What do carbon budgets, access to water, and supply chain labour conditions have in common?  They are all fast moving areas of public policy development, and according to a new report by Arthur D, Little, areas where businesses can create value by contributing to the public debate. Ahead of December's United Nations Climate Change Conference in Copenhagen, Arthur D. Little’s new report explains that as new channels open up for businesses to influence policy – locally, nationally, and globally – corporate engagement in the policy process is no easy feat.  Illustrated using case studies from clothing retailer Levi Strauss & Co. and health and hygiene products manufacturer Kimberly-Clark, the report likens sound corporate engagement to a balancing act: businesses need an approach that captures the opportunities associated with public policy engagement but also protects company integrity by working collaboratively and transparently. 
"Sustainability is now an inarguable element of any sound corporate strategy, and taking a proactive and strategic approach to engaging in the global policy debate will reduce corporate risk and generate new business opportunities,” reflects David Lyon, a Principal in Arthur D. Little's Global Sustainability & Risk Practice. “Companies are increasingly developing sophisticated approaches to policy engagement with a variety of societal stakeholders, but businesses must beware that for such activities to be successful, they must maintain the company’s integrity while also maximizing business value.”

According to Arthur D. Little’s report, businesses should follow a four-step approach to developing or reorganizing their sustainability related public policy engagement programs:

1. Prioritize policy areas – identify the issues of critical importance to your business and the associated policy developments
2. Map stakeholder landscape – don’t act alone; understand where your policy priorities overlap with key stakeholders (i.e. customers, partners, suppliers, regulators)
3. Map decision process and identify options – identify your businesses’ unique contribution to the policy development process, and whom you should work with to maximize influence and maintain integrity
4. Implement and review – choose a spokesperson, allocate resources, and develop criteria to measure and monitor your effectiveness

Optimizing Corporate Involvement in Public Policy is now available at
http://www.adlittle.com/publicpolicy