Download VTU (Visvesvaraya Technological University) MBA 2nd Semester (Second Semester) 17MBA24-Business Law BL Module 4 Important Lecture Notes (MBA Study Material Notes)
PUBLIC POLICY
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MODULE - 4
PUBLIC POLICY
? Public ? it comprises domain of human
activity which is regarded as requiring
governmental interventions or common
action.
? Policy ? a purposive course of action taken
or adopted by those in power in pursuit of
certain goals and objectives.
? Public policy is ?whatever governments
choose to do or not to do?.
FirstRanker.com - FirstRanker's Choice
MODULE - 4
PUBLIC POLICY
? Public ? it comprises domain of human
activity which is regarded as requiring
governmental interventions or common
action.
? Policy ? a purposive course of action taken
or adopted by those in power in pursuit of
certain goals and objectives.
? Public policy is ?whatever governments
choose to do or not to do?.
Public Policy
? Public Policy is an attempt by a
government to address a public issue by
instituting laws, regulations, decisions or
actions pertinent to the problem at hand.
? Issues ? crime, education, foreign policy,
health and social welfare can be
addressed.
? It is thus a plan of action undertaken by
govt to achieve some broad public
purpose.
FirstRanker.com - FirstRanker's Choice
MODULE - 4
PUBLIC POLICY
? Public ? it comprises domain of human
activity which is regarded as requiring
governmental interventions or common
action.
? Policy ? a purposive course of action taken
or adopted by those in power in pursuit of
certain goals and objectives.
? Public policy is ?whatever governments
choose to do or not to do?.
Public Policy
? Public Policy is an attempt by a
government to address a public issue by
instituting laws, regulations, decisions or
actions pertinent to the problem at hand.
? Issues ? crime, education, foreign policy,
health and social welfare can be
addressed.
? It is thus a plan of action undertaken by
govt to achieve some broad public
purpose.
? Public policy is basically a set of rules and
regulations set forth that the public is
expected to adhere to.
? Ex: public laws
FirstRanker.com - FirstRanker's Choice
MODULE - 4
PUBLIC POLICY
? Public ? it comprises domain of human
activity which is regarded as requiring
governmental interventions or common
action.
? Policy ? a purposive course of action taken
or adopted by those in power in pursuit of
certain goals and objectives.
? Public policy is ?whatever governments
choose to do or not to do?.
Public Policy
? Public Policy is an attempt by a
government to address a public issue by
instituting laws, regulations, decisions or
actions pertinent to the problem at hand.
? Issues ? crime, education, foreign policy,
health and social welfare can be
addressed.
? It is thus a plan of action undertaken by
govt to achieve some broad public
purpose.
? Public policy is basically a set of rules and
regulations set forth that the public is
expected to adhere to.
? Ex: public laws
Categories of Public Policies
? Substantive and procedural policies- with respect
to time of execution (former or latter)
? Distributive, Regulatory, Self-regulatory, and Re-
distributive policies ? with respect to allocation
and control.
vDistributive policies concern the allocation of
services and benefits of public resources to
various segments of the economy.
FirstRanker.com - FirstRanker's Choice
MODULE - 4
PUBLIC POLICY
? Public ? it comprises domain of human
activity which is regarded as requiring
governmental interventions or common
action.
? Policy ? a purposive course of action taken
or adopted by those in power in pursuit of
certain goals and objectives.
? Public policy is ?whatever governments
choose to do or not to do?.
Public Policy
? Public Policy is an attempt by a
government to address a public issue by
instituting laws, regulations, decisions or
actions pertinent to the problem at hand.
? Issues ? crime, education, foreign policy,
health and social welfare can be
addressed.
? It is thus a plan of action undertaken by
govt to achieve some broad public
purpose.
? Public policy is basically a set of rules and
regulations set forth that the public is
expected to adhere to.
? Ex: public laws
Categories of Public Policies
? Substantive and procedural policies- with respect
to time of execution (former or latter)
? Distributive, Regulatory, Self-regulatory, and Re-
distributive policies ? with respect to allocation
and control.
vDistributive policies concern the allocation of
services and benefits of public resources to
various segments of the economy.
vRegulatory policies imposes restrictions or
limitations on the ways and manners the
individuals and group of individuals and firms
could behave an economy.
vSelf-regulatory policies are the policies similar to
regulatory policies but each unions or bodies
supervised themselves.
vRe-distributive policies are the policies that
allocate resources among the already divided
sections of the society
FirstRanker.com - FirstRanker's Choice
MODULE - 4
PUBLIC POLICY
? Public ? it comprises domain of human
activity which is regarded as requiring
governmental interventions or common
action.
? Policy ? a purposive course of action taken
or adopted by those in power in pursuit of
certain goals and objectives.
? Public policy is ?whatever governments
choose to do or not to do?.
Public Policy
? Public Policy is an attempt by a
government to address a public issue by
instituting laws, regulations, decisions or
actions pertinent to the problem at hand.
