THE POLICYMAKING PROCESS
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1 THE POLICYMAKING PROCESS Roles and Responsibilities of Committees, Committee Chairpersons, Staff, and the Board of Directors U.S. Chamber of Commerce
2 The Policymaking Process Roles and Responsibilities of Committees, Committee Chairpersons, Staff, and the Board of Directors U.S. Chamber of Commerce Contents Introduction...2 Roles and Responsibilities of Committees...4 Identification of Problems and Policy Recommendations Bylaws Criteria Policy Declarations Policy Analysis and Communication Nonpolicy Roles Committee Member Appointments...7 Appointment Criteria Membership Cross Section Geographic Balance Conflicting Interests Expertise Rotation Committee Size Committee Sources Roles and Responsibilities of. Committee Chairpersons...9 Roles of Staff...10 Issue Analysis and Policy Development Policy Implementation Committee Liaison Budgets Overlapping Committee Jurisdictions...12 Roles of the Board of Directors...13 Conclusion...15 About the U.S. Chamber of Commerce...16
3 Introduction The fundamental activity of the U.S. Chamber of Commerce is to develop and implement policy on major issues affecting business. Key to this effort is the work of committees, subcommittees, task forces, and councils involving more than 1,500 representatives of member corporations, organizations, and the academic community who serve voluntarily. In almost every instance, significant policy and public issue positions originate with one of these Chamber components. Two aspects of committee participation in the policy process stand out: First, as assemblies of experts in various subject areas, the committees lend credibility and acceptance to policy and public issue positions. Second, and perhaps more important, the committees are part of a process to ensure that policymaking is a democratic endeavor. Largely because of the committee system, the U.S. Chamber reflects the grassroots views of the entire business community when the organization testifies before Congress or regulatory agencies, disseminates reports or statements to the media, or sends comments or letters to Capitol Hill and to policymakers. U.S. Chamber membership, from which committee members are drawn, covers every segment of the economy and includes business organizations of every size in every part of the country. Members represent a broad scope of the nation s ideological and political spectrum. The Chamber, being responsible for representing such diverse interests, can operate effectively only through a sophisticated policymaking process, such as a well-developed committee system. The ability to develop policy positions through a democratic process not only permits the Chamber to arrive at a consensus on important issues, but it also gives the organization credibility and respectability that carries substantial weight in the nation s public policy arena. 2 The Policymaking Process
4 Introduction The integrity of the U.S. Chamber s policy process must be preserved. This responsibility is shared by staff, committee chairs, and each committee member. Everyone involved in the process must help develop positions that benefit the entire business community, rather than any given narrow interest. The Chamber makes every effort to accommodate all members who wish to be heard. The process must be open and above board. The ability to develop policy positions through a democratic process not only permits the Chamber to arrive at a consensus on important issues, but it also gives the organization credibility and respectability that carries substantial weight in the nation s public policy arena. Maintaining the integrity of the process is essential for both moral and practical reasons. Very few members resign from the U.S. Chamber because of policy disagreements. This record can be maintained if members know that their views receive a fair hearing and that the Chamber takes positions through a democratic process. U.S. Chamber of Commerce 3
5 Roles and Responsibilities of Committees Committees and individual committee members fill both policy and nonpolicy needs at the U.S. Chamber. As experts in specific fields, committee members are among the first to detect and foresee problems of concern to business and industry. In many instances, their experiences also lead to desirable solutions. Briefly, committees have three basic policy responsibilities: (1) identify current and emerging problems, (2) develop policies and positions on issues, and (3) provide support on policy analysis and communication efforts. Nonpolicy functions of the committees are less formal and less structured. However, as our economy becomes more complex, committees and their members will take on more nonpolicy responsibilities to help meet the needs of the Chamber s growth. Identification of Problems and. Policy Recommendations A major responsibility of U.S. Chamber committees is to identify problems, both current and emerging, affecting the nation s economy. With the help of staff, as well as with other resources, committee members analyze problems and identify policy solutions. These policies are then recommended to the board for approval. Bylaws Criteria The U.S. Chamber does not take a position or adopt a policy on every problem that requires public attention. Some problems are just too narrow in scope for a broad-based organization to address. In their deliberations, committees are expected to eliminate such items from consideration. This direction is stated expressly in the U.S. Chamber s bylaws: All proposals to be considered and acted upon by the Chamber shall be timely in importance, general in application and of broad significance to business and industry. (Article VII, Section 1) 4 The Policymaking Process
