Four Competing Bgs Models

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There are four competing Business, Government, and Society (BGS) models, the Market Capitalism model, the Dominance model, the Countervailing Forces model and the Stakeholder model. The purpose of these models are simplified descriptions of the Business, Government and Society relationship. According to the Market Capitalism Model business operates within a market environment and responds primarily to the powerful economic forces. There are many important assumptions regarding this model. Some of the key assumptions include slight government interference in the economy, consumers are able to make decisions because they are informed about the products they are looking to purchase and the price of the products and banks and laws exist for the sole purpose of easing commerce. The conclusions that can be drawn from the market capitalism model and how the business, government and society relationship are as follows; government regulation needs to be limited, corporate performance is measured in profits and the ethical duty of management is to make sure that the interests of the shareholders are met. In the market capitalism model, each individual has the power to own private property and freely risk these investments. The Dominance model can be described as the model where businesses and the government dominate (or control) the general populace. Within this model, the rich elite are the ones that control businesses at the expense of the average person. The Countervailing Forces model shows the BGS relationship as a complex exchange between many major elements of a society. These forces are stronger or weaker depending on many factors such as “the subject at issue, the power of competing interests, the intensity of feeling, and the influence of leaders.” (Steiner & Steiner, 2009, p. 14) This model differs from the market capitalism model because businesses can be
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