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Business and Society Ethics Sustainability and Stakeholder Management 10Th Edition Carroll Solutions Manual Full Chapter PDF
Business and Society Ethics Sustainability and Stakeholder Management 10Th Edition Carroll Solutions Manual Full Chapter PDF
Chapter 11
Business, Government, and Regulation
LEARNING OUTCOMES
1. Articulate a brief history of the changing nature of the government’s role in its relationship
with business.
2. Appreciate the complex roles of government and business.
3. Identify the elements in the complex interactions among business, government, and the
public.
4. Identify and describe the government’s nonregulatory influences, especially the concepts
of industrial policy and privatization.
5. Identify and describe the government’s regulatory influences on business, including the
major reasons for regulation, the types of regulation, and issues arising out of deregulation.
TEACHING SUGGESTIONS
INTRODUCTION – In this chapter the authors examine the relationship between business and
government, along with the general public, which also plays an important role. The central focus
here is the government’s role in influencing business, although, as discussed in the next chapter,
business also influences government.
KEY TALKING POINTS – Many schools provide an entire course titled Business, Government,
and Society, which indicates the centrality of the subject matter in this chapter. Many students
will be quite familiar with the concept that government regulates and influences business (the
focus of this chapter) but will be less cognizant of the reciprocal relationship (Chapter 12).
Because the business/government relationship does flow in both directions, the instructor should
consider covering Chapters 11 and 12 as a single unit, so that students realize the full extent of
the influence each has over the other.
Several books have delved into this subject in some depth. The instructor may want to
incorporate some of their content into the classroom discussion or assign students to read
sections of different books. One of the earlier writings was Taking Care of Business, a 32-page
pamphlet written by Richard Grossman and Frank Adams. This item is currently available
through the Program on Corporations, Law & Democracy (POCLAD) at http://www.poclad.org/.
Other relevant books include:
Bakan, J. 2004. The Corporation. New York: Free Press. (A movie of the same name has been
produced and is currently available on DVD.)
Kelly, M. 2003. The Divine Right of Capital. San Francisco: Berrett-Koehler Publishers, Inc.
While many students understand the concept of regulation, they don’t understand the process. At
a basic level, students should understand that Congress creates laws, various regulatory agencies
create rules/regulations within the parameters of those laws and that the public has an
opportunity to comment on the proposed regulations. The first group project in this chapter is
designed to help students understand this concept.
Certain chapter concepts can be illustrated by encouraging students to explore current political
issues: Should the U.S. social security system be privatized? On the other hand, should the U.S.
federalize healthcare? Should the government provide bailout funds to struggling industries?
Should the government further regulate the financial services industry? Students also may want
to explore the concept of deregulation by looking at the impact that this process has had on
certain industries.
Cases:
18-Dole’s DBCP Legacy
19-Should Directors Shine Light on Dark Money?
20-DTCA – The Pill Pushing Debate
21-Big Pharma’s Marketing Tactics
22-A Smoke-Free Generation in Tasmania
25-The Hudson River Cleanup and GE
37-Are Criminal Background Checks Discriminatory
Spotlight on Sustainability:
Utilities and the Costs of Going Green
LECTURE OUTLINE
VI. DEREGULATION
A. Purpose of Deregulation
B. The Changing World of Deregulation
VII. SUMMARY
Students should recognize that their answers to these discussion questions should be well
reasoned and supported with evidence. Although some answers will be more correct than others,
students should be aware that simplistic answers to complex questions, problems, or issues such
as these will never be “good” answers.
1. Question: Briefly explain how business and government represent a clash of ethical
systems (belief systems). With which do you find yourself identifying most? Explain. With
which would most business students identify? Explain.
Answer: As business historians often point out, corporate charters were first issued
explicitly to serve a public good. In that sense, business has changed from a collectivist
ethic, in which the good of the group is placed above the rights or good of individuals, to
its current individualist ethic. Individualism seeks to place the rights of individuals above
the good of the group, and thus supports the profit motive of current businesses.
Government, especially a representative democracy as practiced in the United States, is
formulated to promote the common good. Students will obviously be split in their
preferences for these two ethics, but the prevailing sentiment will most likely be for the
individualistic approach. This is by far the dominant mode of thinking among business
people.
2. Question: Explain why the public is treated as a separate group in the interactions among
business, government, and the public. Doesn’t government represent the public’s interests?
How should the public’s interests be manifested?
