...Intervention in the market What are the main reasons for government intervention? The main reasons for policy intervention are: •To correct for market failure •To achieve a more equitable distribution of income and wealth •To improve the performance of the economy Options for government intervention in markets There are many ways in which intervention can take place – some examples are given below Government Legislation and Regulation Parliament can pass laws that for example prohibit the sale of cigarettes to children, or ban smoking in the workplace. Employment laws may offer some legal protection for workers by setting maximum working hours or by providing a price-floor in the labour market through the setting of a minimum wage. The economy operates with a huge and growing amount of regulation. The government appointed regulators who can impose price controls in most of the main utilities such as telecommunications, electricity, gas and rail transport. Free market economists criticise the scale of regulation in the economy arguing that it creates an unnecessary burden of costs for businesses – with a huge amount of “red tape” damaging the competitiveness of businesses. Fiscal Policy Intervention Fiscal policy can be used to alter the level of demand for different products and also the pattern of demand within the economy. Indirect taxes can be used to raise the price of de-merit goods and products with negative externalities designed...
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...manpower, and above all, more funds- could do for the community. Being a successful corporate citizen is about more than writing a cheque: companies must integrate corporate responsibility into their business models and focus on the areas where the greatest change is required. In the aftermath of apartheid, South Africa is faced with a new set of problems, vastly different to that, that was championed by Harry Oppenheimer. In the midst of political stability, and relatively steady economic growth, we are faced with the reality of abject poverty, illiteracy, HIV and growing inequality. Nearly 24 million people live below the poverty line and the recent spats of violence that erupted as a result of this volatile situation (such as the xenophobic attacks, and assault on Eskom staff in the rural areas) serve as a warning of what will come if the rich get richer and the poor, poorer. As Pravin Gordhan said, “we need business leaders who will say: “I have enough, I have to share for everyone’s benefit.”” In this paper, I will discuss 3 key areas that influence a company’s decision on whether to actively champion the rights of the society within which it operates. These areas are: profits, ethical custom and the laws of the land. Profits Many people are of the opinion that business is divided into two distinct areas: the part that...
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...Chapter Review Chapter 1: The Study of Business, Government, and Society In chapter one the author lays a foundation for the information which will be shared in the following chapters. This foundation allows the reader to understand basic terminology, ideas, and relationships as it pertains to the operation of business, government and society. For a more distinct explanation of what the author helps the reader to understand; the collaborative information that the chapter provides illustrates a somewhat intangible relationship, in which we (business, government, and society) all are stakeholders. The author helps the reader understands the interactions of the stakeholders, and these interactions shape how business’ assumes social responsibility; whether it is self imposed, dictated by law/regulation, or pressured by social values, ideas, and expectations. The author then offers four definitive relational models which helps the reader understand the multiple variables which help shape and control the relationship between business and society. In addition, the models also help the reader to understand the effects, the value added, and the challenges that are imposed on those parts of society which assume them. One interesting thought for the reader to keep in mind when learning the four models is how the nature of the models can vary based local and national politics, market maturity, and social structure. The first model that author presents is the Market Capitalism Model. In...
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...and children in achieving success and helping entrepreneurs to begin stable businesses. Through Gap’s ethical standards, it has developed legitimacy and positive stakeholder relations which attribute to the company’s global success. Gap has realized growth as a company and in many individual areas, with its current stock listed at over twenty six dollars per share (Gap Inc, 1). Levi Strauss has a published code of ethical values available for its share holders as follows “We believe that business can drive profits through principles, and that our values as a company and as individuals give us a competitive advantage. Empathy — walking in other people’s shoes Empathy begins with paying close attention to the world around us. We listen and respond to the needs of our customers, employees and other stakeholders. Originality — being authentic and innovative The pioneering spirit that started in 1873 with the very first pair of blue jeans still permeates all aspects of our business. Through innovative products and practices, we break the mold. Integrity — doing the right thing Integrity means doing right...
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...To be profitable. That is why business-minded people are eager to start one. But it is not easy to initiate a business. Besides from capital, one must have business permits and other requirements that can be acquired from the government. This proposed study tends to know the effects of the government policies on setting up a business, its advantages and disadvantages to the business, and if the requirements are just enough or too much for the business people to comply with. REVIEW OF RELATED LITERATURE Every business must get a certificate of registration first depending on their business’ structure. A sole proprietor business must get it on Department of Trade and Industry (DTI), for partnership and corporations is the Securities and Exchange Commission (SEC), and Cooperative Development Authority (CDA) for the cooperatives. After getting your certificate of registration, you will need to visit the following offices: Homeowners Association for businesses inside villages and subdivisions, Barangay Hall to secure a barangay clearance to operate your business, Local Government Unit (LGU) to process your business permit, Bureau of Internal Revenue (BIR) to apply for a business taxpayer identification number (TIN), register your books of accounts, point-of-sales (POS) machines and receipts. In the past, economists thought that government policies has no impact on business, but after the 1930’s Great Depression...
