Please explain why the public sector is important:

Talk about market failures.

Talk about instruments governments use to solve these market failures.
The public sector affects the entire society; since regulations, taxes, permits, infrastructure,
standards and conditions of unemployment all affect decisions made in private markets. The
public sector is a large purchaser of goods and services from the private sector and has a
crucial role to play in determining real living standards.
There are some circumstances where markets may not provide all goods and services that
are desired or may do so in ways that have an adverse effect on the society. There are in
fact several kinds of market failures:
 Demerit goods: goods where consumption has negative effects on the society and
the individual who consumes them. (alcohol and tobacco)
 Externalities: for example, the damage to the environment caused by the fuel of a
car.
 Natural monopoly: some goods and services are characterized by declining marginal
costs. This happens mostly with networks such as telephones, electricity, gas and
water; once a network is established, adding a new subscriber would be at a lower
cost than a competitor who would face the sunk cost of establishing a rival network.
 Asymmetric information: this happens when there’s an imperfect information between
the buyer and the seller.
To solve these market failures, governments use mainly four instruments:
1. Provision: where the government provides goods and services through its budget,
which includes fund by taxes. For example, governments can provide roads, defence,
education, health.
2. Subsidies: where the government assists a company or organization in the private
sector to provide government-required goods. They can include subsidies to farmers,
industries, transportation companies, private schools.
3. Production: where governments produce goods and services for sale in the market.
Unlike the previous instruments, government production takes place outside the
government budget, and users are thus charged.
4. Regulations: where governments use their coercive power to allow or prohibit certain
activities in the private economy. Regulations can be either economic, aimed at
encouraging businesses to undertake or avoid certain activities, or social, aimed at
protecting the interests of citizens and consumers with regard to quality standards,
safety levels and pollution controls.

Please explain the modes of governance as suggested by Mayntz

There are five models of governance:
1. The government as a machine-model: the government is viewed as a machine
dominated by rules, regulations, and standards of all kinds. Each agency controls its
people and its activities, and the agency itself is controlled by the central state. This
model is efficient against corruption and the arbitrary use of political influence but
lacks in flexibility and responsiveness to individual initiative.
 2. The government as network-model: the government is viewed as one intertwined
system, a complex network of temporary relationships fashioned to work out
problems as they arise and linked by informal channels of communication.
3. The government as performance-control model: the government is viewed as a
business, which is assigned performance targets. This model reinforces the
hierarchical control, giving managers personal responsibility.
4. The virtual-government model: where the best government is no government and the
activities of agencies no longer exist within government, but in the private sector.
5. The normative-control model: this model is based on soul and has five key elements.
It has selection of people based on values and attitudes; an integrated social system;
guidance by accepted principles; all members share responsibility, and they feel
trusted and supported; performance is judged by experience.

Explain the difference between direct and indirect collaboration.

The cooperation of state and civil society in public policy making takes place in different
forms. In direct collaboration the government is actively present. This type of collaboration
can occur in the form of tripartite agreements, the institutionalized negotiation between the
state, organized business, and labour unions. These structures exist in several Western
European countries.
Other kinds of direct collaboration are mixed networks of public and private actors. In these
policy networks, the state and civil society are loosely coupled, and interaction within such
networks produces a consensus which facilitates of policies. Mixed networks are typically
found in strategic industries such as energy, defence, pharmaceuticals, biotech, agriculture,
finance, and telecommunicators.
Conversely, in indirect collaboration the government is in the shadow. The most common
form of indirect collaboration is the self-regulation, where private organizations undertake
and fulfil quasi-regulatory functions setting voluntary standards that are ultimately expected
to be in the public interest. One form of societal self-regulation are systems of negotiation
between the representatives of different interests. An example is the German system of
institutionalized wage bargaining between capital and labour, in which the government does
not participate and interfere.
A second type of self-regulation are private governments, which are private organizations
that impose norms and standards on their members that do not only serve their own, but
also certain public interests.
If self-regulation remains ineffective, the state can step in and regulate by direct intervention.

