Bisnis pemerintah dan regulasi (1)
Business, Government, and Regulation
Chapter
1
11 & 12
Chapter 11 Outline
The Roles of Government and Business
Interaction of Business, Government, and the
Public
Government’s Non-regulatory Influence on
Business
Government’s Regulatory Influences on Business
Deregulation
2
Government’s Role in
Influencing Business
1.
Prescribes rules
2.
Purchases business’ products and services
3.
Uses its contracting power
4.
Major promoter and subsidizer
5.
Owner of vast quantities of productive equipment
6.
Architect of economic growth
7.
Financier
8.
Protector of society against business exploitation
9.
Manages large areas of private business
10.
Repository of the social conscience and redistributes resources
3
Roles of Government and Business
What should be the respective roles of business and
government in our socioeconomic system?
Given all of the tasks that must be accomplished to
make our society work, which of these tasks should
be handled by the government and which should be
handled by business?
How much autonomy are we willing to allow
business?
4
Clash of Ethical Systems
Business Beliefs
Government Beliefs
Individualistic ethic
Collectivistic ethic
Maximizes concession to
self-interest
Minimizes the load of
obligations society imposes
on the individual (personal
freedom)
Subordinates individual goals
and self-interest to group
goals and group interests
Maximizes obligations
assumed by the individual
and discouraging self-interest
Emphasizes equality of
individuals
Emphasizes inequalities of
individuals
5
Figure 11-1
Social, Technological, and Value Changes
Major
MajorChanges
Changes
Societal
SocietalValue
ValueChanges
Changes
National
Nationalsociety
society
Youth
Youthmovement
movement
Communal
Communalsociety
society
Consumer
Consumerprotection
protectionmovement
movement
Entitlements
Entitlements
Ecology
Ecologymovement
movement
Quality
Qualityof
oflife
life
Civil
Civilrights
rightsmovement
movement
Women’s
Women’smovement
movement
Egalitarian
Egalitarianmovement
movement
6
Interaction Among Business,
Government, and the Public
Lobbying
Business
Business
• Interest
groups
• Not buying
products
• Protests
Regulations and Other
Forms of Persuasion
•
•
•
•
• Advertising
• Public Relations
Public
Public
7
Figure 11-2
Government
Government
Political Process
Voting
Interest Groups
Contributions
• Politicking
• Political
influence
Government’s Nonregulatory
Influence on Business
Two Major Nonregulatory Issues
Industrial Policy
Privatization
8
Industrial Policy
Industrial
Policy
9
Any selective government measure
that prevents or promotes changes
in the structure of an economy.
Industrial Policy
Accelerationists
Accelerationists
Adjusters
Adjusters
Schools
Schools of
of
Thought
Thought
Targeters
Targeters
Central
Central planners
planners
Bankers
Bankers
10
Industrial Policy
1.
2.
3.
4.
5.
11
Accelerationist : selected industries to be
international competitors in world market
Adjusters : adjustment for declining
industries
Targeters : selected industries to be engine
for growth
Central planners : comprehensive planning
for growth oriented macroeconomic policies
Bankers : financing high risk venture
Industrial Policy
Arguments For
Decline of national
competitiveness
Use by other world
governments
Ad hoc industrial policy
12
Arguments Against
Reduces market efficiency
Promotes political decisions
Foreign success variable
Various interventions create
an industrial policy by
default
Privatization
Privatization
The process of “turning over to”
the private sector some function
that was previously handled
by government.
Pro-producing a service:
effective
Privatization
Contra-providing a service:
Eficiency, flexible
13
Other Nonregulatory
Government Influences
Major employer
Standard setter
Largest purchaser
Use of Subsidies
Transfer payments
14
Major competitor
Loans and loan guarantees
Taxation
Monetary policy
Moral suasion
Government’s Regulatory
Influence on Business
Factors to Consider Regarding
Government Regulation
15
Fair treatment
Protection
Scope
Cost
Burden
A Federal Regulatory Agency…
1.
