SCHOOL OF BUSINESS ADMINISTRATION Business & Society ETLW 302D Tara Ceranic Salinas, PhD.

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SCHOOL OF BUSINESS ADMINISTRATION Business & Society ETLW 302D Tara Ceranic Salinas, PhD

SCHOOL OF BUSINESS ADMINISTRATION Business + Government (good times!)

SCHOOL OF BUSINESS ADMINISTRATION

Business and Public Policy

SCHOOL OF BUSINESS ADMINISTRATION Public Policy = regulation Plan of action undertaken by government to achieve some broad purpose affecting a substantial segment of the population How does public policy shape the climate in which companies do business here and abroad?

SCHOOL OF BUSINESS ADMINISTRATION Why regulate? Economic objectives Markets have failed to adjust product price for true costs of a firm’s behavior Government then imposes regulation to force all competitors to adopt same standard Firms will not incorporate extra cost of compliance with new standard into the price of the product

SCHOOL OF BUSINESS ADMINISTRATION Why regulate? Ethical arguments Governments should set standards to protect employees, consumers and other stakeholdersconsumers and other stakeholders

SCHOOL OF BUSINESS ADMINISTRATION Why Regulate? Anti-competitive practices (monopolies) Railroads Microsoft IBM Unfair trading Misleading marketing

SCHOOL OF BUSINESS ADMINISTRATION Who Regulates? FCC -NFL Blackouts ATF -Gun control

SCHOOL OF BUSINESS ADMINISTRATION FDA: Food AND Drugs OJ Spinach Peanut butter Cucumbers Dog treats Recalls

SCHOOL OF BUSINESS ADMINISTRATION Tough regulatory environment for CA small businesses Efforts to expand regulation almost never originate with consumers. Rather, the push comes from industry players trying to block competition and thus increase profits. -Milton Friedman

SCHOOL OF BUSINESS ADMINISTRATION Do we need all of this regulation?

SCHOOL OF BUSINESS ADMINISTRATION The question we ask today is not whether our government is too big or too small, but whether it works — whether it helps families find jobs at a decent wage, care they can afford, a retirement that is dignified. -Pres. Obama’s Inaugural address

SCHOOL OF BUSINESS ADMINISTRATION Pros & Cons of Business + Gov. High economic stakes for firms Business counterbalances other interests Business = vital stakeholder of government Executives not qualified for political engagement Business = too big and powerful Business risks credibility with partisan politics + -

SCHOOL OF BUSINESS ADMINISTRATION Next Class Public Affairs