6 Roles and Responsibilities of Committees To this end, the U.S. Chamber should adhere to three principles: (1) It should not assume the role of a special pleader on behalf of a particular industry or geographic area by taking a stand on an issue of concern only to that industry or area unless the issue has implications for business in general. (2) It should avoid intervention in narrow issues of an intra-industry nature, such as matters that concern only a particular segment within an industry. (3) It should not take a position on such matters as prices, rates, or charges for particular commodities or products or services of an industry, or on specific tariff rates or quotas applicable to any imported product or commodity, unless the price or availability of that product or commodity is of concern to business in general. Policy Declarations Over the years, the Chamber board has approved policies on a wide range of issues. These are contained in a document titled Policy Declarations. These policies guide committees and staff in suggesting positions on specific issues. When committees recommend positions based on existing policy in the Policy Declarations, such positions are sent to the board as interpretations of existing policy. A simple majority of the directors voting is required to approve the position. Most committee recommendations to the board are policy interpretations. Committees are also responsible for reviewing the Policy Declarations on a continuing basis and for recommending changes that will keep the policies timely. Any changes, deletions, or additions to the Policy Declarations require a vote of a majority of the board. The board can take any of several actions once it receives a committee recommendation. It can approve, reject, amend, table, or refer back to committee. U.S. Chamber of Commerce 5
7 Roles and Responsibilities of Committees Policy Analysis and Communication U.S. Chamber committees help develop issue analyses, provide specialized data, and offer voluntary professional assistance. Frequently, the Chamber looks to individual committee members to serve as spokespersons to testify before congressional committees and regulatory agencies. On other occasions, the Chamber asks individual members to accept invitations to present the Chamber s positions on specific issues. Policy is not confined to legislative and administrative arenas. It also entails judicial pursuits. To that end, committees can help the National Chamber Litigation Center, the Chamber s public policy law firm, identify cases sufficiently significant for involvement and generate financial support for such cases. Nonpolicy Roles In addition to policy development and issue analysis, U.S. Chamber committees assume other roles. Individual members, for instance, can promote the value of the U.S. Chamber in their own organizations as well as in others, thus contributing to the Chamber s growth. Each year, more than 1,500 people serve on Chamber committees. Sometimes, the only contact a company has with the Chamber is through its representative on a committee. Corporate officers often look to these people for advice when membership representatives request dues renewals or increases in dues. Committee members also help generate membership support for specific U.S. Chamber programs and affiliate organizations including the Business Civic Leadership Center, Center for Capital Markets Competitiveness, Global Intellectual Property Center, Institute for a Competitive Workforce, Institute for 21st Century Energy, Institute for Legal Reform, National Chamber Foundation, and National Chamber Litigation Center. 6 The Policymaking Process
8 Committee Member Appointments Under the U.S. Chamber s bylaws, responsibility for establishing committees and appointing members is assigned to the chair of the board of directors, with specific instructions that committees should be diversified and balanced. This is to prevent a single company or business interest from dominating the makeup of a particular committee or subject area. In addition to the board chair, other people play significant roles in the committee selection process, especially U.S. Chamber staff who are able to observe committee needs and prospects on a daily basis. One of the first functions of the board chair after assuming office is to review with staff the committees needs for the year ahead. Appointment Criteria When appointing people to committees, a leading concern is balance. The goal is to reflect all facets of members opinions in committee deliberations. Experience gathered over the years has enabled the U.S. Chamber to develop criteria for committee appointments to ensure that outcome. Membership Cross Section The committee s structure must represent a legitimate cross section of the membership, which includes various segments of the economy as well as companies of different sizes. In addition, there is value in having representation from organization members (i.e., local and state chambers of commerce and trade and professional associations). Geographic Balance Outlooks vary from one section of the country to another, and a broad base is needed to give each a voice in Chamber activities. Conflicting Interests To the extent possible, committees should include members with conflicting interests and points of view. For example, the Environment and Energy Committee needs to represent both energy users and producers. U.S. Chamber of Commerce 7