Answer: Ideally, the public is represented by the government. However, this is an
imperfect process. In addition, the public does not speak with a single voice—there are
many minority views that, while important and relevant, may not be sufficiently
widespread so they garner a voice in government. One of the most dangerous realities in
the United States is the influence of money on the governing process. Michael Walzer, in
Spheres of Justice, warns of the danger of goods from one sphere (e.g., money from the
economic sphere) invading and influencing the goods of another sphere (e.g., power in the
political sphere). Because big business has control of such vast amounts of money and
uses a portion of that currency to influence political power, the public’s influence over the
political process is severely diminished. The Supreme Court’s recent decision in Citizens
United v. Federal Election Commission increased corporate influence in the political
process when the Court ruled that the First Amendment protects a corporation’s right to
fund independent political broadcasts. How to return significant influence over
government to the public is a topic that is both timely and critical. Students may
appreciate this issue even more if they visit the multitude of websites that disclose the
funding sources for various federal and state candidates.
3. Question: What is regulation? Why does government see a need to regulate? Differentiate
between economic and social regulation. What social regulations do you think are most
important, and why? What social regulations ought to be eliminated? Explain.
Answer: Regulation is the act of controlling the activities of others by means of rules, law,
or constituted authority. Typically, government regulates to correct past wrongs, achieve
social goals, control natural monopolies, or control negative externalities. These
regulations fall into two general categories—economic regulations that control commerce
and social regulations that seek to achieve some type of social objective. The needs for
social regulations are numerous. Because of the complexity of our interactions, our society
has the power to do great harm to people and the environment, to the extreme of ending all
life. The unbridled quest for more, and the individualistic ethic have proven to do great
harm to the common good, which is the purview of social regulations. In 2010, Congress
passed the Patient Protection and Affordable Care Act, which extends health insurance to
32 million uninsured people in the United States. This Act has been the subject of
considerable debate, and the social and economic impacts of the new law are still the
subject of substantial discussion in the U.S.
4. Question: Outline the major benefits and costs of government regulation. In general, do
you think the benefits of government regulation exceed the costs? In what areas, if any, do
you think the costs exceed the benefits?
Answer: This will be a difficult question for students to answer, simply because the costs
and benefits have not been quantified for them (or anyone else). Without hard data on
which they can base their answer, the students will rely on their general feelings about
government regulations. Because the prevailing notion about government regulation is
negative (especially among business people), the majority of students will likely answer
that it does more harm than good. However, students also may address the costs of
deregulation. As the text notes, “most observers believe that the rescinding of the Glass
Steagall Act prompted the [global recession that began in 2008]”. If this is true, the global
economy will experience the costs of the failure to regulate for some time.
5. Question: What are the trade-offs between privatization and federalization? When would
one or the other be more appropriate? What problems might you foresee and what future
events would merit a shift in the current mix?
Answer: The privatization/federalization debate centers on the question of efficiency.
Proponents of privatization contend that almost everything can be accomplished more
efficiently in the private sector than through government control. Supporters of
federalization contend that there are some functions that cannot be adequately handled by
the private sector. What the two sides often miss is that efficiency may not be the right
criterion upon which to make this decision. Is efficiency the most important factor in
making decisions about the education of our young people? Students may like to debate
whether social security should be privatized. This is a timely issue and one that garners the
interest of a majority of students due to the applicability to their personal lives. On the
other hand, students may like to debate the role that the government should play in
healthcare. Given the current political climate regarding this issue, this topic should be the
subject of a lively debate.
6. Question: What are deregulation and reregulation? Under what circumstances should
each be considered?
Answer: Deregulation is the counterpart to regulation, that can sometime overlap due to a
mix of economic and political decisions that is in a state of flux. Deregulation is used to
remove certain industries from the old-line economic regulations of the past, to keep the
economy in balance. Reregulation comes out of bad experiences after deregulating
industries. Reregulation is used to help find the optimal mix of regulation and deregulation
of industries. Deregulation should be considered to bring some industries up to date in
response to the changing economy. Reregulation should be considered when the
deregulation of industries caused negative effects rather than positive effects.
GROUP ACTIVITIES
While many students understand the concept of regulation, they do not understand the regulatory
process. At a basic level, students should understand that Congress creates laws, various
regulatory agencies create rules/regulations within the parameters of those laws and that the
public has an opportunity to comment on the proposed regulations.
To help students understand this concept, instructors should divide students into groups of three
to four students. Each group should then be assigned a law (preferably one that is studied in this
textbook). The students should research when the law was passed and the regulatory agency
responsible for implementing regulations under the law. They should summarize any regulations
created by the appropriate regulatory agency under the law and note any public opposition or
support that was generated during the comment period.
