Community is the local area in which business operates and affects stakeholders. The business—community relationship is interrelated. Business needs community support with infrastructure, transportation systems, public safety, health care, employees, customers, and other support. The community needs business for economic development, products, jobs and training, taxes to help pay for community services, and help with some social problems, among other reasons. This interrelationship enhances the quality of community life where we live and work. The eight nonmarket strategies businesses use against activists are as follows:
1.Gaining community public sentiment for being socially responsible is a proactive strategy to help prevent activists from taking issues to business or for resolving them in the early stages.
2.Grand nonmarket strategies include donating, ignoring, opposing, negotiating, and working with activists; grand strategies are developed for the specific issue and do change.
3.Lockouts occur when business does not allow employees to come and work.
4.Grassroots efforts involve mobilizing business stakeholders from the market environment, which can include stockholder owners, employees, customers and consumers, suppliers, and competitors who will also be affected by a change in business practices to meet activist interests.
5.News media relations are developed to get favorable press cover-age, and advocacy advertising is used to present the business side of the issue to influence public senti-ment and corporate reputation.
6.Businesses build coalitions to join forces with other stakeholders to promote their common cause through joint action.
7.Businesses commonly appeal to government to stop changes in the current laws and regulation that will harm them in some way.
8.As a threat, and often last resort, business can use costly litigation.
New major regulations require a regulatory impact analysis (RIA), which includes a statement of the need for the proposed action, an examination of alternative approaches, and an evaluation of the benefits and costs. The RIA ends up in the Federal Register, which is a daily journal publication of rules, proposed rules, notices, and other public regulatory information. In coordination with the Federal Register, the Regulations.gov website enables users to find, view, and comment on regulations for all federal agencies. Business gives direct campaign contributions to members of Congress to help them get elected to support business interests. Conversely, regulators are appointed, so businesses can't give them donations. However, business gives contributions during presidential election campaigns in hopes that, indirectly, the appointed regulators will serve the business interest. Lobbying is contacting members of Congress to influence legislation, commonly by using a professional lobbyist, and campaign contributions help gain access to politicians. Lobbying regulators is similar except that there are some situations in which businesses can't contact regulators outside of public meetings. Grassroots lobbying is having stakeholders contact Congress and regulators; with regulations, businesses commonly ask stakeholders to make online comments supporting businesses' side of the specific rule during the "public comment stage" of the rule-making process, using Regulations.gov (www.regulations.gov). Testimony is not always an available option with Congress; it is not required during the legislative process. However, APA regulatory procedures require public comment about proposed rules, which are a form of testimony. Antitrust laws are enforced in four major ways. The two main antitrust enforcement agencies are the Department of Justice (DOJ) and Federal Trade Commission (FTC). They investigate allegations of antitrust violations, make settlements, and bring lawsuits against business. The DOJ and FTC also provide guidelines and advisory opinions, especially in merger investigations, which they can prevent by filing a preliminary injunction. However, most lawsuits are brought to court through private citizens and companies who believe they were hurt by antitrust practices, seeking compensation for damages. State attorneys general also investigate antitrust violations and file lawsuits against businesses, sometimes in cooperation with the DOJ and FTC. The federal courts determine the outcomes of litigation, interpret the law, set precedents, and approve consent decrees. The three basic types of laws are legislative, executive, and judicial. The legislative law includes those laws enacted by Congress, state legislatures, and local government bodies. The executive branch of government agencies and commissions make the rules of business. The judicial courts create common laws through precedents.
The three types of lawsuits include criminal, civil, and public. Criminal suits are cases brought by the government against a person or group for breaking the law. Civil suits are cases brought by a plaintiff against a defendant seeking compensation for damages. Public lawsuits are cases brought by a plaintiff against the government for failure to act in accordance with its statutory obligations.
Of the three types of courts, federal and state courts have a similar structure with district courts that hear the cases, courts of appeals that hear contested cases, and a supreme court that has final authority over court decisions. The third type, local courts, deals with misdemeanors and minor cases.
The court has three major functions: law interpretation, litigation determination, and individual protection. It interprets the laws through judicial review to determine whether the laws are legal under the Constitution or whether officials have exceeded their authority. Courts determine the outcomes of litigation. Courts also protect the rights of all individuals so that everyone is treated equally under the law.
The U.S. government generally does not own any business enterprises, does not have joint business ownership, and doesn't even invest in company stocks. However, the EU, Chinese, and Japanese governments do engage in business ownership. Generally, the U.S. government acts more like a referee by setting and enforcing the rules of business impartially; it has no conflicts of interests. But in the EU, China, and Japan, the government has ownership in business, making the government sensitive to what happens to business, and it generally gives more help and subsidies to business. So EU, Chinese, and Japanese governments are more like allies with business than like referees as in the United States. 10th EditionEugene F. Brigham, Joel Houston 6th EditionMcGraw-Hill Education 1st EditionCarl A. Woloszyk, Grady Kimbrell, Lois Schneider Farese