Government, Regulation & Business Ethics

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Government, Regulation & Business Ethics The issue of business relations with government has increasingly become a key issue of business ethics. Some of the many questions raised are * Is it acceptable for corporations to use their considerable power tp shape government policy? * Is the government jeopardizing its role in protecting the public interest when politicians sit on the board of corporations? The government has a crucial role to play in establishing the ‘rules of the game’ by which we judge business ethics. When we talk about the government, we know that the government is involved in issuing laws related to business practices. Business ethics tend to begin where the law ends. This means that the governments…show more content…
The government enjoys considerable authority and power since it can define industry rules and exercise legislative power. Corporations, on the other hand, might enjoy economic advantages since they have the recourse to potential sources of finance for investment that the government may be unwilling to generate through taxation. The figure shows that govet is in a bipolar situation. Firstly, the government is in a mutually dependent relation with society: govt receives consent from society and acts upon it to provide a regulatory environment protecting society’s interests. But, the government also has a relation with business where both partners are mutually dependent on each other for certain things: govt is expected to make a profitable and stable economic environment for business; business is expected to provide taxes, jobs & economic development in return. Business obviously has a significant influence in the implementation and direction of govt policies. The ethical considerations are – legitimacy & accountability. To what degree is business influence acceptable? Since the govt acts as a representative of the society’s interests, the public has a right ot be informed abt the govt’s decisions and be able to determine whether it is acting in its interests or not. The main concerns for business ethics are where business has influence on government. Direct –
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