Business, Government and Society Relationships
Business, Government and Society have similar goals and objectives. All three interact each other. Firstly, Business’s objectives are to keep their cost low, increase sales and maximize their profit. Secondly, Society’s objectives focus around survival, health care, education, shelter and opportunity to succeed. Lastly, Government’s objectives are to provide regulation to instill a fair, safe use of resources for business and to protect citizen against things like unethical business. For Example, Society need car and Ford Motor Company wants society chose their products as their vehicle objective. The Government has to ensure that Ford Motor Company operates ethically to not harm the environment or the customer. There are four different models that how Business, Government and Society should interact: 1. The Market Capitalism Model, 2. The Dominance Model, 3. The Countervailing Force Model, 4. The Stakeholder Model.
The Market Capitalism Model:
Dominance: - The represents primarily the perspective of business critics. In it, business and government dominate the great mass of people.
Countervailing Force Model: - To maintain public support, business must adjust to social, political and economic forces it can influence but not control.
Stakeholder Model: - An Entity is benefited or burdened by the actions of a corporation or whose action may benefit or burden the corporation.
After read the definitions of Business, Government and Society I think this three organization related each other. And relationship currently exist. But sometimes government need to take a look why corporation prefer to pay the fines ********* than fix their problems.
Market Capitalism: - The definition of market capitalism is based on an economy that is focused on supply and demand, where the price of goods or services are set through an open free market system. For an example, Ford Motor Company would like to sell new brand car for $25,000. Unfortunately, society’s demand for new car price is high and consumer are not willing to pay such a high price. They like to buy competitor’s same model car for only $15,000. In market capitalism, the objectives for businesses are determined by society’s demand, as well as government added taxes.
Dominance: - The represents primarily the perspective of business critics. In it, business and government dominate the great mass of people.
Countervailing Force Model: - To maintain public support, business must adjust to social, political and economic forces it can influence but not control.
Stakeholder Model: - An Entity is benefited or burdened by the actions of a corporation or whose action may benefit or burden the corporation.
