1. What is the business-government-society (BGS) field and what is its importance? 2. Explain the Four basic models of the BGS relationship
Business, government and society are fundamental in this world. Business satisfies human’s needs by providing them products and services in exchange for profit. Government is a structure and process in society that with authority makes and applies policies and rules. Society is a network of human relations composed of ideas, institutions, and material things (Steiner, 2011). They all work together to create better solutions in all three elements. Forces in BGS have shaped our world.
Business, government and society are subdivisions of economic, political and social activities. The BGS field is the study of the interrelationships among business, government and society and its importance to managers. These interrelationships change over time. Businesses operate in the environment created by the interrelationships between business, government and society. To make good business decisions it is crucial for manager to understand the interaction between BGS. Managers have to do what’s right according to all three elements (Steiner, 2011).
BGS has a great importance. The importance of the business-government-society field is to understand the relationship between the three elements. Understanding those help managers make better business decision to run a business or to stop (make a business fail) a business. Businesses should be responsive to forces for its economic and noneconomic environment (pg 7). Businesses have a social contract. It is important to understand that there are several different ways to run businesses and if they don’t comply with society it will fail. All three elements work together to make better business decisions.
There are four basic models of the BGS relationship: the market capitalism model, the dominance model, the countervailing forces model and...
Please join StudyMode to read the full document