12. The Role of Public Policies in Governing Business – Business Environment



The study of public policies, their implications for management, different levels and types of public policy, the role of governments in framing them, their limitations and how all these impact business in different societies and economic systems is very important to any student of the economic environment of business. After reading this chapter, you will be able to understand the implications of these concepts in real-life situations, which will enable you to take appropriate business decisions.

Public policy may be explained as a definite course or method of action selected from alternatives in the light of given conditions to guide and determine present and future decisions of governments or public authorities. It is, thus, a plan of action undertaken by a government to achieve some broad public purposes. In the words of Senator Daniel Patrick Moynihan: “Public policy is what the government chooses to do or not to do.” Public policy, though different for each nation, is the basic set of goals, plans and actions that a nation and its government follow in achieving its objectives. For instance, the economic policy of a government is the statement of its objectives and how these are realized through the subset of policies such as monetary policy, fiscal policy and commercial policy. Likewise, a budget is an instrument of economic policy.


According to writers on the subject, public policy is whatever a government chooses to do or not to do. A government performs a variety of functions, from resolving conflicts within the society to distributing a great variety of symbolic rewards and material services to members of the society. To perform these functions, it needs money which it collects from its citizens in the form of taxes, levies, cesses and administrative charges. Therefore, public policies may be regulative, distributive, organizational or extractive and a government may engage all of these to achieve its objectives either singly or collectively at the same time.

Public policy may deal with a wide variety of issues, both vital and trivial. It may deal with such important areas as defence, education, public health, taxation, welfare, housing, employment, relief for calamities such as floods, earthquakes and tsunamis, equitable distribution of income and wealth, labour laws, rural development, inflation and recession while it cannot ignore trivial issues such as changing the colour of the currency notes.

Public policy generally reflects apathy and incrementalism. Often, the best indicators of budgetary allocations for the following year are budgetary allocations for the current year. It can originate from an assortment of sources within the government and often cater to a number of often incompatible objectives. Likewise, a policy is devised to serve a number of purposes, several of which coexist simultaneously at different levels. For example, a policy may be distributive, regulatory and symbolic at once. A wide range of forces and interests bears on the process of policy formulation. These forces exist in the environment of the political system and increasingly within the political institutions themselves. They are often in conflict with one another but affect policy outcome nonetheless. Public policy needs to be justified, explained or rationalized to various publics. Such rationalizations frequently ignore or contradict the true purposes and objectives of the policy and often disguise or deliberately misrepresent the pressures and interests that helped generate the policy.

The area, extent and the reach of public policies have been increasing since the days of the Great Depression. Justifying the legitimacy of government intervention in economic matters took some time as Adam Smith and the economists of his ilk considered capitalism as a self-evolving and self-correcting system in which government intervention was unwarranted and unnecessary and even led to the failure of the system. But once it was proved that their assumption was wrong and that government has a role to play in maintaining effective demand, competition, freedom of enterprise and the market economy itself, the role of government began to expand.

Buchholz1 in his book Business Environment and Public Policy says that the major public policy areas that stemmed from the Great Depression were economic management, where government assumed responsibility for correcting such economic downturns, labour management relations with government support for the right of labour to bargain collectively and the beginning of a welfare system, originally designed to relieve the distresses of the depression. This line of argument justifies the following areas of public policies:

  1. Economic management: Economic problems are one of the important areas of public policy. Prior to the onset of the Great Depression, it was assumed, as explained earlier, that every economy is self-correcting and moves towards the right direction to restore the nation's economic health. But the Great Depression has changed this view. The so-presumed self-correcting economy has been found to be totally inefficient in dealing with the problems of depression. Now with the emergence of stabilization measures adopted by the governments to combat recession and depression and the concept of welfare state, it is assumed that state intervention is essential and even inevitable in economic activities. Whatever social welfare works the state does, constitutes the major part of public policy.
  2. Labour management relations: Another area of public policy that came out of the Depression days is the area of labour management relations. Industrial revolution has effectively challenged the outdated thinking of the management that labour is like a vendible commodity that can be bought or sold at any time. The concept of industrial democracy is popular in all countries and it has made it imperative that a national labour policy should be adopted by the state to protect the rights of the workers. In fact, in several countries such as Germany, labour is given a vital role in corporate managements.
  3. Welfare state: The Depression also has brought about a metamorphosis in the thinking of people and has led to the emergence of another set of public policy measures that can be grouped loosely under the title of welfare. Previously, it was designed to alleviate distress. Society has now conceded that the unemployed were not necessarily to be blamed for their plight and is willing to accept a government's responsibility to help victims of unemployment and old age. People were not allowed to strive while waiting for the market to correct itself and make jobs available again. Now, it is believed that every man has the right to a good job, decent food, clothing and shelter. It is the responsibility of the government to guarantee these rights. In fact, this philosophy has led to a whole series of measures—such as social security, aid to families with dependent children, education, medicare—designed to help people whose basic needs have not been met for one reason or another by the market system.
  4. Shaping of public policies affecting the corporate sector: Stakeholder expectations, if unmet, trigger action to transform social concern into pressure on business and government. A gap between the expected and actual performance stimulates public issue. We need to understand the reason for public issues and how they get transformed into public policy in the macro-environment view.

Public policy is a statement of public authorities as to what is the policy of government relating to specific activities or functions required to execute them and provides details as to what systems, procedures and administrative setup should be put in place to implement that policy. In a democratic setup, public policy requires legislative sanction out of which flows the authority of the executive to implement it in a manner it is envisaged. The manner and style of implementation have to stand the test of judicial scrutiny. Thus, there are the necessary checks and balances in the system of governance so that there is limited possibility to abuse it to someone's advantage.


Public policy can be organized along the following five lines: (i) regulatory; (ii) distributive; (iii) redistributive; (iv) capitalization; and (v) ethical. Regulation is one of the more visible types of public policy generally enforced through criminal law statues which generally stipulate how people should act towards one another. Distributive policies provide for goods and services such as welfare and health to specific segments of the population. All public assistance welfare programmes are distributive in character. Redistributive policies, on the other hand, aim at rearranging one or more of the basic schedules of social and economic reward as in the case of progressive tax policies which tax away proportionately more money from the rich than from the poor. Incomes thus obtained may be spent on the welfare of the poor. Basic alterations in productive arrangements as in government nationalizing industry, or changes in comprehensive services as in socialized medicine, or provision of scholarships to poor students, old-age pensions and unemployment insurance are also redistributive in their rearrangement of wealth.