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...M1- Analyse the implication of government policies for Tesco and the possible reactions of the business to government decisions. What actions the Tesco would take based on the policies? What the government expect the businesses to do? Possible reactions of the businesses to the government policies? What would businesses do for the changes the government makes? Economical policy Environmental policy health policy competition policy The economical policy affects Tesco’s. The possible changes the government could make are: * A rise is co-operation tax * A rise in Interest rates In order to take action Tesco’s could pass some of this tax to its customers charging higher prices for the goods/services. If interest rates start rising, this could be a downfall for the business and customers will reduce their expenditure. This depends if Tesco’s takes a loan out if it is struggling but because Tesco’s is a global organisation, they probably wouldn’t need to. If any of the problems do , the possible reaction may be that they may request the government to reduce tax/interest rates because businesses may not be able afford it and wouldn’t be doing as well as it was before. The environmental policy affects Tesco’s. Environmental concerns: * Carbon emissions * Sustainability * Complying with environmental laws Tesco’s is working on reducing emissions by 2020 and they can do this by reducing carbon footprint of their supply chain by 30%. Having sustainability...
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...Name: Le Thai Hien Giang Student ID: 3372817 Tutor: Mr. Peter Hayes Topic: Using examples from two countries write a business report on how globalisation is changing relationships between government, business and civil society? Discuss with specific reference to the topic of power. EXECUTIVE SUMMARY The report is commissioned to examine the relationship between government, business and civil society under the impact of globalization. Taking education industries in Australia and Vietnam as examples, the positive and negative impacts are clarified which in turn show the change in power battle. Some definitions firstly are introduced to state that globalization is connecting economies, societies, polities and cultures together and it affects in all aspects. Thanks to it, education has changed vigorously compared to the past, diversified itself to many forms and expanded across border. Basing on the strongly development of globalization, plus the impact of cutting fund from government, many Australia universities view transnational education as a possible solution. Number of offshore campuses grow dramatically in South Asian. The examples show that, offshore campuses bring huge amount of revenue to Australian transnational education providers as well as strengthen Australian economy through tax. In addition, it helps many universities save money thanks to low cost operation in developing countries. Finally, through education, society takes advantage of globalization through...
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...Making Sense of Small Business Set-Asides in Government Contracting From the Viewpoint of a Contract Specialist with the Department of Veterans Affairs As a new contract specialist in the federal government, one of the first concepts we learn is full and open competition. Full and open competition is one of the fundamental principles of federal contracting. Healthy competition is the lifeblood of commerce. It promotes innovation, quality and savings. Contracting officers (COs) are required by law to procure supplies and services on a competitive basis. In 1984, the Competition in Contracting Act (CICA) was passed and introduced the phrase full and open competition into the world of government contracting (Nash, Schooner, O’Brien-DeBakey, Edwards 111). CICA requires that contracts be competed as full and open so as to allow any qualified company to submit an offer ((Blogger). This principle is echoed in section 13.104 of the Federal Acquisition Regulation (FAR). It states that the CO must promote competition to the maximum extent practicable to obtain supplies and services from the source whose offer is the most advantageous to the Government (Federal Acquisition Regulation “FAR” 322). While FAR part 6 implements CICA and addresses competition requirements it must be noted that there are three levels: full and open competition; full and open competition after exclusion...
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...The involvement of government, business and civil society institutions in the diagnosis and solution of societal problems has been in existence for ages, but the concept has gained more supports in the international development arena in recent times The relationship between government and business is complex, with both positive and negative aspects in terms of what can be called “the public good”. This notion of “public good” changes depending on one’s ideology and this makes the appreciation of the phrase even more complex. Therefore, an accurate understanding of the relationship that exists between the three requires an examination of the three main theories of political economy – the free market economy, socialism and mixed economy. Business, government, and society interact and influence each others' specific objectives and goals. Business, Government, and Society Business, government, and society have similar goals and objectives. How can all three affect each other? Let's make sure that you have an understanding of each term. Society is a group of individuals who reside in communities that have shared values and laws. In addition, society is made up of different religions, cultures, interests, attitudes, and lifestyles. Business consists of organizations that participate in consumer, industrial, or economic activities for a purpose, such as profit or non-profit means. Government refers to the governing body of a nation, state, or local community. In this lesson, you...
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...Berend (2000) – From Plan to Market, From Regime Change to Sustained Growth in Central and Eastern Europe * After the state socalism collapsed in Central and Eastern Europe in the early 1990s, the Washington consensus of 1989 (a broadly accepted set of criteria for a reform program) was adopted as a blueprint for the process of transformation. * Central elements: * Macro-economic stabilization (for countries with significant inflation and indebtedness) * New institutions * Legislation * Price and trade liberalisation * Radical privatization * Most of the “transformatology“ literature is based on the assumption that the elimination of deformed non-market economies, a restoration of market, and private ownership, paired with a laissez-faire free market system would automatically solve all major economic/social problems of the transforming countries. * The economic crisis within the Central and Eastern Europe area started much earlier – in the mid-late 1970s when growth slowed significantly and the terms of trade for the state socialist countries began to deteriorate (1973 first oil shock 20% decline, for some even 26-32%) Schumpeter’s theory of “structural crisis”: advancements in technology lead to decline of the old leading sectors and export branches based on old technology, generating wide-ranging slow-down and decline and causing an economic crisis even in rich, advanced countries. However, although rising new technology...
