Introduction
Business plays a significant role in policy decisions, since they are major players in the economy which are of great concern to everybody. This paper explores some of the policies made and how business can influence the policy making process.
Policies the Industry Might Have
The corporation should give enough information to consumers through accurately indicating the ingredients, warning on the potential dangers of over consumption of specific foods, and also educate the consumers on the health requirements pertaining food nutrients. Firms should also participate in environmental cleaning acts which will help in reduction of environmental pollution as is done by McDonald Corporation.
The firms can also get involved in offering free medical services to the public and also providing equipments to local hospitals. Improving the working conditions of the employees as Burger king company, and assisting in research for enhancement of technology and agricultural methods will also be a good policy.
It is ethically and legally right for the firms to make the consumers aware of the impending dangers of using a certain commodity, as this enables consumers to make an informed decision on whether to consume or not.
On the other hand, technological improvement coupled with advanced agricultural methods will increase efficiency and production hence economically boosting the corporations’ activities. Besides, it is an act of philanthropy for the industry to equip hospitals and sponsor free medical services during given period of the year which helps in improving the health status of the society.
Privileged Position of Business and Policy Making
Privileged businesses control most of the resources and usually use this as a tool to ensure that policies which favour their activities sail through.
These firms can threaten to move their activities to other regions, laying off workers and causing other economic downfalls, forcing government to do everything possible to favour businesses because any economic ill performance is always blamed on the government.
Politicians also being a ware of the role business play in the economy of the society, they endeavor to involve them in the policy making process or make regulations that favour businesses which makes these firms have a very influential role.
On top of that, as people are concerned about the performance of the economy, the powers of businesses in policy making becomes significantly huge, since many people associate good economic performance to businesses.
Globalization Effect on Policy Making
Globalization has led to global interdependency which has minimized the independence of internal policy making of governments, thus limiting the governmental control over some issues.
Participation on the global arena for business or other forms of investment, limits the policy choices that are available on national level because demand for the governments is influenced by global requirements, this sometimes evens calls for amendment of long standing policies.
Globalization, has also increased the influence of foreign countries in the policy making of a country mostly, through the international policy making process.
It has been argued though, that globalization has no effect on national policy making and the important point is to have strong governments, which will enforce the rule of law and exercise democracy. The effects of globalization on national policy decisions still remains a subject of debate which requires research to solve it.
Stakeholder Concerns on Corporate Governance
The company should maximize the returns to the shareholders’ investments, ensure that the creditors and suppliers are paid as per the agreements and also operate within the legal requirement of their nature of business. In addition, consumers’ interest should be taken into consideration while at the same time working towards limiting negative effects on the environment.