Responsibilities of Business towards

Government

Submitted by

Nishanth C.R.16SJCCB007

1 BBA A

Government is an important stakeholder in any business

• Government has the authority to establish the regulations for the business practice.

• Government imposes taxes on businesses.

• Government has recourse to legal options.

Mendelow’s Stake-holder mapping

Here, the government can be defined as a stakeholder who has High Power but Low Interest. Therefore, ‘keep them satisfied’ option applies here.

Dynamic Link between Government and Business

Responsibilities of Business towards Government- 1

• Observation of rules and regulations.

• Payment of Taxes.

• Assistance in implementing socio-economic goals.

• Earning through foreign exchange.

• Advising the government – policy related.

Responsibilities of Business towards Government- 2

• Maintaining a transparent relationship. (No bribes)

• Contributing towards the government treasury during war, natural calamities etc.

• Should not influence the political stability of a country. i.e. no ‘Kleptocracy’.

• Help the government in Public-Private Partnerships.

• Help the government in providing public infrastructure.

Laws affecting a business (Indian scenario)

• Companies Act, 2013

• Competition Act, 2002

• Foreign Exchange Management Act, 1999

• Consumer Protection Act, 1986

• Information Technology Act, 2000 (E-COMMERCE)

• Rules of various offices in the Government of India.

Examples of Indian Businesses & their

responsibilities

Corporate Social Responsibility of Procter and

Gamble

Public Private Partnership b/w Tata Consultancy Services and Ministry of

External Affairs

Funding the Government’s Emergency Fund

During the earthquakes in Gujarat in early 2000s.

Advisory roles- policy

Social responsibilities of the government towards business

by Aditi P.B.

Providing Monetary System: The Government has to provide monetary system so that business transactions can be effected. Further, it is also the responsibility of the Government to regulate money and credit, and protect the money value of the currency in terms of other currencies.

Balanced Regional Development and Growth: It is the responsibility of the Government to make sure that there are balanced regional developments and growth.

Provision of Basic Infrastructure: Government should provide basic infrastructural facilities such as transportation, power, finance, trained personnel and civic amenities, which are indispensable for the effective functioning of business concerns.

Supply of Information: It is the responsibility of the Governments to provide information, which is useful to businessmen in carrying out their business activities. Government agencies publish and provide a large volume of information, which is used extensively by business firms. This information normally relates to economic and business activity, specific lines of business, scientific and technological developments, and many other things of interest to business houses or business leaders.

Assistance to Small-scale Industries: It the responsibility of the Government to provide the required facilities and encourage the development of small-scale industries to overcome the problem faced by them.

Transfer of Technology: It is the responsibility of the Government to transfer to private industries whatever discoveries are made by the Government – owned Research Institutions so that they can be used for commercial production.

Conducting Inspections: It is the responsibility of the Government to inspect the private business concerns in order to make sure that they produce quality products, and also to prevent the production and sale of sub-standard goods.

 Incentives to Home Industries: It is the responsibility of the Government to encourage the development of home industries by providing them various incentives and subsidies.

EMPLOYMENT

by RACHEL JOHN

• Employment is a relationship between two parties, usually based on a contract where work is paid for, where one party, which may be corporation, for profit, not for profit organisation, co-operative or other entity is the employer and the other is the employee.

• Responsibility of business to provide employment

• Wages to the employees • Work place safety• Workers compensation insurance .

EMPLOYMENT

→Employment provides income to the people →This helps the to raise the GDP of the country and standard of living. →The income received by the employees increases the expenditure →This expenditure increases the profits of the businesses and also the revenue of the government in the form of taxes.→ This leads to increase in public expenditure.(The cycle continues)

HOW EMPLOYMENT HELPS BOTH GOVERNMENT AND BUSINESSES

Taxes borne and collected

by Ryan Gonsalves

TAXES BORNE AND TAXES COLLECTED

The Figure lists the taxes borne and taxes collected, as identified for the purpose of the survey, and for which data was requested. Certain taxes (for example, Service Tax) are both a tax borne and a tax collected. The TTC India 2008 survey lists taxes as a tax borne only where the tax is separately charged to the company by the supplier. The survey covers 22 taxes that may be borne and 13 taxes that may be collected by companies. These comprise of taxes at three levels: Central, State and even Local (like Octroi or other municipal taxes)

CORPORATE SOCIAL RESPONSIBILITY

By Rishabh James

Definition

Corporate Social Responsibility is the continuing commitment by business to behave ethically and contribute to economic development while improving the quality of life of the workforce and their families as well as of the local community and society at large

OBJECTIVES

Different ways of CSR?

Advantages of CSR

Satisfied Employees Satisfied customers Positive public relations More business opportunities Easier recruitment Access to financial resources

Demerits of CSR

Unethical practices. Shift from profit making objective. PR cover ups.

Positively sustained CSR activity

Reliance foundations was set up in the year 2010 and cater to the following welfare activities:

1) Rural Transformation 2) Health and lifestyle 3) Education 4) Sports and Infrastructural development 5) Disaster Response A SUPPOSED 760.58 CRORES HAVE BEEN SPENT BY RELIANCE ON CSR

ACTIVITIES, MAKING RELIANCE THE HIGHEST CONTRIBUTOR IN INDIA. A TOTAL OF ₹2386.60 CRORES have been spent by Indian

companies

Failed CSR

Volkswagen The company deliberately set out to design a means

to circumvent emissions control—a stratagem known at the highest levels—with the aim of giving the company an unfair advantage over its competitors that made it the world’s number one car maker

THANK YOU