Please explain the business-government relations

Consider the Oxygen case study.
In relation to business, government can be fourfold:
1. Regulator: it happens when there are big size companies, and it consists of
understanding legal level and regulatory environment in which the company
operates. This is then translated into a strategic plan to prevent regulation, that can
be realized according to tripartite agreements, self-regulation, and lobbying.
2. Partner: it can be public private partnership or mixed networks. Public private sectors
cooperate to achieve a public good.
 3. Client/customer: public procurement (selling goods and services to the private
sector). It requires a longer time, and the entry level is very high, but governments
result in being a very safe client.
4. Provider of services.
Considering Oxygen, it is a small multinational that produces electric vehicles, precisely
scooters that are employed both by public and private sectors. It exemplifies the typical
business-government relationship; its relationship with government is multifaceted.

Please explain the different approaches to corporate social

responsibility.
There are four different approaches to corporate social responsibility, which differ in the
supposed beneficiaries of corporate action (shareholders vs stakeholders) and the
motivation behind these actions (instrumental vs moral).
1. Minimalist model: theorized by Friedman, the social responsibility of business is to
increase the wealth of its shareholder. Businesses will achieve optimal economic
performance by focusing on wealth creation. Any attempt to incorporate social goals
into core business activities will lead to inefficiencies.
2. Philanthropic model: although it is concerned primarily with the optimization of
shareholders’ wealth, it does recognize that individual managers, shareholders, and
companies can engage in various philanthropic activities. However, these activities
are not seen important to core business, but they are motivated by moral reasons.
3. Instrumental model: management is responsible to both shareholders and
stakeholders, thus managers must take into consideration the interests of these
groups when making decisions. However, the corporate behaviour is instrumental,
geared toward maximising benefits to this broader group.
4. Social activist model: it extends the boundaries of supposed beneficiaries toward
society at large. Corporation should act to enhance broader societal goals, and not
merely out of instrumental concerns but rather out of moral considerations.

Please explain some of the challenges that are faced with ESG.
Reference an example.
Acting in an environmentally responsible way is a legal duty. Every business is responsible
for complying with a range of environmental legislation to reduce the impact your business
has on the environment. Many businesses have realized that going beyond environmental
compliance makes good business sense and can help improve the long term success by
reducing energy consumption, minimizing waste, using raw materials more efficiently,
preventing pollution.

Using the Bach and Allen Framework, please explain lobbying using an
example (remember Uber case).
Lobbying is a legitimate exercise of a corporation’s right to petition the government for the
passage or defeat of a legislation, of other proposed government actions. Nowadays, most
of time companies lobby to have some beneficial regulations approved. Lobbying can be
performed by individuals or companies, and it can be done in-house or outside. Lobbying
can be direct or indirect.
Direct lobbying is having private meetings with key stakeholders and developing documents,
reports and analysis.
Indirect lobbying is accessing allies, gathering evidence, organizing constituents, working
with the media.
A useful toolbox for lobbying is the Bach and Allen framework. It is based on the analysis of:
 Issue: what is the issue? A company’s nonmarket environment is organized around
issues. A business should take a position if the issue’s resolution could affect the
company’s ability to create value. Considering the Uber case study, the issue was
the regulation of a sharing economy industry.
 Actors: who are the actors? Identifying the actors who care about the issue, those
with an economic or ideological stake in the issue. In the Uber case, the actors were
uber drivers and taxi drivers, but also the government, the unions, and the customers.
 Interests: what are the interests? What motivates the actors and what they hope to
achieve. In the Uber case, the interests were the safeguard of their investment and
wealth, job opportunity, market share/profits, protection of legitimate rights, mobility,
service accessibility.
 Arena: where do these actors meet? Nonmarket issues can play out in multiple
settings, from courtrooms and regulatory proceedings to parliamentary committee
and hearings and industry forums all the way to news media. In the Uber case, the
arenas were courts, streets, media.
 Information: what information will move the issue in this arena? Public opinion data
will be more effective in lobbying critical members of a congressional committee than
in a courtroom. In Uber case, information was based on pools, news, financial
information, facts.
 Assets: what assets do the actors need to prevail in this arena? A company’s
reputation and its perceived trustworthiness are essential if it wants to influence an
issue in the public domain. In Uber case, the assets were the number of supporters,
accessing individuals to influence voting, jobs, revenues, regulation.

