Posted: September 23rd, 2020

Assignment 2: Types of public policy

Assignment 2

The relationship between society and business is becoming more complicated in a world where the economy is becoming more interdependent and integrated. The job of managers and the nature of decision making has been significantly changed by globalization. This paper seeks to provide a review of the book by (Lawrence & Weber, 2014) and give a review of chapter 7 on two types of public policies, provide an explanation on the types of strategies or the factors that influence the relationship between business and government, and a discussion of the global issues of the environment and the response to the international community of business on these issues.

Types of public policy

Regulatory policies

            These practices and policies are aimed at regulating the different economic sectors. The regulations provided in the rules and policies aim to keep the economic sector in check and ensure that the various players in the economic sector do not deviate from the plans and policies set by the government. Chapter 7, therefore, presents a detailed explanation of the regulatory public policy, which entails the duties of the various regulatory bodies and the roles they play in the regulation of the different sectors of the economy. The facilitating policies also get discussed in the sense that the government has many institutions responsible for the facilitation of the growth of the businesses in the economy.

Restrictive policies

            Restrictive policies get established by the government, entailing benefits arising from certain transactions and situations. An example of this happens when the government decides to impose customs duties on imported products. This gets done by the government to restrict the products that get imported into the country. The government places restrictions on the imports that get into the country to promote trading and production that has been made domestically to promote exports while reducing imports to promote the local producers. Therefore, the government imposes customs duties on imports to discourage the heavy importation of goods.

Strategies, types, or factors influencing the Business-Government Relationship

            There are various factors that influence the relationship between business and government and are as discussed below. This entails the strategies that businesses make use of in influencing the policies of the government and include political contributions whereby the enterprises use the contributions in campaigns in supporting their position and trying to influence the public policies that get made that can be beneficial to them in terms of enhancing profitability (Kraft & Furlong, 2019). The fact that the businesses have access to funds for the contributions to campaigns and lobbying gives the businesses a voice that is significant in politics and the policies that can affect their businesses’ sustainability. The avenue that is legitimate that companies can use in making contributions in politics entails forming a political action committee (PAC), where contributions that have been voluntarily made by the employees get collected and given to selected candidates.

Another strategy entails businesses participating in the politics in interest groups. Interest groups play a role in the government’s democratic systems, and that’s why businesses go through them in influencing the decisions concerning policies that the government makes. The need to have their interests met is what pushes the companies to get involved in activities that affect the government, all to achieve profitability. The groups of interest tend to have a significant influence on the government, and for this reason, businesses use them as they may support their position on a specific policy.

Business lobbying is also an effective strategy that businesses use by lobbying the executive agencies, the state legislatures, and congress directly through their specialists for government relations through consultants, an industry trade association, or through a combination of the various avenues (Keller, 2018). The businesses can also take part in lobbying that is indirect through the public to air their views to the makers of the policies, stakeholders, and employees, strongly influencing the public policies that get made.

Global environmental issues and response to them

            The environment’s major global issues include degradation of land by agricultural practices like the use of pesticides that contain chemicals that destroy the soil’s composition and the ecosystem that exists in the soil. This threatens businesses’ profitability, as production will be less when the composition of the soil has been destroyed (Gallego‐Álvarez, 2018). The international business community’s response to these issues entails advocating for agricultural practices that eliminate and replace the use of chemicals that are harsh and practices that aggressively affect the ecosystem. Some of these practices that get eliminated include deforestation by encouraging planting more trees and discouraging the clearance of forest land for agricultural purposes.

Another significant global issue of the environment entails the depletion of natural resources like rocks, water, forests, sand, and minerals, which are essential for the businesses as raw materials for the generation of profits (Oberle et al., 2019). The depletion of these resources amounts to global warming, affecting businesses when there is less production of the said minerals. The international community of business responds to this by encouraging activities that enhance environmental conservation and protect the essential resources for businesses to survive and the safety of the general ecosystem. Other environmental global issues that are significant include the degradation of the environment, which the business community responds to by engaging in practices for the sustainability of the environment by adopting business practices that help conserve the environment by engaging in recycling activities.

   References

Gallego‐Álvarez, I. (2018). Assessing corporate environmental issues in international companies: A study of explanatory factors. Business Strategy and the Environment, 27(8), 1284-1294.

Keller, E. (2018). Noisy business politics: lobbying strategies and business influence after the financial crisis. Journal of European Public Policy, 25(3), 287-306.

Kraft, M. E., & Furlong, S. R. (2019). Public policy: Politics, analysis, and alternatives. Cq Press.

Lawrence, A. T., & Weber, J. (2014). Business and Society: Stakeholders, ethics, public policy. Tata McGraw-Hill Education.

Oberle, B., Bringezu, S., Hatfield-Dodds, S., Hellweg, S., Schandl, H., Clement, J., … & Ekins, P. (2019). Global resources outlook 2019: natural resources for the future we want.

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