9 Committee Member Appointments Expertise An individual s expertise in a particular area is usually the first thing to attract the Chamber s attention. Until the expertise factor is satisfied, other appointment criteria, in most cases, are not considered. Each committee typically has some generalists who can relate specific issues in a broader political and social context. This role is often filled by chamber and association executives. When expert points of view are not available from the business community, the Chamber meets this need by appointing nonmember academics or other specialists to the committees. Rotation Part of the appointment task involves rotating people off committees to allow as many U.S. Chamber members as possible to participate in the process. Some people serve on committees for a lengthy period of time because they bring expertise difficult to find. In other instances, people are rotated off a committee within a few years due to lack of participation. Committee Size A committee has to be large enough to ensure a proper cross section and balance of interests and adequate attendance for effective discussion. Committees are working groups and deliberative bodies. They must be held to manageable dimensions. The average size of each U.S. Chamber committee is 85 people. Committee Sources Candidates for committee service come from a variety of sources. Staff specialists necessarily and routinely know or can recommend people who can make contributions. The U.S. Chamber s regional office staff and membership staff as well as committee chairs and board directors can also suggest names. Each year, many member companies request service on particular committees. 8 The Policymaking Process
10 Roles and Responsibilities of Committee Chairpersons The board chair names the chairperson of each committee. The committee chair is usually a member of the board, which helps provide a closer working relationship between the board and the committees. The board has direct liaison with each committee, and the committees have their own spokespersons or representatives in the boardroom. The Chamber looks to committee chairpersons for guidance in determining programs of work. This involves chairpersons, committee members, and staff. Committee chairs, in consultation with staff, decide on the dates, locations, and agendas for meetings. Because of the openness of the U.S. Chamber s policymaking process, every effort is made to include on the agendas topics requested by U.S. Chamber members, whether or not The Chamber looks to the committee chairpersons for guidance in determining programs of work. This involves chairpersons, committee members, and staff. Committee chairs, in consultation with staff, decide on the dates, locations, and agendas for committee meetings. they serve on committees, provided that the topics fall within the mandate prescribed in the bylaws. Chairpersons are also responsible for presiding at committee meetings and for seeking staff help as needed. In addition, committee chairs are responsible for appointing subcommittees and subcommittee chairs and for establishing attendance rules, in consultation with staff. They are also responsible for presenting their committees recommendations to the board convincingly regardless of their own personal or corporate views. U.S. Chamber of Commerce 9
11 Roles of Staff U.S. Chamber staff who work with policy development committees are referred to as committee executives, a term suggesting administrative functions and expertise in a specialized field. The Chamber looks to them for day-to-day attention to public issues. Issue Analysis and Policy Development Chamber staff provide analyses and policy options for committee consideration, and they are in a position to know whether outside experts may be needed to evaluate a problem more fully. They are also expected to identify conflicting interests on issues within the U.S. Chamber membership. Policy Implementation Once the U.S. Chamber board has taken a position on an issue, the Chamber depends on staff to help plan strategies for accomplishing the desired objectives. Generally, staff also write remarks and prepare statements for U.S. Chamber witnesses testifying before congressional committees and accompany the witnesses to hearings. A functioning committee is more than a meeting or two each year. It has continuity, and staff keep members informed about issue developments between meetings. When necessary, staff deliver the testimony themselves, although the U.S. Chamber prefers using members as witnesses. Staff also provide the substance for materials distributed to the U.S. Chamber s grassroots network across the country as well as to the Chamber s communication outlets. Committee Liaison A functioning committee is more than a meeting or two each year. It has continuity, and staff keep members informed about issue developments between meetings. Periodic updates and reports on hearings or other actions by the administration and Congress are used by committee executives to keep members current. 10 The Policymaking Process
12 Roles of Staff Budgets Committee expenses are managed as part of the budgets of the U.S. Chamber s policy divisions. Each year, senior-level staff carefully prepare and review the budgets before submitting them to the U.S. Chamber s Budget Committee and board. To the extent possible, all routine committee expenses are anticipated, and scrupulous efforts are made to operate within the allotted figures. An individual chair may have a special situation that requires additional funding. In such cases, the chair should discuss the situation in advance with Chamber management. For example, a chairperson may conclude during the year that it would be useful to invite a nationally known expert to address a particular committee. If that expert requires a substantial honorarium not accounted for in the budget, it should be discussed before contacting the speaker. Committee members often make special contributions for unbudgeted expenditures. U.S. Chamber of Commerce 11