Please explain what Public- Private Partnerships are making reference to

all the different types as well as the challenges.
A public-private partnership is a hybrid governance arrangement whereby private parties
participate in, resulting in a contract for a private entry do deliver public infrastructure-based
services. PPPs can take many different forms:
 BOOT (build own operate and transfer): it is the most common. Companies build,
own and operate the infrastructure, which is in the end transferred back to
government.
 BOO (build own operate): in this arrangement, the control and the ownership of the
projects remain in private hands.
 Leasing: any type of facility can be leased to the private sector, and it is given back
to the government.
 Joint venture: it takes place when the private and public sector jointly finance, own
and operate a facility.
The main characteristics of PPPs are:
  Participants: companies and governments are the two major participants. All parties
must take an organizational commitment to the partnership.
 Relationship: partnerships need to be enduring and relational. The usual year range
to refer the work as PPP is 15-30 years.
 Resourcing: each of the participants must bring something of value to the partnership.
Money and expertise are usually delivered by private companies. Governments have
the role to pay back the money private companies invested in.
 Sharing: PPPs involve a sharing of responsibility and risk for outcomes in a
collaborative framework.
The kinds of risks related to PPPs can be exchange risks, inflation, high interest rates,
political risk, force majeure, performance, input availability and buying price, output demand
and selling price.

What are regimes and what are their tasks?

International policy regime is a set of explicit principles, norms, rules, and decision-making
procedures around which actor expectations converge in a given area of international
relations. The presence of an international policy regime does not imply the existence of an
international organization, or vice versa. Regimes perform several tasks:
 Regulatory: it centres on the framing and promulgation of rules or behavioural
prescriptions whose purpose is to allow participating actors to reap joint gains or
avoid joint losses in situations characterised by interactive decision making.
Regulatory arrangements may feature prohibitions or requirements.
 Procedural: it provides mechanisms that allow actors to arrive at collective or social
choices regarding problems that arise in the issue areas covered by regimes.
 Programmatic: pooling resources to undertake projects that cannot be carried out
unilaterally. It involves setting up integrated monitoring and assessment programs
designed to broaden and deepen common knowledge about the problems the
regimes address.
 Generative: it centres on the development of new, distinctive social practices. This is
a matter of defining or shaping the discourse in terms of which problems are
discussed and, in the process, setting agendas for regime members to confront.

