It doesn’t matter if your business is about selling robotic lawn mower for large lawns, apparels, electronics or whatnot, it’ll still be impacted by public policies. Thus, it should be in the owner’s best interest to stay abreast of public policies and also, try to influence governmental decisions. There are actually a number of general methods that a business can view and act onto these relationships with the government.
One prospect is for the business to consider government and business on two separate sides. Some even argued that this was actually the existing dominant mainstream business in light of the aftermath of Great Recession at the end of 2010. It’s been considered as the “limited government” or antiregulatory” view; this is typically associated with those who believe firmly that free markets with least governmental supervision is best for an economy to grow and prosper.
The Primary Point of View
This type of perspective normally focuses the interactions of a business with the government to be able to reduce government interactions while minimizing the burdens and costs on private business as well as general economy that’s associated with government regulations, policies and taxes. Yet another business point of view on government is the fact that government must favor businesses and also, incentivize their performance and investment.
It’s for the grounds that businesses are the primary source of innovation, societal economic wellbeing and main source of jobs. Therefore, government must support businesses with tax credits, subsidies and grants.
Another point of view of government and businesses relation is with business’ partnership with government in terms of addressing societal concerns. This is contrary to the government acting as the regulator in ensuring businesses will respond in socially responsible manner.
Advancing Private Interests?
These said views aren’t mutually exclusive. To give you an example, two similar solar businesses may make use some of its connection with the government in an effort to maximize their benefits similar to favorable tax credits that it receives from the government.
At the same time, they can work together with the government to be able to attain social purpose like reducing carbon emissions and trying to minimize tax obligations. As for the government’s focus, it is important that it is on what kind of policies needed in response to the societal challenges instead of having ideological response towards the best role of the government in free market economy.