Takeaways for BGR MBA Class of 2015

BGR - Session 1
Roles and Relationships of Business & Government - HBS, May 26, 1988
(A synthesis of the work of several authors comparing the roles and relationships of
government and business in a variety of situations)
Takeaways

Ideologically, a society is either primarily individualistic i.e. focused

on the individual or primarily communitarian i.e. emphasizing the
community. The authorities, whether formal or informal and whether
disparate or aligned (referred to broadly as government) and all
manner of commercial enterprises, whether formal or informal and
whether private or public (referred to broadly as business)
necessarily act and interact with each other in terms of the societys
prevailing ideological norm.

Whatever be the societal paradigm individualistic or communitarian

businesses must be pro-active in relating to governments. They have
to seek a favourable government/regulatory profile, whether or not
partnership or collaboration with government is a viable option.

Whatever be the paradigm, businesses must carry out a thorough due

diligence of the government/regulatory scene affecting them, and the
vulnerability of the business with respect to possible or probable
government actions/policy this needs to be carefully mapped out.
Astute businesses undertake a political mapping of this kind which also
necessarily includes the identification of power centers that need to be
dealt with.

Based on this mapping and a determination of government proclivities

at different levels, a program of action has to be drawn up and
implemented to neutralize government and/or garner its support.

It should be recognized that ordinarily the acceptance of any proposal

by the dejure Government rests on:
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first, full support and ownership at the technical level;

secondly, approval and acceptance by the policy makers;

thirdly, its potential to serve the vested interests of the political

masters and relevant power groups; and

fourthly, the fact that it is in alignment with the avowed philosophy

and economic program of the Government.