The Strategic Case for Stakeholder Relations Ahead of the 2026 Midterm Elections

To achieve their public policy objectives, the most sophisticated organizations will not only lobby Congress directly; they will engage in “stakeholder relations” to win the support of third-party groups that have significant influence with lawmakers. Lawmakers rely on these third-party groups to validate that the policies they are being asked to support are sound and that they resonate with the constituencies they care about. In a closely divided Congress, stakeholder relations can make the difference in achieving public policy outcomes.

What Is Stakeholder Relations?
Stakeholder relations is the strategic discipline of identifying, cultivating and sustaining relationships with individuals and groups that influence—or are influenced by—federal policy. These stakeholders include industry associations, nonprofit organizations, think tanks, unions and labor organizations, community and civil rights organizations, congressional member or staff organizations and other third-party partners that play a major role in shaping the federal policy environment.

Companies benefit from third-party stakeholder engagement when stakeholders with whom they are collaborating endorse or otherwise promote the policy positions of the company. In turn, the third-party stakeholders benefit by gaining a greater understanding of policy developments, getting the opportunity to share expertise on their industry or represented community, and, where appropriate, advocating on issues affecting the communities they serve.

For companies, stakeholder relations is more than a government affairs function. It is a strategic business capability that creates measurable value and complements traditional government affairs by enabling companies to anticipate policy developments, manage legislative and regulatory risks and strengthen credibility with policymakers.

Strategic Value of Engaging External Stakeholders
The benefits of a comprehensive stakeholder engagement strategy include:

Enhanced Policy Credibility
Policymakers increasingly seek evidence of broad stakeholder support when evaluating legislative and regulatory proposals. Partnerships with respected industry associations, nonprofit organizations, business coalitions and civil rights groups strengthen the credibility of an organization's policy priorities and demonstrate alignment with broader economic and public interests. Likewise, coordination on policy with think tanks provides further legitimacy to an organization’s legislative or regulatory objectives by demonstrating intellectual rigor.

Expanded Influence Through Coalition Building
Complex federal policy challenges rarely can be addressed by a single organization. Strategic partnerships and coalitions expand reach, amplify advocacy efforts by coordinating messaging, leveraging complementary relationships and presenting unified policy recommendations. Moreover, in some circumstances, coordinating with a third-party stakeholder group or coalition to take a front-facing role in advocating for a specific policy could resonate more effectively than if a perceived self-interested party, such as a company with profit motive, is viewed as leading the campaign.

Strengthened Strategic Intelligence
External stakeholders provide valuable insights into emerging policy trends, congressional priorities, regulatory developments and stakeholder concerns. Incorporating these perspectives enables companies to anticipate policy shifts, refine advocacy strategies and engage Congress with timely, informed recommendations.

Building Long-Term Strategic Relationships
Sustained engagement establishes trusted relationships that extend beyond individual election cycles. These networks create opportunities for long term advocacy initiatives and collaboration during periods of policy change and position organizations to respond effectively to emerging public policy issues.

Positioning for a Dynamic Federal Policy Environment
Changes in congressional leadership, committee chairs and party control can rapidly reshape legislative, oversight, funding and regulatory activity. As a result, stakeholder engagement must be a continuous strategic investment rather than a reactive government affairs activity.

Consequently, organizations should evaluate their third-party stakeholder engagement strategies in advance of elections to ensure they are situated to navigate evolving public policy priorities. The policy legacy of the Trump administration—including tax policy, trade, housing, energy, environmental regulation, healthcare, financial services, immigration and federal procurement—continues to shape congressional debate and agency decision-making. Depending on future election outcomes, policymakers may seek to preserve, expand, revise or reverse current policies, creating both opportunities and risks for companies and other organizations seeking to influence such policies.

In this environment, broad-based, enduring coalitions provide policymakers with diverse perspectives, strengthen the credibility of advocacy efforts and help companies navigate periods of political transition with greater agility.

Critical Relationships for Key Industries and Policy Issues
Certain third-party stakeholder groups are particularly influential with respect to policymaking activity affecting major industries. For example:

• In the financial services arena, Democratic lawmakers often look to civil rights organizations and chambers of commerce representing minority populations, as well as consumer groups and/or consumer-oriented think tanks that analyze and opine on financial services regulation and legislation.
• In the environmental and energy policy context, key third-party stakeholders include environmental nonprofits, grassroots advocacy organizations, major energy utility associations and energy or environmentally focused think tanks.
• In the health care space, trade associations for insurers, pharmaceutical companies, pharmacy benefit managers and hospitals often drive policy, while advocacy groups like patients rights’ organizations are often solicited for their views.

It is important to determine which third-party stakeholders carry the most influence and have a vested interest in a certain policy outcome, depending on the industry and policy at issue.

Best Stakeholder Engagement Practices
To remain competitive in an increasingly complex federal policy environment, companies’ best engagement practices should:

• Develop and maintain relationships with influential external stakeholders before legislative or regulatory issues become urgent.
• Build coalitions around shared policy objectives to amplify advocacy efforts and strengthen credibility with federal policymakers.
• Continuously assess the political and legislative landscape following congressional elections to identify emerging risks and opportunities.
• Align stakeholder engagement with enterprise strategy by integrating government affairs, public affairs, communications and business leadership to advance long-term corporate objectives.

A disciplined third-party stakeholder engagement strategy enables organizations to respond to policy changes and also to help shape them. Companies that invest in trusted relationships and strategic coalitions are better positioned to protect their interests, influence federal policy and create sustainable business value regardless of changes in the political landscape.