Government and Business Relations

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There are different political advantages and losses for corporations. In certain nations, their most efficient tactic to control government policies is to support specific political alliances. People who support businesses' engagement in politics claim that it is important for businesses to engage in politics because they have a high position in political decision-making and the implementation of politics. Entrepreneurs stress that a pluralistic structure calls on multiple actors, and business should not be shut out as a significant constituent. Moreover, economic stakes are high for businesses and public policy decisions may promote or impede their interests. Moreover, business is a vital stakeholder of government considering that it is a provider of revenues as well as the conduit for executing government policies. Businesses also counterbalance other social interests since it has an overriding influence and an impact on society through production and distribution of goods, employment and income generation.

Those against business involvement in politics argue that their combination could have toxic effects. Opponents also argue that executives are not fit to engage in political debates because they are not equipped to do so by training or even by inclination. According to Fernando, business is too big and powerful while politics is fragmented by its very nature and makes gains by divide and rule policy (407). Additionally, a business may lose its credibility by engaging in partisan politics as has been demonstrated by history where unwise businessmen lose both their wealth as well as credibility by engaging in politics. All in all, there are various levels of business involvement in political activities, for instance through financial involvement, trade association support, and strategic public policy involvement.

Work Cited

Fernando, A. C. Corporate Governance: Principles, Policies And Practices. New Delhi: Pearson Education India, 2009. Print.

August 09, 2021

Government Business

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