The Relationship Between Government & Business | Synonym
Government-Business relationship iN INDIA. Government and businesses are the two most powerful institutions in any society. The two. Government and Business Relationship in India PDF - Free download as PDF File .pdf), Text File .txt) or read online for free. INSTITUTIONS AND STATE-BUSINESS RELATIONS changes in India's economic development came reciprocity between business and government ( as.
They work to find the common issues of organizations and present reports, holds dialogue to discuss them with government bodies. Political action committees PACs or are special organizations formed to solicit money and distribute to political candidates.
“Government-Business” relationship iN INDIA
Most times the rich executives donate money to the political candidates whose political views are similar to them. Large Investment The companies if can make a very large investment in industries or projects, they could somehow affect the government policies.
We see these very often in developing countries where foreign corporate wants to invest in these countries.
These works in another way around, where the government tries to implement the policy to attract foreign investment. How Government Influences the Business Organizations The government attempts to shape the business practices through both, directly and indirectly, implementing rules and regulations.
Relationship between Business and Government
The government most often directly influences organizations by establishing regulations, laws, and rules that dictate what organizations can and cannot do.
To implement legislation, the government generally creates special agencies to monitor and control certain aspects of business activity. These agencies directly create, implements laws and monitor its application in the organization. Governments sometimes take an indirect approach to shaping the activities of business organizations.
Relationship between Business and Government
These are also done by implementing laws or regulations but they are not always mandatory. For instance, the government sometimes tries to change organizations policies by their tax codes. The government could give tax incentives to companies that have an environment-friendly waste management system in a production factory. Or, tax incentives could be provided to companies that have established its production facilities in a less developed region in the country.
No successful business can be carried on in the absence of a peaceful atmosphere. Provision of a System of Money and Credit: The Government has to provide for a system of money and credit by means of which business transactions can be effected.
Further, it is the responsibilities of the Government to regulate money and credit and to protect the money value of the rupee in terms of other currencies. It is the responsibility of the Government to make sure that there is balanced regional development, full employment and a stable economy. Government has the resources and capabilities for all this; the only requirement is optimum utilisation of resources. Provision of a Basic Infrastructure: It is the responsibility of the Government to provide a basic infrastructure to the business this includes provision of banking, finance, transportation, power, trained personnel, warehousing and the other civil amenities.
It is the responsibility of the central, state and local Governments to provide information, which is useful to the businessman in conducting their business activities. This information may be about economic and business activity in general, specific lines of business, scientific and technological developments and many other things of interest to business houses.
To Assist Small Scale Industries: The Government has special responsibility towards small scale industries because these industries generally face problems relating to finance, marketing, technical know-how and infrastructure.
It is the responsibility of the Government to provide these facilities and to encourage small scale sector.
Another responsibility of the Government is that whatever discoveries are made by the Government owned research institutions should be transferred to private industry so that these can be used for commercial production. Competition with Private Sector: Government should compete with the private business firms for the purpose of ensuring healthy competition, improvement in the quality and regulating the prices.
Government agencies should inspect the private business houses to ensure quality and to prohibit the sale of substandard goods.
- Relationship between Government and Business Organizations
- The Relationship Between Government & Business
Moreover the Government should issue licenses to competent business establishments, so that they may carry on different and useful business activities.
Protection from Foreign Competition: Government should encourage the development of home industries by providing them various subsidies and incentives. Moreover, measures like Tariffs and Quotas should be used by the Government to protect business from foreign competition. To summarise we can say that the business should have complete faith in the ideologies of the Government.