? Issues ? crime, education, foreign policy,
health and social welfare can be
addressed.
? It is thus a plan of action undertaken by
govt to achieve some broad public
purpose.
? Public policy is basically a set of rules and
regulations set forth that the public is
expected to adhere to.
? Ex: public laws
Categories of Public Policies
? Substantive and procedural policies- with respect
to time of execution (former or latter)
? Distributive, Regulatory, Self-regulatory, and Re-
distributive policies ? with respect to allocation
and control.
vDistributive policies concern the allocation of
services and benefits of public resources to
various segments of the economy.
vRegulatory policies imposes restrictions or
limitations on the ways and manners the
individuals and group of individuals and firms
could behave an economy.
vSelf-regulatory policies are the policies similar to
regulatory policies but each unions or bodies
supervised themselves.
vRe-distributive policies are the policies that
allocate resources among the already divided
sections of the society
? Material and symbolic policies- with
respect to the tangibility of power and
assets involved.
It includes policy on patriotism, peace, social
justice etc.
? Policies involving public goods and private
goods- public goods are collectively
owned, divisible and non-excludable.
FirstRanker.com - FirstRanker's Choice
MODULE - 4
PUBLIC POLICY
? Public ? it comprises domain of human
activity which is regarded as requiring
governmental interventions or common
action.
? Policy ? a purposive course of action taken
or adopted by those in power in pursuit of
certain goals and objectives.
? Public policy is ?whatever governments
choose to do or not to do?.
Public Policy
? Public Policy is an attempt by a
government to address a public issue by
instituting laws, regulations, decisions or
actions pertinent to the problem at hand.
? Issues ? crime, education, foreign policy,
health and social welfare can be
addressed.
? It is thus a plan of action undertaken by
govt to achieve some broad public
purpose.
? Public policy is basically a set of rules and
regulations set forth that the public is
expected to adhere to.
? Ex: public laws
Categories of Public Policies
? Substantive and procedural policies- with respect
to time of execution (former or latter)
? Distributive, Regulatory, Self-regulatory, and Re-
distributive policies ? with respect to allocation
and control.
vDistributive policies concern the allocation of
services and benefits of public resources to
various segments of the economy.
vRegulatory policies imposes restrictions or
limitations on the ways and manners the
individuals and group of individuals and firms
could behave an economy.
vSelf-regulatory policies are the policies similar to
regulatory policies but each unions or bodies
supervised themselves.
vRe-distributive policies are the policies that
allocate resources among the already divided
sections of the society
? Material and symbolic policies- with
respect to the tangibility of power and
assets involved.
It includes policy on patriotism, peace, social
justice etc.
? Policies involving public goods and private
goods- public goods are collectively
owned, divisible and non-excludable.
? Liberal and conservative policies ? with
respect to freedom and ability to influence
or change policies.
vLiberal policies ? easily amendable.
vConservative policies ?rigid or difficult to
change.
FirstRanker.com - FirstRanker's Choice
MODULE - 4
PUBLIC POLICY
? Public ? it comprises domain of human
activity which is regarded as requiring
governmental interventions or common
action.
? Policy ? a purposive course of action taken
or adopted by those in power in pursuit of
certain goals and objectives.
? Public policy is ?whatever governments
choose to do or not to do?.
Public Policy
? Public Policy is an attempt by a
government to address a public issue by
instituting laws, regulations, decisions or
actions pertinent to the problem at hand.
? Issues ? crime, education, foreign policy,
health and social welfare can be
addressed.
? It is thus a plan of action undertaken by
govt to achieve some broad public
purpose.
? Public policy is basically a set of rules and
regulations set forth that the public is
expected to adhere to.
? Ex: public laws
Categories of Public Policies
? Substantive and procedural policies- with respect
to time of execution (former or latter)
? Distributive, Regulatory, Self-regulatory, and Re-
distributive policies ? with respect to allocation
and control.
vDistributive policies concern the allocation of
services and benefits of public resources to
various segments of the economy.
vRegulatory policies imposes restrictions or
limitations on the ways and manners the
individuals and group of individuals and firms
could behave an economy.
vSelf-regulatory policies are the policies similar to
regulatory policies but each unions or bodies
supervised themselves.
vRe-distributive policies are the policies that
allocate resources among the already divided
sections of the society
? Material and symbolic policies- with
respect to the tangibility of power and
assets involved.
It includes policy on patriotism, peace, social
justice etc.
? Policies involving public goods and private
goods- public goods are collectively
owned, divisible and non-excludable.
? Liberal and conservative policies ? with
respect to freedom and ability to influence
or change policies.
vLiberal policies ? easily amendable.
vConservative policies ?rigid or difficult to
change.
Relevance of Public Policy
? Scientific understanding
? Improves our knowledge of society
? Linkages between social and economic
conditions
? Response of political system to those
conditions
? Professional advice
FirstRanker.com - FirstRanker's Choice
MODULE - 4
PUBLIC POLICY
? Public ? it comprises domain of human
activity which is regarded as requiring
governmental interventions or common
action.
