11 Regulating Business Chp 10 (Mar 10).ppt

Transcript 11 Regulating Business Chp 10 (Mar 10).ppt

Canadian Business and Society: Ethics & Responsibilities Chapter Ten

Regulating Business

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

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

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

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

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

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

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

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

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.

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

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

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

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