Scribd
Upload
77 views30 pages

Introduction of Business Government & Society

1. The document discusses different models of business-government-society relationships including the market capitalism model, dominance model, countervailing forces model, and stakeholders model. 2. It also discusses the importance of understanding business-government-society relationships for managers to make ethical and socially responsible decisions. 3. Adopting a global perspective is important for understanding the social, political, and environmental forces that shape business activities worldwide.

Uploaded by

amit chavaria
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
77 views30 pages

Introduction of Business Government & Society

1. The document discusses different models of business-government-society relationships including the market capitalism model, dominance model, countervailing forces model, and stakeholders model. 2. It also discusses the importance of understanding business-government-society relationships for managers to make ethical and socially responsible decisions. 3. Adopting a global perspective is important for understanding the social, political, and environmental forces that shape business activities worldwide.

Uploaded by

amit chavaria
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
You are on page 1/ 30

1

INTRODUCTION OF BUSINESS
GOVERNMENT & SOCIETY

Presented by
Vaishali Kondiba Kamble
STD MBA-1 DIV B
2nd Semester Roll No 27
AcademIC Year 2019-20
College: - Matoshri College of Management and Research Centre Nashik
University: - Savitribai Phule University, Pune
2

BGSIT,presenter Kiran.S 7/9/2014

INTRODUCTION
3

BGSIT,presenter Kiran.S 7/9/2014

BUSINESS
• Definitions of business: “Business is profit , can be
more the main objective of a business than betting is
the main of making profit and acquiring wealth
through the satisfaction of human wants” -R.Urvick
• “Business comprises all profit seeking activities and
enterprises that provide goods and services
necessary to an economic system. It is the economic
system. It is the economic pulse of a nation,
striving to increase society’s standard of living.
Profits are primary mechanize for motivating these
activities.”- Boone louis.E
4

BGSIT,presenter Kiran.S 7/9/2014

GOVERNMENT
• A group of people that governs a community or
unit.
• It sets and administers public policy and
exercise executive, political and sovereign power
through customs,institutions, and laws within a
state.
• Types-
democracy,republic,monarchy,aristocracy
Ex: Tata nano shifting of singur plant from
Westbengal to gujarath
5

BGSIT,presenter Kiran.S 7/9/2014

SOCIETY
• In common words the term society refers to
members of specific groups.
• Definitions-Society is a system of usages and
procedures, authority and mutual aid, of many
groupings and divisions, of human behaviour
and of liberties.-Macler and page
6

BGSIT,presenter Kiran.S 7/9/2014

Importance of BGS to managers


• T o understand the role of business in society.
• To understand the business power in society.
• It becomes criteria for managerial decisions.
• To understand the extent of corporate social
responsibility.
• To know the ethical duties of managers and need for
regulations.
• To succeed in meeting the objectives of business.
• To excel in managerial performance.
• To monitor the non economic environment by
taking stock of the situation before anything
happens.
7

BGSIT,presenter Kiran.S 7/9/2014

Models of BGS relationships


• Market Capitalism Model
• Dominance Model
• Countervailing Forces Model
• The stakeholders model
8

BGSIT,presenter Kiran.S 7/9/2014

Market Capitalism Model


• Business operates within a market environment
• Primarily responding to economic forces.
• Sheltered from direct impact of social and political
forces.
• Business is substantially sheltered from the direct
impact of socio political forces and focuses on
the primary economic forces.
• Classic capitalism most economic activity is carried
on by private firms in competitive markets.
• It is based on the assumption of laissez faire(the
government should let us alone)
9

BGSIT,presenter Kiran.S 7/9/2014


10

BGSIT,presenter Kiran.S 7/9/2014

Model assumptions
• Government interference is slight or “Laissez fire”.
• Government, not business should correct social
problems
• Managers focus on profit and efficiency
• Individuals can own property and freely risk
investments
• Markets convert selfish competition into broad
social benefits
• Informed consumers making rational
decisions
• Moral restraint of business
• Many producers and consumers
11

BGSIT,presenter Kiran.S 7/9/2014

Model critics:
• Creates prosperity only at the cost of rising
inequality
• Markets erode virtue
• Greed
• Ruthlessness
• Profit motive encourages plundering of the
earth
12