? Policy ? a purposive course of action taken
or adopted by those in power in pursuit of
certain goals and objectives.
? Public policy is ?whatever governments
choose to do or not to do?.
Public Policy
? Public Policy is an attempt by a
government to address a public issue by
instituting laws, regulations, decisions or
actions pertinent to the problem at hand.
? Issues ? crime, education, foreign policy,
health and social welfare can be
addressed.
? It is thus a plan of action undertaken by
govt to achieve some broad public
purpose.
? Public policy is basically a set of rules and
regulations set forth that the public is
expected to adhere to.
? Ex: public laws
Categories of Public Policies
? Substantive and procedural policies- with respect
to time of execution (former or latter)
? Distributive, Regulatory, Self-regulatory, and Re-
distributive policies ? with respect to allocation
and control.
vDistributive policies concern the allocation of
services and benefits of public resources to
various segments of the economy.
vRegulatory policies imposes restrictions or
limitations on the ways and manners the
individuals and group of individuals and firms
could behave an economy.
vSelf-regulatory policies are the policies similar to
regulatory policies but each unions or bodies
supervised themselves.
vRe-distributive policies are the policies that
allocate resources among the already divided
sections of the society
? Material and symbolic policies- with
respect to the tangibility of power and
assets involved.
It includes policy on patriotism, peace, social
justice etc.
? Policies involving public goods and private
goods- public goods are collectively
owned, divisible and non-excludable.
? Liberal and conservative policies ? with
respect to freedom and ability to influence
or change policies.
vLiberal policies ? easily amendable.
vConservative policies ?rigid or difficult to
change.
Relevance of Public Policy
? Scientific understanding
? Improves our knowledge of society
? Linkages between social and economic
conditions
? Response of political system to those
conditions
? Professional advice
Application of knowledge to the solutions of
practical problems
? Policy recommendations ? to inform
political discussion, advance the level of
political awareness and improve the
quality of public policy.
FirstRanker.com - FirstRanker's Choice
MODULE - 4
PUBLIC POLICY
? Public ? it comprises domain of human
activity which is regarded as requiring
governmental interventions or common
action.
? Policy ? a purposive course of action taken
or adopted by those in power in pursuit of
certain goals and objectives.
? Public policy is ?whatever governments
choose to do or not to do?.
Public Policy
? Public Policy is an attempt by a
government to address a public issue by
instituting laws, regulations, decisions or
actions pertinent to the problem at hand.
? Issues ? crime, education, foreign policy,
health and social welfare can be
addressed.
? It is thus a plan of action undertaken by
govt to achieve some broad public
purpose.
? Public policy is basically a set of rules and
regulations set forth that the public is
expected to adhere to.
? Ex: public laws
Categories of Public Policies
? Substantive and procedural policies- with respect
to time of execution (former or latter)
? Distributive, Regulatory, Self-regulatory, and Re-
distributive policies ? with respect to allocation
and control.
vDistributive policies concern the allocation of
services and benefits of public resources to
various segments of the economy.
vRegulatory policies imposes restrictions or
limitations on the ways and manners the
individuals and group of individuals and firms
could behave an economy.
vSelf-regulatory policies are the policies similar to
regulatory policies but each unions or bodies
supervised themselves.
vRe-distributive policies are the policies that
allocate resources among the already divided
sections of the society
? Material and symbolic policies- with
respect to the tangibility of power and
assets involved.
It includes policy on patriotism, peace, social
justice etc.
? Policies involving public goods and private
goods- public goods are collectively
owned, divisible and non-excludable.
? Liberal and conservative policies ? with
respect to freedom and ability to influence
or change policies.
vLiberal policies ? easily amendable.
vConservative policies ?rigid or difficult to
change.
Relevance of Public Policy
? Scientific understanding
? Improves our knowledge of society
? Linkages between social and economic
conditions
? Response of political system to those
conditions
? Professional advice
Application of knowledge to the solutions of
practical problems
? Policy recommendations ? to inform
political discussion, advance the level of
political awareness and improve the
quality of public policy.
Government and public policy
? Close relationship between public policy
and government or public authorities.
? No policy becomes public policy unless it
is adopted, implemented and enforced by
some governmental institution.
FirstRanker.com - FirstRanker's Choice
MODULE - 4
PUBLIC POLICY
? Public ? it comprises domain of human
activity which is regarded as requiring
governmental interventions or common
action.
? Policy ? a purposive course of action taken
or adopted by those in power in pursuit of
certain goals and objectives.
? Public policy is ?whatever governments
choose to do or not to do?.
Public Policy
? Public Policy is an attempt by a
government to address a public issue by
instituting laws, regulations, decisions or
actions pertinent to the problem at hand.
? Issues ? crime, education, foreign policy,
health and social welfare can be
addressed.
