Business, Government, and Society

2307 Words10 Pages
The involvement of government, business and civil society institutions in the diagnosis and solution of societal problems has been in existence for ages, but the concept has gained more supports in the international development arena in recent times The relationship between government and business is complex, with both positive and negative aspects in terms of what can be called “the public good”. This notion of “public good” changes depending on one’s ideology and this makes the appreciation of the phrase even more complex. Therefore, an accurate understanding of the relationship that exists between the three requires an examination of the three main theories of political economy – the free market economy, socialism and mixed economy.…show more content…
It is also known as populism, where the common man views business and government as something to be protected from. Government's part in the dominance model is the idea of heavy regulation and owning big business. Business and government are ranked at the top of the pyramid, while the rest of society is beneath them. Government Responsibility towards Business As the business has to discharge certain responsibilities towards the government, similarly the government has to discharge several responsibilities towards the business. Government is the most powerful and sovereign authority in the country. It can do or undo anything. The government can use that power to regulate and to stimulate business. In particular the responsibilities of the government towards business can be described as follows: 1. To pass and execute proper laws The behaviour of the people in society can be effectively controlled with the help of laws. The government has to pass laws which would create a friendly and helpful atmosphere for the business to grow. At the same time the laws should be capable of controlling the dishonest businessmen and prevent and punish their unfair practices. In India the government has passed several laws such as Companies Regulation Act, The factory Act, The labour Laws, the social security laws, the foreign exchange management act etc. Though passing of proper laws is
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