lobbying against public health: Efforts to prevent noncommunicable diseases go against

15851-454: The revolving door) who possess inside knowledge of the EU institutions and policy process. This practice of hiring former EU employees is part of what lobbyist Andreas Geiger describes as lobbying's vital role in shaping law and decision-making processes, given the unique insights and access these individuals provide. A report by Transparency International EU published in January 2017 analysed

15982-559: The same ISIC category". However, a single business need not belong just to one industry, such as when a large business (often referred to as a conglomerate ) diversifies across separate industries. Other industry classification systems include the North American Industry Classification System (NAICS), which was developed through partnerships with North American countries such as the United States, Canada, and Mexico, in order to standardize

16113-488: The same industry to evaluate the attractiveness of that industry. Companies within the same industry can also have similar stock price movements due to their similarity and macroeconomic factors that affect all members of an industry. However, more complex cases, such as otherwise different processes yielding similar products, require an element of standardization and prevent any one schema from fitting all possible uses. Political corruption Political corruption

16244-546: The scope of lobbying, who could undertake it, or the extent of disclosure necessary. Companies are not mandated to disclose their activities and lobbyists are neither authorized nor encouraged to reveal the names of clients or public officials they have contacted. The distinction between lobbying and bribery still remains unclear. In 2012, Walmart revealed it had spent $ 25 million since 2008 on lobbying to "enhance market access for investment in India". This disclosure came weeks after

16375-541: The scope of the Transparency Register "-database of the EU. The European allies were being lobbied by the UAE and Saudi Arabia to regain the diplomatic ties with the Syrian government. The two Arab countries lobbied the European Union for months, pushing them to ease the sanctions on Syria for the revival of its collapsed economy. The UAE and its neighbour country argued that without the ease of sanctions,

16506-496: The technical complexity of public sector projects to conceal or pave the way for such dealings, thus further distorting investment. Corruption also lowers compliance with construction, environmental, or other regulations, reduces the quality of government services and infrastructure, and increases budgetary pressures on government. Economists argue that one of the factors behind the differing economic development in Africa and Asia

16637-544: The term originated at the Willard Hotel in Washington, D.C., where it was supposedly used by President Ulysses S. Grant to describe the political advocates who frequented the hotel's lobby to access Grant—who was often there in the evenings to enjoy a cigar and brandy—and then tried to buy the president drinks in an attempt to influence his political decisions. Although the term may have gained more widespread currency in Washington, D.C., by virtue of this practice during

16768-509: The top officials in the administration in order to effectively implement its policy. It can be seen as corruption if this means that incompetent persons, as a payment for supporting the regime, are selected before more able ones. In nondemocracies many government officials are often selected for loyalty rather than ability. They may be almost exclusively selected from a particular group (for example, Sunni Arabs in Saddam Hussein 's Iraq,

16899-427: The undermining of political values. Corruption as the decline of virtue has been criticized as too broad and far too subjective to be universalized. The second dimension of corruption is corruption as deviant behavior. Sociologist Christian Höffling and Economist J.J. Sentuira both characterized corruption as social illness; the latter defined corruption as the misuse of public power for one's profit. The third dimension

17030-421: The vote share of the favored candidate, depressing the vote share of the rival candidates, or both. Also called voter fraud , the mechanisms involved include illegal voter registration, intimidation at polls, voting computer hacking , and improper vote counting. Embezzlement is the theft of entrusted funds. It is political when it involves public money taken by a public official for use by anyone not specified by

17161-574: Was analyzed. It is hypothesized that some companies are more likely to advertise on Mediaset channels when Berlusconi is in power, indicating a potential correlation between advertising behavior and political influence. A model of the Italian television advertising market was developed, distinguishing between regulated firms (interested in government actions) and unregulated firms (less interested in specific public policy changes). The model predicts that advertising prices on Mediaset increase when Berlusconi

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