? It is thus a plan of action undertaken by
govt to achieve some broad public
purpose.
? Public policy is basically a set of rules and
regulations set forth that the public is
expected to adhere to.
? Ex: public laws
Categories of Public Policies
? Substantive and procedural policies- with respect
to time of execution (former or latter)
? Distributive, Regulatory, Self-regulatory, and Re-
distributive policies ? with respect to allocation
and control.
vDistributive policies concern the allocation of
services and benefits of public resources to
various segments of the economy.
vRegulatory policies imposes restrictions or
limitations on the ways and manners the
individuals and group of individuals and firms
could behave an economy.
vSelf-regulatory policies are the policies similar to
regulatory policies but each unions or bodies
supervised themselves.
vRe-distributive policies are the policies that
allocate resources among the already divided
sections of the society
? Material and symbolic policies- with
respect to the tangibility of power and
assets involved.
It includes policy on patriotism, peace, social
justice etc.
? Policies involving public goods and private
goods- public goods are collectively
owned, divisible and non-excludable.
? Liberal and conservative policies ? with
respect to freedom and ability to influence
or change policies.
vLiberal policies ? easily amendable.
vConservative policies ?rigid or difficult to
change.
Relevance of Public Policy
? Scientific understanding
? Improves our knowledge of society
? Linkages between social and economic
conditions
? Response of political system to those
conditions
? Professional advice
Application of knowledge to the solutions of
practical problems
? Policy recommendations ? to inform
political discussion, advance the level of
political awareness and improve the
quality of public policy.
Government and public policy
? Close relationship between public policy
and government or public authorities.
? No policy becomes public policy unless it
is adopted, implemented and enforced by
some governmental institution.
? It lends legitimacy to policies
? Government policies involve universality
as these extend to all sections in society
? Governments alone can exercise coercion
in society-only govt can legitimately
imprison violators of its policies.
FirstRanker.com - FirstRanker's Choice
MODULE - 4
PUBLIC POLICY
? Public ? it comprises domain of human
activity which is regarded as requiring
governmental interventions or common
action.
? Policy ? a purposive course of action taken
or adopted by those in power in pursuit of
certain goals and objectives.
? Public policy is ?whatever governments
choose to do or not to do?.
Public Policy
? Public Policy is an attempt by a
government to address a public issue by
instituting laws, regulations, decisions or
actions pertinent to the problem at hand.
? Issues ? crime, education, foreign policy,
health and social welfare can be
addressed.
? It is thus a plan of action undertaken by
govt to achieve some broad public
purpose.
? Public policy is basically a set of rules and
regulations set forth that the public is
expected to adhere to.
? Ex: public laws
Categories of Public Policies
? Substantive and procedural policies- with respect
to time of execution (former or latter)
? Distributive, Regulatory, Self-regulatory, and Re-
distributive policies ? with respect to allocation
and control.
vDistributive policies concern the allocation of
services and benefits of public resources to
various segments of the economy.
vRegulatory policies imposes restrictions or
limitations on the ways and manners the
individuals and group of individuals and firms
could behave an economy.
vSelf-regulatory policies are the policies similar to
regulatory policies but each unions or bodies
supervised themselves.
vRe-distributive policies are the policies that
allocate resources among the already divided
sections of the society
? Material and symbolic policies- with
respect to the tangibility of power and
assets involved.
It includes policy on patriotism, peace, social
justice etc.
? Policies involving public goods and private
goods- public goods are collectively
owned, divisible and non-excludable.
? Liberal and conservative policies ? with
respect to freedom and ability to influence
or change policies.
vLiberal policies ? easily amendable.
vConservative policies ?rigid or difficult to
change.
Relevance of Public Policy
? Scientific understanding
? Improves our knowledge of society
? Linkages between social and economic
conditions
? Response of political system to those
conditions
? Professional advice
Application of knowledge to the solutions of
practical problems
? Policy recommendations ? to inform
political discussion, advance the level of
political awareness and improve the
quality of public policy.
Government and public policy
? Close relationship between public policy
and government or public authorities.
? No policy becomes public policy unless it
is adopted, implemented and enforced by
some governmental institution.
? It lends legitimacy to policies
? Government policies involve universality
as these extend to all sections in society
? Governments alone can exercise coercion
in society-only govt can legitimately
imprison violators of its policies.
Areas of Public Policy
? Economic management
? Labour management relations
? The welfare state
? Shaping of public policies affecting
corporate sector
FirstRanker.com - FirstRanker's Choice
MODULE - 4
PUBLIC POLICY
? Public ? it comprises domain of human
activity which is regarded as requiring
governmental interventions or common
action.
? Policy ? a purposive course of action taken
or adopted by those in power in pursuit of
certain goals and objectives.
? Public policy is ?whatever governments
choose to do or not to do?.
Public Policy
? Public Policy is an attempt by a
government to address a public issue by
instituting laws, regulations, decisions or
actions pertinent to the problem at hand.