Divide students into groups of three to four students. Have students research (1) how Enron
lobbied Congress to deregulate the wholesale electricity industry and (2) how the deregulation of
the electricity industry has impacted consumers. Students should note any benefits or problems
that have occurred as a result of the deregulation of this industry. Instructors may want to guide
students to the situation that occurred in California as a result of the deregulation of this industry.
INDIVIDUAL ASSIGNMENT
Ask students to research the Patient Protection and Affordable Care Act of 2010. As a starting
point, instructors may want to guide students to the following websites, which summarize the
law:
http://kaiserfamilyfoundation.files.wordpress.com/2011/04/8061-021.pdf
http://www.cbsnews.com/8301-503544_162-20000846-503544.html
In connection with their research, students should prepare a typed-written response to the
following questions:
(2) How will the law affect business? Specifically, what requirements does the law place on
employers?
(3) What is a public option? Why is it controversial? What role does the public option
currently play in healthcare reform?
(4) In your opinion, what role should the government play in healthcare? Explain.
Language: Finnish
Kirj.
Albert Kukkonen
SISÄLLYS:
Runoilijan alkulause.
Johdanto.
Eero Varis Albert Kukkoselle
Runoilija Pentti Lyytisen patsasta paljastaissa.
Nykyinen aika.
Kansanjuhlassa Rautalammilla.
Kansanopistolla Äänekoskella lukuvuotta alkaissa.
Vanhan miehen miettehiä Lomakurssien lopussa.
Nuorisoseuran kokouksessa.
Vielä virttä viinan töistä.
Maamiespäivillä Rautalammilla.
Pellervon päivillä Helsingissä.
Valtiopäiväin avaamisesta.
Keisari Aleksanterin kuolinpäivästä.
Kiistelystä kielen päältä valtiopäivillä.
Suomenkielen asia ritari- ja aatelisäädyssä valtiopäivillä.
Hiljaiset Valtiopäivät.
Nuorisollen neuvoksi välttämähän väkijuomat.
Entisistä ja nykyisistä ajoista.
Rautatie-kokouksessa Pieksämäellä.
Muistelmia Iisalmen näyttelyssä käynnistä.
Teaterihuoneella juhlassa kylvettäjäin hyväksi Kuopiossa.
Kirurgisessa sairaalassa olostani Helsingissä.
Muistelmia vuosisadan vaihteessa.
RUNOILIJAN ALKULAUSE.
Rupeaisinpa runollen,
Läksisinpä laulutyöllen,
Kuin ois oppia otsassa,
Tuntoa tuolla tukan alla
Eli taitoa takana;
Vaan olen aivan oppimaton
Kirjoitusta koittamahan,
Paperille piirtämähän.
———
Kuin ois kaunis Kalevala,
Kantelettaret kädessä,
Niissä oppia olisi,
Oivallista ojennusta,
Kaikki kaunista tekoa,
Niissä on runot rustattuna,
Niissä laulut laitettuna,
Sananlaskutkin saneltu,
Kaikki laatunsa mukaiset,
Joka sorttihin sopivat:
llolaulut, surulaulut,
Miesten laulut, naisten laulut,
Vaimojen valituslaulut,
Laulut lapsille hyville,
Laulut päiville pahoille,
Neitosille naitaville,
Kosioillen katsottuna.
Vielä on vanhan Väinämöisen
Loihturunot runsahasti
Kalevalahan koottu,
Joissa on oppi oivallinen,
Kaikki taito tarpeellinen,
Suomen kielellen sopiva
Suomalaisten suosioksi.
———
Kiitän vielä viimeseksi
Niiden herrojen hyvyyttä,
Jotka ylös ottelevat,
Vanhat laulut laittelevat,
Kelpo kirjaksi kyhäävät.
Olkoon kiitos kirjoitettu,
Sanottu Savon ukolta,
Teillen taitavat tekiät,
Hyvät herrat Helsingissä,
Että ootten etsinynnä
Suomesta suloiset laulut.
Niinpä saatamme sanoa
Maamme puolelta puhua:
Ei ne herrat helpommasti
Maata, ruualle rupia,
Jotka kaikki kiertelevät,
Laajaa maata matkustavat,
Suomen sukua hakevat.
Suomella on vähän sukua,
Aivan vähä aatelia,
Vielä on Virossa vähäsen,
Venäjällä veikkosia.