respond to the following questions
Complex_
PA315Chapter2Student.pptxPA 315 Government Business Relations Chapter 2
California State University San Bernardino
College of Business & Public Administration
Professor Sharon Pierce
Chapter review 1
Which of the following are generally thought to put pressure on society for the growth of government?
Wars
Special interests seeking special assistance
The complexity of society
All of the above
None of the above
Chapter 1 review
The two oldest roles of government, according to the text, are transportation and education.
True
False
Chapter 1 review
When governments provide public education, the text calls that role:
Safeguard against risk
Purchaser
Social architect
Service provider
Chapter 1 review
One of the areas which is commonly thought of as a strength (dubbed ‘the good”) of government is:
Requiring taxes
Creating monopolies
Providing economic stability
Preventing the collusion of power (manipulation by powerful interests)
Chapter 1 review
Altogether, the U.S. has approximately how many governments?
51
435
37,000
89,000
.25 million
Chapter 1 review
Government-business relations are largely defined by the:
Complementary roles
Cooperative roles
Conflicting roles
All of the above
None of the above
BIG GOVERNMENT VS. SMALL GOVERNMENT – WHICH IS IDEAL FOR THE UNITED STATES?
What do you believe is the ideal role of government?
What do you believe is the ideal role of government?
Fall 2018
Spring 2018
WINTER 2018
FALL 2017
Less Government
“I believe the government should have less power as it is getting to the point where you almost have to ask permission to leave your house.”
“People should have more power than they have now.”
“Small government means the system is more flexible.”
“Although big government has benefits, it can get annoying paying more and more taxes for programs you will most likely never use.”
“We can’t be a ‘free’ country if we are going to restrict our freedoms or taken them away.”
“People should have more control…government sometimes interferes too much in the public life domestically but also internationally.”
“I want the power to make decisions for my family.”
Moderate Government
“Too little government would make society chaotic. The rules and regulations that the government implements helps stabilize society as a whole.”
“When it comes to a crisis, natural and unnatural, we need the government to help us out. But, in the case of owning a gun, weed, and things like that, I don’t think government should ever play that big of a role in it.”
“Things like natural disaster aftermath benefits from large government funding for example but things like checks and balances from small government could come together for form a successful moderate government.”
“Government should be neither big or small – small government is great because it is more efficient and flexible but big government is helpful after natural disasters.”
I think social programs are needed but there should be more controls in place so people don’t abuse the system. We should find another way to get social programs funded, everything should not be the government’s responsibility, however, that may mean that citizens should step up.”
“I believe the government is just right.”
More Government
“Larger government could be more beneficial in the long run…an earthquake happening – the majority of people will then think or prefer the larger government is better.”
“Military expenses – I and most of society would want a bigger government for our safety.”
“I think a big government has more power and will be able to take action against big matters – some examples are a major disaster or war.”
“More social programs from this type of government are incredibly beneficial to the overall population…It also regulates people and businesses to act fairly in a socio-economic way; trying to benefit society/the planet/communities.”
“When we are in a crisis with our economy, the government is there to lift us back up…their role should be to use their power to help us in our time of need.”
“More government intervention in improving the quality of our lives.”
“A big government to serve & protect their citizens.”
“I believe we need more government because there are a lot of illegal business activity still happening,”
Chapter 2
Three models of government-business relations
Business centered approach
Shareholder model
Strategic Business model
Stakeholder model
Not a comprehensive list
The shareholder model
Considers only business interests
Emphasis on profit-making
Government and business should be separate – government as little as possible
Focuses on internal efficiency and competition (Adam Smith – free market)
Example: investment banks
What is a shareholder
A shareholder is any person, company or other institution that owns at least one share of a company’s stock.
Because shareholders are a company's owners, they reap the benefits of the company's successes in the form of increased stock valuation.
If the company does poorly, however, shareholders can lose money if the price of its stock declines.
Critique of the shareholder model
Market failure demands government vigilance and intervention.
Business’ demands for government and advantageous position to benefit from government
Too much emphasis on monetary and material gains
Does not focus on external issues – environment, community, etc.
SAMS club closed 63 stores
Shareholder model
What do you think about Sams club closing 63 stores?
Walmart is closed 63 Sam's Club stores.
The closures span 24 states and Puerto Rico.