Business and local governments also receive distributive largesse from the central government which aims at increasing the productive capacity of society's institutions. Although normally included in sample distributive policies, capitalization policies are not like the primary consumptive distribution of welfare programmes. They include: (i) cash payments to farmers to improve agriculture and (ii) tax subsidies to encourage exploration and production in selected industries and audit subsidies. In recent times, several moral and ethical issues such as death sentences, cloning of humans, euthanasia and the practice of killing hopelessly sick persons have come to the fore and created heated public debates for and against these issues. The courts do not settle such moral issues. Public policies, on the other hand, follow the court's directives and set out what ought and ought not to be done in an area marked off by deep moral convictions. On such moral or ethical issues, the executive wing of the government may enact legislations or evolve policies on what the courts dictate them to do.

In Chapter 3, we studied that business is impacted by the influences generated by various factors such as social, economic, political and technological forces including their subsets. Figure 12.1 clearly illustrates how public policies are formed and how social, economic, political and technological forces with their subsets impact the working of a corporation.


Figure 12.1 Shaping of Public Policies


Source: A. C. Fernando, Corporate Governance, Principles, Policies and Practices, New Delhi: Pearson Education, 2009.


There are different levels/layers of public policy depending on the intended geographic reach and the degree of sovereignty the authority concerned enjoys.

  1. National level: At the national level, public policy is applicable across the country. For instance, the Industrial (Development and Regulation) Act and the Monopolies and Restrictive Trade Practices Act have an all India reach.
  2. State level: Policies adopted by a state government is applicable only to the particular state as in the case of policies to protect ground water from contamination, policies to take over the wine shops in states like Tamilnadu.
  3. Regional level: There may be certain policy perspectives that apply to certain regions such as the Common Agricultural Policy (CAP) and sharing of river water among riparian states.
  4. International level: Global policies are the ones that are adopted by international organizations with worldwide ramifications such as Intellectual Property Rights (IPRs), Trade Related Investment Measures (TRIMs) and so on.

A government action that goes into its making in terms of public policy and execution can be understood in terms of several basic elements. Many factors or “inputs” influence the development of public policy. Government may determine its course of action on the basis of several factors such as economic or foreign policy concerns, domestic political pressure from constituents and interest groups, technical information, consensus that has emerged in national politics, tax imperatives and sometimes as reaction to natural or national calamities. All of these inputs can help shape what the government chooses to do and how it chooses to do it.

Public policy goals can be ideal and oriented or narrow and self-serving. National values such as freedom, democracy and equitable distribution of income and wealth to share in economic prosperity have led to the adoption of civil rights laws and assistance programmes for the weaker sections of the society. Narrow, self-serving goals are more evident when nations decide how tax legislation will allocate the burden of taxes among various interest and income groups. Public policy goals may vary widely but it is always important to inquire whether it serves the citizens of the country whose welfare it intends to serve; as for instance, a policy with regard to public expenditure is expected to ensure what is dictated by the principle of maximum social advantage, i.e. the greatest good to the largest number of people.

Figure 12.2 shows clearly the key elements involved in the public policy process.

Governments use different tools of public policy for instruments to realize their policy goals. In budget negotiations, for example, much discussion is likely to focus on alternative ways to raise revenue, graduating tax rates for individuals and businesses, reduced deductions, excise duties, sales taxes on selected items (e.g., luxury automobiles, cosmetics, cigarettes, petrol and alcohol). In general, the instruments of public policy are those combinations of incentives and disincentives that government uses to prompt citizens, including businesses to act in ways that achieve policy goals. Governmental regulatory powers are broad and constitute one of the most formidable instruments for accomplishing public purposes.

Public policy actions always have effects. Some are intended; others are unintended. Since public policies affect millions of people, corporations and other interests, it is almost inevitable that such actions will please some and displease others. Regulations may cause business to improve the way toxic substances are used in the workplace thereby reducing health risks to employees. Yet it is possible that other goals may be obstructed as an unintended effect of compliance with such regulations. For example, when the Government of India provided for prenatal and postnatal leave with full salary for pregnant women, many companies in India stopped employing women employees. This action was seen as a form of discrimination against women that conflicted with the goal of equal employment opportunity. The unintended effect (discrimination) of one policy action (protecting employees) conflicted head-on with the public policy goal of equal opportunity.

Post and his colleagues2 opine that in assessing any public policy, it is important for managers to develop answers to the following four questions:

  • What inputs will affect the public policy?
  • What goals are to be achieved?
  • What instruments are being used to achieve goals?
  • What effects, intended and unintended, are likely to occur?


Figure 12.2 The Key Elements of a Public Policy


Source: A. C. Fern ando, Corporate Governance, Principles, Policies and Practices, New Delhi: Pearson Education, 2009.


The answers to these questions provide a foundation for understanding how any nation's public policy actions will affect the economy and business sector. The following are the important steps in the evolution of public policy:

  1. Agenda building: The public policy agenda consists of those major issues or problems to which officials give serious attention and upon which they feel compelled to act. Not all public issues or problems get enough attention or support to become agenda items. The actions of an interest group also may put an issue on the public policy agenda as the group swings into action to protect its members by advocating greater government participation. For instance, in India in recent times representation of women in parliament and legislatures to the extent of 33 per cent is an issue that has been gathering momentum among various interest and advocacy groups.
  2. Policy formulation: Policy formulation occurs when interested groups take a position on some public issue and try to persuade others to adopt their viewpoints as public policy. If consensus among the participating groups can be reached, the proposed public policy moves towards the decision stage. In the example quoted above, i.e. women's sizeable representation in India's legislative bodies, various interest and pressure groups are trying to reach a consensus on how to work out an acceptable formula for all political shades of opinion.
  3. Policy decision: A policy decision occurs when some arm of the government either authorizes or fails to authorize the course of action. For example, the government may issue an executive order forbidding trade with another country. The courts, another branch of government, may hand down the decision that becomes a precedent for paying claims to victims of train accidents. The policy decision occurs when a law is passed, a regulation is adopted, an executive order is issued or a court opinion is announced. Failing to act can also be a form of a policy decision.
  4. Policy implementation: Policy implementation occurs when action is taken to enforce a public policy decision. Once a law is accepted or court decision is handed down, business can still wield significant influence in the implementation of the public policy. Business has greatly improved its understanding of, and participation in, the formulation and implementation of public policy. This understanding of how the political process works can be most beneficial to managements.
  5. Policy evaluation: Policy evaluation occurs when the impact of public policy becomes evident. Groups which initially were opposed to a policy may take an “I told you so” attitude and try to prove that it has been a bad one from the beginning to end. Basically, the policy evaluators try to find out whether the benefits have been more than the cost incurred and the same goals could have been achieved in another, more efficient and less expensive way.

