PART A:

1. How do constitutions shape government business relations?

Constitutions shape government business relations (GBR) as it provides a legal framework

that governments are required to act in. This constitutional function shapes GBR as it protects

business from arbitrary punishment; sentences which aren’t legally supported, allowing

business to operate fairly and prohibits retrospective laws; which ensures that businesses are

held to standards of the current and not the past (ALRC, 2016). Furthermore, it protects

individual rights which safeguards workers against discrimination, allowing equal

opportunity for work, privacy protections, optimal workplace health and safety environments

and equal pay. For business however, the constitution requires them to establish rules,

regulations and practices. This helps them manage and mitigate human, technical or

investment risks which can be costly financially and ruin brand reputation and image

(Australian Government: Attorney-General’s Department, n.d.). Lastly, constitutions shape

GBR as they provide private protection rights which incentivises investors and

protects/enables businesses to operate confidently.

2. How do interest groups influence political processes?

An interest group’s main objective is to sway legislation/policy. Through utilising

headquarters with high trained, skilled and experienced staff, deep and thorough research on

effective methodologies to use are conducted. This includes running various targeted

advertisements, social media campaigns and campaigning for public relations. All this

collectively influences voter choices. However most importantly, powerful interest groups

arrange meetings and access to highly ranked politicians/bureaucrats. This significantly

influences political processes as direct communication can be had to influence the adoption

of a beneficial legislation (DÜR, 2018). Additional ways interest groups influence the
political process includes having informal messages; petitions, submissions sent towards

government or formal messages; hiring skilled and experienced formal

representations/lobbyist, creating/being a part of thinktanks and most importantly donating to

political parties. Donations creates a massive political influence as political parties attain

funds to run campaigns and interest groups receive pollical favours to facilitate business (Dür

& Mateo, 2013).

3. Why do governments choose to regulate business?

Regulation by government is known as different directives and or rules which are created and

maintained. Governments choose to regulate business as it acts as a form of controlling

business operations to prevent market failure, which can be done either in economic or social

regulation (Steurer, 2013). Social regulation includes ensuring protection of the environment

is utilised in business practices in order to protect workers, society, consumers, and the

business. However, economic regulation which can be unbeneficial for businesses and

consumers include heavy taxation and barriers to entry for different industries which can

limit business activity and innovation. Other reasons for government regulation include

protection interests of the public; drinking regulations, private interest; protection on

consumers for purchases of good and services, protection of workers; occupational workplace

health and safety/award wages for equal and fair pay of workers and protection of

corporations/investors; preventing unethical conduct and deceitful contracts (Steurer, 2013).

4. Why do some countries adopt the cooperative model of GBR?

Some countries like Sweden and Germany adopt the cooperative model of GBR due to

the effective nature the model provides. Since economic management of this model is
 based on a three way partnership between labour, government and capital, it creates an

aligned and congruent economic model based on consensus and compromise. It allows

for free enterprise however the state interacts and assists business activities through

coordination with other partnership to create a managed market. (Government Offices of

Sweden, 2016). The outcome of this economic model it that it is characterised by full

employment, strong public services, housing, free education and free healthcare.

Countries adopt this model as by having pivotal cooperation in partnerships, creates

organised work; local cooperation/collective agreements, efficient economic governance;

industrial and macroeconomic policies, public welfare; active and productive labour

market and policies, free education, and services to facilitate innovation and development

of human capital (CRF, n.d.).

5. What opportunities exist for business in addressing climate change?

Existing business opportunities in addressing climate change include growing cooperate

social responsibility (CSR). The contemporary social climate has experienced growth in

CSR framework/initiatives. Businesses are now required have a social license and

addressing climate change can provide organisations opportunities to achieve this,

through either donating, engaging and developing sustainable actions related to climate

change. Other opportunities include innovation as new profitable and energy efficient

technology can be developed and utilised. New industries can also be created; electric car

industries such as Tesla. Creating such industries can be large opportunities to capitalise

on as it taps into new ecofriendly markets. Additional opportunities include companies

adopting energy, water and waste efficiency. For example, solar-panels, water efficient

appliances, and utilising biodegradable/recyclable materials. Such practices fight climate

 change, save money, create a good employer image, and provides business opportunities

to attract talent as employees consider the carbon footprint of employers (Harvard

Business Review, 2015).

PART B:

1. Do you agree that interest groups are harmful and prevent policies serving the common
good? Discuss using examples to support your argument.

I agree that interest groups are harmful and prevent policies from serving the common good.

This is due to the unequal influence and resources that sectional interest groups have

compared to promotional groups. This primary objective of a sectional interest group is to

promote and influence particular issues which are grounded in money, self-interest and

capitalistic ideations. This for many reasons is wrong and goes against serving the common

good. As mentioned earlier money dedicates who and what policies are implemented and

generally the loudest voices which are wealthy companies; sectional interest groups win.

They are able to generate more attention due to the financial capabilities and influence laws

on the federal, nation, local and state level even though such laws as indicated by the public

are disliked and unbeneficial. For example, as reported in an ABC article Big deal: Fossil

fuel industry influence, it demonstrates that fossil fuel companies are the highest Australia

company in donations, lobbying and as stated by the former prime minister Malcolm

Turnbull, “they are very influential” (Big Deal: Fossil Fuel Industry Influence, 2021). Despite

public advocacy on renewable energy sources, global climate change initiatives, protests and

lobbying from promotional groups; Govts & Mineral Councils of Aust, mining based

sectional groups haven’t been affected nor minimised in mining extraction. Another example

of this can be dated back to 2009 where the Mining industrial of Australia was able to

conduct a successful six week, 22 million dollar campaign, to negate the mining tax

attempting to be imposed by Kevin Rudd which was going to use the tax funding of social
and societal benefit (Davis, 2011). Another reason why interest groups are harmful and

prevent policies serving the common good, is that they can stall many needed legislative

processes. This is commonly demonstrated within America as many key and important bills

required to be passed on social issues and regulations such as gun control, police reform and

climate change are stalled. This happens due to various interest groups lobbying, donating

and ultimately influence politicians to argue against bills. This successfully gets most bills to

not get passed due to no agreement and such groups seeking out their best interest with at

societies expense. Another example of this can be seen in sectional interest groups like the

tobacco industry promoting harmful activities. Despite scientific research on death and

disease related illnesses associated with smoking tobacco, this industry still lobbies and

donates to various political parties to minimise regulation and tax (Winstanley et al., 2012).

This notion of interest groups being harmful is corroborated with many scholars such Daneil

Halpin who states that many interest groups are a direct indication of failed socioeconomic

structure, mirror faults lines within societies and a fair/unbiased system should provide an

equal playing field for interests involving the public (Lowery et al., 2015). Overall, sectional

interest groups are harmful and prevent policies serving the common good as they possess

unfair structural power, unfair ideational power; access and information and unfair

instrumental power; superior access/resources.