The Value of Government and Public Affairs to Corporate America

https://www.mckinsey.com/business-functions/strategy-and-corporate-finance/our-insights/organizing-the-government-affairs-function-for-impact

The value at stake from government and regulatory intervention is huge. Companies that approach external engagement in a disciplined way capture more of it.
I wrote about this 10 years ago in my book: “Straight Up: The Business of Winning Politics” but this article does a nice job of quantifying the value of integrating government and public affairs into the broader business plan.

The business value at stake from government and regulatory intervention is huge: about 30 percent of earnings1 for companies in most industries, we estimate, and higher still in the banking sector, where the figure tops 50 percent.2 Translating those percentages into euros, dollars, or yen can yield eye-popping results: one European utility found that the ongoing value at stake from regulation was €1.5 billion, or about €30 million for every employee involved in handling the company’s regulatory affairs. Another large global company estimated that in a major acquisition, it was €500 million a year over a decade.

For more information:

Craig Casselberry

cc@quorumpublicaffairs.com

(512) 762-7366

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