There is a close relationship between public policy and governments or public authorities. No policy becomes a public policy unless it is adopted, implemented and enforced by some governmental institution. Government gives public policy three distinctive characteristics:

  1. It lends legitimacy to policies. Government policies are generally regarded as legal obligations which are easily observed by citizens. While people may regard policies of society's other groups and associations as important and even binding, they give policies emanating from government greater respect and comply with them easily because of the legal obligations it imposes.
  2. Government policies involve universality as these extend to all the sections in the society unlike the policies of other groups such as corporations, churches, civic associations and so on that reach only a part of the society.
  3. Government alone can exercise coercion in society—only government can legitimately imprison violators of its policies. The kind of public policies a government adopts will depend on the system of governance, which is of the following two types:
    1. Constitutional governments: In a constitutionally elected system of governance, the will of the people and their desires get reflected in public policies. Petitions through elected representatives, public debate in election campaigns, promises given in election manifestoes, media promotion and exposure as was amply demonstrated by the check on the use of cancer-causing tobacco public demonstration, etc. are some of the ways of framing public policy under constitutional method.
    2. Non-democratic governments: In the case of non-democratic governments, special interest lobbying of the leadership elite complete with illegal bribes and payments, international pressure for change, public demonstration and civil disobedience play decisive roles in shaping public policies. Media is controlled very much under these governments. Public is uninformed about the policy and gets frustrated. Demonstration and possible violence force change. As in the cases of Serbia and Indonesia, incidents forced for a change through severe violence. Public expects action by government. Elections provide the best data on clear preferences or public ambiguity.

Limitations of Governments in Executing Public Policy

In the exercise of governmental powers, governments have to be conscious of their own limitations such as the following:

  1. Limits to powers of democratic government: In matters of public policy or its implementation, governments do not have unfettered powers. Their powers are restricted under
    • Constitutional law: It defines the limits of the government to act, the powers in each level of the government and the rights of citizens.
    • Common law: It is established, adjudicated precedent giving the government the right to act in the interest of justice and fairness. The common law is regulated by the judiciary.
  2. Limits to powers of non-democratic monarchy, dictatorship, religious rulers, socialist state: There are no limits on the power of such governments except the tolerance of the public. When these governments exceed public tolerance, the usual result is violent actions to change the government as it happened in several countries where monarchies, dictatorships and theocratic governments were pulled down and dethroned, as under the French and Russian Revolutions, or the Uganda uprising which saw the downfall of the country's dictator Idi Amin.

Public policy of the three layers of government—executive, judiciary and legislature—has both direct and indirect impacts on business by creating an environment in which companies do business in the nation and across the world. As shown in Fig. 12.1, public policies that affect corporations are shaped by (i) social forces, (ii) economic forces, (iii) political forces, and (iv) technological forces. Social forces include the size and composition of population which has a definite effect on both the demand and supply of goods and services that corporations deal in; social forces that include lifestyles and patterns of living dictate corporate strategies to cater to the whims and fancies of consumers. Economic forces are those that shape corporate behaviour as well as the reaction of government to solve the problems arising therefrom. Political forces have an impact on government making and how governments are prompted to shape their policies affecting corporations. Technological forces are very important as far as the shaping of corporate policies are concerned as these allow corporations to update their products, processes and help them meet competition.

  1. To create a competitive environment: Public policies help the market to have perfect competition by way of controlling monopolies through license or by creating a competitive market mechanism. It helps in providing a level playing field for enterprises to operate and to encourage companies to effectively and efficiently utilize available resources.
  2. To control foreign investment: Government interferes in regulating foreign investments in certain industries which is very critical for the country; as for example, oil industry and financial institutions. Thus, the government tries to set some cap on these investments. Sometimes, the objective is to encourage local investment when the domestic economy is doing well. To stem the flow of too much foreign investment, government may adopt protectionist policies for the following reasons: a) to protect the growing industries (in the nascent stage), government may enact policies by way of preventing free flow of goods from other countries, tax holidays and other benefits; b) to regulate demand and supply, where the resources are scarce; c) to regulate the prices in the unhealthy competitive environment through administrative pricing mechanism and to promote consumer product safety; and d) to protect the environment (through effluent treatment and other antipollution measures).

There are two different schools of thought about businesses participating in public policy decision making. These are as follows:

  1. Business should be involved: According to this school of thought, it is imperative that business enterprises should be involved in policy making as they have a high stake in the manner of policy making and the way these are implemented. These stakes are: (i) a pluralistic system invites many participants and, business being an important constituent, should not be left out; (ii) economic stakes are high for firms and industries and public policy decisions might promote or mar their interests; (iii) business counterbalances other social interests since it has an overriding influence and impact on society through production and distribution of goods and services, income generation and employment; and (iv) business is a vital stakeholder of government, being a provider of revenues and the conduit for executing government policies.
  2. Business should not be involved: On the other hand, there is another school of thought which stresses the fact that business and politics should be separated as their combination will have several toxic effects. There are other reasons as well, such as (i) business executives are not fit to engage in political debates; they are not equipped to do so, by training or by inclination; (ii) business is naive about politics as politicians can outsmart them both by rhetoric and tall promises which businessmen trust implicitly as they do in their lines of business but come to know later after burning their fingers that politicians did not mean what they said and said so due to their own political compulsions; (iii) business is too big and too powerful while politics is fragmented by its very nature and makes gains by divide-and-rule policy; and (iv) business risks its credibility by engaging in partisan politics as has been demonstrated time and again by naive businessmen losing both their wealth and credibility by entering into politics.

There are three levels of business involvement in political activities and distribution of goods and services, income generation and employment. They are discussed below:

  1. Level 1: Financial Involvement
    1. Formation of political action committee (PAC): In some democratic societies, direct contributions by corporations to political candidates running for federal offices are forbidden by law and some states also place similar restrictions on corporate contributions in state elections. However, in countries such as USA, companies have been permitted to spend company funds to organize and administer a political action committee (PAC). PAC may solicit contributions from stockholders and employees and then channel the funds to those seeking political office. Even companies that have influence and impact on society through production might promote or mar their interests in organized PACs, though they are not permitted to donate corporate money to the PAC. Donations must come from individuals. Similarly, unions and other organizations may solicit contributions from members. Thus in countries where such political contributions and formation of PACs are permitted, such a course of action will lead to direct business political involvement.
    2. Trade association support: The techniques used by business to participate in governmental politics are similar to those of other interest groups. Many large corporations place full-time liaison officers in national capitals to keep abreast of developments in government that may affect the company.

      Smaller companies as well as many large ones who join trade associations such as FICCI, CII, ASSOCHAM and other chambers of commerce which bring diverse business groups together to lobby for or against particular piece of legislation have proven to be effective.

