The Lessons that Australia Can Learn From Government Business Relations in Other Countries - Coursework Example

Are there any lessons that Australia can learn from government business relations in other countries? Introduction The government and the business have always shared a potent relationship despite differences in their central characteristics and political economy. Thus, this paper would analyse this relationship between government and business in the context of Australia and provide recommendations on how Australia can improve its government-business relations by employing the strategies of other countries. The paper would essentially focus on the government-business relation policies adopted in Japan and Canada and compare them with that of Australian policy. It is essential to undertake research on such a subject-matter as the government and the business need to work in collaboration in today’s ever-changing world to create a sustainable economy. Government-business relations in Australia In a contemporary industrial country like Australia, it is imperative that the operations and interests of the business and the government would intersect, which may result into conflict or collaboration. In today’s ever changing business world, no government or policy maker can ignore the power of business and the influence of companies in shaping the country’s economy. Therefore, in this section the relationship shared by the government and the business in Australia is explored and discussed. It is important for the government to act as a policy maker and set certain rules for the businesses to abide by as per the changing business environment (Chaudhri & Samson 2000). The Australian government especially believes in creating independent task forces for reviewing the relationship between the government and businesses and understands whether the intervention by the government is inhibiting or developing the economy of the country. The task force also provides guidelines for the government to formulate industrial policies in the future as per the need of the times. These task forces are seen as independent bodies and are not affiliated with either the government or the businesses. This helps in creating an unbiased business environment, wherein the task forces can provide recommendations without the pressure from either party (Sims & Gegez 2004). In the recent times, the Austrian government has in fact tried to create various independent task forces to understand the impact of technological progress on businesses and how government can help businesses to employ technologies and develop the economy by making them competitive with global markets. However, the greatest challenge for the government is to create certain regulations and policies that might provide stability in the relationship between the government and the business. The government needs to update its policies, keeping up with the globalised economy and the technological changes that are impacting the economy. With regards to the businesses, they need to move above lobbying and start partnering with the government to create a stronger economy (Bell 2008). Due to the recent global recession, the government also needs to rethink about its laissez faire policy and might have to make its policies governing businesses stringent. There are various other questions that the government needs to find a solution for. For instance, the businesses need to develop guidelines on how to approach the government with their issues. The government needs policies that would regulate the businesses in such a manner that it would not inhibit their development. The government may develop some policies by adopting guidelines from other countries such as Japan and Canada. Comparing government-business relations between Australia, Japan and Canada There is an inherent difference between the government-business relationships in Australia and Japan. While Japan implements the government-business relations policy wherein they protect their national industries by preventing competitions and creating stringent regulations for foreign companies, Australia is a more open economy, which encourages foreign companies to set up their bases in the country (Bell 2008). The government in Japan is very protective about its businesses and companies and although, the government does not intervene in a direct manner, it regulates the businesses through demand management (Mack 1997). With regards to Australia, the government is not as protective as that of Japan, although, it does intervene at the time of market failures. Further, the government through the Australian Trade Commission (Austrade) provides assistance to various exporters and Australian companies on how to create successful ventures abroad through research, reports and market intelligence data and information. Austrade which is a statutory agency of the Foreign Affairs and Trade division provides services as per the requirement of different companies such as helping them in finding the right business partner in the global market or by finding the right investors and buyers. Austrade provides great help for the Australia-based companies to enter into newer and international markets. Further, the division also offers various schemes such as the Export Market Development Grants for helping companies to expand their business operations in the international markets. Thus, while Japan focuses on a more domestic and national-centric policies Australia is more focused towards providing assistance for its companies to set-up bases abroad (Bell 2008). With regards to Canada, it has been witnessed that the government had great deal of influence over the businesses in the past. However, with the changing times and globalization, the government has slowly and steadily started losing its influence over the businesses. Therefore, the traditional close relationship