dian Business and Society:
Ethics & Responsibilities
Chapter
Ten
Regulating Business
Chapter 10
Copyright 2008 McGraw-Hill Rye
Chapter Outline
Regulation: Market, Self, Government
Business Involvement in Politics and
Lobbying
Corporate Public Affairs Departments
Corporate Agenda
Impact of Decreasing Government
Involvement
Ethical Implications in Business
Government Relationship
Ethics in Government
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Spectrum of Regulation
Laissez-faire regulation
Corporate self-discipline
Industry self-regulation
Self-regulation involving
stakeholders
Negotiated self-regulation
Mandated self-regulation
Quasi-government regulation
Government regulation
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Market Regulation
No need for government-imposed laws or
regulations
Corporation influenced by market forces
Laissez-faire approach
Government does not interfere with
business
Consumers can force companies to
behave in particular ways by refusing to
purchase goods or services or through
boycotts
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Self-Regulation
Corporate self-discipline regulation
Industry self-regulation
mission, values statement, codes of conduct
or ethics
voluntary codes
Self-regulation involving stakeholders
Negotiated self-regulation
Mandatory self-regulation
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Scope of Government
Regulation
Government:
is architect of economic growth
prescribes rules businesses must follow
is major purchaser of goods and services
produced by businesses
is major promoter and subsidizer of
businesses
is a supplier of debt capital to many
businesses
is a rescuer of failed businesses
is the protector of business and producer
interests
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Business Involvement in
Politics: Examples
Financing of political parties
Publicly expressed support for a
candidate or party
Publicly expressed views on political
issues
Executives running for public office
Managements position on
employee participation
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Business Lobbying
Business lobbying attempts to influence:
Making or amending of legislation and
regulations
Making or changing of government policies or
programs
Government decisions in the awarding of
grants, contracts, contributions, or any similar
benefits
Government appointments to boards,
commissions, and any other public office
Source: Carson, 1998
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Business Lobbying:
Criticisms
Practices unethical (e.g., bribes,
gifts, improper political
contributions, blackmail)
Business lobby too powerful
Business has unequal access to
government
Cost of business lobbying passed
on to consumers
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Corporate Public Affairs
Departments
The management function responsible
for monitoring and interpreting the
governmental environment of the
corporation or industry and for managing
the responses necessary to protect the
interests of the corporation or industry.
Role expanded to include community
relations, media relations, environmental
monitoring, issues management,
lobbying, and public relations.
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Corporate Agenda
The real or imagined alleged domination
of public policy or government programs
by corporations or business
organizations in their own best interests.
The corporate agenda might include:
Reduction of government involvement
Deregulation of business and industry
Reduced corporate taxation
Enactment of free trade agreements and
support for globalization
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Impact of Decreasing
Government
Involvement:
Privatization of the financing of services
Possibilities
that continue to be produced by the
public sector
Contracting out of the provision of
services to the private sector
Transfer of state functions to private
sector
Sale of government-owned enterprises
Liberalization of public policy
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Ethical Implications in
BusinessGovernment
Appropriateness of government
Relationship
involvement and interference in business
operations
Matter of accessibility to government
Favouritism to some corporations
regarding loans, grants, or protection
Endorsement of political candidates or
parties can be perceived as expecting
favours in future
Lack of transparency in relationship
between government and business
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Ethics in Government
Office of Values and Ethics,
Treasury Board of Canada
Principles of the Public Service of
Canada
Public Service and Integrity Office
Office of the Ethics Commissioner
Federal Accountability Act
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