Neoliberalism and its effects on government-business relations

1. Neo-liberalism is mainly based on the resurgence of the different ideas of the 19^th century based on economic liberalism which had taken place in the 20^th century. The different factors which can be considered to be an important part of neo-liberalism include, austerity, deregulation, privatization, reduction in the spending made by the government and free trade. The role of private sector has increased effectively in the modern business environment. The government business relations or GBR has started decreasing in modern environment and neo liberalism has become dominant in nature (Monbiot, 2018). The high levels of privatisation in the environment has further affected the relationship which has been developed among the business and government of different countries. The effect which governments previously had on the company policies have also decreased in a huge manner due to privatisation in different industrial sectors. This has further led to the dominating nature of neo liberalism on the government business relations.

2. Globalisation can be defined as the process that is based on the levels of integration and interaction between companies, people and the governments in different parts of the world. The globalisation based activities have started growing in a huge manner with the help of effective advancements in the technology of communication and transportation. The interaction between organizations of different countries are affected by the policies that are developed by the governments. The economic condition of the country is affected by the government policies and the political stability of the area. The economic stability is able to affect the ways by which the country is able to provide effective opportunities to the global organizations (Ft.com., 2018). It can thereby be said that the governments are able to play a major role even in the modern era of globalisation in different countries. The policies which have been developed by the governments are able to play a major role in the effective operations of global companies.

3. The relationships that have been developed between the government and business organizations are able to affect the modern democracy of Australia. The government of the country is however not able to ignore different needs of the business organizations. Different needs of global business organizations are affected by the policies which are developed by the Australian government. The changes which have taken place in the external environment have been able to affect levels of relationships between business and government of the country. The government of Australia is able to provide an effective set of rules for the business organizations that operate in different industries in the country (Trove.nla.gov.au., 2018). Different sectors of the country are affected in a huge manner by the policies that are developed by the Australian government. The paradigm based on coopetition which is considered to be an effective collaboration between cooperation and competition is an important factor of the GBR model in Australia.

Globalisation and its impact on the relationship between governments and organizations

4. The relationships which are developed between the government and the business within the country are able to affect the revenues and operations of different organizations. The central features of relationships which are developed among the government and the business need to be analysed. The economic policies which are prevalent in the United States are able to affect relationships which have been developed among business organizations and government of the country (Ferguson, 2018). Different characteristics which are considered to be an important part of the government and business relations in the United States which include,

• The pattern of private ownership of the capital with small public organizations.
• Tendency to achieve the public purposes with the help of regulation.
• Preferences for the resistance and markets based on central planning based process.
• Aggressive levels of antitrust policies.
• Wide distribution of power between the different levels of government.
• Stable system two parties where the power is divided effectively (Ferguson, 2018).

5. The economic stability and development of Japan had started from the year 1970. The economic miracle was thereby experienced by Japan with the help of stable and strong intervention of government in different business activities. The microeconomic and macroeconomic factors are able to play a major role in the relationships developed between government and organizations. A major role is played by the government in proper development of different industrial policies. The government policies that have been developed in the country are methodical in nature. The “Iron Triangle” is developed with the help of coalition between the bureaucrats, politicians and the businessmen (Zhu, 2018).

6. The Chinese economy is affected by the policies which have been developed by the government. The growth rate of the country has slowed down in the recent years and the government has started taking major steps based on development of the profits in an effective manner. The major step which has been taken by the government has been named as “Supply-side Structural Reform” which is helpful in conquering the economic challenges (Minister.industry.gov.au., 2018).

The mining based industry has been able to play a major role in the Australian economy. The number of resource based projects which have been initiated in the country have amounted to 400 Billion Dollars. The mining industry is thereby able to contribute around 8% to the GDP of Australia. Australia has acquired topmost position related to the export of iron ore and second largest position in export of coal. Australia is also considered to be huge exporter of copper, aluminium, uranium, zinc and gold (Minister.industry.gov.au., 2018). The creation of effective number of jobs is the most important factor which has been able to provide the levels of importance to mining industry in Australia. The royalties and taxes which are received from the mining industry are also considered to be important sources of income for the government.

