BASIC BUSINESS REGULATIONS
The chapter examines the relationship between business and government and in particular the government’s role in influencing business decision making.
Government’s Role in Influencing Business
1. Prescribes the rules of the game for business.
2. Purchases business‟ products and services.
3. Uses it contracting power to get business to do things it wants.
4. Is a major promoter and subsidizer of business.
5. Is the owner of vast quantities of productive equipment and wealth.
6. Is an architect of economic growth.
7. Is a financier.
8. Is the protector of various interests in society against business exploitation.
9. Directly manages large areas of private business.
10. Is the repository of the social conscience and redistributes resources to meet social objectives
Roles of Government and Business
The chapter examines the relationship between business and government and in particular the government’s role in influencing business decision making.
Government’s Role in Influencing Business
1. Prescribes the rules of the game for business.
2. Purchases business‟ products and services.
3. Uses it contracting power to get business to do things it wants.
4. Is a major promoter and subsidizer of business.
5. Is the owner of vast quantities of productive equipment and wealth.
6. Is an architect of economic growth.
7. Is a financier.
8. Is the protector of various interests in society against business exploitation.
9. Directly manages large areas of private business.
10. Is the repository of the social conscience and redistributes resources to meet social objectives
Roles of Government and Business
- What should be the respective roles of business and government in our socioeconomic system?
- Given all of the tasks that must be accomplished to make our society work, which of these tasks should be handled by the government and which should be handled by business?
- How much autonomy are we willing to allow business?
Clash of Ethical Systems
Business Beliefs
- Maximizes concession to self-interest
- Minimizes the load of obligations society imposes on the individual (personal freedom)
- Emphasizes inequalities of individuals
Government Beliefs
- Subordinated individual goals and self-interest to group goals and group interests
- Maximized obligations assumed by the individual and discouraging self-interest
- Emphasized equality of individuals
Roles of Government and Business
- National Society
- Communal society
- Entitlements
- Quality of life