Government and

Business Ethics
 Government: The government consists of a
variety of institutions and actors at different
levels that share a common power to issue
laws.

Defining
government, Laws: Laws serve as a codification into
explicit rules of the social consensus about
laws and what a society regards as right and wrong.

regulations
Regulations: Regulation can be defined as
rules that are issued by governmental actors
and other delegated authorities to limit,
enable or encourage particular business
behaviors.
A sample
structure
 • Is it acceptable for corporations to use their
considerable power to shape government
policies?
The reasons • Is the government jeopardizing its role in
protecting the public interest?
behind • What is the role of politicians when they sit on
evaluating this boards of corporations?
relationship • Should large corporations contribute to the
development of regulations of their particular
industries?
 • When discussed with managers of businesses
they are not thrilled about an over-active
Basic role of government due to;

government as Excessive taxes

Various restrictions placed on activities such as
a stakeholder mergers
(from a Raising new standards for product safety
business • But business expect the governments to protect
perspective) their interests ;
Improving infrastructure
Keeping foreign competitors out of the market
 • Politicians like to surround themselves
with powerful businessmen
From a • A booming economy increases the trust
government’s towards the government
perspective • They have a responsibility of policing
unfair business monopolies for the
social benefit of their community
Government as a stakeholder of business
 Government as a representative of citizen’s interests

1. License to operate- restricting business

- In Democratic systems governments have fairly a strong incentive to act in the best interest
of citizens because of the elections. Governments cannot survive long term if they constantly
violate the rights of citizens..
- eg- imposing environmental regulations
- Imposing taxes
- Investigations as to merger bids / unfair share trading

• 2.. Enabling business

- Regulating the behavior of traders at the stock market
- Avoids gradual emergence of monopolies
 Government as an actor

• 1. Dependent on business
• Reason for the government acts as a party who has interests of their own – the particular government
wants to be re- elected.
- High employment
- Increasing incomes
- Expanding business activities
• A government’s success will be judged by the competence in running the economy

• 2. Competing with business

• - Privatization of telecommunication – increasing usage of private companies in the national health care
sector - increasing ownership of television companies
• Above are examples that many private corporations are in competition with public corporations.
Ethical issues in the relation between business and government
Business influence on government : Ethical Issues
1. Lobbying:
Lobbying represents a direct, usually private, attempt by business actors to influence
governmental decision-making through information provision and influence. In other
words it is all about providing information rather than explicit pressure. This
“information” can be in the form of specific data, analyses, or business-related public
issues. However, the persuasive nature of this provision of information also introduce
considerable pressure on government decision makers.

2. Party financing:
This is all about donating money to political parties in the country where organizations can
favorably enjoy the legislation changes to achieve their own goals and objectives.
Cont.
3. Overlap of posts between business and government:
Appointing a company individual to the government to change government regulations
in favor for the organization. But it is questionable those representatives are supporting
to the organization or to the government. Due to this reason many conflicts can arise.

4. Ethical issues in the context of privatization and deregulation

Privatization simply means transferring government sector resources into private sector.
There are many corruptions would happen due to transfer of resources. Mainly public
interest would minimize, and society will face for many problems.
Cont.
5. Corruption of government actors by business
Private firms shape the formulation, implementation or enforcement of
public policies or rules by payments to public officials and politicians.
The offer of bribes and other forms of corruption to gain influence over
politicians is a major problem in many parts of the world.
Thank you.