Does Businesses Influence Political Decision-Making? Essay

Submitted By Kaustubh-Mamdyal
Words: 1260
Pages: 6
Open Document
Government and business have a co-dependant relationship which is crucial to the economic growth in addition to higher social wellbeing, taking this onto account does have too large of an influence over the political decision making system. This essay will argue that in the case of Australia, Business does not indeed have too much influence, in fact perhaps too little, business as a whole has a level of influence which is needed to maintain and support business, yet not enough to diminish the societies interests in totality. This influence is necessary to maintain a stable or growing economy and allow the government the ability to support society as a whole, and the way they influence the state is made easier by the Government-Business model that is used, sectional interest groups and the need for greater industry voice due to globalisation.
"The great object of the institution of civil government is the improvement of the condition of those who are parties to the social compact” (Quincy Adams, J. 2006). Simply put the purpose of government is the betterment of society at large, both business or otherwise. To do this government depends on business to provide investment, employment, goods and services for the society, it also of course an important revenue stream through taxes. As a result of the important roles played by business within society, it has a high level of influence over government, its high level of control over the economy, resources and influence has led to Lindblom (1977) to stating it has a ‘privileged position’
Governments further select the level of interaction between itself and government based on the Government- Business Relations model the Government uses. These model include the ‘Regulatory,’ this model is shaped by the ‘ideas from the right,’ where the government sets the basic framework and rules for society yet works indirectly through regulatory mean. This model tends to create a largely adversarial relationship government and business, although allows for high economic expansion through the principally liberal views. Next is the ‘Developmental’ model where the state has a more proactive role, business and government acts as partners rather than adversaries. This model allows government to actively engaging in creating infrastructure and industry, it prioritises Protectionism over Free Trade. Next is the ‘Cooperative’ model which revolves around consultation, compromise and consensus between government and business, it allows for free trade, but the state provides assistance in coordinating activities. Australia employs a model incorporating aspects of the three models, to utilise the strengths of each of them.
The way in Business usually influence the state is through Sectional Interest groups. As theses interest groups ten to represent particular sections of society they have clearly defined membership. This allows for the sectional interest group to comprise exclusively of those are direct stake holder of the particular industry and as such, allows the group to have a large economic capability and expert knowledge in the field. Some of these groups include the Professional Associations such as the Australian medical association, Workers’ trade unions and even business groups such as the Business Council of Australia. Due to their vast resources and expertise they are able to target the political members or the bureaucracy directly and with great efficiency, this has led them to have close relations with the state and given them an ‘Insider status.’
Usually they Sectional Interest groups are represented and heard through government inquiries or by submissions to a multitude of parliamentary committees, although some sectional interest groups may have close ties with particular Politician or government departments at large. It is common practice that sectional interest groups seek out former senior public servant, as they are extremely valuable due to their close history with the creating or
Show More

Related Documents: Does Businesses Influence Political Decision-Making? Essay

Essay on Unit 1 Assignment 2014 15

stakeholders who influence the purpose of two contrasting organisations 4,5,6 M1 Explain the points of view from different stakeholders seeking to influence the strategic aims and objectives of two contrasting organisations 4,5,6 D1 Evaluate the influence different stakeholders exert in one organisation 4,5,6 P3 Describe how two businesses are organised 6,7,8 P4 Explain how their style of organisation helps them to fulfil their purposes 6,7,8 P5 Describe the influence of two contrasting…

Words 2587 - Pages 11

Business: Sainsbury ' s and Private Sector Essay

outcomes: On completion of this unit a learner should: 1 Know the range of different businesses and their ownership 2 Understand how businesses are organised to achieve their purposes 3 Know the impact of the economic environment on businesses 4 Know how political, legal and social factors impact on business. 1 Know the range of different businesses and their ownership * Range of different businesses: local; national; international; global; public; private; not-for-profit/voluntary;…

Words 1460 - Pages 6

Essay on Global Expansion

Global Expansion is a necessity for companies who are looking to grow their businesses and reduce costs. Global expansion, however, does not come without its challenges. When businesses choose to expand to global operations, it is important to properly train leaders in appropriate ethical negotiations with foreign officials. Once negotiations have been completed and business operations begin, it is important that businesses disclose to domestic customers that their personal information is being outsourced…

Words 3828 - Pages 16

Economics and Sainsbury Plc Sainsbury Essay

UK COLLEGE OF BUSINESSES AND COMPUTING EDEXCEL BTEC (HND) BUSINESSES Business Environment Lecturer: Mr Peter Emelone Module Code: Unit 1 – Y/601/0546 Assignment Sainsbury PLC Written by Dimitrijs Stepcenko ID No. 10683 Contents Pages Introduction, Aims, Objectives 3 Task 1 4-8 Task 2 9-12 Task 3 13-18 Task 4 19-21 Conclusion 21 References 22…

Words 3660 - Pages 15

Health Care and Small Business Essay

small business would like to support ACA when it comes to provide the tax credit and also make the limitation of the credit requirement of the provisions more feasible. Furthermore, small businesses are hoping that ACA will be tweaked when it comes to a penalty for providing insurance particularly [3]. 2. Political Environment: Stakeholders Small business is defined legally varied by country and by industry [4]. Under the health care reform bill Patient Protection and affordable Care Act, a small…

Words 2179 - Pages 9

Intro to Business Essay

you make a personal or work-related decision. In your life, you are making decisions all the time. Some of these decisions you take on your own and others you made after consulting internal and external forces. When you make a decision, you need to find some backgrounds information about the issue in question because if you made a decision without information is a gamble. 2. What are information rules? How do they simplify the process of making decisions? The information rules are the great…

Words 1004 - Pages 5

Intro To Business Study Guide

Represents the varied spectrum of businesses in the U.S. Business- Entities that offer products to their customers in exchange for a profit Profit- when a company’s revenue is greater than its expenses Expenses- money a company pays out Loss- Expenses > Revenue Product- A good, or service Good- Physical Products. (Cd, Roast-beef Sandwich, Cars, etc…) Service- Intangible product that is bought/ sold. (Haircut, insurance, theatrical productions, etc…) . Businesses provide employment, offer…

Words 771 - Pages 4

Chapter: Strategic Management and Sustainable Compe 44 Ve Advantage Essay

here? – Crea4ng a vision for the firm’s future direc4on • How are we going to get there? – CraBing an ac#on plan that will get us there The Strategy-­‐Making, Strategy-­‐Execu4ng Process 1 WHAT IS STRATEGY ABOUT? • Strategy is all about – How to outcompete rivals. – How to respond to economic and market condi4ons and…

Words 1604 - Pages 7

Leadership and Decision-making Skills Essay example

Anh Nguyen Professor: Michael Magreta MGT 430 May 17, 2015 TERM PAPER 1 Leadership is the ability to inspire or influence others towards the leader’s goal. If someone has followers, they are leaders. Management literature mostly focuses on the characteristics of the leader - it asks, "what make this person a leader", rather than "whom do these people choose to follow". Ethics refer to the desirable and appropriate values and morals according to an individual or the society at large. Ethics…

Words 1442 - Pages 6

Essay Business Environment

Organisational Planning Tools 1.7 Growth and Evolution 1.9 Globalisation Higher Level Questions 1.1. Nature of Business Activity 1. What is a business in terms of inputs into, outputs form and the processes a business undertakes? A business is a decision-making organization involved in the process of using inputs to produce goods and/or to provide services. Inputs are the resources, such as labour and raw materials, which a business uses in the production process. The process produces outputs, which…

Words 4616 - Pages 19