Story behind big organization with big spending on lobbying – Part 1

Corporate spending these days is more inclined toward lobbying than marketing and sales. Big companies like to spend on lobbying with government officials, and in some cases government organizations, for some kind of quid pro quo deal, where a future legislation or act would change the trend of business. This way the corporate entity, and sometimes entities, get a strategic edge of favouritism beforehand.

In a recent survey, conducted by a private auditing and research company, big companies with the likes of Google, Inc. and Facebook (soon to go public) have shelled huge sums of money in lobbying in Washington DC. Due to the fact that most of the e-business companies like Google, and the web servers that hold and compute the online data are US-based. Therefore, any change in the law on how to conduct the business directly affects the user base all over the world.

According to the research organization, Google and Facebook spend almost triple the amount on lobbying in the first quarter of 2012 than they did in the same period in 2011. Google rolled out around $5 Million toward the government entities and Facebook spent $650,000, though a small amount as compared to Google but almost half of the total 2011 spending.

The question that arises after watching these facts, is why these companies oust such big amounts? The answer is simple, lobbying for the strategic benefit in the future. To alter the ways the constitutional acts should work, getting some approved and getting some rejected all together.

Following are some of the acts that have recently been the altered one way or the other by corporate entities like Google and Facebook.

Cyber Intelligence Sharing and Protection Act or CISPA

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Posted by Usman Khalid on May 1 2012. Filed under Sci-Tech. You can follow any responses to this entry through the RSS 2.0. You can skip to the end and leave a response. Pinging is currently not allowed.