Has decision-making authority
2.
Establishes standards or guidelines conferring benefits
and imposing restrictions on business conduct
3.
Operates principally in the sphere of domestic business
activity
4.
Has its head and / or members appointed by the
president (generally subject to Senate confirmation)
5.
Has its legal procedures generally governed by
the Administrative Procedures Act
16
Reasons for Regulation
Controls
Controls natural
natural monopolies
monopolies
Controls
Controls negative
negative externalities
externalities
Achieves
Achieves social
social goals
goals
Controls
Controls excess
excess profits
profits
Controls
Controls excessive
excessive competition
competition
17
Comparison of Economic
and Social Regulation
Economic Regulations
Focus
Market conditions;
economic variables
Social Regulations
People in roles as
employees, consumers
and citizens
Affected
Selected (railroads,
Industries aeronautics,
communications)
Virtually all industries
Examples
ICC, CAB
FCC
EEOC, OSHA,
CPSC, EPA
Current
Trend
From regulation to
deregulation ( ?)
Stable
18
Figure 11-3
Benefits of Regulation
Fair treatment of employees
Safer working conditions
Safer products
Cleaner air and water
19
Costs of Regulation
Direct costs
Indirect costs
Induced costs
Effects
1.
2.
3.
20
Innovation may be affected.
New investments in plant and equipment may be
affected.
Small business may be adversely affected.
Deregulation
Purpose
Intended to increase competition with the expected
benefits of greater efficiency, lower prices, and
enhanced innovation.
Dilemma
Many competitors are unable to compete with the
dominant firms.
Must enhance competition without sacrificing applicable
social regulations (e.g., health and safety requirements).
21
Industries Affected by Deregulation
Trucking
Telecommunications
Financial Services
Electric Utilities
Airlines
22
Chapter 12 Outline
Corporate Political Participation
Lobbying
Coalition Building
Political Action Committees
Political Strategy
23
Corporate Political Participation
24
Lobbying
The process of influencing public
officials to promote or secure passage
or defeat of legislation
PACs
Instruments through which business
uses financial resources to
influence government
Coalition
Building
Business and other groups joining
forces to achieve common goals
Political
Strategy
To secure position of advantage
regarding a given regulation or
piece of legislation
The Purposes of Lobbying
Gain legislative support or institutional approval for
some objective
Obtain reinforcement of established policy or the
defeat of proposed policy shifts
Targets the election or defeat of national, state, and
local legislators
25
Organizational Levels of Lobbying
Representation
Umbrella
Umbrella
Organizations
Organizations
Trade
Trade
Associations
Associations
Company-Level
Company-Level
Lobbying
Lobbying
Figure 12-1
26
Broad
Broad
Examples
•• Chamber
Chamber of
of Commerce
Commerce
•• National
NationalAssociation
Association of
of
Manufacturers
Manufacturers
•• National
NationalAutomobile
Automobile Dealers
DealersAssn
Assn
Midrange
Midrange
•• National
NationalAssociation
Association of
of Realtors
Realtors
Narrow/
Narrow/
Specific
Specific
••
••
••
••
••
Local
Local government
government
Law
Law firms
firms
Public
Public affairs
affairs specialists
specialists
PACs
PACs
Grassroots
Grassroots lobbying
lobbying
Grassroots Lobbying
Grassroots
Lobbying
Cyberadvocacy
27
Mobilizing the “grassroots”—
individual citizens who might be
most directly affected by legislative
activity—to political action
Using the Internet to amass
grassroots support, and enable
grassroots supporters to
contact their legislators
Coalition Building
1.
Manage the sequence in which issues are
addressed
2.
Increase the visibility of certain issues
3.
Unbundle issues into smaller subissues
28
Political Action Committees
Political Action Committees (PACs) are groups
of like-minded businesses using financial
resources to influence government.
Golden
Golden Rule
Rule of
of Politics:
Politics:
“He
“He who
who has
has the
the gold,
gold, rules.”
rules.”