Australian government’s regulation of the relationship between government and businesses

7. The Aboriginal land councils are mainly able to represent different Aboriginal affairs at the state or the territory level. These councils mainly aim at protecting different aspirations and interests of the Aboriginal communities within the country. The Aboriginal Land Rights Act 1976 was established based on the ways by which Aboriginal people are able to claim their rights in an effective way. Under this Act, the different land councils can represent Aboriginal people with the “statutory authority” which is related to the ways by which legislations can be enforced. The Land councils also have different types of responsibilities based on the Native Title Act which had been implemented in the 1993 and Pastoral Act that was developed in 1992 (Jens Korff, 2018). The Aboriginal Land Councils on the other hand are not funded by the taxpayers of the country. The Aboriginal Land Council has thereby been self-supporting in nature from the year 1998.

8. The regulations which are developed by the governments of different countries are able to affect the operations of global organizations. The political and economic stability of the country is thereby based on the ways by which government is able to develop effective policies. The political stability of the countries and their economic conditions are developed with the help of government policies and regulations. The regulations are able to affect global organizations positively if political stability has been established (Picciotto, 2017). The economic condition can provide effective opportunities to global organizations which can be said to be a positive effect of regulations. On the other hand, the negative effects of regulations are based on unstable political environment and economic condition of the country as well.

9. The levels of awareness of corporate social responsibility have increased in the current business environment. The CSR based activities thereby need to be managed by the organizations in such a manner which can affect their environmental and social performance. The coordination between different functions of the organizations are based on the effective environmental impact, the procurement of legal issues, community based affairs and government relations. The integration of CSR within the strategies and functions of business based operations that are performed by local and international organizations play a key role in the successful development and further execution of successful capital projects (Crane & Matten, 2016). The indigenous communities are also affected by the operations of modern organizations. The companies thereby need to implement policies in such a manner which can help in development of these communities.

10. The trade-off between sustainability of business and interests of the business is considered to be quite ineffective and manipulative in nature. The global organizations which operate in different countries of the world are thereby not able maintain effective balance between the interests of the operations of the business and environmental sustainability. The business operations that are based on trade-off between business interests and environmental sustainability have shown quite less amounts of evidence. The business organizations are thereby not able to balance the levels of profitability and the sustainability of the environment effectively (Louche & Idowu, 2017). The effective trade-off between the business interests and protection of the environment has been under discussion for a long time. However, the organizations have been able to show low levels of evidence based on the ways by which they are able to operate in the global economy.

References

Crane, A., & Matten, D. (2016). Business ethics: Managing corporate citizenship and sustainability in the age of globalization. Oxford University Press.

Ferguson, M. A. (2018). Building theory in public relations: Interorganizational relationships as a public relations paradigm. Journal of Public Relations Research, 1-15.

Ft.com. (2018). Globalisation | Financial Times. Retrieved from https://www.ft.com/content/12c74980-d1bf-11e2-9336-00144feab7de

Jens Korff, C. (2018). Aboriginal land councils. Retrieved from https://www.creativespirits.info/aboriginalculture/selfdetermination/aboriginal-land-councils

Louche, C., & Idowu, S. (2017). Innovative CSR: From risk management to value creation. Routledge.

Minister.industry.gov.au. (2018). Mining and the Australian economy: the Australian Government’s priorities for the mining sector | Ministers for the Department of Industry, Innovation and Science. Retrieved from https://www.minister.industry.gov.au/ministers/frydenberg/speeches/mining-and-australian-economy-australian-governments-priorities-mining

Monbiot, G. (2018). Neoliberalism – the ideology at the root of all our problems. Retrieved from https://www.theguardian.com/books/2016/apr/15/neoliberalism-ideology-problem-george-monbiot

Picciotto, S. (2017). Rights, responsibilities and regulation of international business. In Globalization and International Investment (pp. 177-198). Routledge.

Trove.nla.gov.au. (2018). Government and business relations in Australia / edited by Randal G. Stewart. – Version details. Retrieved from https://trove.nla.gov.au/work/10570208?q&versionId=45482990

Zhu, T. (2018). International Context and China’s Business–Government Relations. In Business, Government and Economic Institutions in China (pp. 195-221). Palgrave Macmillan, Cham.