Knowing and understanding Public Policy is a critical element in running almost any business. Public Policies impact every part of a business, from how it’s set up to how it can operate, and understanding the interaction between any policy and your business can be the difference between success and failure.
What is Public Policy and Why Do I Care?
What is public policy? Well, in short, they are the laws and guidelines by which governments and political parties act. They are the rulebooks by which your political parties operate and if given the chance, the rulebook they will put into law for everyone to follow. Even if you don’t consider yourself or your business politically relevant, chances are that your business is regularly affected by public policy and can be dramatically impacted by changes to said policy.
Think of it this way: imagine you’re setting up a new part of your business, something that is new territory for you as an owner. What laws and regulations do you need to follow in order to keep your business in operation? These laws, of course, are the product of public policy, but while laws are often slow to change, policy can change rapidly on a number of issues and are hot topics around election periods as different prospective governments offer competing policies over the same issues. Consider how a fossil fuel company might need to keep track of policy proposals relating to energy and fuels, or companies that deal in sales to overseas customers must keep track of policy surrounding international trade. Keeping track of policy and proposed changes and being prepared for any eventuality can be critical to the long-term success of your business. A company that doesn’t keep track of such changes may not be prepared when suddenly new laws are in effect and may fall behind more observant competitors. But there is much more to public policy than simply keeping your company afloat.
International Policy and Globalisation
As globalisation continues to make our world more interconnected, understanding a single country’s policy is not always enough. Both domestic and international policies from other countries can affect modern businesses. For example, any company that requires importing raw materials whether directly or indirectly may need to keep an eye on policy surrounding global trade, especially if there is a push to make something critical to their company’s business model legal or illegal, or simply deprioritised somewhere along the way. For example, Sri Lanka used to be a major exporter of tea, but in 2022 when the government changed their policy on fertiliser – banning their use entirely – the cost to produce tea went up ten times and almost completely disappeared overnight. Even the smallest of companies can be dependent on international supply chains and the effect of other countries’ policies on those chains can completely reshape an industry, especially among companies that deal in specialised products.
Domestic Policy and Corporate Influence
For smaller businesses, keeping track of and adapting to public policy can be a key concern, and this may be all they need to deal with, but for larger businesses – especially major corporations and industry leaders – there is another factor they need to take into account. Consultation. Often when public policy is being decided, industry think tanks and industry leaders are consulted for their opinions and understanding and this can have a major impact on how policy is shaped going forward.
As much as a business owner may understand their own business and everything that directly impacts it, it’s often not possible for them to also understand every element of public policy, including how they are indirectly connected and what limitations or impacts may be imposed upon one policy by another policy. More importantly, the policy writers are often not experts in your company or the real needs of your industry at every level, resulting in decisions that may negatively affect the company or may create loopholes prone to exploitation by competitors. Such conflicts may have profound impacts on the future of any industry, and it requires specialised hands to mediate between the needs of the policy writers and the needs of companies and corporations.
The Solution for Smaller Companies and Corporations
For smaller companies, simply learning or advancing a personal understanding by business owners and key personnel can be all that is needed, but for large corporations, delegation is the key to success – in this instance, delegation to a specially hired individual trained with a diploma in public policy or higher. These individuals, trained in domestic policy, will have a significant advantage when reading and interpreting public policy, and the more invested and integrated they are in your business, the greater their ability to shape and influence public policy, nipping potentially disastrous changes before they have a chance to be written into law.
Of course, smaller companies can make use of this solution too – how better for an owner or key personnel to learn what they need to than via an accredited diploma? However, ultimately the key is in making sure you have someone whose specific job it is to monitor, translate and communicate all matters of public policy whether internally or externally for the best possible result.