The Effectiveness of EUBusiness Associations

Also by Justin Greenwood

INSIDE THE EU BUSINESS ASSOCIATIONS

REPRESENTING INTERESTS IN THE EUROPEAN UNION

Edited with Hugh CompstonSOCIAL PARTNERSHIP IN THE EUROPEAN UNION

Edited with Henry]acekORGANISED INTERESTS AND THE NEW GLOBAL ORDER

Edited with Mark AspinwallCOLLECTIVE ACTION IN THE EUROPEAN UNION

EUROPEAN CASEBOOK ON BUSINESS ALLIANCES

Edited with ]urgen Grote and Karsten RonitORGANISED INTERESTS AND THE EUROPEAN COMMUNITY

The Effectiveness of EUBusiness Associations

Edited by

Justin Greenwood

S!J ERNST& YOUNG palgraveASSOCIATION MANAGEMENT macmillan

*Selection and front matter © Justin Greenwood 2002

Individual chapters (in order) © justin Greenwood andAlfons Westgeest; Robert j. Bennett; Fransvan Waarden;Daniel Gueguen: Wyn Grant; Maria Green Cowles;Rudolf Beger;Mark Boleat: jean-Marie Devos; Paul Bulteel;Oliver Blank; jan l- F. Timmerman; Christophe tecureulland Simon Ward; Irina Michalowitz; Alfons Westgeest andBruno Alves; Franz Traxler; Zygmunt Tyszkiewicz; Hans-WernerMUller; Bastiaan van Apeldoorn; William D. Coleman; justinGreenwood and Alfons Westgeest 2002

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The authors have asserted their rights to be identified asthe authors of this work in accordance with the Copyright, Designsand Patents Act 1988.

First published 2002 byPALGRAVEHoundmiUs, Basingstoke, Hampshire RG21 6XS and175 Fifth Avenue, New York, N. Y. 10010Companies and representatives throughout the world

PALGRAVE is the new global academic imprint ofSt. Martin's Press LLCScholarly and Reference Division andPalgrave Publishers Ltd (formerly Macmillan Press Ltd).

ISBN 978-1-349-42786-4 ISBN 978-0-230-62937-0 (eBook)DOI 10.1057/9780230629370

This book is printed on paper suitable for recycling and made from fullymanaged and sustained forest sources. Logging. pulping and manufacturingprocessesare expected to conform to the environmental regulations of thecountry of origin.

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Library of Congress Cataloging-in-Publication Data

The effectiveness of EU businessassociations / edited by Justin Greenwood.p. em.

"Ernst & Young Association Management"Paperspresented at a conference.Includes bibliographical references and index.

2001036523

1. Trade associations-European Union countrieS-Congresses. 2. Pressuregroups-European Union countries-Congresses. I. Greenwood, Justin.II. Ernst & Young Association Management.

HD2429.E87 E34 2001380.1'06'04-dc21

Contents

List of Tables and Figures

Acknowledgements

Abbreviations

Notes on the Contributors

1 Introduction: Conference Issues and ThemesJustin Greenwood and Alfons Westgeest

Part I Understanding the Environment

viii

ix

x

xiii

1

13

2 Factors Influencing the Effectiveness of BusinessAssociations: a Review 15RobertJ. Bennett

3 European State Formation and its Impact on AssociationalGovernance: Will Business Interest Association (BIA)Systems become Centralised at the EU Level? 30Frans van Waarden

4 Governance and the Role of Associations in EconomicManagement: a Response from an EU PublicAffairs Practitioner 46Daniel Gueguen

5 The Importance of Institutions to Associations:Evidence from the Cross-National Organisationof Business Interests Project 53Wyn Grant

6 Large Firms and the Transformation of EU BusinessAssociations: a Historical Perspective 64Maria Green Cowles

7 Challenges and Opportunities for Business Associations:Autonomy and Trust 79Rudolf Beger

v

vi Contents

8 The Changing Environment for Trade Associationsand Strategies for AdaptationMark Boleat

Part II Change Agents and Managing Change

85

99

9 The Impact of the CEFIC Reforms upon the AssociationalSector 101Jean-Marie Devos

10 The Case of EDRELECTRIC: the Impact of Deregulationupon ED Business Associations 109Paul Bulteel

11 The Impact of Changing Sectoral Definition uponAssociability: the Convergence of Business Interestsin the Information and CommunicationsTechnology Sector in Europe 115OliverBlank

