GOVERNMENT BUSINESS RELATIONS

/in /by

PA 315
GOVERNMENT BUSINESS RELATIONS
CHAPTER 2

California State University San Bernardino

College of Business & Public Administration

Professor Sharon Pierce

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CHAPTER REVIEW 1

  • Which of the following are generally thought to put pressure on society for the growth of government?

Wars

Special interests seeking special assistance

The complexity of society

All of the above

None of the above

CHAPTER 1 REVIEW

    • The two oldest roles of government, according to the text, are transportation and education.
    • True
    • False

 

 

CHAPTER 1 REVIEW

  • When governments provide public education, the text calls that role:

Safeguard against risk

Purchaser

Social architect

Service provider

 

CHAPTER 1 REVIEW

  • One of the areas which is commonly thought of as a strength (dubbed ‘the good”) of government is:

Requiring taxes

Creating monopolies

Providing economic stability

Preventing the collusion of power (manipulation by powerful interests)

 

CHAPTER 1 REVIEW

  • Altogether, the U.S. has approximately how many governments?
  • 51
  • 435
  • 37,000
  • 89,000
  • .25 million

CHAPTER 1 REVIEW

  • Government-business relations are largely defined by the:

Complementary roles

Cooperative roles

Conflicting roles

All of the above

None of the above

BIG GOVERNMENT
VS.
SMALL GOVERNMENT –

WHICH IS IDEAL FOR THE UNITED STATES?

WHAT DO YOU BELIEVE IS THE IDEAL ROLE OF GOVERNMENT?

Chart1

Less Government
Moderate Government
More Government
Not sure
Class Poll
Class Poll Spring 2019
38
7
10
4

Sheet1

Class Poll
Less Government 38
Moderate Government 7
More Government 10
Not sure 4

WHAT DO YOU BELIEVE IS THE IDEAL ROLE OF GOVERNMENT?

Chart1

Less Government
Moderate Government
More Government
Not sure
Class Poll
Class Poll Winter 2019
61
21
10
8

Sheet1

Class Poll
Less Government 61
Moderate Government 21
More Government 10
Not sure 8

FALL 2018

 

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Chart1

Less Government
Moderate Government
More Government
Not sure
Class Poll
Class Poll Fall 2018
52
28
16
4

Sheet1

Class Poll
Less Government 52
Moderate Government 28
More Government 16
Not sure 4

SPRING 2018

 

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Chart1

Less Government
Moderate Government
More Government
No Idea…
Class Poll
Class Poll
40
41
14
5

Sheet1

Class Poll
Less Government 40
Moderate Government 41
More Government 14
No Idea… 5

WINTER 2018

 

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Chart1

Less Government
Moderate Government
More Government
Class Poll
24
54
22

Sheet1

Class Poll
Less Government 24
Moderate Government 54
More Government 22

FALL 2017

 

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Chart1

Less Government
Moderate Government
More Government
Class Poll
19
62
19

Sheet1

Class Poll
Less Government 19
Moderate Government 62
More Government 19

LESS GOVERNMENT

    • “I believe the government should have less power as it is getting to the point where you almost have to ask permission to leave your house.”
    • “People should have more power than they have now.”
    • “Small government means the system is more flexible.”
    • “Although big government has benefits, it can get annoying paying more and more taxes for programs you will most likely never use.”
    • “We can’t be a ‘free’ country if we are going to restrict our freedoms or taken them away.”
    • “People should have more control…government sometimes interferes too much in the public life domestically but also internationally.”
    • “I want the power to make decisions for my family.”

 

MODERATE GOVERNMENT

  • “Too little government would make society chaotic. The rules and regulations that the government implements helps stabilize society as a whole.”
  • “When it comes to a crisis, natural and unnatural, we need the government to help us out. But, in the case of owning a gun, weed, and things like that, I don’t think government should ever play that big of a role in it.”
  • “Things like natural disaster aftermath benefits from large government funding for example but things like checks and balances from small government could come together for form a successful moderate government.”
  • “Government should be neither big or small – small government is great because it is more efficient and flexible but big government is helpful after natural disasters.”
  • I think social programs are needed but there should be more controls in place so people don’t abuse the system. We should find another way to get social programs funded, everything should not be the government’s responsibility, however, that may mean that citizens should step up.”
  • “I believe the government is just right.”

