Smith's Lawrence Lesser Releases New Book on Business, Public Policy, and Society

The reactions of business and government to the terrorist attacks of 9.11 and recent corporate misbehavior serve as dual themes for the second edition of Business, Public Policy, and Society, just published by Thomson.

In response to these twin events, Lawrence M. Lesser, the book's author and LBPP faculty member, describes a new wave of regulatory activity that began with the enactment of two historic but controversial measures the USA Patriot Act in 2001 and the Sarbanes-Oxley Act in 2002. Both laws have global as well as domestic impacts.

The book discusses key provisions of the Patriot Act, which authorized new wiretapping and other powers so that law enforcement authorities can more effectively track the movement and finances of terrorist organizations and individuals. The book also describes how Sarbanes-Oxley increased government regulation of corporate financial reporting, made chief executive officers and chief financial officers of public companies personally responsible for the accuracy of their firms financial statements, and imposed criminal penalties for violations.

"Typically, most managers are concerned about the economic impact of government only when it directly affects their business or interferes with their ability to perform their job," Lesser explains. "But now a new paradigm is emerging that requires CEOs and managers not only to understand how governments function, but also how governments arrive at decisions that affect companies on a domestic and global basis."

The book's author speaks from personal experience. He served as a legislative director for members of the U. S. Senate and House of Representatives, as a staff member of the House Appropriations Committee, and as a spokesman for a federal regulatory agency. He also has experience as a lobbyist and executive director of a trade association he helped establish for major corporations.

At the Smith School, Lesser teaches BMGT 482 (Business and Government) and BMGT 496 (Business Ethics and Society). He was co-founder (along with Professor Emeritus Lee Preston) of the Smith School's former Washington Week Experiential Learning Module, which he ran with Professors Preston and Brian Shaffer for full-time MBA students from 1994 to 2002.

Continuing, he adds, "Increasingly, managers at all levels are being asked by their superiors to become involved in the public policy process and also to participate in campaigns and elections. Such participation is now the norm as well as a job requirement at many firms."

The book features global perspectives and current developments about the global economy as well. These include trade finance and regulation, offshoring and outsourcing, and a special focus on China and Russia.

"The Internet has dramatically altered the way we communicate and conduct business, as well as the concept of national borders," Lesser explains. "Although governments remain important, private enterprise has seized the initiative with regard to major decisions shaping the global economy." Nonetheless, he believes that governments "still will set the ground rules for international commerce through negotiations and trade agreements."

The book also devotes chapters to business ethics and social responsibility. The author explains: "During the 1990s, many came to admire and identify with business leaders as heroes, particularly information technology pioneers such as Microsoft's Bill Gates. But the view of the CEO as a role model became tarnished by the ethical, managerial and legal improprieties of some CEOs and their companies."

Continuing, he adds, "Recently, however, we have witnessed a fundamental shift in attitude by the private sector toward the role of business in society. This transformation can be seen in the renewed sense of volunteerism and the innovative strategic philanthropic activities of many individuals and businesses. The private sector response to Hurricane Katrina offers a good example."

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