  2. Level 2: Organizational Involvement
    1. Lobbying: Lobbying involves direct contact with a government official to influence the thinking or actions of that person on an issue or public policy. It is usually done through face-to-face contact, sometimes in lengthy discussions or in meetings that may last only minutes. Several media reports suggest that fast growing companies like Reliance resort to such lobbying.
    2. Employee involvement programmes: These are organized efforts to get constituents to influence government officials to vote or act in a favourable way. In the USA, many companies are reported to have asked their shareholders to participate in grass root efforts to persuade their congressional representatives to reduce capital gain taxes and thereby make stock purchases and other investments more lucrative. These programmes send a strong message to elected officials that the desired action is supported by a large number of voters.
  3. Level 3: Strategic Public Policy Involvement

    Other kind of public policy involvement is through executive participation where the representatives participate in the decision making by acting the part of the executives. Involvement with industry working groups and task forces, policy position development are the other kinds of public policy involvement.


The role of government as an agent representing citizens of a country and as such playing its part in managing the modern economy is widely accepted today. Businessmen understand and accept the fact that governments can create or destroy the basic conditions necessary for business to compete and citizens to prosper.

Modem governments administer their economies through macroeconomic policies. Today's social environment is tied to the effectiveness of the governments in creating conditions for growth of the modern economy.3 Figure 12.3 illustrates the business-government-society-media relationship.

Governments generally accept the view that their key role is to create appropriate public policy that promotes economic growth. Experience has proved that healthy economic growth is affected by many factors, thereby requiring continuing efforts by government to manage the macroeconomy. Economic growth is stimulated by government policies that encourage investment (e.g., providing tax exemptions for domestic investments, inviting foreign investors to locate facilities in the country); foster technology development (e.g., patent protection); provide key services (e.g., infrastructure, public health and police protection); and create a capable workforce through education. Each year, dozens of laws are proposed by legislators to improve the nation's business climate and promote economic growth.


Figure 12.3 The Business–Government–Society–Media Relationship


Source: A. C. Fernando, Corporate Governance, Principles, Policies and Practices, New Delhi: Pearson Education, 2009.


Poor economic development will accelerate a nation's social problems including high unemployment, pushing people below the poverty line and bring in pressures to raise taxes. An expanding economy not only means job opportunities for trained workers but also higher labour costs for businesses. On balance, political leaders favour economic growth because it creates increased national wealth. In the following pages, some of the legislations that have a sizeable impact on business are dealt with briefly. Most of the economic laws that are part of the economic policy are given in chapters that address related issues and problems. For instance, Consumer Protection Act, MRTP Act, Competition Act, FERA and FEMA are dealt with in some details elsewhere.

Government Regulations in Business

Governments everywhere significantly influence business activities. Federal or central governments try to promote economic development of their countries by using appropriate economic policies whose constituents are monetary, fiscal and commercial policies. State governments shape the business environment through a slew of the state-specific economic policies. Local self governments, on the other hand, impact business through policies that involve permits, licenses and various clearances. Thus, a nation's prosperity is entwined with its economic and social policies.

  1. What is government regulation?

    Government regulation of business is a mechanism of implementing social choices and helps in creating the basic conditions that lead to economic prosperity. People rely on government to institute and maintain rules of conduct for citizens as well as organizations. If citizens have to live peacefully, they expect the local government to regulate traffic and supply of basic necessities such as water and transportation; at the state level, they want the government to regulate industries so that they would observe labour laws and also create employment. The central government is expected to regulate trade and monetary and fiscal policies. Since government operates at so many levels, modern enterprises face “complex web of regulations”. Companies hire lawyers, public relation officers, liaison officers to monitor and manage the interaction with the government.

  2. Justification of government regulation
    1. Market failure: Using regulation to add the social costs of a product that are not otherwise demanded in the market.
    2. Ethical failure: Regulation ensures fairness and justice, and adds this cost to the product.
    3. Stakeholder demands: Special interest groups lobby for more government intervention in environmental conservation, consumer protection, etc.
    4. Public reaction: Communication of national events has made most “accidents” more visible and less acceptable.
    5. Political advocacy: Organizations representing minorities and women call for government being proactive in these areas.
  3. Types of government regulation
    1. Industry specific: Prevention of abuse to buyers in the markets where market forces are distorted, usually by monopoly or other market power by suppliers. (Transportation, communications, energy, banking.)
    2. Industry wide: Primary social issues that affect all businesses. (Environment, safety, pensions, healthcare, employment.)
    3. Functional: Specific to certain business operations. (Stock trading, antitrust, labour, energy.)
    4. Media attention: Media connects communities globally. Events are chronicled as they occur, the public and government officials see social needs that should be highlighted. For example, oil spillovers in the ocean when ships break in mid-sea causing irreparable harm to fish, penguins, etc.
  4. Problems of government regulation
    1. Cost benefit: All regulations add cost to products. When government mandates operations that would not otherwise occur or interfere with the operations of markets, costs or premiums are added to products, raising the price to the consumer. The trend in government is increasing cost and new rules.
    2. Effectiveness: Is the intended purpose achieved and what are the unintended consequences and costs?
    3. Deregulation: Stakeholders resist deregulation even when cost/benefit and effectiveness clearly favour deregulation.
    4. Policy confusion: Television and cable systems of delivery have caused confusion.
  5. Economic and social costs of public policies

    The following costs are involved in framing and implementing of public policies. Although these costs were considered while framing the policies, most of the time, people's welfare is given preference over the costs by the government. The same methodology has to be followed by corporations also. The different kinds of costs are given below: (i) Administrative and compliance costs; (ii) Paperwork; (iii) Higher prices and taxes (public pay); (iv) Opportunity costs; (v) Unintended impacts of regulations; and (vi) Economic and social trade-offs.

Although the administration and compliance of the public policies may cost more to the companies, they have to keep in mind that following the rules and policies meticulously would lead them to achieve higher profits and long-term goals.


Some of the important government regulations impacting various aspects of the stakeholders in the Indian society, which also reflect public policies, are discussed below:

1. The Air (Prevention and Control of Pollution) Act, 1981

Industrialization and urbanization have resulted in a profound deterioration of India's air quality. Of the 3 million premature deaths in the world that occur each year due to outdoor and indoor air pollution, the highest numbers are assessed to have occurred in India. According to the World Health Organization, the capital city of New Delhi is one of the top ten most polluted cities in the world.4 Surveys indicate that in New Delhi, the incidence of respiratory diseases due to air pollution is about 12 times the national average.5 The Act provides for the prevention, control and abatement of air pollution. It also provides for the establishment of boards with a view to carrying out the aforesaid purposes.