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...What could good corporate governance have done for Enron? Corporate governance is policies and laws that affect the way a company such as Enron is run. The Enron scam was a scam that used mark to market pricing. Enron also hampered with the financial accounting statement by hiding information and not showing the true status of the company. In this way, Good corporate governance should have had a tighter control over the use of accounting policies. Also, anticipating profits (that Enron did) is just an estimate and the determinants of such as estimate is very subjective. In Enron, the business leaders were too concerned about inflating the share prices and showing a pretty picture of the company’s financial position. The leaders of Enron should have had more moral grounding in understanding that such behaviour would have repercussions. Good corporate governance could have prevented this greed from building up. When the company anticipated their downward slope, Jeff Skilling did not take action to acknowledge his mistake and instead swept the matter under the carpet. Instead of this corporate governance would have made sure that such behaviour would strictly not be allowed. Tighter laws and stricter policies would have ensured that the scandal did not take place to such a large extent. Better accounting policies that ensured that only sales actually realised should be accounted for. Laws such as more transparency about the running and operations of companies would actually...
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...CASE STUDY-BUSINESS CONTINUITY/DISASTER RECOVERY PLAN FOR LOCAL GOVERNMENT AGENCY 1. Disaster Recovery for City Hall Server #3 a. RTO/RPO for Hardware/Software: The Recovery Time Objective (RTO) is the determined length of time from when a disruption occurs in which a department’s functionalities, systems, applications, etc. must recover. The RTOs for the City Clerk, HR, and Finance Departments are as follows: RTO: Recovery Time Objective APPLICATIONS CITY CLERK HR FINANCE Millennium – Internal Payroll Processing 1 Day 4 Hours 1 Day Access to External Ameripay Payroll Service 1 Day 4 Hours 1 Day Collector’s Office System (Access) 1 Month 1 Month 1 Month Building Department System (Access) 1 Month 1 Month 1 Month Water Department System (Access) 1 Month 1 Month 1 Month PeopleSoft (HR System) N/A 4 Hours N/A The Recovery Point Objective (RPO) is the amount of acceptable data loss determined by an organization during a disruption of systems. The RPOs for the City Clerk, HR, and Finance Departments are as follows: RPO: Recovery Point Objective APPLICATIONS CITY CLERK HR FINANCE Millennium – Internal Payroll Processing 0 0 0 Access to External Ameripay Payroll Service 0 0 0 Collector’s Office System (Access) 1 Week 1 Week 1 Week Building Department System (Access) 1 Week 1 Week 1 Week Water Department System (Access) 1 Week 1 Week 1 Week PeopleSoft (HR System) N/A 0 N/A Because the applications within each of the departments itemized above have...
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...Research in Motion (RIM) pioneered the development of the smartphone market in 1998 with the BlackBerry, positioned in government agencies and enterprise target markets in UK, US and Canada during that time. Eventually, BlackBerry took the action to move into global foreign markets for a variety of reasons. 1. To Expand market and Increase Sales Companies’ sales are dependent on the consumers’ interest in their products or services and consumers’ willingness and ability to buy them. The number of people and the amount of their purchasing power are greater for the world as a whole than for a single country, so Blackberry may increase it sales by reaching international markets. For example, China is the most populous nation in the world with growing middle class, if only 1% of its population became middle class over next three years, that would be 16 million potential new consumers for BlackBerry. Many large companies obtained more than half of their sales from outside their home country, expanding globally will likely improve overall revenue of BlackBerry, with more profit. 2. To Acquire Resources BlackBerry has acquiring resources that may enable it to improve its product quality and differentiate itself from competitors and potentially increasing market share and profits. Investing abroad to obtain resources, looking for foreign capital, technologies, and information that they can use at home country. BlackBerry may initially use its domestic resources to expand foreign...
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...03/10/16 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...
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...Whistle Blowing in Government or in a Business To speak or keep silent, those are the two of many common issues that plays along with the ethical considerations and morale of a Whistle Blower. On the other hand, what if you saw fraudulent actions of someone, should you speak or keep quiet? What if the person doing the fraudulent actions was a friend or a high ranking official, should you speak or keep silent, these and many others are the complex situations that could happen within a business organization. Whistle blowing, which seems to become increasingly common as employees speak out about ethical concerns or illegal practices in the work place to the public or to authorities. “There is a great deal of evidence to suggest that whistle blowing is one of the most important sources of information or detecting and reducing illegal and unethical corporate behaviors” (Kohn 2011). In general, whistle blowers feel a need to report the incident in order to put a stop to the illegal or ethical concern in the business or to correct them from happening on a regular basis. In the past years, there have been a lot of cases where employees have decided to come up in public eye and expose the unethical behavior within their companies. There is no doubt that many unquestionable practices among business organizations are being committed daily. With all the recent cases of corporate fraud, companies now provide for internal rules to protect the whistle-blower against retaliation,...
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