The Difference Between Business and Politics

There is a growing trend of business interacting with politics. The relationship is complex and undergoing change. It is becoming more common for businesses to encounter opposition from interest groups.

These groups are organised to seek public policy influence. Their diversity means that businesses will always find themselves in conflict with some of these groups.

1. Business Persons Are Not Political

There are several reasons why business persons should not get involved in politics. First, their businesses could lose customers. If a customer shows up at your diner expecting to relax with a good cup of coffee and ends up listening to an unwanted political spiel, she will likely leave and never come back. This could minimize your business’ income, and if it happens often enough, your business may even die.

Second, business people are obligated to hit their bottom line. This means that they are unable to use their own beliefs as a basis for decision making. Their success depends on pragmatism, and they rarely take stands on issues that are purely philosophical or moral in nature. As a result, they tend to have little sympathy for politicians who are trying to do their best with limited resources. They also do not see politicians as having an understanding of the way their businesses work. This leads to the fourth reason why a business person should not get involved in politics: she could lose her personal wealth.

2. Business Persons Are Not Influenced By Politics

The businessperson’s focus on profit does not mean they are insulated from politics. In fact, it has been a key feature of modern global capitalism that the winners have amassed huge fortunes and that they are therefore compelled to leverage their wealth into political influence.

This may involve a confrontational approach or participation in the many interest groups that seek public policy influence. These groups are enormously diverse and can range from environmental NGOs to trade unions. They may also be pro or anti-business and have a wide variety of tactics.

The inter-relationship of politics and business can be seen at every level of government. Ministers are often involved in running companies or are reliant on business donations for their re-election campaigns. This is why most democracies have laws governing the inter-penetration of politics and business.

3. Business Persons Are Not Interested In Politics

Politics affects business on a global level and can significantly alter a company’s operations, from local laws to international trade agreements. It’s therefore important for businesses to be aware of politics and its effects.

Businessmen are generally concerned with making a profit and generating returns for shareholders and managers. These interests are not always at odds with public policies and may benefit from them.

The success of modern business has created a great divergence of wealth, putting many economic winners in positions of incredible influence and power. This concentration of power has led to a need for business to leverage politics in order to derive profit.

When political initiatives come into conflict with business interests, the outcome of such conflicts may involve confrontation or adaptation. The insight that business sometimes adapts to political opponents rather than fighting them emerged from studies of welfare state history and the history of US industrial relations legislation. This insight also applies to the ‘capture’ of governments by business interest groups.

4. Business Persons Could Lose Their Personal Wealth

Politics is the activity of governing a political entity such as a country. It involves the control of resources and the establishment of laws and policies. The intermingling of business and politics is inevitable due to the fact that governments have numerous responsibilities such as protecting citizens’ well-being, guaranteeing a living wage, and regulating economic activities. These responsibilities are often at variance with business interests.

The scale of modern business has seen a few economic winners amass great wealth, which means that their involvement in politics is inevitable as they become economic statesmen. The intermingling of business and government also occurs because the major political parties need the support of wealthy donors in order to fund their campaigns.

However, the inability of some businesses to delineate their own personal interests from those of their companies can be dangerous. For example, a CEO’s comments on a political issue may alienate some customers or employees. In addition, political commentators may smear the company’s reputation.

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