BGSIT,presenter Kiran.S 7/9/2014

THE DOMINANCE MODEL


• Implications:
Began in 1970’s
Business and government dominate the great
mass of people ,which result in the enrichment
of a few at the expense of many.
Proper measure of corporate performance is profit
Ethical duty of management is to promote the
interests of shareholders
13

BGSIT,presenter Kiran.S 7/9/2014


14

BGSIT,presenter Kiran.S 7/9/2014

Perspectives of dominance model


• The view that business is the most powerful
institution in society, because of its control of
wealth.
• A merger wave between 1895 and 1904
concentrated economic growth
• The public viewed these huge firms as colossal
monuments to greed.
15

BGSIT,presenter Kiran.S 7/9/2014

Model critics
• Creates prosperity only at the cost of rising
inequality
• Markets erode virtue
• Greed
• Ruthlessness
• Profit motive encourages plundering of the
earth
16

BGSIT,presenter Kiran.S 7/9/2014

The countervailing Forces Model


Environment catalysts:
• Economic conditions
• Markets
• Geopolitics
• Ideologies
• Technology
• Nature
• Culture
• Change
17

BGSIT,presenter Kiran.S 7/9/2014


18

BGSIT,presenter Kiran.S 7/9/2014

The Public:
• Values
• Opinions
• Demands
• Supports
• Non governmental organizations
19

BGSIT,presenter Kiran.S 7/9/2014

Corporations:
• Market operations
• Influence efforts
• Lobbying
• Leadership
20

BGSIT,presenter Kiran.S 7/9/2014

Government:
• Statutes
• Regulations
• Political leadership
• Partisan behaviour
21

BGSIT,presenter Kiran.S 7/9/2014

Countervailing forces model


conclusions
▫ Business is deeply integrated into an open society and must
respond to many forces, both economic and noneconomic.
▫ Business is a major initiator of change in society through
its interaction with government, its production and
marketing activities, and its use of new technologies.
▫ Broad public support of business depends on its
adjustment to multiple social, political, and economic
forces.
▫ BGS relationships continuously evolve as changes take
place in the main ideas, institutions, and processes of
society.
22

BGSIT,presenter Kiran.S 7/9/2014

The stakeholder Model


• Stake holders are those whom the corporation
benefits or burdens by its actions and those who
benefit or burden the firm with their actions:
• The below people are the primary stake holders
1. Suppliers
2. Society
3. Government
4. Creditors
5. Shareholders
6. customers
23

BGSIT,presenter Kiran.S 7/9/2014


24

BGSIT,presenter Kiran.S 7/9/2014

•The secondary stake holders are:


Educational institutions
The poor
Future generations
Earth’s atmosphere
Religious groups
Political parties
Unions
Political interest groups
Trade associations
Suppliers
Competitors
media
25

BGSIT,presenter Kiran.S 7/9/2014

Criticism of the stakeholder model


• It is not a realistic assessment of the power
relationships between the corporation and other
entities.
• There is no single, clear and objective measure
to evaluate the combined ethical/economic
performance of a firm.
26

BGSIT,presenter Kiran.S 7/9/2014

Advocacy for the stakeholder model


• A corporation that embraces stakeholders
performs better.
• It is the ethical way to manage because
stakeholders have moral rights that grow from
the way powerful corporations affect them.
27

BGSIT,presenter Kiran.S 7/9/2014

Global perspective of BGS


• A global perspective is far more than an
understanding of worldwide business and
international career opportunities.
• It takes more critical view of experience
,knowledge and learning
28

BGSIT,presenter Kiran.S 7/9/2014

• To adopt a global perspective, we need to


enhance our understanding of the social,
political and environmental forces that shape
our existence.
• Thus developing a global perspective means that
we aim to :
• Enable people to understand the links between
their own lives and those of people throughout
the world.
29

BGSIT,presenter Kiran.S 7/9/2014

• Increase understanding of economic, social and


political forces which shapes life.
• Develop skills, attitudes and values to enable people
working together to bring about change for
common good and to take control of their own
lives.
The four main pillars under global perspectives.
• Concentrate on sustainable development.
• Internationalization
• Global issues
• Global process
• Each pillar contributes to the development of global
citizens
30

BGSIT,presenter Kiran.S 7/9/2014

Historical perspective of BGS


• The BGS relationship is a stream of events, of
which only one part exists today.bgs relationship
is not like that of other eras; that current ideas
and institutions are not the only alternative;

You might also like