Governmental influences enter into nearly every project and can impact decisions. Consider that XYZ Corporation believes a team building event away from the office would increase overall employee satisfaction and productivity. Consider choice of location may be at a beach. Governmental influences to consider might be hours of operation, prohibiting alcohol, prohibiting open flames for grilling, and other regulations. Where the government has no direct impact on the corporate event, the regulations surrounding the use of the public space will ultimately affect the event.
It is important for government regulators to examine the laws implemented to ensure compliance otherwise their might be significant consequences. Private business will not always act in the socially responsible way, especially if it may reduce profits and cause them to appear inept by shareholders seeking profits. In the financial sector, government consistently kept a database of consumer complaints regarding a wide range of unfair banking practices; however, the government would not enforce existing laws. Many consumer complaints were “overlooked” because they were not well constructed, or considered to be insignificant. When banks were fined for violating laws, the penalties were outdated and considered insignificant in private business in comparison to the earnings resulting from questionable practices. The government failed consumers by allowing poor business decisions by the financial industry to continue, and left it up to the individual consumer to initiate a lawsuit against the businesses for financial predatory practices. Most of the individuals victimized did not have the financial means to hire an attorney, did not understand their rights, became frustrated deciphering which agency handled various issues, did not have an understanding of the courts system, and did not have the time to launch this type of battle. The government negatively influenced the way banks were doing business. The banks determined the probability of the number of consumers pursuing litigation and the costs associated with defending suits and paying fines. If the profit margin was significant enough, the “legal fees and Federal fines were considered a standard expense of doing business” (Wytch, 2007). Another side of the financial collapse was the way high priced lobbyists, hired by the financial industry were selected based on their relationships and influences they had with policy makers and regulatory agencies. Lobbyists mold the regulatory system in favor of business at the expense of the consumer. . Layard and Glaister provide an example of how governments often do not appear to be “thinking sensibly” but giving into pressures by various interest groups (1994, p.103). Ultimately, the lack of enforcement on consumer abuses led to the collapse of the economy which should be analyzed to avoid the collapse of some other critical component affecting us globally. Ultimately, it is “not just government that influences the way business is conducted but private business influences government policy” (Layard & Glaister, 1994. P. 101).