12 The Impact of Sector Change upon ED Business Associations 122Jan J. F. Timmerman

13 New Models of Large Firm Collective Action 126Christophe Lecureuil and Simon Ward

14 ED Business Associations: Meeting the needs ofEurope's Service Sectors? 131Irina Michalowitz

15 Association Management Companies as Change Agents 143Alfons Westgeest and Bruno Alves

Part III Cross Sectoral and Employers Organisations 155

16 Employer vs. Product Market Associations: DifferentDynamics in Associational Governance?Franz Traxler

17 National Members and their ED AssociationsZygmunt Tyszkiewicz

18 How SMEs can Influence the Effectiveness ofEuropean BusinessHans-Werner Milller

157

171

182

19 The European Round Table of Industrialists: Still aUnique Player?Bastiaan van Apeldoorn

Part IV Conclusions

Contents vii

194

207

20 Globalisation and the Future of Associational Governance 209William D. Coleman

21 ConclusionsJustin Greenwood and Alfons Westgeest

Bibliography

Index

223

234

243

List of Tables and Figures

Tables

2.1 Percentage of membership for each type of associationfrom different size businesses 16

2.2 The percentage of associations of each main type offeringservices of each category 18

2.3 Main route for lobbying and representation in Europe 262.4 Percentage of a sector's members lobbying directly to

Brussels by type of association and its membership size 273.1 Phases of formulation and implementation of EU

regulations and directives, with their respective levelsof government 37

6.1 Development phases 659.1 CEFIC's main external contacts with public bodies/official

organisations 10310.1 Organisational trends in the European electricity industry

associations 1997-2000 11216.1 The problems of associational governance 15816.2 The relationship between associational governance

and interest categories 16020.1 Variations in supranational governance arrangements 21820.2 International policy environments, policy community

types, and the policy process: rank order of importance 220

Figures

2.1 Increase in predicted probability of using businessassociations for each additional staff member per 1000businesses in their sectors or areas 22

2.2 Increase in predicted probability of the type of impact ofbusiness associations for each additional staff memberper 1000 businesses in their sector or areas 23

10.1 Percentage electricity market opening bymember-state, 2000-2003 111

10.2 Member/Secretariat mix in the European Electricityindustry associations, 1997-2000 113

viii

Acknowledgements

The Editor would like to thank all the staff of Ernst & Young AssociationManagement (EYAM) who worked on the conference and this post­conference product, and in particular to Alfons Westgeest, WillsHughes-Wilson and Bruno Alves. Thanks, also, goes to Nicole Schulze,the conference administrator from The Robert Gordon University whoworked with the EYAM team on site in Brussels, and to Linda Strangwardfor her help in the preparing the manuscripts ready for the publisher.Finally, the Editor would like to thank the European Commission for pro­viding the funding for the conference (under Framework Programme V,High Level Scientific Conferences), and the event sponsors. Thesewere: Wirtschaftskammer Osterreich: the European Voice; Adamson­BSMG Worldwide; Shandwick International; the European Informationand Communication Technologies Association; the European PublicAffairs Directory; the European Information Service, and EuropeanCentre for Public Affairs Brussels; and EurActiv.com. Finally, thanks goto all the contributors of this volume.

The author and publishers are grateful to Frank Cass publishers forgranting permission to reproduce Table 2.3 from West European Politicsby R. Bennett, 1999 and to Blackwell Publishers for granting permissionto reproduce Table 2.4 from Political Studies by R. Bennett, 1999.

