Relationship between Business and Government
Private Sector Enterprises- These are the businesses which are owned, controlled and financed by a private businessman. There is no government participation. The relationship between government and private companies should be nurtured to reindustrialise the economy, says Department of Trade and. Another expectation of the Government from the business is that the business firms should have no inherent distrust against business in the private sector.
Due to privatisation of the economy a number of Government contracts are executed by private business houses.
Many business houses submit the tenders. It is the responsibility of the business houses to carry out the projects according to required specifications and standards.
Providing Service to the Government: Sometimes, some influential and competent businessmen are included in the Advisory boards constituted by the Government. Some businessmen are appointed as members of the delegations who go abroad for exploring trade and industry prospectus.
Corporate Contributions to Political Activities: The business houses are involved in the political activities in the following ways: It is the responsibility of the business houses to make sure that their political involvement provides an additional safeguard against the authoritarian potential of a mass society.
Responsibilities of Government towards Business: The business has its own expectations from the Government. Specifically, the expectations of the business or the responsibilities of the Government towards business are as follows: In these we include various economic and business laws. Provision of a Peaceful Atmosphere: Government has the responsibility of maintaining law and order situation in the country and to provide protection to persons and their property.
No successful business can be carried on in the absence of a peaceful atmosphere. Provision of a System of Money and Credit: The Government has to provide for a system of money and credit by means of which business transactions can be effected. Further, it is the responsibilities of the Government to regulate money and credit and to protect the money value of the rupee in terms of other currencies. It is the responsibility of the Government to make sure that there is balanced regional development, full employment and a stable economy.
Government has the resources and capabilities for all this; the only requirement is optimum utilisation of resources. Provision of a Basic Infrastructure: Personal Conducts and Lobbying The corporate executives and political leaders and government officials are in the same social class.
This creates a personal relationship between both parties.
25 Differences Between Private Sector and Government Managers
Also, organizations formally from the group to present its issues to government bodies. Forming Trade Unions And Chamber Of Commerce Trade unions and chamber of commerce are associations of business organizations with a common interest. They work to find the common issues of organizations and present reports, holds dialogue to discuss them with government bodies.
Political action committees PACs or are special organizations formed to solicit money and distribute to political candidates.
Public and Private Sector Collaboration for Economic Transformation
Most times the rich executives donate money to the political candidates whose political views are similar to them. Large Investment The companies if can make a very large investment in industries or projects, they could somehow affect the government policies.
We see these very often in developing countries where foreign corporate wants to invest in these countries. These works in another way around, where the government tries to implement the policy to attract foreign investment.
How Government Influences the Business Organizations The government attempts to shape the business practices through both, directly and indirectly, implementing rules and regulations.
Public and Private Sector Collaboration for Economic Transformation - SET
The government most often directly influences organizations by establishing regulations, laws, and rules that dictate what organizations can and cannot do. To implement legislation, the government generally creates special agencies to monitor and control certain aspects of business activity. These agencies directly create, implements laws and monitor its application in the organization. Governments sometimes take an indirect approach to shaping the activities of business organizations.