MGT 3031 Lecture Notes - Indirect Costs, Tripartism, Corporatism
Document Summary
We often don"t think of the government as a stakeholder, but it is. Government"s role in influencing business: a lot of industries carry certain rules governing how their industry can operate, agriculture, energy, protects against monopolies, etc, acts as a social conscience . Transfer payments between provinces (alberta newfoundland) Not industry self-regulation: as the government is the overseer of government at large and society, there is always a temptation to meddle. Self-regulation: negotiated: involves third party, not very common, mandatory: tsx has securities commission that mandates them to self-regulate, or else they will be regulated. The government is right in your business telling you how it should run: social regulation. Government is not intervening but is regulating parts of the business such as minimum wage, etc. If the government wants to regulate pollution, there are direct costs, you must buy equipment and monitors and upgrades. If the government does not intervene, there will be defects to the market: monopoly mentality.