? Issues ? crime, education, foreign policy,
health and social welfare can be
addressed.
? It is thus a plan of action undertaken by
govt to achieve some broad public
purpose.
? Public policy is basically a set of rules and
regulations set forth that the public is
expected to adhere to.
? Ex: public laws
Categories of Public Policies
? Substantive and procedural policies- with respect
to time of execution (former or latter)
? Distributive, Regulatory, Self-regulatory, and Re-
distributive policies ? with respect to allocation
and control.
vDistributive policies concern the allocation of
services and benefits of public resources to
various segments of the economy.
vRegulatory policies imposes restrictions or
limitations on the ways and manners the
individuals and group of individuals and firms
could behave an economy.
vSelf-regulatory policies are the policies similar to
regulatory policies but each unions or bodies
supervised themselves.
vRe-distributive policies are the policies that
allocate resources among the already divided
sections of the society
? Material and symbolic policies- with
respect to the tangibility of power and
assets involved.
It includes policy on patriotism, peace, social
justice etc.
? Policies involving public goods and private
goods- public goods are collectively
owned, divisible and non-excludable.
? Liberal and conservative policies ? with
respect to freedom and ability to influence
or change policies.
vLiberal policies ? easily amendable.
vConservative policies ?rigid or difficult to
change.
Relevance of Public Policy
? Scientific understanding
? Improves our knowledge of society
? Linkages between social and economic
conditions
? Response of political system to those
conditions
? Professional advice
Application of knowledge to the solutions of
practical problems
? Policy recommendations ? to inform
political discussion, advance the level of
political awareness and improve the
quality of public policy.
Government and public policy
? Close relationship between public policy
and government or public authorities.
? No policy becomes public policy unless it
is adopted, implemented and enforced by
some governmental institution.
? It lends legitimacy to policies
? Government policies involve universality
as these extend to all sections in society
? Governments alone can exercise coercion
in society-only govt can legitimately
imprison violators of its policies.
Areas of Public Policy
? Economic management
? Labour management relations
? The welfare state
? Shaping of public policies affecting
corporate sector
Economic management
? It is assumed that government intervention
is essential and even inevitable in
economic activities.
? Great depression, recession, depression?
FirstRanker.com - FirstRanker's Choice
MODULE - 4
PUBLIC POLICY
? Public ? it comprises domain of human
activity which is regarded as requiring
governmental interventions or common
action.
? Policy ? a purposive course of action taken
or adopted by those in power in pursuit of
certain goals and objectives.
? Public policy is ?whatever governments
choose to do or not to do?.
Public Policy
? Public Policy is an attempt by a
government to address a public issue by
instituting laws, regulations, decisions or
actions pertinent to the problem at hand.
? Issues ? crime, education, foreign policy,
health and social welfare can be
addressed.
? It is thus a plan of action undertaken by
govt to achieve some broad public
purpose.
? Public policy is basically a set of rules and
regulations set forth that the public is
expected to adhere to.
? Ex: public laws
Categories of Public Policies
? Substantive and procedural policies- with respect
to time of execution (former or latter)
? Distributive, Regulatory, Self-regulatory, and Re-
distributive policies ? with respect to allocation
and control.
vDistributive policies concern the allocation of
services and benefits of public resources to
various segments of the economy.
vRegulatory policies imposes restrictions or
limitations on the ways and manners the
individuals and group of individuals and firms
could behave an economy.
vSelf-regulatory policies are the policies similar to
regulatory policies but each unions or bodies
supervised themselves.
vRe-distributive policies are the policies that
allocate resources among the already divided
sections of the society
? Material and symbolic policies- with
respect to the tangibility of power and
assets involved.
It includes policy on patriotism, peace, social
justice etc.
? Policies involving public goods and private
goods- public goods are collectively
owned, divisible and non-excludable.
? Liberal and conservative policies ? with
respect to freedom and ability to influence
or change policies.
vLiberal policies ? easily amendable.
vConservative policies ?rigid or difficult to
change.
Relevance of Public Policy
? Scientific understanding
? Improves our knowledge of society
? Linkages between social and economic
conditions
? Response of political system to those
conditions
? Professional advice
Application of knowledge to the solutions of
practical problems
? Policy recommendations ? to inform
political discussion, advance the level of
political awareness and improve the
quality of public policy.
Government and public policy
? Close relationship between public policy
and government or public authorities.
? No policy becomes public policy unless it
is adopted, implemented and enforced by
some governmental institution.
? It lends legitimacy to policies
? Government policies involve universality
as these extend to all sections in society
? Governments alone can exercise coercion
in society-only govt can legitimately
imprison violators of its policies.
Areas of Public Policy
? Economic management
? Labour management relations
? The welfare state
? Shaping of public policies affecting
corporate sector
Economic management
? It is assumed that government intervention
is essential and even inevitable in
economic activities.
? Great depression, recession, depression?