29
Political Action Committees
Political Action Committees (PACs) are groups
of like-minded businesses using financial
resources to influence government.
Golden
Golden Rule
Rule of
of Politics:
Politics:
“He
“He who
who has
has the
the gold,
gold, rules.”
rules.”
30
Political Action Committees
Arguments
ArgumentsFor
ForPACs
PACs
PACs are a reasonable
means that business may
use to organize their
contributions to candidates
for office.
31
Arguments
ArgumentsAgainst
Against PACs
PACs
PACs expect something in
return other than good
government and this can lead
to differing treatment for
those who give and those
who cannot,
such as the poor.
Political Action Committees
Conditions Needed for Effective PAC Contributions
1.
When the issue is less visible
2.
During the early stages of the legislative process
3.
When the issue is narrow, specialized, or
unopposed
4.
When PAC’s are allied
5.
When PAC’s adapt lobbying techniques to their
contribution strategies
32
Indonesian business-related regulation list
CASE STUDY
34
35
Trade off: Industrialisasi, peluang kerja,
profit perusahaan
Tujuan UU minerba: menciptakan lapangan pekerjaan dan hilirisasi sektor pertambangan.
12 Januari 2014 :Pemerintah mulai memberlakukan UU No.4 tahun 2009 tentang
Pertambangan Mineral dan Batubara pada lalu melalui Peraturan Pemerintah No.1 tahun
2014
Ancaman PHK massal terhadap 15.000 hingga 21.000 pekerja dari total 31.000 orang
pekerja di areal pertambangan PT Freeport Indonesia- demonstrasi pekerja
Ancaman gugatan jepang&UE kepada WTO
Permen ESDM No.1 tahun 2014, tentang Pelaksanaan Kegiatan Usaha Pertambangan
Mineral dan Batubara: enam mineral logam (tidak termasuk batubara) masih bisa
diekspor sesuai ketentuan kadar pengolahannya, dan tidak harus dimurnikan. Mineral
logam tersebut yakni tembaga, pasir besi, bijih besi, seng, timbal, serta mangaan
36
Chapter
1
11 & 12
Chapter 11 Outline
The Roles of Government and Business
Interaction of Business, Government, and the
Public
Government’s Non-regulatory Influence on
Business
Government’s Regulatory Influences on Business
Deregulation
2
Government’s Role in
Influencing Business
1.
Prescribes rules
2.
Purchases business’ products and services
3.
Uses its contracting power
4.
Major promoter and subsidizer
5.
Owner of vast quantities of productive equipment
6.
Architect of economic growth
7.
Financier
8.
Protector of society against business exploitation
9.
Manages large areas of private business
10.
Repository of the social conscience and redistributes resources
3
Roles of Government and Business
What should be the respective roles of business and
government in our socioeconomic system?
Given all of the tasks that must be accomplished to
make our society work, which of these tasks should
be handled by the government and which should be
handled by business?
How much autonomy are we willing to allow
business?
4
Clash of Ethical Systems
Business Beliefs
Government Beliefs
Individualistic ethic
Collectivistic ethic
Maximizes concession to
self-interest
Minimizes the load of
obligations society imposes
on the individual (personal
freedom)
Subordinates individual goals
and self-interest to group
goals and group interests
Maximizes obligations
assumed by the individual
and discouraging self-interest
Emphasizes equality of
individuals
Emphasizes inequalities of
individuals
5
Figure 11-1
Social, Technological, and Value Changes
Major
MajorChanges
Changes
Societal
SocietalValue
ValueChanges
Changes
National
Nationalsociety
society
Youth
Youthmovement
movement
Communal
Communalsociety
society
Consumer
Consumerprotection
protectionmovement
movement
Entitlements
Entitlements
Ecology
Ecologymovement
movement
Quality
Qualityof
oflife
life
Civil
Civilrights
rightsmovement
movement
Women’s
Women’smovement
movement
Egalitarian
Egalitarianmovement
movement
6
Interaction Among Business,
Government, and the Public
Lobbying
Business
Business
• Interest
groups
• Not buying
products
• Protests
Regulations and Other
Forms of Persuasion
•
•
•
•
• Advertising
• Public Relations
Public
Public
7
Figure 11-2
Government
Government
Political Process
Voting
Interest Groups
Contributions
• Politicking
• Political
influence
Government’s Nonregulatory
Influence on Business
Two Major Nonregulatory Issues
Industrial Policy
Privatization
8
Industrial Policy
Industrial
Policy
9
Any selective government measure
that prevents or promotes changes
in the structure of an economy.