Decisions were taken at the United Nations Conference on the Human Environment held in Stockholm in June 1972, in which India also participated, to take appropriate steps for the preservation of the natural resources of the earth which, among other things, include the preservation of the quality of air and control of air pollution. The Air (Prevention and Control of Pollution) Act, 1981 extends to the whole of India.

Effects of air pollution on human beings: Hydrocarbons that are let out by the automobiles contain toxic fumes and react adversely with haemoglobin in the blood. The result of nitrogen is bad and unending and increases susceptibility of children to diseases such as influenza. Sulphur dioxide in the atmosphere spreads air acidity and tends to corrode buildings apart from causing pain in the respiratory systems.

The heart may be damaged by air pollution, secondary to lung diseases. Nitrogen dioxide results in pulmonary oedema and aggravation of coronary diseases. Toxic effects of lead pollution include impaired IQ and development defects in children. These are few of the many effects of air pollution on human beings.6

2. The Environment Protection Act, 1986

The Environment Protection Act provides for protection and improvement of environment and for matters connected therewith.

The United Nations Conference on Human Environment held in Stockholm in June 1972, proclaimed that “Man is both creator and moulder of his environment, which gives him physical sustenance and the opportunity for intellectual, moral, social and spiritual growth. In the long and tortuous evolution of the human race on this planet, a stage has reached when through the rapid acceleration of science and technology, man has acquired the power to transform his environment in countless ways and on unprecedented scale. Both aspects of man's environment, the natural and manmade, are essential to his well being and to the enjoyment of basic human rights, even the right to life itself.7 Under this Act, the meanings of words/phases used are be as follows:

  1. Environment: It includes water, air and land and the interrelationship that exists with human beings, other living creatures, plants, microorganisms and property.
  2. Environmental pollutant: It means any solid, liquid or gaseous substance present in such concentration as may be, or tend to be, injurious to the environment.
  3. Hazardous substance: It means any substance or preparation which, by reasons of its chemical or physico-chemical properties or handling, is liable to cause harm to human beings, other living creatures, plants, microorganisms, property or environment.
  4. Environmental pollution: It means imbalance in the environment. The materials or substances when after mixing in air, water or land alter their properties in such manner that the very use of all or any of the air, water and land by man and any other living organism becomes lethal and dangerous for health.8

3. The Wildlife Protection Act, 1972

This Act provides for the protection of wild animals, birds and plants and for matters connected therewith or ancillary or incidental thereto. The Act is applicable to the whole of India, except for the state of Jammu and Kashmir. The meanings of words/phases used in the Act are as follows:

  1. Animal: includes amphibians, birds, mammals and reptiles, and their young and also includes, in the cases of birds and reptiles, their eggs.
  2. Animal article: means an article made from any captive animal or wild animal, other than vermin, and includes an article or object in which the whole or any part of such animal has been used and ivory imported into India and an article made therefrom.
  3. Hunting: includes the following:
    1. Capturing, killing, poisoning, snaring and trapping any wild animal and every attempt to do so.
    2. Driving any wild animal for any of the purposes specified in the subclause.
    3. Injuring or destroying or taking any part of the body of any such animal, or in the case of wild birds or reptiles, damaging the eggs of such birds or reptiles, or disturbing the eggs or nests of such birds or reptiles.
  4. Taxidermy: With its grammatical variations and cognate expressions means the curing, preparation or preservation of trophies.
  5. Trophy: Would mean any part or the whole of any animal or wild animal captured; this would exclude vermin which is being kept or preserved either through artificial or natural means including the following:
    1. Rugs, skins and specimens of such animals mounted in whole or in part through the process of taxidermy.
    2. Antler, horn, rhinoceros horn, feather, nail, tooth, musk, eggs and nests.
  6. Uncured trophy: It means the whole or any part of any captive animal, other than vermin, which has not undergone a process of taxidermy and includes freshly killed wild animal ambergris, musk and other animal products.
  7. Vermin: It means any wild animal specified in Schedule V of the Act.
  8. Wildlife: It includes any animal, bees, butterflies, crustacean, fish and moths and aquatic or land vegetation which forms part of any habitat.

4. The Trade Unions Act, 1926

The Trade Unions Act, 1926 provides for the registration of trade unions with a view to rendering lawful organization of labour to enable collective bargaining. It also confers certain protections and privileges on a registered trade union.

The Act is applicable to the whole of India and to “all kinds of unions of workers and associations of employers, which aim at regularizing labour-management relations. A trade union is a combination, whether temporary or permanent, formed for regulating the relations not only between workmen and employers but also between workmen and workmen or between employers and employers”.

  1. Registration: Registration of a trade union is not compulsory but is desirable since a registered trade union enjoys certain rights and privileges under the Act. A minimum of seven workers of an establishment (or seven employees) can form a trade union and apply to the registrar for its registration.
    1. The application for registration should be in the prescribed form and accompanied by the prescribed fees, a copy of the rules of the union signed by at least seven members, and a statement containing the following:
      • The names, addresses and occupations of the members making the application.
      • The name of the trade union and the addresses of its head office.
      • The titles, names, ages, addresses and occupations of its office bearers.
    2. If the union has been in existence for more than a year, then a statement of its assets and liabilities in the prescribed form should be submitted along with the application.
    3. The registrar may call for further information for satisfying himself that the application is complete and is in accordance with the provisions, and that the proposed name of the union does not resemble any other name registered with him.
    4. On being satisfied with all the requirements, he shall register the trade union and issue a certificate of registration, which shall be conclusive evidence of its registration.
  2. Legal status of a registered trade union:
    1. A registered trade union is a corporate body with perpetual succession and a common seal;
    2. It can acquire, hold, sell or transfer any movable or immovable property and can be a party to contracts;
    3. It can sue and be sued in its own name;
    4. No civil suit or other legal proceeding can be initiated against a registered trade union in respect of any act done in furtherance of a trade dispute under certain conditions; and
    5. No agreement between the members of a registered trade union shall be void or voidable merely on the ground that any of its objects is in restraint of trade.
  3. Obligations of registered trade union:
    1. The general funds of a registered trade union should be spent only for the objects specified such as payment of salaries, allowances and expenses of its office bearers, its administrative and audit expenses, prosecution or defence of any legal proceeding for securing or protecting its rights, conduct of trade disputes, compensation for the loss arising out of trade disputes, provision of educational, social or religious benefits and allowances on account of death, old age, sickness, accident or unemployment to its members, publication of labour journals, etc. A trade union may set up a separate political fund for the furtherance of civic and political interest of its members. Contribution to this fund is not compulsory.
    2. The account books and the membership register of the union should be kept open for inspection by any of its office bearers.
    3. A copy of every alteration made in the rules of the union should be sent to the registrar within 15 days of making the alteration.
    4. An annual statement of receipts and expenditure and assets and liabilities of the union for the year ending on 31 December, prepared in the prescribed forms and duly audited should be sent to the registrar within the prescribed time. This statement should be accompanied by a statement showing changes in office bearers during the year and a copy of the rules as amended till date. Penalties imposed in case of the defaults made by any trade union in its annual report are as follows:
      • If the registered trade union/its office bearers or members fail to give any notice or send any statement as required under the Act, they are fined up to INR 5 plus additional fine up to INR 5 per week in case of continuing offence. (Maximum fine imposable INR 50.)
      • If any person wilfully makes any false entry in the annual statement of the union or its rules, he is fined up to INR 500.

