Business and Government Cooperation - Essay Example

Business and Government Executive Summary This research evaluates the roles and responsibilities of government and business towards society. This work studies important issues, such as the relation between government and business entities in promoting the growth of society. Under the concept of neo-liberalisation, management of migration is controlled by the government, despite the allocation of migration control to private entities. The multinational corporations, in alliance with the institutional systems are expected to facilitate the good of society. As such, state power is essential for formulating regulations for the state. However, these powers have to be exercised under the aegis of the constitution. Meta governance has been observed to be creating standards for sustainability. For instance, the international environmental and accreditation alliance frame promotes sustainability standards. This work concludes that governmental power is crucial for maintaining the wellbeing of society by regulating the market entities. Introduction This research claims that the government is vitally important for safeguarding the future and wellbeing of society. This work proves this contention, and it adopts library based or secondary research methods. In this regard, the extent literature on the topic will be reviewed. This work discusses the relationship between government and business entities and their implications for society. This work scrutinises the following issues: relationship between government and business entities and how they work for society; concept of neo-liberalisation and its effects on migration control; liaison between multinational corporations and political institutions in framing the development of society; response of the state towards societal demands, under the auspices of the constitution; meta governance and its compliance with public policy objectives. Finally, conclusions will be arrived at based on the findings of this work. Role of Government Traditional Situation Analysis The function of the government is to implement the basic international and national system of laws and regulations for business operations. However, good corporate practice is best disseminated via example and strong corporate principles, instead of codes of conduct[Int161]. Consensus and conviction in a company ensure commitment to responsible business conduct. Despite privatisation and outsourcing, migration control is not the exclusive preserve of private actors, instead of the public authorities[Gam11]. Consequently, neo-liberalisation does not involve the total distancing of the state. Outsourcing to the private sector is due to the conviction that this sector provides superior service. As such, the state engages private entities in the enforcement of migration and in the maintenance of a state migration mechanism. Private security and shipping companies, and airlines are involved in the detention, prevention and control of migration. This furnishes an auxiliary layer of migration management. The desirability of having migrants is subject to their being perceived as human resources of utility value. At the same time, every effort is undertaken to prevent the unsolicited entry of individuals who are regarded as being unwelcome. Consequently, migration policy constitutes an additional system for the procurement of human resources[Men11]. Thus, it becomes evident that states have not become devoid of their capacity to control[Cap06]. As such, it would be a grave folly to conclude that this situation denotes a retreat or reduction in the disciplinary and punitive functions and capabilities of the state[Men11]. On the other states have embarked upon novel channels and systems of control, which includes a higher involvement of private sector entities. It is the usual tendency to regard meta governance as being the exclusive preserve of the government and that it should serve public policy objectives. However, meta governance can transpire in certain private domains, albeit with limited scope that is restricted to domain specific goals. Sorensen had emphasised that meta governance could be undertaken by any resourceful entity. However, neither the management nor governance scholars had dealt with the private element of governance oversight in a manner that transcended the fundamental types of regulation[Ste133]. In this context, Derkx had claimed that meta governance in civil society was chiefly concerned with defining and monitoring standards for other standards[Ste133]. Role of Government in Present Situation Analysis It has been vehemently contended that the US government is a device in the hands of the Multi-National Corporations (MNCs)[Aga08]. As such, it is indispensable to have a strong intelligence system in place, in order to collect the information required by decision makers of viable nations to improve their defence strategies[Iro13]. Several among the major issues facing individuals and groups are not incorporated readily into governance. For example, the poor are bereft of the resources and accompanying power to bring about changes that address their difficulties. Similarly, others could be distanced from decision making, due to ethnic or religious disparities or voting rules. Moreover, groups with interests that cross national borders could find it difficult to locate and access entities that could transform their living conditions, whilst certain issues, including human rights, could violate the sovereignty of the states[Tee04]. There has been a gradual and consistent increase in the number of nations that have adopted neoliberal policies of deregulation, financialisation and privatisation. This commenced during the early 1980s. Several among these nations had undertaken this change as a response to the pressure imposed by the ruling financial elites. Others had been forced to do so by the World Bank, International Monetary Fund