Roles and Relationship of Business and Government

Introduction
This case focusses on the worldwide relationship between various governments and businesses and some of the issues related to it. Some analytical frameworks have been suggested which may be helpful in managing relation with government more effectively. The government and business, both have been engaged in defining and fulfilling the needs of communities. Their relationship has been marked by both suspicion and trust, conflict and cooperation.

Roles of government
Individualistic Society Role of Government is limited. Purpose of the Government is to protect property, enforce contract, and keep the market place open to promote competition. When does the government Intervene? In a Crisis situation:-epidemics, pollution, economic disaster, war etc. Direction of the government is decided by interests groups which fix government priorities. Properties: Suspicious of the government Example of this type are USA, Western Economies Communitarian Society Role: Authoritative Purpose: Define & satisfy the needs of the community. Envision the good for the society. Intervention: Rebellion or revolt or uprising Direction: Plays a central role in generating/ imposing consensus of the society to support the direction decided by the government itself. Properties: Hierarchical or egalitarian Example: Japan, Germany, UK, USSR

Structure of government
Governments are not Monoliths. They are a warring collection of o Executive Agencies o Legislative Bodies o Courts o Other Interest Groups

 A good government listens to the voices of business, labor, and other interest groups and takes a harmonious decision suitable for everyone. A Strong Government o Creates consensus in Society o Change behavior of important groups for policy making o Change structure of society to achieve its goal.

Role of Business
Sources which provide legitimacy to corporations and a source of management authority The shareholders Banks or debt holders The managed The government

Structure of Business
Communitarians Participants tied by consensus Relation amongst competitors is competitive Perceived to be permanent and passed on to the future Planning and decision making without governments involvement Individualism Participants tied by contract Relation between competitors is mix of rivalry and cooperation Temporary arrangement Planning and decision making with the consent of all the participants and the government

Conclusion
Positive Business-Government Relationship(BGR) is desirable Symbiotic relationships and resource interdependence accepted cognitively, but not behaviorally Positive BGR, necessary societal demands may saturate the joint decision making. Negative reactions from business increase when demands from Government, Society increase If Govt. intervention is required & govt. is unresponsive & inefficient, what strategies must businesses develop?

Submitted byGundeep Singh DM15220