Labour Management Relations
? The concept of industrial democracy made
it imperative that a national labour policy
should be adopted by the state to protect
the rights of workers of unions.
FirstRanker.com - FirstRanker's Choice
MODULE - 4
PUBLIC POLICY
? Public ? it comprises domain of human
activity which is regarded as requiring
governmental interventions or common
action.
? Policy ? a purposive course of action taken
or adopted by those in power in pursuit of
certain goals and objectives.
? Public policy is ?whatever governments
choose to do or not to do?.
Public Policy
? Public Policy is an attempt by a
government to address a public issue by
instituting laws, regulations, decisions or
actions pertinent to the problem at hand.
? Issues ? crime, education, foreign policy,
health and social welfare can be
addressed.
? It is thus a plan of action undertaken by
govt to achieve some broad public
purpose.
? Public policy is basically a set of rules and
regulations set forth that the public is
expected to adhere to.
? Ex: public laws
Categories of Public Policies
? Substantive and procedural policies- with respect
to time of execution (former or latter)
? Distributive, Regulatory, Self-regulatory, and Re-
distributive policies ? with respect to allocation
and control.
vDistributive policies concern the allocation of
services and benefits of public resources to
various segments of the economy.
vRegulatory policies imposes restrictions or
limitations on the ways and manners the
individuals and group of individuals and firms
could behave an economy.
vSelf-regulatory policies are the policies similar to
regulatory policies but each unions or bodies
supervised themselves.
vRe-distributive policies are the policies that
allocate resources among the already divided
sections of the society
? Material and symbolic policies- with
respect to the tangibility of power and
assets involved.
It includes policy on patriotism, peace, social
justice etc.
? Policies involving public goods and private
goods- public goods are collectively
owned, divisible and non-excludable.
? Liberal and conservative policies ? with
respect to freedom and ability to influence
or change policies.
vLiberal policies ? easily amendable.
vConservative policies ?rigid or difficult to
change.
Relevance of Public Policy
? Scientific understanding
? Improves our knowledge of society
? Linkages between social and economic
conditions
? Response of political system to those
conditions
? Professional advice
Application of knowledge to the solutions of
practical problems
? Policy recommendations ? to inform
political discussion, advance the level of
political awareness and improve the
quality of public policy.
Government and public policy
? Close relationship between public policy
and government or public authorities.
? No policy becomes public policy unless it
is adopted, implemented and enforced by
some governmental institution.
? It lends legitimacy to policies
? Government policies involve universality
as these extend to all sections in society
? Governments alone can exercise coercion
in society-only govt can legitimately
imprison violators of its policies.
Areas of Public Policy
? Economic management
? Labour management relations
? The welfare state
? Shaping of public policies affecting
corporate sector
Economic management
? It is assumed that government intervention
is essential and even inevitable in
economic activities.
? Great depression, recession, depression?
Labour Management Relations
? The concept of industrial democracy made
it imperative that a national labour policy
should be adopted by the state to protect
the rights of workers of unions.
The Welfare State
? At present it is believed that every man
has the right to get a good job, decent
food, clothing and shelter.
? It is the responsibility of the government to
guarantee these rights.
FirstRanker.com - FirstRanker's Choice
MODULE - 4
PUBLIC POLICY
? Public ? it comprises domain of human
activity which is regarded as requiring
governmental interventions or common
action.
? Policy ? a purposive course of action taken
or adopted by those in power in pursuit of
certain goals and objectives.
? Public policy is ?whatever governments
choose to do or not to do?.
Public Policy
? Public Policy is an attempt by a
government to address a public issue by
instituting laws, regulations, decisions or
actions pertinent to the problem at hand.
? Issues ? crime, education, foreign policy,
health and social welfare can be
addressed.
? It is thus a plan of action undertaken by
govt to achieve some broad public
purpose.
? Public policy is basically a set of rules and
regulations set forth that the public is
expected to adhere to.
? Ex: public laws
Categories of Public Policies
? Substantive and procedural policies- with respect
to time of execution (former or latter)
? Distributive, Regulatory, Self-regulatory, and Re-
distributive policies ? with respect to allocation
and control.
vDistributive policies concern the allocation of
services and benefits of public resources to
various segments of the economy.
vRegulatory policies imposes restrictions or
limitations on the ways and manners the
individuals and group of individuals and firms
could behave an economy.
vSelf-regulatory policies are the policies similar to
regulatory policies but each unions or bodies
supervised themselves.
vRe-distributive policies are the policies that
allocate resources among the already divided
sections of the society
? Material and symbolic policies- with
respect to the tangibility of power and
assets involved.
It includes policy on patriotism, peace, social
justice etc.
? Policies involving public goods and private
goods- public goods are collectively
owned, divisible and non-excludable.
? Liberal and conservative policies ? with
respect to freedom and ability to influence
or change policies.
vLiberal policies ? easily amendable.
vConservative policies ?rigid or difficult to
change.
