Government, Regulation, and Business Ethics
Government, Regulation, and Business Ethics
Government, Regulation, and Business Ethics
Laws
serve as a codification into explicit rules of the social
consensus about what a society regards as right and
wrong
Regulation
rules that are issued by governmental actors and other
delegated authorities to constrain, enable, or encourage
particular business behaviours. Regulation includes rule
definitions, laws, mechanisms, processes, sanctions, and
incentives
Government as a
stakeholder of business
Government as a
stakeholder of
business
Regulation that
Taxes, jobs, protects their
investment, etc. interests
Business Government Society
Profitable and Consent
stable economic
framework
Legitimacy of business
influence
Business can have a significant influence on the
implementation and direction of governmental
policies. It is therefore to no surprise that the
issue of ‘public sector ethics’ has gained
enormous momentum (Dobel 2007). The main ethical
consideration arising from this situation is twofold
legitimacy of business influence;
accountability.
Is power and political influence of business
leaders a threat to democracy?
To what degree is it legitimate for business to
have an influence in politics?
Modes of business influence
on government
Numerous ways that business can influence
government
Oberman (cited in Getz 1997:59) distinguishes among
different ways, using following criteria:
Avenue of approach to decision-maker
Direct
indirect
Breadth of transmission
Public
private
Content of communication
Information orientated
Pressure orientated
Business influence on
government
Lobbying
Lobbying represents a direct, usually private
attempt by business actors to influence
governmental decision-making through
information provision and persuasion.
It is considered a weak form of influence (McGrath 2005)