How Public Policy Differs from the Business Policy - Essay Example

Public policy is formulated to address a certain issue affecting the inhabitants of a certain area say a county.  Such issues could be drainage, irrigation, water, sanitation, and many others. Public policy can also be used to achieve advantageous positions or to optimally use available resources.

How public policy differs from the business policy.

I shall begin by defining what a business is.  A business is an entity that deals with customers in trading goods and services, mostly with the purpose of making a profit. A business policy can, therefore, be defined as the guiding procedure or ideas, that are adopted by the various business entities in solving certain issues affecting it, or in helping to achieve its objectives.  Different businesses have different business policies and also have their own way of enforcing them.

(Thomas, 1983) says that business policy is set by the tactical level management of the business, and is enforced by the middle-level managers and the supervisory level management of the business entity. (Management study guide, 2008) Proposes that a sound business policy must be of the following characteristics; specific, clear, reliable, appropriate, simple, inclusive, flexible, and stable.

The main difference between public policy and business policy is in the authority that formulates them. Public policy is formulated by the governing authority of the specific area where the policy applies. This may be a city, state, etc. The formulation process is usually a political process. Business policy, on the other hand, is formulated by the high authorities of a business entity and operates for that specific business.

The second difference between public policy and business policy is that whereas public policy can affect businesses, the business policy does not affect public policy. Public policy affects businesses in that it can force businesses operating within their area of jurisdiction to adopt certain business policies. This may be, for example, public policy on pollution requiring businesses to have a waste disposal treatment policy.

RELATIONSHIP BETWEEN PUBLIC POLICY AND BUSINESS POLICY

There is a relationship between public policy and business policy.  The relationship is that the government is the one that creates the system within which business entities operate.  Business policy has to be in conformity with public policy. When government changes its policies, it affects businesses, and businesses may be forced to change their way of operation, and policies to make sure it complies with government public policy. The government may, for example, change its taxation policy to higher tax rates, it may also introduce a minimum wage policy, or raise the minimum wage if it already existed.  This will ultimately affect businesses, and they will need to change their policy to conform to this.

SPECIAL INTEREST GROUPS AND PUBLIC POLICY

Special interest groups influence public policy because they are recognized groups that are believed to be representing the interest of the people. It is impossible for the government to seek the opinion of every citizen individually, so special interest groups come in handy.  Special interest groups are known to push for positive issues though they may sometime advocate for what may be considered negative goals (“special interest groups and public policy,” n.d).