Please define NGOs referencing the main activities, managerial

challenges.
Make references to NGDOs and how they are different from NGOs.
NGOs are private authorities that pursue a public objective. They are technically in between
public and private organisations. Non-profit organisations cannot distribute profits among
their members; profits must be reinvested in the activity. They operate in so many contexts,
some are oriented primarily towards advocacy (Amnesty International), while others towards
advocacy operational work on the ground (MSF). Most NGOs are intermediaries in the
sense that they work between the grassroots or community level and other levels of society,
providing a range of support services that connect these different institutions with each other
and with groups that are poor or socially excluded. They deal with issues in the public
domain such as poverty, injustice, exclusion or degradation of the natural world. They do
not have statutory authority to act, their calling is voluntary and self-chosen. NGOs have a
particular set of challenges:
 Social change: NGOs see social change as the ultimate goal of their activities, a world
without poverty, violence, injustice and discrimination.
 Incentives: the staff of NGOs need to feel like they have a meaningful stake in the
mission and direction of the organisation. These are more important incentives to
performance rather than having a command-and-control management hierarchies or
incentives based solely on material rewards.
 Participation and empowerment: NGOs must pay even more explicit attention to
diversity, gender equity and other issues of difference, the empowerment of staff so
that they can live and work to their full potential.
 Accountability: NGOs must demonstrate accountability to a wide range of
stakeholders who may have different information needs, priorities for the
organisation, vision of success and definitions of legitimacy. The changing global
environment also challenges NGOs to develop ways of working that are more
concerned with building alliances, working with others, and dividing up roles and
responsibilities in a collaborative way.
 Funding sources: many of the management challenges faced by NGOs revolve
around fundraising and financial sustainability and how to preserve identity and
continuity in core programmes when income is difficult to predict. Also, in selecting
from fund-raising options, a critical challenge for managers is how to avoid funding
sources or modalities that lead to mission creep, compromise values and lead to co-
optation.
 Develop connections: to be effective, NGO campaigns need to build broad-based
constituencies for implementation as well as policy change among governments and
international agencies, so they must develop strong links with the media and with the
public, churches, labour unions and other NGOs.

What are the differences between public will campaigns and individual
behavior campaigns?
Use an example for each.
Differentiate between air and ground strategies.
Public communication campaigns use the media, messaging, and an organized set of
communication activities to generate specific outcomes in a large number of individuals and
in a specified period of time. They are an attempt to shape behaviour towards desirable
social outcomes. Usually, public campaigns coordinate media effort with a diverse mix of
other communication channels to extend the reach and frequency of the campaign’s
messages. This mix of communication channels is called the air and ground strategies. The
air strategy is the public media campaign, and the ground strategy uses community-based
communications or grassroots organizations. There are two types of public communications
campaigns:
 Public will campaign: it attempts to legitimize or raise the importance of a social
problem in the public eye as the motivation for policy action or change. It focuses less
on the individual and more on the public’s responsibility to do something that will
create the environment needed to support the behaviour change. Examples of these
 campaigns include support for quality child care, health care policy, environmental
policy.
 Individual behaviour change campaign: it is centred to change the behaviours of
individuals. Many individual behaviour change campaigns use a social marketing
approach, grounded in commercial marketing techniques. Campaigns in this
category target behaviours such as smoking, drug use, recycling, designated driving,
seat belt usage, or fire and crime prevention.

How should we conduct an NGO fundraising campaign?

Use examples.
We can start by clarifying what do we want from our organization and its causes in terms of
visibility, resources, and future actions in support of our organization. We can do some
research on what other campaigns of similar size have achieved and ask ourselves if we
have the resources to do better than those. Another question to ask ourselves is whether
people generally care about the issue our campaign wants to promote. The challenge is to
develop a unique, simple campaign that emphasizes the direct, positive impact that giving
will have on particular issue or population. The campaign goal should be communicated in
clear, simple language, be realistic and measurable. We should also be realistic about our
costs and ability to cover a high percentage of those costs through sponsorships and
donated services, and/or raise enough to cover those costs and generate a surplus to invest
in our cause.

Please explain corporate partnerships between private actors and NGOs.

Use examples.
Mention partner selection.
There are different was for companies to partner with NGOs:
 Underwriting sponsor: a company provides funding to cover administrative costs,
including salaries, materials, and event costs.
 Supporter: a company agrees to promote an employee-based campaign.
 In-kind: a company donates products or services to the NGO
There are two criteria to select partners:
1. Exclusionary criteria: it prevents the organization from accepting any form of support
from a company, foundation, or individual. These pertain to activities that present a
reputational risk for the organization and for which clear thresholds can be identified
and objectively measured.
2. Cautionary criteria: require a particularly careful assessment of the partner’s fit with
the organization’s mission. Corporate partners are screened on a one-by-one basis.