Role of Government in Business (ANSWERED)

QUESTION

Required Resources

Read/review the following resources for this activity:

Textbook: Chapter 1
Lesson
Minimum of 1 scholarly source

Initial Post Instructions

The government regulates business in many ways. Businesses must get permission to operate in the form of licensing and state and federal agencies work to provide protections.

Search in the Chamberlain library for “role of government” and one of the following protections.

Consumer protection
Employee protection
Environmental protection
Investor protection

Choose an article that you find from your search. Summarize the article and discuss its implications.

ANSWER

Summary of Payton and Woo’s (2014). Attracting Investment: Governments’ Strategic Role in Labor Rights Protection.

Payton and Woo (2014) establish a connection between respect for labor rights and Foreign Direct Investment (FDI) while stressing the government’s strategic role in attracting FDI. The government gets entangled in this connection because it has the mandate to implement labor regulations as they eye the sufficiently high investment profits compared to the low enforcement costs. More often than not, governments are caught between appeasing local workers and attracting business for economic development (Payton and Woo, 2014). The primary observation in their article is how labor unions against pro-business groups are significantly influencing developing and emerging economies, calling for government intervention.

Payton and Woo (2014) study the relationship between human rights and FDI while establishing context on the link between human rights and economic globalization. The subset of the study explores how global economic pressures interplay with respect for human rights and how the protection of rights affects economic forces. However, Payton and Woo (2014) recognize that little consensus exists between rights protection and economic globalization. On the other hand, they give accounts of optimists’ views on this interplay in that they see globalization as a pathway to opportunities for developing countries, given the diffusion of best practices and democratic norms.

Payton and Woo’s (2014) study has implications for today’s concern for human rights in the workplace. The definition of human rights continues to evolve with the evolution of the workforce. At the same time, the role of the government other than legislation has been significantly discounted when it comes to being an actor in worker’s rights. As the global scene continues to explore how human rights matter in business transactions, the focus lands on how the government is getting involved in catering to the rights of employees other than creating a facade for the generation of FDI. Still, it is essential to consider how stiff the rights of workers are so as not to scare foreign investors, as they have to increase costs to Cater to the rights. The sustainability of the corporate environment will look up to the global environmental and social considerations that need to be catered for in a government (Baumgartner and Rauter, 2017).

References

Baumgartner, R. J., & Rauter, R. (2017). Strategic Perspectives Of Corporate Sustainability Management To Develop A Sustainable Organization. Journal of Cleaner Production, 140, 81-92. https://doi.org/10.1016/j.jclepro.2016.04.146

Payton, A. L., and Woo, B. (2014). Attracting Investment: Governments’ Strategic Role in Labor Rights Protection. International Studies Quarterly, 58, 462–474. https://doi:10.1111/isqu.12138