5. The Payment of Bonus Act, 1965

The Payment of Bonus Act provides for the payment of bonus to the persons employed in certain establishments on the basis of profits or on the basis of production or productivity and for matters connected therewith. It extends to the whole of India and is applicable to every factory and to every other establishment where 20 or more workmen are employed on any day during an accounting year.

  1. Eligibility for bonus: All the employees who receive salary or wages upto INR 3,500 per month and are engaged in any kind of work whether skilled, unskilled, managerial or supervisory are eligible to get bonus for every financial year if they have worked for at least 30 working days in that year.

    However, employees of LIC, universities and educational institutions, hospitals, chambers of commerce, RBI, IFCI, UTI and social welfare institutions are not entitled to bonus under this Act.

  2. Disqualification for bonus: Notwithstanding anything contained in the Act, employees shall be disqualified from receiving bonus if they are dismissed from service for fraud or riotous or violent behaviour while in the premises of the establishment or theft, misappropriation or sabotage of any property of the establishment.
  3. Duties/Rights of the employer:
    1. Duties of the employers are as follows:
      • To calculate and pay the annual bonus as required under the Act.
      • To submit an annual return of the bonus paid to the employees during the year in Form D to the inspector, within 30 days of the expiry of the time limit specified for the payment of bonus.
      • To cooperate with the inspector, produce before him the registers/records maintained, and such other information as may be required by him.
      • To get their accounts audited as per the directions of a labour court tribunal or of any such other authority.
    2. Rights of the employers are as follows:
      • Right to forfeit bonus of an employee who has been dismissed from service for fraud, riotous or violent behaviour, or theft, misappropriation or sabotage of any property of the establishment.
      • Right to make permissible deductions from the bonus payable to an employee, such as festival interim bonus paid and the financial loss caused by the misconduct of the employee.
      • Right to refer any disputes to the labour court or labour tribunal if it relates to the application or interpretation of any provision of the Act.
    3. Rights of employees are as follows:
      • Right to claim bonus payable under the Act and to make an application to the government for the recovery of bonus due and unpaid, within 1 year of its becoming due.
      • Right to refer any dispute to the labour court/tribunal. Employees, to whom the Payment of Bonus Act does not apply, cannot raise a dispute regarding bonus under the Industrial Disputes Act.
      • Right to seek clarification and obtain information on any item in the accounts of the establishment.9

6. The Employees' Provident Funds Act, 1952

The Employees' Provident Funds and Miscellaneous Provisions Act provides for compulsory contributory fund for the future of the employees after their retirement or for their dependents in case of their early death.

It extends to the whole of India except the state of Jammu and Kashmir and is applicable to the following:

  • Every factory engaged in any industry specified in Schedule I in which 20 or more persons are employed.
  • Every other establishment employing 20 or more persons or class of such establishments which the central government may notify.
  • Any other establishment so notified by the central government even if employing less than 20 persons.
  1. Employees' entitlement: Every employee, including the one employed through a contractor (but excluding an apprentice engaged under the Apprentices Act or under the standing orders of the establishment and casual labourers), who is in receipt of wages up to INR 6,500 per month shall be eligible for becoming a member of the employee's provident funds.

    The condition of three months' continuous service or 60 days of actual work for the membership of the scheme has been done away with, with effect from 01 November, 1990. Workers are presently entitled to join the scheme from the date of joining the service.

  2. Employer's contribution: The employer is required to contribute the following amounts towards employees' provident fund and pension fund:
    1. In case of establishments employing less than 20 persons or a sick industrial (BIFR) company or “sick establishment” or any establishment in the jute, beedi, brick, coir or gaur gum industry—10 per cent of the basic wages, dearness allowance and retaining allowance, if any.
    2. In case of all other establishments employing 20 or more persons—12 per cent of the wages, dearness allowance, etc.

A portion of the worker's contribution is sent to the pension fund and the balance amount continues to remain in the provident fund account. Where the pay of an employee exceeds INR 5000 per month, the contribution payable to the pension fund shall be limited to the amount payable on his pay of INR 5,000 only; however, the employees may voluntarily opt for the employer's share of contributions on wages beyond the limit of INR 5,000 to be credited to the pension fund.

7. The Workmen's Compensation Act, 1923

The Workmen's Compensation Act aims to provide workmen and/or their dependents some relief in case of accidents arising out of and in the course of employment and causing either death or disablement of workmen. It allows for payment by certain types of employers to their workmen compensation for any accidental injury.

  1. Who is a workman?: A “workman” is anyone other than a person who is employed as a casual worker and is employed for a purpose other than employer's trade or business. Further, a workman is:
    1. An employee in Railways as defined in Section 3 of the Indian Railways Act, 1890, only temporarily employed in any administrative, district or sub-divisional office of a Railway and not employed in any such capacity as is specified in Schedule II;
    2. An employee belonging to any such category as covered under Schedule II whether or not the contract of employment was made before/after the passing of this Act and is applicable to all under the contract, be it expressed or implied, oral or in writing.

      The provisions of the Act have been extended to cooks employed in hotels, restaurants using power, liquefied petroleum gas or any other mechanical device in the process of cooking.10

  2. Employees entitled to compensation: Every employee (including those employed through a contractor but excluding casual employees) who is engaged for the purposes of employer's business and who suffers an injury in any accident arising out of and in the course of his employment shall be entitled for compensation under the Act.

8. The Prevention of Food Adulteration Act, 1954

The Prevention of Food Adulteration Act, 1954 aims at making provisions for the prevention of adulteration of food. The Act extends to the whole of India and came into force on 1 June, 1955.

What is meant by adulterated food?

