Business Government Regulation, Essay Example

Alfred (2013) points out that clash of emphases partially forms the crux of the antagonistic relationship that has evolved between business and government over the years. The clash is clearly revealed when business beliefs and government beliefs are looked into. The business beliefs are based on individualistic ethics while government beliefs are based on collective ethics. Business beliefs exercise maximum grant to self-interest while government beliefs in subordination of individual goals and self-interest to a large counterparts and counterparts interests. Business beliefs in minimizing the load of obligations society imposes on the individual, they majorly value personal freedom while the government maximizes the obligations assumed by individual and discouraging self-interest. Business beliefs emphasize inequalities of individuals while government factor equality of individuals.

Individualistic ethics of business and collectivistic ethic of government is the one I would identify. Looking into the systems of belief will enable one understand why the business or government relationship is adversarial in nature. Most business students will identify business belief system. They view government agencies as stumbling blocks, constraints, delayers, and pushing backward economic progress that have much power to terminate and little to begin.

Reasons why the public is treated as a separate group in the interactions

The public is viewed as a separate group in the association among business, government and public because the public is known to have its own unique methods of influence. The government does not represent the public interests. The public interests should be manifested through the political processes of voting and choosing officials. They also take part in formation of special interest groups, for example, farmers, senior citizens, and manufacturers. The government uses politicking public policy formation and various political influences to portray impact on the public.

Need for government to regulate

Alfred (2013) defined regulation as the act of governing, directing, recording to rule, or bringing under the control of law or constituted authority. The governments see a need to regulate since it is the only way of controlling natural monopolies. It is the way of controlling negative externalities and achieving social goals.

There are two types of regulations. Economic and social regulation, economic and social regulation differ in that economic regulation focus on market conditions and economic variables such as entry, exit, prices, services while social regulations focus on people in their roles as employees, consumers and citizens. In economic regulation industries affected are the selected ones, for example, railways, roads, aeronautics while social regulation it is almost all industries. Consumer product safety commission is the major social regulations body that protecting consumers. Their major objective is to protect public against unreasonable risks of injury associated with consumer products. Another important social regulation body is the civil rights act of 1964. This aid in creating equal employment opportunity, in my opinion there is no social regulation that ought to be eliminated since all of them are of significance.

Benefits and costs of government regulation

Some of the benefits of government regulation are the ability of businesses to treat employees more fairly and provide them with safer working environments. Consumers are able to enjoy the safety of products, clean air, clean water and generally conducive environment. Though it is hard to measure neither the benefits nor costs, I think in my own view that the benefits of government regulation outweigh the costs. It may be affected since corporate funds must be used for regulatory compliance purposes hence funds are diverted from more productive uses.

Trades-offs between privatization and federalization

The trade-offs between privatization and federalization is giving private sectors the mandate to providing or taking care of some functions or services that were previously handled by some government body. Here the state continues to own the assets but gives private companies the chance to manage them in a way that produces the most value.

Privatization is more appropriate when the government is realized to hold businesses in which it has no real combative advantage and no key reason for being involved. Federalization is of significant where the activities cannot be safely or effectively handled by the private sector.

The problem foreseen is that privatization may end up being one of the many casualties of global economic recession (Alfred, 2013)

Different levels at which lobbying takes place

Lobbying is an act of influencing public officials, encouraging or maintaining the attainment or withdrawal of legislation. Lobbying takes place at different organization levels that comprise of umbrella organization which represents the collective business interests of a country for example (the United States) and Trade association level comprise of many firms in a given line of business.

Umbrella organization faces various challenges; lack of unity among members may arise because it encompasses collective businesses. Such difference makes it difficult for mutual agreement to be reached. In this case each individual or organization has different opinions and view.

Major arguments in favor of PACs

PAC refers to principle tool through which business uses financial resources to influence government. They are termed as one counterpart of lobbying. PACs are seen as reasonable means through which business, labor and other interest groups can organize their giving.PAC has faced major critics. They are known to expect something in return especially when they give money. Alfred (2013) argues that we may reach a point where if everybody is buying something with PAC money we cannot get anything done.

In my opinion PACs are not good way for business to influence the public policy process. The stated change should be enacted. The issues should be less visible, full concern should be put during the early stages of the legislative process.

Bipartisan campaign reforms act and its likely effect on future elections

Bipartisan campaign reform act represents the most influential change of the US campaign finance system in quarter century. Its goal was to do away with influence of soft money on candidates running for national office. Likely effect on future elections is that the set groups might be less accountable than political parties were prior to the laws inception.

Bundling is one of the campaigns financing reform that I would recommend. This entails the collection of individual donations that are then delivered to the candidate in lump sum.

Efforts by companies to circumvent governmental regulations

Companies are putting their efforts to circumvent government regulations. In that, they develop strategies for coping with rapidly changing social and political environment so as to be able to secure positions that are advantageous in a given regulation. The use of legal loop-holes is ethical since it helps to define the public issues.

Supremes’ Court decision on campaign financing

Supreme Court announced landmark decision on campaign financing. The court pointed out that corporation has the same first amendment free speech rights as individuals. It has reversed a century of law to open the flood gates for special interests. It has led to spending without limit in elections. I agree with the decision and I would not change it if I could because through it, corporate power is not inherently corrupting and the ruling rightfully opposes censorship of free speech.

Reference

Alfred. L, (2003), Societal Change and Business Government Relations,(2^rd Ed), New York, Cambridge University press