 

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MORE
GOVERNMENT

  • “Larger government could be more beneficial in the long run…an earthquake happening – the majority of people will then think or prefer the larger government is better.”
  • “Military expenses – I and most of society would want a bigger government for our safety.”
  • “I think a big government has more power and will be able to take action against big matters – some examples are a major disaster or war.”
  • “More social programs from this type of government are incredibly beneficial to the overall population…It also regulates people and businesses to act fairly in a socio-economic way; trying to benefit society/the planet/communities.”
  • “When we are in a crisis with our economy, the government is there to lift us back up…their role should be to use their power to help us in our time of need.”
  • “More government intervention in improving the quality of our lives.”
  • “A big government to serve & protect their citizens.”
  • “I believe we need more government because there are a lot of illegal business activity still happening,”

CHAPTER 2

 

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THREE MODELS OF GOVERNMENT-BUSINESS RELATIONS

    • Business centered approach
    • Shareholder model
    • Strategic Business model
    • Stakeholder model

 

 

 

  • Not a comprehensive list

THE SHAREHOLDER MODEL

  • Considers only business interests
  • Emphasis on profit-making
  • Government and business should be separate – government as little as possible
  • Focuses on internal efficiency and competition (Adam Smith – free market)
  • Example: investment banks

 

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WHAT IS A SHAREHOLDER

  • A shareholder is any person, company or other institution that owns at least one share of a company’s stock.
  • Because shareholders are a company’s owners, they reap the benefits of the company’s successes in the form of increased stock valuation.

 

  • If the company does poorly, however, shareholders can lose money if the price of its stock declines.

 

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CRITIQUE OF THE SHAREHOLDER MODEL

  • Market failure demands government vigilance and intervention.
  • Business’ demands for government and advantageous position to benefit from government
  • Too much emphasis on monetary and material gains
  • Does not focus on external issues – environment, community, etc.

SAMS CLUB CLOSED 63 STORES

  • Shareholder model

 

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WHAT DO YOU THINK ABOUT SAMS CLUB CLOSING 63 STORES?

  • Walmart is closed 63 Sam’s Club stores.
  • The closures span 24 states and Puerto Rico.
  • Illinois lost seven stores, the highest number of any state.
  • The Memphis, Tennessee Sam’s Club and nine additional stores were turned into e-commerce distribution centers.

 

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THE STRATEGIC BUSINESS MODEL

  • The model emphasizes competition
  • Most efficient and effective use of resources; playing the game well
  • Government with low taxes and few regulations, stable policies and strong performance, and protections in global competition
  • The model also emphasizes collaboration
  • Good strategies for a winning team – win win situations
  • Practical use of governmental resources – Boeing Corporation
  • Example of Strategic Business Model – Community banks/credit unions
  • Community focused – local needs and conditions
  • Strategic in managing the local connections

 

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CRITIQUE OF THE STRATEGIC BUSINESS MODEL

  • More balanced and realistic than the shareholder perspective.

Yet,

    • Unclear and inconsistent
    • government and business relationship is a flow of complex exchanges of influence, which is subjected to multiple social, political, and economic forces.
    • Difficult to be strategic in market place.
    • Business is a major initiator of change through its interaction with government.

 

 

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THE STAKEHOLDER MODEL

  • Corporation locates at the center of an array of mutual relationships with stakeholders:
  • Primary stakeholders have immediate, continuous, and powerful impact.
  • Secondary stakeholders have less mutual immediacy, benefit, burden, or power to influence.
  • The model is an ethical theory of management , in which the welfare of each stakeholder must be considered as an end

 

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THE STAKEHOLDER MODEL

  • While profits are important, business and social values are still important
  • Long term view is more important than short term view
  • Business perspective and value of reputation versus profit maximization
  • Better Business Bureau – 1912
  • Good Housekeeping Seal of Approval – 1909
  • Consumer Reports – 1936
  • Corporate Social Responsibility – 1979
  • Views community and environment as necessary factors to consider – not because of requirements
  • Focuses on customer confidence, employee loyalty, civic trust – (Commercials after oil-spills)
  • Many large corporations have adopted methods and processes to analyze their stakeholders and engage them.

 

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WHO ARE STAKEHOLDERS?

  • A stakeholder is any individual or group who can affect or is affected by the actions, decisions, policies, practices, or goals of the organization.
  • a. The key stakeholder is the company or group that is the center or focus of an analysis.
  • b. Primary stakeholders include owners, customers, employees, suppliers, stockholders and the board of directors.
  • c. Secondary stakeholders include all other interested groups, such as the media, consumers, lobbyists, courts, governments, competitors, the public, and society.

CRITICS TO THE STAKEHOLDER MODEL

  • Unrealistic assessment of power relationships between the corporation and other entities
  • Too vague a guideline to substitute for the yardstick of profits
  • Not clear who or what is a legitimate stakeholder

 

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COMPARISON OF THREE MODELS

 

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OVERVIEW

  • The three models demonstrate that the choices involved in designing a country’s political and economic systems are not easy ones.
  • Therefore they provide some theoretical bases for our exploration of the question: how extensive a role government should play in a nation’s economic development.

64%12%17%7%Class Poll Spring 2019Less GovernmentModerate GovernmentMore GovernmentNot sure

 
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