The 4 Basic Models of the BGS Relationship Essay

752 Words4 Pages
1. What is the business-government-society (BGS) field and what is its importance?
2. Explain the Four basic models of the BGS relationship

Introduction:

Business, government and society are fundamental in this world. Business satisfies human’s needs by providing them products and services in exchange for profit. Government is a structure and process in society that with authority makes and applies policies and rules. Society is a network of human relations composed of ideas, institutions, and material things (Steiner, 2011). They all work together to create better solutions in all three elements. Forces in BGS have shaped our world.

Content Analysis:

Business, government and society are subdivisions of economic,
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In the Market Capitalism Model it is easier for any individual to enter the market. Any new business that enters the market is in to make profit and to create competition. Competition creates and offers better value to customers and opponent firms. Businesses in this model focus on creative work and profitability. The creative work is well done therefore people are happy with the products, services etc. In the Market Capitalism Model management’s goal is to increase shareholders interests (investments). Government regulations are limited.

The dominance model represents the perspective of business critics. Society is in a pyramid but only a small group of privileged (corporations, government and business leaders) control society. Power and wealth are mostly concentrated in a selected group. In this model society does not have any control and it would probability experience difficulties. The corporations and the government take advantage of society. Business have too much power, changes in the systems is crucial.

The countervailing Forces Model consists of four forces: environmental catalysts, business, government and the public. None of the forces dominate; the countervailing forces model implies exchange of power and influence among all of them (check and balance). In this model the power of
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