How much Government should involve in Business Interface?

How much Government should involve in Business Interface?

In light of today’s complex society demands the role and responsibilities of government and other major social institution are again being reexamined.

(a) Big business and big government: Originally the rationale for increased government involvement in the social system was to limit and control the growth and power of big business. But business has continued to grow so has the size and power government. As government has grown, it has been subject to many of the same criticisms that have been directed towards big business – particularly the criticism that bigness breeds too much power. The government does exercise broad power which many businessmen consider being a violation of individual liberties.

(b) The concept of functionalism: In a modern, complete society, there is plenty for everyone to do obviously; some jobs which are necessary to society’s well-being can best be done by a government. Equally obvious is the fact that other jobs can best be performed by business. National defense, reclamation, and policing activities appear to be functionally appropriate jobs for the government. On the other hand, research and development product decision, actual production appears to be an appropriate business function.

(c) The vital partnership: As our society becomes more complex and as social problems become more severe, there is increasing business recognition of the need for joint action by business and government. In the broadest sense, the vital partnership should not be limited only to business and government. Other social institution such as organized labor should also be included because they too have a stake in and contribute to social well-being.

(d) The public-private corporation: An example of the vital partnership at work is the public-private corporation. Public-private Corporations the result of attempts to identify a specific public purpose and fulfill those purposes by utilizing the resources and managerial capabilities of the private business. The major argument supporting the establishment of public-private Corporation is that it removes the activity from many restrictions imposed upon government managers and allows the expertise of private business to be applied to areas of public concern.