Every effort has been made to trace copyright holders but if any havebeen inadvertently overlooked, the publishers will be pleased to makethe necessary arrangements at the first opportunity.

ix

Abbreviations

ACCACEAACOMAFEGAFEMAMCAMCHAM-EU

AMUEASAEBDABDIBTWCBICEEP

CEFICCEOCETCOGECA

COPACOREPERDGEBAECOSOCECTEL

EECEEGEFPIA

EICTA

EITOEMRA

American Chemistry CouncilAssociation des Constructeurs Europeens d'AutomobilesConsultative Assembly of Member CompaniesConsultative Assembly of Affiliated GroupsConsultative Assembly of Member FederationsAssociation Management CompaniesThe EU Committee of the American Chamber of Com­merceAssociation for the Monetary Union of EuropeAmerican Society of Association ExecutivesBundesvereinigung der Deutschen ArbeitgeberverbandeBundesverband des Deutschen IndustrieBundersverband der Deutschen TourismuswirtschaftConfederation of British IndustryEuropean Centre of Enterprises with Public Participationand of Enterprises of General Economic InterestEuropean Chemical Industry CouncilChief Executive OfficerEuropean Ceramic Tile Manufacturers FederationGeneral Committee of Agricultural Cooperation of theEUCommittee of Agricultural Organisations in the EUCommittee of Permanent RepresentativesDirectorate GeneralEuropean Banking AssociationEconomic and Social CommitteeEuropean Telecommunications and Professional Elec­tronics IndustryEuropean Economic CommunityEuropean Enterprise GroupEuropean Federation of Pharmaceutical Industry Asso­ciationsEuropean Information and Communications Technol­ogy Industry AssociationEuropean Information Technology ObservatoryEuropean Modern Restaurant Association

x

ERTESFESNESPRITESRCETAGETNO

ETOAETUCETUIEUEURELECTRICEUROPIAEYAMFBEFDIGATSGBDGBDeGdPHOTRECIACAICCAICRTICTIGNISOITMLGMORINGOsNORMAPME

NTAOBIR&DRSPBSMEsTABDTECs

Abbreviations xi

European Round Table of IndustrialistsEuropean Services ForumEuropean Services NetworkEuropean Strategic Programme in Information TechnologyEconomic and Social Research CouncilEuropean Tourism Action GroupEuropean Public Telecommunications Network Opera­tors' AssociationEuropean Tour Operators AssociationEuropean Trade Union ConfederationEuropean Trade Union InstituteEuropean UnionUnion of the Electricity IndustryEuropean Petroleum Industry AssociationErnst & Young Association ManagementEuropean Banking FederationForeign Direct InvestmentGeneral Agreement on Trades and ServicesGlobal Business DialogueGlobal Business Dialogue on e-commerceGroup des PresidentsAssociation of Hotels, Restaurants and Cafes in EuropeInternational Air Carriers AssociationInternational Council of Chemical AssociationsInternational Communications Round TableInformation and Communications TechnologyIntergovernmental NegotiationsInternational Organisation for StandardisationInformation TechnologyMultilevel GovernanceMarket and Opinion Research InternationalNon Governmental OrganisationsEuropean Office of Crafts, Trades and Small- and Medium­sized Enterprises for StandardisationNew Transatlantic AgendaOrganisation of Business InterestsResearch and DevelopmentRoyal Society for the Protection of BirdsSmall- and Medium-Sized EnterprisesTransatlantic Business DialogueTraining and Enterprise Councils

xii Abbreviations

TNCsUEAMPE

UNICE

USUSAUSPUSSRVATWKOWTOWTOWTIC

Transnational CorporationsEuropean Association of Craft, Small- and Medium-SizedEnterprisesUnion of Industrial & Employers' Confederations ofEuropeUnited StatesUnited States of AmericaUnique Selling PointUnion of Soviet Socialist RepublicsValue Added TaxWirtschaftskammer OsterreichWorld Tourism OrganisationWorld Trade OrganisationWorld Travel and Tourism Council

Notes on the Contributors

Bruno Alves is a consultant with Ernst & Young Association Management.

Robert J. Bennett is Professor of Geography at the University ofCambridge.

Rudolf Beger is the former (founding) Executive Secretary of theEuropean Automobile Manufacturers Association, and has been an EUlobbyist for Exxon Chemical Europe, General Motors Europe andCitigroup.

Oliver Blank is the Director of EICTA - the Brussels-basedEuropean Infor­mation and Communications Technology Industry Association. With abackground of political science, he has worked for VDMA and EUROBITin the past, living in Germany, France, the UK, the US and China.

