Rethinking how to engage with government

Future-fit boards need to rethink how they interact with government and regulatory bodies, says board adviser and strategist Taleen Shamlian GAICD.

The scale and pace of economic reforms has fallen since the 1980s. Yet a majority Labor government and favourable Senate opens the door to pursue bold reforms. The community is supportive — 81 per cent of voters want the government to tackle complex reforms, according to a JWS Research survey. This term will focus on “productivity without forgetting inflation” and have the Productivity Commission prioritise Australia’s dynamic growth, skilled workforces, clean energy and digital capacity.

From major corporations to charities to small businesses, every organisation is influenced, directly or indirectly, by government decisions. Government policies can change the playing field through regulation, funding models, litigation, threats to divestiture or oversight.

This influence is not lost on boards. Directors are dissatisfied with federal government on micro and macro policy settings, according to the AICD’s Director Sentiment Index. Two-thirds of directors expect compliance requirements to rise in the next 12 months. Regulation remains a significant pain point, with 70 per cent of directors calling for a deregulation agenda.

Yet the dynamics between business and government need to deepen and strengthen as we face this new world order. Effective government relations is no longer a peripheral function — future-fit boards require government and regulatory engagement as one of the top 10 skills, capabilities and experiences, according to a joint  Deloitte and 30% Club survey.

Catherine Livingstone AC FAICDLife left each director with a powerful challenge at the 2024 Australian Governance Summit. “Are we, is our board, is our sector, alert to the responsibility to engage with policymakers, both elected and public servants, to ensure informed, systems-based policy design in the national interest?”

Boards can prepare to engage effectively with government in several ways:

1. Understand the new policy agenda

This involves having your “finger on the pulse” of the government’s policies and aligning objectives and language, where appropriate, with national goals such as productivity. This ensures engagement efforts are aligned with political realities.

Directors should recognise that government operates on political cycles, not business calendars. While the return on investment may not be like other profitable business lines, persistence matters. Directors need to play the long game and raise their policy acumen.

2. Risk management scenario planning

Engaging with a new federal government requires careful risk management. Boards should consider the implications by:

• Updating risk registers to reflect the new political and policy landscape
• Scenario planning and assessing exposure where policy changes create financial risks
• Ensuring board conversations continuously discuss policy risks

Organisations that delay engagement often scramble to comply with rules they had no opportunity to shape. This reactive approach increases the risk of regulatory penalties, operational disruption and reputational damage. Proactive engagement ensures an organisation is informed, prepared and able to influence policy settings before they are finalised.

3. Safeguard organisational reputation

In a hyper-connected environment, reputation can rapidly shift from asset to liability. Government and regulatory bodies are often responsive to public opinion, especially in sectors perceived to  have prioritised shareholder over stakeholder interests. CEOs are regularly called to parliamentary inquiries to explain major operational issues (Qantas, Optus, Rio Tinto) where community or customers are aggrieved.

Boards must treat reputation as a core governance issue that maps out and integrates stakeholder voices, including employees, customers and suppliers. The Qantas Governance Review underscored the importance of establishing a consistent cadence for information flows about stakeholders and for the board to engage directly with stakeholders.

Ensuring the company’s crisis communication and contingency plans are reviewed is also critical to be certain your organisation has direct access to key decision-makers.

4. Build strategic relationships

While day-to-day lobbying is usually handled by management through government relations teams, the board plays an important oversight and strategic role. Boards may wish to engage with a select number of key ministers, regulators or senior public officials to reinforce industry perspectives.

Crucially, boards set the tone. A culture that values constructive, non-adversarial relationships with government signals stability, credibility and mutual respect. Directors must ensure the organisation builds long-term, trust-based relationships with policymakers, not just transactional ones.

5. Bring bold ideas to the policy table

There will be opportunities for business leaders to bring systems-based policy ideas to the table. Aside from a projected Parliament House business “roundtable” on productivity, and the Productivity Commission review, the federal government will also consider a range of matters, including deregulatory initiatives and smarter ways for government services.

But unlike the significant economic reforms of the 1980s–90s, governments are fiscally challenged and will look to business leaders to bring pragmatic, evidence-based solutions to the table. The most compelling ideas are those that resonate with public sentiment, align with political priorities and are backed by credible evidence.

6. Partner with industry bodies

For resource-constrained boards — such as small or family businesses and NFPs — direct engagement may be impractical. In such cases, directors can work through industry associations, business councils or chambers of commerce, think tanks or collective platforms. These channels amplify voices and provide coordinated advocacy. Organisations including the AICD, ACCI, COSBOA, ACOSS and other sector-specific groups offer access to decision-makers and policy briefings.

This article first appeared under the headline 'Engaging with government' in the July 2025 issue of Company Director magazine.