An article of food shall be deemed to be adulterated under the following conditions:

  1. If the article sold by a vendor is not of the nature, substance or quality demanded by the purchaser or which it purports to be;
  2. If the article contains any substance affecting its quality or if it is so processed as to injuriously affect its nature, substance or quality;
  3. If any inferior or cheaper substance has been substituted wholly or partly for the article, or any constituent of the article has been wholly or partly abstracted from it so as to affect its quality or it is so processed as to injuriously affect its nature, substance or quality;
  4. If the article has been prepared, packed or kept under insanitary conditions whereby it has become contaminated or injurious to health;
  5. If the article consists wholly or in part of any filthy, putrid, disgusting, rotten, decomposed or diseased animal or vegetable substance or being insect-infested, or is otherwise unfit for human consumption;
  6. If the article is obtained from a diseased animal;
  7. If the article contains any poisonous or other ingredient which is injurious to health;
  8. If the container of the article is composed of any poisonous or deleterious substance which renders its contents injurious to health;
  9. If the article contains any prohibited colouring matter or preservative, or any permitted colouring matter or preservative in excess of the prescribed limits;
  10. If the quality or purity of the article falls below the prescribed standard, or its constituents are present in sub-standard proportions or its constituents are present in proportions other than those prescribed, whether or not rendering it injurious to health.
  1. Custom law and procedures: Custom duty is a tax which the state collects on goods imported into or exported out of the boundaries of a country. Custom duties now form a significant source of revenue for all countries, more so in the case of developing countries like India. In India, custom duties are levied on the goods and at the rates specified in the Schedules to the Customs Tariff Act, 1975. Export duties mostly are not existent nowadays. They are levied occasionally to mop up excess profitability in international price of goods in respect of which domestic prices may be low at a given time. But sweep of import duties is very extensive, almost widespread, excepting a few goods such as food grains, fertilizers, life-saving drugs and equipment and so on. Import duties generally consist of the following:
    1. Basic duty: It may be at the standard rate or in the case of import from some countries, at the preferential rate.
    2. Additional custom duty: It is equal to central excise duty leviable on goods produced or manufactured in India. It is commonly referred to as countervailing duty or CVD.
    3. Special additional duty of customs: It is at the rate of 4 per cent in order to provide a level playing field to indigenous goods which have to bear sales tax. This duty is to be computed on the aggregate of the following:
      • Assessable value
      • Basic duty of customs
      • Surcharge
      • Additional duty of customs leviable under Section 3 of the Customs Tariff Act, 1975 (CVD)
    4. Additional duty of customs: It is at the rate of INR 1 per litre on imported petrol as well as high speed diesel oil.
    5. Anti-dumping duty/safeguard duty: This is for import of specified goods with a view to protecting domestic industry from any unfair injury.
  2. Service Tax: Service tax is an indirect levy imposed under Chapter V of the Finance Act, 1994 as amended. The tax is valid to the services specified in the chapter called “taxable services”. At present, the rate of service tax is 8 per cent to be levied on the “value of taxable service”. Normally, “value of taxable service” implies the gross amount received by the service provider for the taxable service provided by him. The person who provides the taxable service on the receipt of charges is responsible for paying the service tax to the government. Where the service is rendered by an individual other than Indian resident or who does not have any enterprise in India, then the services receiver in India is legally responsible to pay the service tax.

    Service tax is under the purview of the Central Excise Commissionerates reporting to the Central Board of Excise and Customs, Department of Revenue, Ministry of Finance, Government of India.

9. The Small-Scale Industries Tax Exemption Scheme

The contribution of small-scale sector in the industrial growth of the Indian economy and to the gross domestic product is significant besides the potential for employment generation. The small-scale sector has for itself a special dispensation in the central excise law in order to make it competitive in the domestic and global market. Central excise duty concessions have been extended to the units in the small-scale sector based on their turnover so as to facilitate them to graduate by availing these concessions in a graded manner.11

  1. Eligibility: Manufacturers of specified commodities having clearances not exceeding INR 30 million in the previous financial year are eligible for this exemption.
  2. Registration of small-scale companies: Every manufacturer of excisable goods is required (under Rule 174 of Central Excise Rule 1944) to get registered with the Central Excise Department before starting production.
    • The small-scale industries must file for registration when their turnover crosses INR 10 million. The application for the registration should be submitted to the jurisdictional range superintendent of central excise.
    • The registration certificate will be automatically granted. If it is not granted within 30 days of the receipt of the application, it is deemed to have been granted.
    • There is no fee for registration and a factory or a unit is to be registered only once.
    • There is no need for renewal of the registration.
    • The registration is applicable only for the premises where the manufacture is taking place.
    • A separate registration is required for each premise.
    • In case a new product is to be manufactured, the registration certification should be got endorsed for the additional items.

10. Intellectual Property Rights (IPR and TRIPS)

Patents, designs, copyrights and trademark are industrial property as they are used in some form of industry or business. They are also aptly known as intellectual property as they are the outcome of intellectual effort. Continuous attempts have been made to enlarge the limits of intellectual property and to alter a protective law into a source of monopoly. For a detailed study of IPR, please refer to Chapter 44.

11. Anti-dumping Policies

Trade “Dumping”

Dumping occurs when a product is exported to and sold in another country at less than its normal value in the exporting country, and such sales cause injury to producers in the importing country. In essence, the product is “dumped” onto the importing country's domestic market.

What protection does the anti-dumping agreement offer?

In cases where dumped imports threaten or materially injure a nation's domestic industry, injured nations may impose “anti-dumping measures” in the form of duties in addition to the standard tariffs applied—to imports from “dumping” foreign sources. This protection is granted under the GATT 1994 Agreement (Article VI), commonly called the WTO Agreement on anti-dumping.

How is it determined whether or not goods are being dumped?

  • The “normal value” of the good is determined.
  • The “export price” is established.
  • A “fair value comparison” of the export price and normal value is made, including any necessary allowance and adjustments that circumstances of the sale and product differences might dictate.

How is it determined whether or not dumping has caused injury to domestic industry?

  • Investigators examine the volume and value of dumped imports and the effect on the industry in the domestic market for identical or similar products.
  • Future threats are assessed on the basis of dumping rates, inventories, exporter capacities and price projections on goods in the market.
  • Dumping margins are calculated (the difference between the normal value and the export price).
  • The importing country then typically collects duties on imports from the dumping source country.
  • In lieu of collecting anti-dumping duties, members may elect to negotiate higher price agreements with the offending exporters.
  • The WTO measure establishes rules for the duration of antidumping duties and price undertakings.

