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ADM1301 (107)
Lecture 2

ADM1301 Lecture 2: Chapter 2

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University of Ottawa
Rumaisa Shaukat

Canadian Business in its Social Context The Canadian Government Segment Government vs. Business  Commonalities o Strive to maximize the wealth of their stakeholders (ultimate aim of business is to make profit) o Strive to implement best practices in what they do o Seek the best and the brightest candidates o Operate transparently (government is monitored even more so the corporations) o Social responsibility  Differences o The number of stakeholders (in gov’t org, stakeholder is involuntary, everyone who pays taxes, therefore the number of stakeholders is greater o Scope of responsibility and accountability (gov’t org has a larger scope of responsibility and accountability b/cause they are expected to fix things that had nothing to do w/ by their stakeholders o Size of the government greater number of employees in gov’t org than business org o Timeliness gov’t org must go through a deliberative process in order to make sure that the legislation is good. Fixed procedure o Sources and use of money public money citizen of a country are the sources of money. o Area of specialty o Elections (predictable) in business org can’t predict when a new CEO will come but w/ gov’t org we can predict that there will be a change of gov’t every 4-5 years and that with a new party, there will be a greater change o Predicting long-term impact How Canadians Govern Themselves  Canada is a democracy, a constitutional monarchy and federal state, w/ 10 largely self-governing provinces and three territories o Most business are regulated by provincial legislature o Federal: foreign, military o Provincial: education, health, environment  A Federal State o A federal state is one that brings together a number of different political communities with a common government for common purposes, and separate “states” or “provincial” governments for the particular purposes of each community o Federalism combines unity with diversity o The British North America Act, 1867, was the instrument that brought the Canadian federation into existence  The Constitution o The Constitution Act, 1982 did not give Canada a new constitution minor changes after 1982 o What we have now is the old constitution with a very few small deletions and four immensely important additions: province was given greater power 1. The establishment of 4 legal formulas for amending the constitution 2. The first three amending formulas place certain parts of the written constitution beyond the power of Parliament or any provincial legislature to touch 3. The setting out of the Canadian Charter of Rights and Freedoms 4. The giving to provinces, wide powers over their own natural resources Canadian Charter of Rights and Freedoms Specific Rights and Freedoms  Democratic rights  Fundamental freedoms  Mobility rights  Legal rights  Equality rights  Official language rights  Minority language education rights Canadian Federalism  Canada: o governed by a system of parliamentary democracy with powers divided among the various levels of government that constitute our federalist state  Federalism: o is a system of political organization in which the activities of state are divided between at least two levels of government in such a way that each level has certain areas in which it is empowered to make final decisions o The Canadian Federation: o the federal government o 10 provincial and three territorial governments o a number of regional and local municipalities How Canadian Govern Themselves  Some Examples of Federal Government Exclusive National Powers: o Direct and indirect taxation o Regulation of trade and commerce o “the public debt and property”  Grants to individuals or provinces (family allowance, hospital insurance/medicare, higher education, etc.) o The post office o Census and statistics o Defence o Navigation and shipping o The fisheries o Money and banking o Interest o Bankruptcy o Weights and measures o Patents o Copyrights o Criminal law and procedure in criminal cases o General law of marriage and divorce  Some Examples of Provincial Legislation Powers: o Direct taxation in the province for provincial purposes o Natural resources o Prisons (except for federal penitentiaries) o Charitable institutions o Hospitals (except marine hospitals) o Municipal institutions o Licenses for provincial and municipal revenue purposes o Incorporation of provincial companies o Solemnization of marriage, property and civil rights in the province o The creation of courts and the administration of justice, fines and penalties for breaking the law o Matters of a merely local or private nature in the province o Education Some Areas of Cross-Over  Both Parliament and provincial legislatures have power over agriculture and immigration, and over certain aspects of natural resources – if their laws conflict, the national law prevails  Although Parliament cannot transfer any of its powers to a provincial legislature, nor a provincial legislature any of its powers to Parliament, Parliament can delegate the administration of a federal Act to provincial agencies, and a provincial legislature can delegate the administration of a provincial Act to a federal agency  Sovereign role is ceremonial  Governor General represents the Queen  Prime Minister has the most power o Elects governor general, judiciary, senate etc.  Canada governs through the “Westminster Model” of Government  Three Branches of Government: o Legislative -- The House of Commons & The Senate o Executive -- Prime Minister, Cabi
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