Industrial Policy
Accelerationists
Accelerationists
Adjusters
Adjusters
Schools
Schools of
of
Thought
Thought
Targeters
Targeters
Central
Central planners
planners
Bankers
Bankers
10
Industrial Policy
1.
2.
3.
4.
5.
11
Accelerationist : selected industries to be
international competitors in world market
Adjusters : adjustment for declining
industries
Targeters : selected industries to be engine
for growth
Central planners : comprehensive planning
for growth oriented macroeconomic policies
Bankers : financing high risk venture
Industrial Policy
Arguments For
Decline of national
competitiveness
Use by other world
governments
Ad hoc industrial policy
12
Arguments Against
Reduces market efficiency
Promotes political decisions
Foreign success variable
Various interventions create
an industrial policy by
default
Privatization
Privatization
The process of “turning over to”
the private sector some function
that was previously handled
by government.
Pro-producing a service:
effective
Privatization
Contra-providing a service:
Eficiency, flexible
13
Other Nonregulatory
Government Influences
Major employer
Standard setter
Largest purchaser
Use of Subsidies
Transfer payments
14
Major competitor
Loans and loan guarantees
Taxation
Monetary policy
Moral suasion
Government’s Regulatory
Influence on Business
Factors to Consider Regarding
Government Regulation
15
Fair treatment
Protection
Scope
Cost
Burden
A Federal Regulatory Agency…
1.
Has decision-making authority
2.
Establishes standards or guidelines conferring benefits
and imposing restrictions on business conduct
3.
Operates principally in the sphere of domestic business
activity
4.
Has its head and / or members appointed by the
president (generally subject to Senate confirmation)
5.
Has its legal procedures generally governed by
the Administrative Procedures Act
16
Reasons for Regulation
Controls
Controls natural
natural monopolies
monopolies
Controls
Controls negative
negative externalities
externalities
Achieves
Achieves social
social goals
goals
Controls
Controls excess
excess profits
profits
Controls
Controls excessive
excessive competition
competition
17
Comparison of Economic
and Social Regulation
Economic Regulations
Focus
Market conditions;
economic variables
Social Regulations
People in roles as
employees, consumers
and citizens
Affected
Selected (railroads,
Industries aeronautics,
communications)
Virtually all industries
Examples
ICC, CAB
FCC
EEOC, OSHA,
CPSC, EPA
Current
Trend
From regulation to
deregulation ( ?)
Stable
18
Figure 11-3
Benefits of Regulation
Fair treatment of employees
Safer working conditions
Safer products
Cleaner air and water
19
Costs of Regulation
Direct costs
Indirect costs
Induced costs
Effects
1.
2.
3.
20
Innovation may be affected.
New investments in plant and equipment may be
affected.
Small business may be adversely affected.
Deregulation
Purpose
Intended to increase competition with the expected
benefits of greater efficiency, lower prices, and
enhanced innovation.
Dilemma
Many competitors are unable to compete with the
dominant firms.
Must enhance competition without sacrificing applicable
social regulations (e.g., health and safety requirements).