Illinois lost seven stores, the highest number of any state.
The Memphis, Tennessee Sam's Club and nine additional stores were turned into e-commerce distribution centers.
The strategic business model
The model emphasizes competition
Most efficient and effective use of resources; playing the game well
Government with low taxes and few regulations, stable policies and strong performance, and protections in global competition
The model also emphasizes collaboration
Good strategies for a winning team – win win situations
Practical use of governmental resources – Boeing Corporation
Example of Strategic Business Model – Community banks/credit unions
Community focused – local needs and conditions
Strategic in managing the local connections
Critique of the strategic business model
More balanced and realistic than the shareholder perspective.
Yet,
Unclear and inconsistent
government and business relationship is a flow of complex exchanges of influence, which is subjected to multiple social, political, and economic forces.
Difficult to be strategic in market place.
Business is a major initiator of change through its interaction with government.
The stakeholder model
Corporation locates at the center of an array of mutual relationships with stakeholders:
Primary stakeholders have immediate, continuous, and powerful impact.
Secondary stakeholders have less mutual immediacy, benefit, burden, or power to influence.
The model is an ethical theory of management , in which the welfare of each stakeholder must be considered as an end
Corporation
Stockholders
Media
Competitors
Suppliers
Customers
Trade Associations
Political Interest Groups
Employees
Creditors
Political Parties
Communities
Religious Groups
Earth’s Biosphere
Governments
Future Generations
The Poor
Educational Institutions
Unions
The stakeholder model
While profits are important, business and social values are still important
Long term view is more important than short term view
Business perspective and value of reputation versus profit maximization
Better Business Bureau – 1912
Good Housekeeping Seal of Approval - 1909
Consumer Reports – 1936
Corporate Social Responsibility - 1979
Views community and environment as necessary factors to consider – not because of requirements
Focuses on customer confidence, employee loyalty, civic trust – (Commercials after oil-spills)
Many large corporations have adopted methods and processes to analyze their stakeholders and engage them.
Who are Stakeholders?
A stakeholder is any individual or group who can affect or is affected by the actions, decisions, policies, practices, or goals of the organization.
a. The key stakeholder is the company or group that is the center or focus of an analysis.
b. Primary stakeholders include owners, customers, employees, suppliers, stockholders and the board of directors.
c. Secondary stakeholders include all other interested groups, such as the media, consumers, lobbyists, courts, governments, competitors, the public, and society.
Critics to the stakeholder model
Unrealistic assessment of power relationships between the corporation and other entities
Too vague a guideline to substitute for the yardstick of profits
Not clear who or what is a legitimate stakeholder
Comparison of three models
Overview
The three models demonstrate that the choices involved in designing a country’s political and economic systems are not easy ones.
Therefore they provide some theoretical bases for our exploration of the question: how extensive a role government should play in a nation’s economic development.
64%12%17%7%Class Poll Spring 2019Less GovernmentModerate GovernmentMore GovernmentNot sure
Chart1
| Less Government |
| Moderate Government |
| More Government |
| Not sure |
Sheet1
| Class Poll | |
| Less Government | 38 |
| Moderate Government | 7 |
| More Government | 10 |
| Not sure | 4 |
Chart1
| Less Government |
| Moderate Government |
| More Government |
| Not sure |
Sheet1
| Class Poll | |
| Less Government | 61 |
| Moderate Government | 21 |
| More Government | 10 |
| Not sure | 8 |
Chart1
| Less Government |
| Moderate Government |
| More Government |
| Not sure |
Sheet1
| Class Poll | |
| Less Government | 52 |
| Moderate Government | 28 |
| More Government | 16 |
| Not sure | 4 |
Chart1
| Less Government |
| Moderate Government |
| More Government |
| No Idea… |
Sheet1
| Class Poll | |
| Less Government | 40 |
| Moderate Government | 41 |
| More Government | 14 |
| No Idea… | 5 |
Chart1
| Less Government |
| Moderate Government |
| More Government |
Sheet1
| Class Poll | |
| Less Government | 24 |
| Moderate Government | 54 |
| More Government | 22 |
Chart1
| Less Government |
| Moderate Government |
| More Government |
Sheet1
| Class Poll | |
| Less Government | 19 |
| Moderate Government | 62 |
| More Government | 19 |