Relevance of Public Policy
? Scientific understanding
? Improves our knowledge of society
? Linkages between social and economic
conditions
? Response of political system to those
conditions
? Professional advice
Application of knowledge to the solutions of
practical problems
? Policy recommendations ? to inform
political discussion, advance the level of
political awareness and improve the
quality of public policy.
Government and public policy
? Close relationship between public policy
and government or public authorities.
? No policy becomes public policy unless it
is adopted, implemented and enforced by
some governmental institution.
? It lends legitimacy to policies
? Government policies involve universality
as these extend to all sections in society
? Governments alone can exercise coercion
in society-only govt can legitimately
imprison violators of its policies.
Areas of Public Policy
? Economic management
? Labour management relations
? The welfare state
? Shaping of public policies affecting
corporate sector
Economic management
? It is assumed that government intervention
is essential and even inevitable in
economic activities.
? Great depression, recession, depression?
Labour Management Relations
? The concept of industrial democracy made
it imperative that a national labour policy
should be adopted by the state to protect
the rights of workers of unions.
The Welfare State
? At present it is believed that every man
has the right to get a good job, decent
food, clothing and shelter.
? It is the responsibility of the government to
guarantee these rights.
Shaping of public policies
affecting corporate sector
? Stakeholder expectations if unmet, trigger
action to transform social concern into
pressure on business and govt.
FirstRanker.com - FirstRanker's Choice
MODULE - 4
PUBLIC POLICY
? Public ? it comprises domain of human
activity which is regarded as requiring
governmental interventions or common
action.
? Policy ? a purposive course of action taken
or adopted by those in power in pursuit of
certain goals and objectives.
? Public policy is ?whatever governments
choose to do or not to do?.
Public Policy
? Public Policy is an attempt by a
government to address a public issue by
instituting laws, regulations, decisions or
actions pertinent to the problem at hand.
? Issues ? crime, education, foreign policy,
health and social welfare can be
addressed.
? It is thus a plan of action undertaken by
govt to achieve some broad public
purpose.
? Public policy is basically a set of rules and
regulations set forth that the public is
expected to adhere to.
? Ex: public laws
Categories of Public Policies
? Substantive and procedural policies- with respect
to time of execution (former or latter)
? Distributive, Regulatory, Self-regulatory, and Re-
distributive policies ? with respect to allocation
and control.
vDistributive policies concern the allocation of
services and benefits of public resources to
various segments of the economy.
vRegulatory policies imposes restrictions or
limitations on the ways and manners the
individuals and group of individuals and firms
could behave an economy.
vSelf-regulatory policies are the policies similar to
regulatory policies but each unions or bodies
supervised themselves.
vRe-distributive policies are the policies that
allocate resources among the already divided
sections of the society
? Material and symbolic policies- with
respect to the tangibility of power and
assets involved.
It includes policy on patriotism, peace, social
justice etc.
? Policies involving public goods and private
goods- public goods are collectively
owned, divisible and non-excludable.
? Liberal and conservative policies ? with
respect to freedom and ability to influence
or change policies.
vLiberal policies ? easily amendable.
vConservative policies ?rigid or difficult to
change.
Relevance of Public Policy
? Scientific understanding
? Improves our knowledge of society
? Linkages between social and economic
conditions
? Response of political system to those
conditions
? Professional advice
Application of knowledge to the solutions of
practical problems
? Policy recommendations ? to inform
political discussion, advance the level of
political awareness and improve the
quality of public policy.
Government and public policy
? Close relationship between public policy
and government or public authorities.
? No policy becomes public policy unless it
is adopted, implemented and enforced by
some governmental institution.
? It lends legitimacy to policies
? Government policies involve universality
as these extend to all sections in society
? Governments alone can exercise coercion
in society-only govt can legitimately
imprison violators of its policies.
Areas of Public Policy
? Economic management
? Labour management relations
? The welfare state
? Shaping of public policies affecting
corporate sector
Economic management
? It is assumed that government intervention
is essential and even inevitable in
economic activities.
? Great depression, recession, depression?
Labour Management Relations
? The concept of industrial democracy made
it imperative that a national labour policy
should be adopted by the state to protect
the rights of workers of unions.
The Welfare State
? At present it is believed that every man
has the right to get a good job, decent
food, clothing and shelter.
? It is the responsibility of the government to
guarantee these rights.
Shaping of public policies
affecting corporate sector
? Stakeholder expectations if unmet, trigger
action to transform social concern into
pressure on business and govt.
Need for Public Policy in
Business
FirstRanker.com - FirstRanker's Choice
MODULE - 4
PUBLIC POLICY
? Public ? it comprises domain of human
activity which is regarded as requiring
governmental interventions or common
action.
? Policy ? a purposive course of action taken
or adopted by those in power in pursuit of
certain goals and objectives.
? Public policy is ?whatever governments
choose to do or not to do?.
Public Policy
? Public Policy is an attempt by a
government to address a public issue by
instituting laws, regulations, decisions or
actions pertinent to the problem at hand.