13 Overlapping Committee Jurisdictions Occasionally, the U.S. Chamber deals with issues where two or more committees have an interest on the same topic. It is the responsibility of staff to coordinate issues of interest to more than one committee. Once an overlap has been identified and called to the attention of the appropriate committee chairs, the chairs share responsibility with staff for effectively managing the Chamber s policy development on the issue. The board is rarely faced with a serious jurisdictional dispute or with a situation where the U.S. Chamber cannot take a position because of such a dispute. Structured reviews help safeguard against jurisdictional problems. These include: Clearance of all reports to the board by the executive vice president for government affairs and by the chief legal officer and general counsel. Review and approval of draft statements by a testimony team representing staff from various parts of the Chamber. 12 The Policymaking Process
14 Roles of the Board of Directors The final decision on policy positions is the responsibility of the board of directors. The Chamber s board consists of up to 150 people selected by a Nominating Committee, the only Chamber committee elected by the board. The board s membership reflects the diversity of the U.S. Chamber itself. Efforts are made to represent as many sectors of the economy as possible, along with companies of various sizes from all geographic regions. A few seats on the board are reserved for professional local or state chamber of commerce executives and trade or professional association executives. Nearly all policy recommendations come to the board through committee chairpersons. Open and full discussion and debate are encouraged. The board s membership reflects the diversity of the U.S. Chamber itself. Efforts are made to represent as many sectors of the economy as possible, along with companies of various sizes from all geographic regions. A vote representing a majority of the board is necessary for the approval of new policy or for change or termination of existing policy. A majority of those voting is required for recommendations involving interpretations of existing policy. The board is scheduled to meet three times annually, in late February or early March, June, and November. The June meeting pays tribute to the outgoing board chair and welcomes the incoming chair. The chair s term is for one year. Like a representative assembly, the board can approve, reject, amend, table, or refer back to committee when it receives a recommendation from any given committee. U.S. Chamber of Commerce 13
15 Roles of the Board of Directors Once a decision is made by the board, it is binding until changed. Staff then become committed to implementing these decisions. If a matter requires policy direction between board meetings, the Executive Committee of the board can act on the board s behalf. The Executive Committee also reviews conflicting policy recommendations from two or more committees and advises the board on such matters. The Executive Committee includes the officers of the board, along with former board chairs still serving on the board. Its decisions are binding. 14 The Policymaking Process
16 Conclusion It is critical that everyone who plays a role in the U.S. Chamber s policymaking process assumes responsibility for maintaining the integrity of that process. Staff, together with committee chairs, committee members, and the board, are responsible for ensuring that policy decisions are arrived at through democratic procedures. The integrity of the process is what makes the U.S. Chamber strong. Its credibility rests on the knowledge that positions reflect a majority consensus of its membership. To abridge the process would, in time, destroy the organization s credibility and, therefore, its strength. Over many years, the U.S. Chamber s policymaking process has contributed to its growth and effectiveness on national public policy issues. It is critical that everyone who plays a role in the U.S. Chamber s policymaking process assumes responsibility for maintaining the integrity of that process. U.S. Chamber of Commerce 15
17 About the U.S. Chamber of Commerce The U.S. Chamber of Commerce was founded on April 22, 1912, at the suggestion of President William Howard Taft to develop a strong link between business and government. Today, the U.S. Chamber is the world s largest business federation representing the interests of more than 3 million businesses of all sizes, sectors, and regions, as well as state and local chambers and industry associations. More than 96% of the Chamber s members are small businesses with 100 employees or fewer, and many of the nation s largest companies are active members. Chamber headquarters is located directly across Lafayette Park from the White House, with additional facilities on Capitol Hill and in Arlington, Virginia. The organization maintains a professional staff of more than 500 policy experts, lobbyists, lawyers, and communicators. The Chamber has seven regional offices around the country, an on-the-ground presence in key global capitals, and a network of state, local, and international grassroots business activists. The Chamber s core mission is to fight for business and free enterprise before Congress, the White House, regulatory agencies, the courts, the court of public opinion, and governments around the world. 16 The Policymaking Process
18 U.S. Chamber of Commerce 1615 H Street, NW Washington, DC
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