Transcript 11 Regulating Business Chp 10 (Mar 10).ppt
Canadian Business and Society: Ethics & Responsibilities Chapter Ten
Regulating Business
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Chapter Outline
Regulation: Market, Self, Government Business Involvement in Politics and Lobbying Corporate Public Affairs Departments Corporate Agenda Impact of Decreasing Government Involvement Ethical Implications in Business – Government Relationship Ethics in Government
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Spectrum of Regulation
Laissez-faire regulation Corporate self-discipline Industry self-regulation Self-regulation involving stakeholders Negotiated self-regulation Mandated self-regulation Quasi-government regulation Government regulation
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Market Regulation
No need for government-imposed laws or regulations Corporation influenced by market forces Laissez-faire approach Government does not interfere with business Consumers can force companies to behave in particular ways by refusing to purchase goods or services or through boycotts
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Self-Regulation
Corporate self-discipline regulation mission, values statement, codes of conduct or ethics Industry self-regulation voluntary codes Self-regulation involving stakeholders Negotiated self-regulation Mandatory self-regulation
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Scope of Government Regulation
Government: is architect of economic growth prescribes rules businesses must follow is major purchaser of goods and services produced by businesses is major promoter and subsidizer of businesses is a supplier of debt capital to many businesses is a rescuer of failed businesses is the protector of business and producer interests
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Business Involvement in Politics: Examples
Financing of political parties Publicly expressed support for a candidate or party Publicly expressed views on political issues Executives running for public office Management’s position on employee participation
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Business Lobbying
Business lobbying attempts to influence: Making or amending of legislation and regulations Making or changing of government policies or programs Government decisions in the awarding of grants, contracts, contributions, or any similar benefits Government appointments to boards, commissions, and any other public office Source: Carson, 1998
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Business Lobbying: Criticisms
Practices unethical (e.g., bribes, gifts, improper political contributions, blackmail) Business lobby too powerful Business has unequal access to government Cost of business lobbying passed on to consumers
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Corporate Public Affairs Departments
The management function responsible for monitoring and interpreting the governmental environment of the corporation or industry and for managing the responses necessary to protect the interests of the corporation or industry.
Role expanded to include community relations, media relations, environmental monitoring, issues management, lobbying, and public relations.
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Corporate Agenda
The real or imagined alleged domination of public policy or government programs by corporations or business organizations in their own best interests.
The corporate agenda might include: Reduction of government involvement Deregulation of business and industry Reduced corporate taxation Enactment of free trade agreements and support for globalization
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Impact of Decreasing Government Involvement: Possibilities
Privatization of the financing of services that continue to be produced by the public sector Contracting out of the provision of services to the private sector Transfer of state functions to private sector Sale of government-owned enterprises Liberalization of public policy
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Ethical Implications in Business–Government Relationship
Appropriateness of government involvement and interference in business operations Matter of accessibility to government Favouritism to some corporations regarding loans, grants, or protection Endorsement of political candidates or parties can be perceived as expecting favours in future Lack of transparency in relationship between government and business
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Ethics in Government
Office of Values and Ethics, Treasury Board of Canada “Principles of the Public Service of Canada” Public Service and Integrity Office Office of the Ethics Commissioner Federal Accountability Act
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