between the business and the government found in Canada has given way to a more laissez faire atmosphere. Nonetheless, the country still believes in sustainable growth and upholds corporate social responsibility at the highest level. The government-business relationship in Canada in the contemporary world is predominantly determined by the theory of corporate social responsibility. The government still influences companies to work for the betterment of the society and create socially, ethically and environmentally responsible organisations (Brownlee 2005). In Australia, the government and the businesses are making separate attempts to create a sustainable economy. The government has recently signed the Kyoto Pact after initial hesitations, which would definitely help the companies to become much more environmentally responsible. The government has formed various committees and divisions such as the Australian Government Corporations and Markets Advisory Committee, 2005, the Australian Government Department of the Environment and Heritage, 2005 etc. to encourage development of CSR in businesses. On the other hand, the businesses are also developing independent strategies for CSR implementation (Sun 2010). Conclusion The recent global economic crisis has made many governments to re-look at the policies governing the relations between the government and the businesses. The failure of renowned banks and international corporations has made the governments all over the world to take a stock of the situation and intervene more into the working of the companies. The governments are planning strategies and reworking on their policies on how to respond to such situations in the future. Australia is also not an exception to the rule; it had also suffered heavy losses during the recession and had to inject stimulus packages into the economy. Therefore, the country should also review its government-business relations and create stringent regulations for countering such situations in the future (Sun 2010). The above cases of Japan and Canada provide various suggestions that Australia may implement to restrict such financial crisis from occurring in the future. The paper found that although the economic development took place in Japan due to the private entrepreneurship, the economic prosperity of the country is also the result of government’s intervention and contribution. The government initiatives in Japan has helped the country in helping the companies during the time of economic recession as the government developed good economic infrastructure as well as protected the living conditions and standards of the citizens of the country. The government and the businesses work hand-in-hand to create a sustainable atmosphere (Spero & Hart 2009). Australia may also adopt such a protective policy and develop regulations to secure its domestic industries so that during the time of such financial recessions, the country is able to cushion the effect. Japanese companies are equally responsible for the development of the country. The businesses believe in Confucianism, wherein the companies stress on the importance of being loyal to one’s country. The businesses in Japan look for guidance from the government. Further, the attitude of the people to perceive country as a family has also provided the government with the avenue to influence the companies and motivate them to work for the well-being of the country. Therefore, the relationship that exists in Japan between the government and business is based on collaborative efforts and not of suspicion and adversary. The businesses contribute as much as the government in the nation-building efforts (Spero & Hart 2009). Thus, together with the government, the companies in Australia should also follow the Japanese example and work towards creating a better nation. The Canada government has been focusing on creating sustainable development by encouraging CSR among businesses and developing policies in this direction. Australia’s major focus in today’s world is to highlight climate change impacts as the country suffers the most due to this phenomenon, which has resulted in creating holes in the ozone layer over the country (Aguilera et al 2007). Thus, it is essential for Australia to work in a collaborative manner with the businesses in the country and influence them to become socially and environmentally responsible companies just like Canada government. In the contemporary world, for a country to progress, it is important for the government and the business to work in a collaborative manner and Australia needs to adopt such policies as well to make its economy strong globally. Reference Aguilera, R. V., et al., 2007, “Putting the S Back in Corporate Social Responsibility: A Multilevel Theory of Social Change in Organizations,” The Academy of Management Review, 32(3), 836. Bell, S. 2008, "Rethinking the Role of the State: Explaining Business Collective Action at the Business Council of Australia", Polity, 40 (4), 464-487. Brownlee, J. 2005, Ruling Canada. Corporate Cohesion and Democracy, Halifax: Fernwood Publishing. Chaudhri, V. & Samson, D. 2000, "Business-government relations in Australia: Cooperating through task forces", The Academy of Management Executive, 14 (3). (Chaudhri & Samson 2000) Mack, C. S. 1997, Business, politics, and the practice of government relations, Westport, CT: Greenwood Publishing Group. Sims, R. L. & Gegez, A. E. 2004, "Attitudes towards business ethics: A five nation comparative study," Journal of Business Ehtics, 50, 253-265. (Sims & Gegez 2004) Spero, J. E. & Hart, J. A. 2009, The Politics of International Economic Relations, Boston, MA: Cengage Learning. (Spero & Hart 2009) Sun, William 2010, How to Govern Corporations So They Serve the Public Good: A Theory of Corporate Governance Emergence, New York: Edwin Mellen. 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