and other international institutions to discard price controls, accept inferior trade terms, and privatise their public sector in order to receive aid and loans [Dea08]. Nevertheless, it should be the endeavour of the government to achieve efficiency and effectiveness in realising the goals of its programmes and policies. Government services should be created and provided at a minimum cost, as this will serve to retain funds for other priorities or services. It is the duty of the government to identify the most efficient option. [Aus161]. As such, efficiency gains will enhance the wellbeing of the community and improve standards of living. Role of Business in Traditional Situation Analysis Nevertheless, businesses operate in a social context that is demanding, intricate, uncertain, and increasingly competitive. In addition to the generation of profit, a business venture has to reduce liability. The strategy of incorporation with limited liability was created with a view to encourage people to pool capital, exploit opportunities, manage risks and achieve profitability[Fit06]. In fact, voluntary business principles bridge cultural diversity in enterprises and provide the capacity to develop unique solutions to specific conditions[Czi13]. In addition, businesses are critically important as they produce and provide a wide range of goods and services for society. In addition, businesses provide services and goods that improve quality of living. In Australia, businesses provide employment to millions and contribute significantly to social organisations that come to the aid of the impoverished in society. The economic function of business relates to the financial impact of business upon entities in the business environment. On the other hand, the social role of business is concerned with the impact of business on society[Wil16]. It is indispensable for businesses to improve their products and processes on a continuous basis. This requires them to be receptive towards the inputs from their employees, market and general public. In addition, companies have to take cognisance of the ethical, environmental and social effects of their operations. In order to survive in the market, companies have to interpret and respond to the moods of society[Nor04]. As such, they have to undergo changes to comply with the values and norms of society. Moreover, they have to adhere to the regulations and laws made by the state. Role of Business in Present Situation Analysis In addition, corporations influence governments via lobbyists and special interest groups, as they frequently constitute an important feature of the legislative process. It is the practice with governments to distribute the workload amongst various agencies, in order to create policies in an efficient manner. Thereafter, these agencies enter into consultations with private advisors and panels for the purpose of formulating policy[Max07]. Furthermore, governments, in general, rely upon the feedback provided by the very same lobbyists and special interest groups that they had consulted, in order to determine the working of the policies[Kap06].The advanced economies have experienced a transition towards service industries from industrialisation that is quite effortless and incremental, and this has been attributed to the considerable period, namely two centuries that it has entailed[Gha12]. This leads to the conclusion that political and social institutions that address business and social issues have experienced incremental growth. As such, the MNCs and institutional systems have become adept at satisfying the requirement of the market and society[Gha12]. In addition, social and political systems have come closer and developed greater uniformity. The management of conflict is via adaptations and cooperation, and the long term experience and cooperation of the MNCs have rendered them closer to society. The European Union and other international political units have unified and driven society and business towards common objectives[Gha12]. However, in the emerging markets, different economic structures are formed on the basis of heterogeneity. It is necessary to realise that business structures, and political and social institutions are totally different and the ways of conducting business vary; rules and regulations are disparate; and customers, suppliers and other important entities frequently have divergent objectives and cultural backgrounds. MNCs envisage significant and novel uncertainties, when they enter and expand in emerging markets, in comparison to their domestic markets and previous experiences[Gha12]. In addition, MNCs have to contend with turbulent change that is peculiar to each nation. Global governance literature has brought to the fore the ever increasing power and political status of the MNCs. Specifically, this body of literature has emphasised the significance and existence of private political authority[Lev06]. This reality had been obfuscated methodically by the presumptions of contemporary economic liberalism. The latter had achieved this insidious object by obscuring the “political importance of private economic power via the association of authority with the public sphere and its disassociation with private activities.”