UGBS 101 Introduction to Business Administration Session 11

UGBS 101 Introduction to Business Administration Session 11 –Role of government in business Lecturer: Dr. Daniel Quaye, UGBS Contact Information: danquaye@ug. edu. gh College of Education School of Continuing and Distance Education 2014/2015 – 2016/2017

1. History and development of Ghana government’s involvement with business 1. Shift from Socialist to Free market Economy. 2. The dynamics of world affairs and of the economic growth of Ghana. 3. The emergence of multinational companies and large enterprises. 4. The political conviction that government should be a representative of the people. Dr. Daniel Quaye, UGBS Slide 2

2. • Why Government regulates This emanates from the conviction that there must be rules for business, otherwise, disorder and unfairness would prevail. Dr. Daniel Quaye, UGBS Slide 3

3. How Government regulates the Business Sector 1. The promotion of business competition by permitting entry into any of a wide range of business pursuits. e. g. Protection Against Unfair Competition Act 2000 (Act 589). 2. Regulating and Deregulating Industries. OECD 1995 defines regulation as legal instruments by which governing institutions at all levels of government impose obligations or constraints on private sector behaviour. Dr. Daniel Quaye, UGBS Slide 4

Cont. How government… 3. Protecting stakeholders (i) Bank of Ghana Act provides for its role as regulator of the banking industry. (ii) Public Utilities Regulation Commission 1999 LI 1651 Dr. Daniel Quaye, UGBS Slide 5

Some government regulating agencies Government Agency • Environmental Protection Agency • Federal Highway Authority • Food and Drug Board Dr. Daniel Quaye, UGBS Major areas of responsibility • Develops and sets standards to protect the environment. • Regulates vehicle safety requirements. • Enforces laws and regulations to prevent distribution of harmful foods, drugs, medical devices and cosmetics. Slide 6

Cont. How government… 4. The provision of adequate public facilities to business in order to insure healthy and expanding business activity. 5. Contributing to economic stability. Dr. Daniel Quaye, UGBS

Something to think about! Should government actively operate a business enterprise? Dr. Daniel Quaye, UGBS Slide 8

Reading list • Introduction of Business Administration Distance Education Manual- Dr Daniel Quaye. • Madura, Jeff (2007), Introduction to Business Administration, South-Western College Dr. Richard Boateng, UGBS Slide 9