Business and Government

Category: Business


Throughout the world, a government engages in economic and social regulation of the business activities in their country. Commercial regulation has been at the center of focus in the last decade. This is because such regulation has been associated with the decline in productivity rates in many countries. Social regulation has also been explored especially when issues such as censorship of trading pornographic matter and well as drug smuggling. In most cases, government imposes laws and regulation that enforce compliance with standards for conducting legitimate activities (May, 2009). The intervention of government in the commercial activity is often aimed at achieving objectives that benefit the consumers. The government sets many commercial regulation in order protect employees rights and environment, as well. It ensures that corporations are held accountable in case of breach of such regulation in the course of commercial activities. This paper will discuss various means in which the government intervenes in a commercial environment and the outcome of intervention (Carter, 2009).

The government often intervenes in the marketing sector through the use of laws and regulations in order to protect consumers. In addition, advertisement laws ensure that the corporations are honest about their products. In most countries, business is often obligated to conform to the truth-in-advertising regulations (May, 2009). Breach of such often led to lawsuits for violation. The government intervention is aimed at ensuring that companies provide truthful and non-misleading information to the consumer during advertising. In USA, the corporations are also obligated to conform to the Fair Packaging and Labeling Act. This Act requires that all labels in the product include information about product size, nutrition content and manufacturing and distribution information. This government intervention to the commercial environment is important to the commercial environment. This is because it protects the interest of customers who would otherwise be oppressed.

The government has been involved in employment and labor sector. Its intervention in employment and labor sector has been through the establishment of dynamic regulations in employment laws. This intervention often touches on wages, health and safety benefits. The intervention by the government aims at ensuring the employees in the commercial sector are working in a safe environment (Carter, 2009). In addition, it ensures that equal opportunities are accorded to everyone without discrimination. For instance, the Fair Labor Standards Act often sets the minimum wages for workers in the commercial sector in USA. As of 2010, outcome of the Act affected more than 130 million workers in USA. In addition, the government also introduces the Employee Retirement Income Benefit Act that ensures that all employees are granted the retirement plan choices and health care remunerations they are entitled (Parkinson, 2010). The intervention of the government in the labor and employment sector is essential. This is because it ensures that employees are accorded hospitable working conditions and appropriate compensation.

The Government also intervenes in the commercial sector especially when a business firm is found to engage on activities that pollute the environment. In most countries, the environmental pollution is regulated by the government through the laws and regulations that are enforced through Environmental Protection Agencies alongside other state agencies. The government enact laws that force all business engaging in any commercial activities comply with the set environmental standards (Parkinson, 2010). This reduces the amount of environmental pollution resulting from such commercial activity. The business firm that pollutes the rivers, atmosphere and the sea are charged elevated taxes for causing harm to the environment. This interposition makes the firm seek alternative methods that reduce the environmental pollution to manageable levels. Furthermore, it is also essential since it prompts the company to safeguard the environs in order to avoid penalties.


In conclusion, it evident that government plays a vital role in a commercial environment. Its intervention in the commercial environment ensures that corporation conducts business in respect to the established law and principles. This is done to protect consumers against possible exploitation.

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