Introduction
In the quest of making profits, businesses tend to be so profit oriented at the expense of the welfare of citizens and therefore governments sets in to ensure that there is fair competition among businesses, businesses engage in legal activities within a country and other countries and that businesses do not overexploit consumers among other factors and thus the need for policies between governments and businesses (Buchholtz, & Carroll, 2008).
Policies therefore are the predetermined rules and standards set by both business operators and governments to govern business activities within a given country (Buchholtz, & Carroll, 2008). Not withholding the fact that businesses and governments share a mutual interest, that is the citizens who are otherwise potential customers to businesses, clear guidelines are therefore needed on how businesses should operate to create mutual benefits between the two.
History of Government’s Role in Changing Government – Business Relationships
There has been an upward trend regarding the way governments have continued to increase their involvements in business activities.
For instance, the USA government traces its involvement in business activities from the time of British colonizers when the European settlers settled in America and began farming for their own benefits but as time went by, an economy comprising of small scale farmers emerged which later on would prompt the United States of America government to create policies which would govern trade (American Law Institute, 1995).
Differences between colonizers (Britons) and the natives (Americans) emerged due to taxation issues and which led to the war that liberated Americans and the liberation came with it a constitution in 1787 that specified that government’s role in involvement in business activities (American Law Institute, 1995).
However, government involvement in business activities was to increase as the economy expanded and industries sprouted, banks emerged making the involvement of government in business activities ubiquitous, and not merely as upholding order. By the onset of 19th century and after the industrial revolution in America, government involvement in business activities had increased in America to ensure that there was fair competition among businesses and that businesses operated freely in the country and free of corruption.
The 1929 – 1940 economic depression awakened the United States government into action with president Franklin Roosevelt establishing what was known as the 1930 New Deal. This gave the government autonomy to even include the participation of labor unions and regulating industries from agriculture sector to industries in the banking sector among other rights (American Law Institute, 1995).
From the time of President Franklin D. Roosevelt, to the times of President Barrack Obama, we cannot dispute the fact that the USA government has been actively involved in business activities and has also been in the frontline in helping the nation recover from the various economic depressions that have hit America. America’s government tries to forge relationships between businesses whether small or large corporations within and outside America.
We cannot also dispute the fact that every nation needs government involvement in business activities for without government involvement in business activities, there would be no infrastructure development in the country and also the rule of thumb in a country would not be followed making business operations in a country hectic (American Law Institute,1995).
Current Day Concepts
Modern day government interventions in business activities have grown from not only the government stimulating the economy to practically government involving itself fully in business activities for the overall benefit of the citizens. From health to issues relating to environment, government involvement is ubiquitous.
Regulating the economy has been entirely the role of government through creation of laws and policies that businesses operate within. In so doing, the government has protected the interests of citizens from the hands of unscrupulous businessmen through antitrust laws.
Businesses require government support in all spheres of their operations for instance, governments partner with businesses to provide essential services to the consumers, protect businesses within a country, protect unfair trade among businesses, provides the currency which businesses use to trade among others.
Where businesses are to thrive, it is inevitable to eliminate government involvement for the policies that are developed between businesses and a government allows businesses to thrive within a country, the greater economy of the United States of America not excluded (Buchholtz, & Carroll, 2008). Then one would ask the question as to why businesses have to fulfill the various governments’ regulations if the relationship between business and government is a symbiotic relationship?
Conclusion
I would argue that the policies that government creates to forge business relation outweighs the costs that businesses have to pay to follow the policies and therefore governments – business relationships are inevitable especially in the modern day great economics (Buchholtz, & Carroll, 2008). To further drive my point home on the concepts of government – business relationships in the modern day, what would become of an America where businesses are conducted in the absence of government intervention through policies?
To say the situation would be unthinkable is to further emphasize my answer on the importance of government – business relationships. Then again, businesses cannot fully thrive without policies and exceptional relationships with the ruling law of the land.
References
American Law Institute. (1995). Restatement (Third) of Unfair Competition. New York. American Law Institute.
Buchholtz, A. & Carroll, A. (2008). Business and Society: Ethics and Stakeholder Management. Michigan. Cengage Learning.