21
Industries Affected by Deregulation
Trucking
Telecommunications
Financial Services
Electric Utilities
Airlines
22
Chapter 12 Outline
Corporate Political Participation
Lobbying
Coalition Building
Political Action Committees
Political Strategy
23
Corporate Political Participation
24
Lobbying
The process of influencing public
officials to promote or secure passage
or defeat of legislation
PACs
Instruments through which business
uses financial resources to
influence government
Coalition
Building
Business and other groups joining
forces to achieve common goals
Political
Strategy
To secure position of advantage
regarding a given regulation or
piece of legislation
The Purposes of Lobbying
Gain legislative support or institutional approval for
some objective
Obtain reinforcement of established policy or the
defeat of proposed policy shifts
Targets the election or defeat of national, state, and
local legislators
25
Organizational Levels of Lobbying
Representation
Umbrella
Umbrella
Organizations
Organizations
Trade
Trade
Associations
Associations
Company-Level
Company-Level
Lobbying
Lobbying
Figure 12-1
26
Broad
Broad
Examples
•• Chamber
Chamber of
of Commerce
Commerce
•• National
NationalAssociation
Association of
of
Manufacturers
Manufacturers
•• National
NationalAutomobile
Automobile Dealers
DealersAssn
Assn
Midrange
Midrange
•• National
NationalAssociation
Association of
of Realtors
Realtors
Narrow/
Narrow/
Specific
Specific
••
••
••
••
••
Local
Local government
government
Law
Law firms
firms
Public
Public affairs
affairs specialists
specialists
PACs
PACs
Grassroots
Grassroots lobbying
lobbying
Grassroots Lobbying
Grassroots
Lobbying
Cyberadvocacy
27
Mobilizing the “grassroots”—
individual citizens who might be
most directly affected by legislative
activity—to political action
Using the Internet to amass
grassroots support, and enable
grassroots supporters to
contact their legislators
Coalition Building
1.
Manage the sequence in which issues are
addressed
2.
Increase the visibility of certain issues
3.
Unbundle issues into smaller subissues
28
Political Action Committees
Political Action Committees (PACs) are groups
of like-minded businesses using financial
resources to influence government.
Golden
Golden Rule
Rule of
of Politics:
Politics:
“He
“He who
who has
has the
the gold,
gold, rules.”
rules.”
29
Political Action Committees
Political Action Committees (PACs) are groups
of like-minded businesses using financial
resources to influence government.
Golden
Golden Rule
Rule of
of Politics:
Politics:
“He
“He who
who has
has the
the gold,
gold, rules.”
rules.”
30
Political Action Committees
Arguments
ArgumentsFor
ForPACs
PACs
PACs are a reasonable
means that business may
use to organize their
contributions to candidates
for office.
31
Arguments
ArgumentsAgainst
Against PACs
PACs
PACs expect something in
return other than good
government and this can lead
to differing treatment for
those who give and those
who cannot,
such as the poor.
Political Action Committees
Conditions Needed for Effective PAC Contributions
1.
When the issue is less visible
2.
During the early stages of the legislative process
3.
When the issue is narrow, specialized, or
unopposed
4.
When PAC’s are allied
5.
When PAC’s adapt lobbying techniques to their
contribution strategies
32
Indonesian business-related regulation list
CASE STUDY
34
35
Trade off: Industrialisasi, peluang kerja,
profit perusahaan
Tujuan UU minerba: menciptakan lapangan pekerjaan dan hilirisasi sektor pertambangan.
12 Januari 2014 :Pemerintah mulai memberlakukan UU No.4 tahun 2009 tentang
Pertambangan Mineral dan Batubara pada lalu melalui Peraturan Pemerintah No.1 tahun
2014
Ancaman PHK massal terhadap 15.000 hingga 21.000 pekerja dari total 31.000 orang
pekerja di areal pertambangan PT Freeport Indonesia- demonstrasi pekerja
Ancaman gugatan jepang&UE kepada WTO
Permen ESDM No.1 tahun 2014, tentang Pelaksanaan Kegiatan Usaha Pertambangan
Mineral dan Batubara: enam mineral logam (tidak termasuk batubara) masih bisa
diekspor sesuai ketentuan kadar pengolahannya, dan tidak harus dimurnikan. Mineral
logam tersebut yakni tembaga, pasir besi, bijih besi, seng, timbal, serta mangaan
36