Mark Boleat is a consultant specialising in trade associations and thehandling of public policy issues. His previous positions include DirectorGeneral of the Association of British Insurers and the Council ofMortgage Lenders.

Paul Bulteel was appointed Secretary General of UNIPEDE and EURELEC­TRIC, in May 1997. The two organisations were merged in December1999 to form the Union of the Electricity Industry - EURELECTRIC.EURELECTRIC represents the European Electricity Industry at expert,strategic and policy-making level. He is the author of several publicationson environmental policies, the development of co-generation, andchallenges and opportunities for the Electricity Industry.

William D. Coleman is Professor of Political Science and Director of theInstitute on Globalisation and the Human Condition at McMaster Uni­versity. He continues to do research on the impact of globalisation onthe organisation of business interests.

Maria Green Cowles is an Assistant Professor at American Universityand co-editor of two books, Transforming Europe (Cornell, 2001) and TheState of the European Union (Oxford, 2001). She has written extensively

xiii

xiv Notes on the Contributors

on the political activities and impact of multinational corporations inEU policy-making, the Transatlantic Business Dialogue (TABD), and,more recently, on the Global Business Dialogue on e-commerce (GBDe).

Jean-Marie Devos is Executive Director and General Counsel of theEuropean Chemical Industry Council.

Wyn Grant is Professor of Politics at the University of Warwick and firstpublished on the subject of EU business associations in the early 1970s.

Justin Greenwood is Jean Monnet Professor of European Public Policyat the Robert Gordon University, Aberdeen. He is the author of anumber of titles on EU public affairs, including Representing Interests inthe European Union (Macmillan, 1997) and Inside the EUBusiness Associ­ations (Macmillan, 2002).

Daniel Gueguen is the Managing Director of the Brussels based CLANPublic Affairs. He founded the first European school of lobbying, haswritten several books of reference on European topics, including Apractical guide to the EUlabyrinth. He has served as chief executive officerof COPA-COGECA, the head organisation of the farmers associationsand agricultural cooperatives of the European Union, and one of thelargest lobbying groups in Europe.

Christophe Lecureuil is Director of Corporate and Regulatory Affairs forGPC International.

Irina Michalowitz is currently undertaking her Ph.D thesis on Euro­pean Lobbying Strategies with the European Doctoral College. She is afreelance lecturer at the Brussels-based United Business Institute, andhas worked for the public affairs department of Preussag AG, until theend of 2000.

Hans-Werner Muller has been the Secretary General of UEAPME sinceNovember 1992. He is also the President of NORMAPME and the Treas­urer of the Avignon Academy. Before he was a member of the GermanParliament (CDU) from 1976 to 1994 and between 1976 and 1979 also amember of the European Parliament.

Jan J. F. Timmerman is General Secretary of the European PetroleumIndustry Association.

Notes on the Contributors xv

Franz Traxler is Professor of Industrial Sociology at the University ofVienna. He has recently coauthored with S. Blaschke and B. KittelNational LabourRelations in Internationalized Markets (Oxford UniversityPress, 2001) which includes a comparative analysis of the activities,structures and performance of business associations in 20 OECD coun­tries.

Zygmunt Tyszkiewicz is currently President of the Swiss-based Lanck­oronski Foundation which finances educational and cultural projectsconnected with Poland, and from 1985 to 1998 was Secretary General ofUNICE, the main European business association based in Brussels.Before that he spent 28 years with Shell, working in Latin America,Africa and Europe.

Bastiaan van Apeldoorn is Lecturer in International Relations andEuropean Integration at the Free University of Amsterdam. He haspublished several articles on the role of transnational business inthe new Europe, and his book, Transnational Capitalism and EuropeanIntegration, is forthcoming (Routledge).

Frans van Waarden is Professor of Policy and Organisation at UtrechtUniversity, and currently fellow at the European University Institute inFlorence. He has published widely on business interest associations.

Simon Ward is Chairman of the European Modern Restaurant Associ­ation.

Alfons Westgeest is a partner of Ernst & Young Association Manage­ment in Brussels, leading an international team of over 20 professionalswho represent and manage a dozen EU and international businessassociations and interest groups. He serves on the Board of both theAmerican and the European Society of Association Executives.