Government, Regulation & Business Ethics

2121 WordsSep 9, 20129 Pages
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 establish…show more content…
He, as the owner of Italy’s 3 major television stations and largest publishing house, has been able tovirtually dominate the meida and thereby, marginalize any criticism of his government. The ethics of occupying a dual role in business & ethics is somewhat questionable. On one hand, one could argue that it has certain advantagesif politicians have had the experience of the business world and vice versa. On the other hand, there are also quite significant ethical problems linked to the close amalgamation of business and politics. Eg. German ex-chancellor Gerhard Schroeder was criticized for taking up an appointment as Chair of the Germa-Russian company, in charge of the new gas pipeling through the Baltic Sea. This deal was negotiated in th final months of his term in office. It makes obvious the problems that can arise when we have politcians who are entitled to set the rules of the economic game also acting as players in the game. 4] State Capture by Business – direct payment of bribes to govt officials by businesses. Where it is intended to ‘buy’ an influence on regulation, we refer to it a “state capture.” 5] Ethical issues in context of privatization & deregulation An issue of extensive debate has been the price at which formerly public companies should be sold to private owners. For eg. When Deutsche Telekom was privatized, the share price immediately sank dramatically. Another ex is of the group that took over British Rail in a management buyout and
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