[Wet12]. Responsibilities of Government in Present Situation Analysis The state can be regarded as a society of individuals who tend to be committed to a certain way of life, and behaviour has to be in accordance with it. The nature of this way of life is determined by the laws of the nation, which have primacy over the other rules. The individuals who formulate and implement the rules are termed the government. On the other hand, the constitution of the state determines how these rules are to be made; the procedure for altering these rules; and the entities that are to make them[Pru05].The authority of a state is a function of its ability to address the demands made upon it. For example, the citizens of a nation desire security for their property and person; and the legal imperatives of that nation undertake the task of fulfilling this desire. Another instance, is that of the citizens desiring to worship in their individual ways, without any prohibition upon any specific religious belief[Las15]. When such demand cannot be ignored, the state enforces religious tolerance. It has been touted by the developed world that neoliberalism provides the swiftest and surest formula for growth. Several structural adjustment policies had to be adopted, which reduced funding to state budgets and programmes for the poor. This transpired throughout the Second and Third World, and served to eliminate impediments to the free flow of capital and capacity to more profitable investment locales[Dea08]. Responsibility of Business in Present Situation Analysis It is the practice with corporations to circumvent regulations by promoting the ideas of self-regulation and corporate social responsibility. These have been recognised as being problematic. Thus, the Nobel laureate Milton Friedman, had stated that corporations undertook insincere corporate social responsibility that would earn a greater profit for their shareholders[Her09]. In addition, the Enron disaster demonstrated the yawning gap between the public commitment of Enron towards corporate social responsibility and its actual insidious operations. Enron had met its end due to the criminality, hubris and greed of its executives[Sto071]. Therefore, corporate self-regulation is a farce. For instance, by no stretch of the imagination could one expect individuals to regulate themselves and thereby render laws against assault, theft and murder redundant. However, corporate entities are expected to regulate themselves. These entities are institutional psychopaths who are devoid of moral conviction and who have the motivation and power to cause untold harm and destruction to society and the environment[Hal05]. Therefore, it is the height of folly to believe that corporations should be granted the freedom to govern themselves. The International Social and Environmental Accreditation and Labelling Alliance constitutes a prominent organisation that endeavours to enhance and promote a wide range of sustainability standards[Joh123]. However, its organisation is restricted to improving the extant standards of civil society. With regard to the business domain, meta governance has not been researched to any significant extent[Ste133]. In this situation, it is possible to regard the strategic management of corporate social responsibility and stakeholder relations as a restricted form of private meta governance. Despite the fact that these practices attempt to foray beyond the business domain, these are essentially aimed at easing or pre-empting governmental and civil regulation. Consequently, improving the business case of corporate social responsibility via stakeholder management does not have to necessarily coincide with the objectives of society or public policy[Ste133]. Conclusion This work dealt with the role and responsibility of the government and business entities in developing society. The government makes rules and regulations for the state, and businesses should follow certain codes of conduct. However, good business conduct results only when they adopt committed behaviour and accountability towards their defined obligations. In addition, social and political systems have become more proximate, in order to achieve better growth for society. Moreover, occasionally during outsourcing, migration control may be transferred to private actors. However, this does not absolve the state from its obligation to manage migration. Consequently, private actors cannot dominate the state in migration management procedures. The MNCs and institutional systems have developed skills for satisfying the needs of the market and society. As such social and political systems have come closer to develop greater uniformity in market systems for the benefit of society. The constitution of the state decides how the rules are to be made by the government and the procedures for altering these rules, as well as the entities that are to make these rules. The government is governed by the constitution and the state makes rules for the wellbeing of society under the aegis of the constitution. Meta governance defines and monitors standards for sustainability. For instance, the International Social and Environmental Accreditation and Labelling Alliance, a prominent organisation, endeavours to enhance and encourage a wide range of sustainability standards. This benefits society by formulating sustainable standards for the environment. According to the above discussion, it can be surmised that state power is crucial and invaluable for the wellbeing of society. References Int161: , (International Chamber of Commerce, 2016), Gam11: , (Gammeltoft-Hansen, 2011, p. 23), Men11: , (Menz, 2011, p. 117), Cap06: , (Caparini & Marenin, 2006, p. 69), Ste133: , (Steurer, 2013, p. 402), Aga08: , (Agarwala, 2008, p. 60), Iro13: , (Irogbe, 2013, p. 236), Tee04: , (Teegen, et al., 2004, p. 467), Dea08: , (Dean, 2008, p. 50), Aus161: , (Australian Government. National Commission of Audit, n.d.), Fit06: , (Fitzgerald & Cormack, 2006), Czi13: , (Czinkota & Ronkainen, 2013, p. 591), Wil16: , (Williams, et al., 2016, pp. 5-6), Nor04: , (Norén, et al., 2004, p. 7), Max07: , (Maxwell & Crain, 2007, p. 258), Kap06: , (Kapfer, 2006), Gha12: , (Ghauri, et al., 2012, p. 8), Gha12: , (Ghauri, et al., 2012, p. 9), Gha12: , (Ghauri, et al., 2012, p. 10), Lev06: , (Levy & Newell, 2006, p. 146), Wet12: , (Wettstein, 2012, p. 48), Pru05: , (Pruthi, 2005, p. 52), Las15: , (Laski, 2015, pp. 12-13), Dea08: , (Dean, 2008, p. 51), Her09: , (Hernández-Murillo & Martinek, 2009), Sto071: , (Stohl, et al., 2007, pp. 31-32), Hal05: , (Haley, 2005, p. 319), Joh123: , (Johnson & Seebaluck, 2012, p. 289), Ste133: , (Steurer, 2013, p. 403), Read More