Transparency of the process

  • Investigating authorities must provide public notice of all non-proprietary information regarding the details of all preliminary and final rulings and determinations.
  • Extensive details are provided along with official responses to arguments to ensure transparent, consistent and fair implementation of the agreement.
  • Public policy may be explained as a definite course or method of action selected from alternatives and in the light of given conditions to guide and determine present and future decisions of governments or public authorities.
  • Public policies may be regulative, distributive, organizational or extractive and a government may engage all of these to achieve its objectives either singly or collectively at the same time. Public policy may deal with a wide variety of issues, both vital and trivial.
  • There is a close relationship between public policy and governments or public authorities. Public policy can be organized along the following five lines: (a) regulatory; (b) distributive; (c) redistributive; (d) capitalization; and (e) ethical.
  • Public policies that affect corporations are shaped by (i) social forces, (ii) economic forces, (iii) political forces, and (iv) technological forces. Public policy goals can be ideal and oriented or narrow and self-serving. Public policy actions always have effects; some are intended, others are unintended.
  • The following are the important steps in the evolution of public policy: (i) agenda building; (ii) policy formulation; (iii) policy decision; (iv) policy implementation; and (v) policy evaluation. In the exercise of powers of governments, they have to be conscious of their own limitations: 1. limits to powers of democratic government (i) constitutional law and (ii) common law; 2. limits to powers of non-democratic monarchy, dictatorship, religious rulers and socialist state.
  • Powers of government in a constitutionally elected system of governance, the will of the people and their desires get reflected in public policies. In case of non-democratic governments, special interest lobbying of the leadership elite complete with illegal bribes and payments, international pressure for change, public demonstration and civil disobedience play decisive roles in shaping public policies. Media is controlled very much under these governments.
  • There are two different schools of thought about businesses participating in public policy decision making. These are as follows: (i) business should be involved; and (ii) business should not be involved.
  • There are three levels of business involvement in political activities and distribution of goods and services, income generation and employment. They are: Level 1: Financial involvement: (i) formation of political action committee (PAC); and (ii) trade association support. Level 2: Organizational involvement: (i) lobbying; and (ii) employee grassroot involvement. Level 3: Strategic public policy involvement through executive participation where the representatives participate in the decision making by acting the part of the executives.
  • Justification of government regulation: (i) market failure; (ii) ethical failure; (iii) stakeholder demands; (iv) public reaction; and (v) political advocacy.
  • (I) The Air (Prevention and Control of Pollution) Act, 1981 provides for the prevention, control and abatement of air pollution. (II) The Environment Protection Act provides for protection and improvement of environment and for matters connected therewith. (III) The Wildlife Protection Act, 1972 provides for the protection of wild animals, birds and plants and for matters connected therewith or ancillary or incidental thereto. (IV) The Trade Unions Act, 1926 provides for registration of trade unions with a view to rendering lawful organization of labour to enable collective bargaining. (V) The Payment of Bonus Act provides for the payment of bonus to the persons employed in certain establishments on the basis of profits or on the basis of production or productivity and for matters connected therewith. (VI) The Employees' Provident Funds and Miscellaneous Provisions Act provides for compulsory contributory fund for the future of the employees after their retirement or for their dependents in case of their early death. (VII) The Workmen's Compensation Act aims to provide workmen and/or their dependents some relief in case of accidents arising out of and in the course of employment and causing either death or disablement of workmen. (VIII) The Prevention of Food Adulteration Act, 1954 aims at making provisions for the prevention of adulteration of food.
commercial policy fiscal policy framing public policy
monetary policy economic policy organizational involvement
policy decision making public policy shaping of public policies
taxation policy    
  1. What do you understand by public policy? How is it classified?
  2. Why do we need public policy to govern business? What are the important elements of public policy?
  3. What powers do governments enjoy to frame business-related legislations?
  4. Write a note on public policy and business. Has business got the right to involve itself in policy-making?
  5. Write notes on the following:
    1. Constitutional law
    2. Common law

Althaus, Catherine, Bridgman, Peter and Glyn Davis. The Australian Policy Handbook. Fourth edition. Sydney: Allen & Unwin, 2007.

Anti Dumping Duties, http://www.amir-jordan.org/amirl_web/pri/wto/antidumping.htm

A. C. Fernando. “Corporate Governance: The Dire Need of the Hour”, Management Matters. 1(5): 2002.

Child Labour, http://www.vedamsbooks.com/anthro.htm#.

Consumer Protection Act, www.helplinelaw.com

Corporate Affairs & Public Policy, www.oecd.org/daf/corporate-affairs

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CSR & Public Policy, http://www.socialdialogue.net/en!en_csr_index.htm

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Environmental Policies, http://www.gisdevelopment.net/application/environment/pp/envplOOOla.htm

EXIM Policies, http://exim.indiamart.com/ssi-regulations/idr-act.html#idr-act

FERA and Customs Duty, http://www.thebharat.com/legal/compa-nylaw/index.html

FERA, http://exim.indiamart.com/act-regulations/fera-1993.html

Globalization and its Effects, http://www.mindfully.org/WTO/Shiva-India-Primlani.htm

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Jenkins, William. Policy Analysis: A Political and Organizational Perspective. London: Martin Robertson, 1978.

Kellow, Aynsley. “Promoting Elegance in Policy Theory: Simplifying Lowi's Arenas of Power”. Policy Studies Journal 16 (1988): 713–724.

Labour Policy, http://www.unido.org/en.doc/4825

Lawrence, Anne T., James Weber, S.J and James E Post. Business and Society. eleventh edition. New York, N.Y.: McGraw-Hill Publishing Pvt Ltd, 2005.

Lowi, Theodore J. “American Business, Public Policy, Case-Studies, and Political Theory”. World Politics 16(1964): 687–713.

———“Four Systems of Policy, Politics, and Choice”. Public Administration Review 33(1968): 298–310.

———Regulatory Policy and the Social Sciences. Berkeley: University of California Press, 1985.

———“The State in Politics” in Noll, Roger G. (ed.). Regulatory Policy and the Social Sciences. Berkeley: University of California Press, 1985, pp. 67–110.

Paquette, Laure. Analyzing National and International Policy. Lanham, MD: Rowman Littlefield, 2002.

Privatization & Globalization Policies, http://www.columbia.edu/-ta63/index.html

Public Policy for Corporate Social Responsibility—Djordjija Petkoski World Bank Institute and Nigel Twose—World Bank Group. Policy Decision Making, http://www.aeco.ttu.edu/Courses/4305/index.htm

Spitzer, Robert J. “Promoting Policy Theory: Revising the Arenas of Power”. Policy Studies Journal 15 (1987): 675–689.

Susan Ariel Aaronson and James T. Reeves. Corporate Responsibility in the Global Village: The Role of Public Policy. Washington: National Policy Association, 2002.