? Issues ? crime, education, foreign policy,
health and social welfare can be
addressed.
? It is thus a plan of action undertaken by
govt to achieve some broad public
purpose.
? Public policy is basically a set of rules and
regulations set forth that the public is
expected to adhere to.
? Ex: public laws
Categories of Public Policies
? Substantive and procedural policies- with respect
to time of execution (former or latter)
? Distributive, Regulatory, Self-regulatory, and Re-
distributive policies ? with respect to allocation
and control.
vDistributive policies concern the allocation of
services and benefits of public resources to
various segments of the economy.
vRegulatory policies imposes restrictions or
limitations on the ways and manners the
individuals and group of individuals and firms
could behave an economy.
vSelf-regulatory policies are the policies similar to
regulatory policies but each unions or bodies
supervised themselves.
vRe-distributive policies are the policies that
allocate resources among the already divided
sections of the society
? Material and symbolic policies- with
respect to the tangibility of power and
assets involved.
It includes policy on patriotism, peace, social
justice etc.
? Policies involving public goods and private
goods- public goods are collectively
owned, divisible and non-excludable.
? Liberal and conservative policies ? with
respect to freedom and ability to influence
or change policies.
vLiberal policies ? easily amendable.
vConservative policies ?rigid or difficult to
change.
Relevance of Public Policy
? Scientific understanding
? Improves our knowledge of society
? Linkages between social and economic
conditions
? Response of political system to those
conditions
? Professional advice
Application of knowledge to the solutions of
practical problems
? Policy recommendations ? to inform
political discussion, advance the level of
political awareness and improve the
quality of public policy.
Government and public policy
? Close relationship between public policy
and government or public authorities.
? No policy becomes public policy unless it
is adopted, implemented and enforced by
some governmental institution.
? It lends legitimacy to policies
? Government policies involve universality
as these extend to all sections in society
? Governments alone can exercise coercion
in society-only govt can legitimately
imprison violators of its policies.
Areas of Public Policy
? Economic management
? Labour management relations
? The welfare state
? Shaping of public policies affecting
corporate sector
Economic management
? It is assumed that government intervention
is essential and even inevitable in
economic activities.
? Great depression, recession, depression?
Labour Management Relations
? The concept of industrial democracy made
it imperative that a national labour policy
should be adopted by the state to protect
the rights of workers of unions.
The Welfare State
? At present it is believed that every man
has the right to get a good job, decent
food, clothing and shelter.
? It is the responsibility of the government to
guarantee these rights.
Shaping of public policies
affecting corporate sector
? Stakeholder expectations if unmet, trigger
action to transform social concern into
pressure on business and govt.
Need for Public Policy in
Business
? Social forces include the size and composition of
population, life style and pattern of living which have a
definite effect on both the demand and supply of goods
and services that corporate deals in.
? Economic forces are those that shape corporate
behaviour as well as the reaction of govt to solve the
problems arising therefrom.
? Political forces have an impact on govt making and how
govt?s are prompted to shape their policies affecting
corporate.
? Technological forces allow corporations to update their
products, processes and help them meet competition.
FirstRanker.com - FirstRanker's Choice
MODULE - 4
PUBLIC POLICY
? Public ? it comprises domain of human
activity which is regarded as requiring
governmental interventions or common
action.
? Policy ? a purposive course of action taken
or adopted by those in power in pursuit of
certain goals and objectives.
? Public policy is ?whatever governments
choose to do or not to do?.
Public Policy
? Public Policy is an attempt by a
government to address a public issue by
instituting laws, regulations, decisions or
actions pertinent to the problem at hand.
? Issues ? crime, education, foreign policy,
health and social welfare can be
addressed.
? It is thus a plan of action undertaken by
govt to achieve some broad public
purpose.
? Public policy is basically a set of rules and
regulations set forth that the public is
expected to adhere to.
? Ex: public laws
Categories of Public Policies
? Substantive and procedural policies- with respect
to time of execution (former or latter)
? Distributive, Regulatory, Self-regulatory, and Re-
distributive policies ? with respect to allocation
and control.
vDistributive policies concern the allocation of
services and benefits of public resources to
various segments of the economy.
vRegulatory policies imposes restrictions or
limitations on the ways and manners the
individuals and group of individuals and firms
could behave an economy.
vSelf-regulatory policies are the policies similar to
regulatory policies but each unions or bodies
supervised themselves.
vRe-distributive policies are the policies that
allocate resources among the already divided
sections of the society
? Material and symbolic policies- with
respect to the tangibility of power and
assets involved.
It includes policy on patriotism, peace, social
justice etc.
? Policies involving public goods and private
goods- public goods are collectively
owned, divisible and non-excludable.
? Liberal and conservative policies ? with
respect to freedom and ability to influence
or change policies.
vLiberal policies ? easily amendable.
vConservative policies ?rigid or difficult to
change.
Relevance of Public Policy
? Scientific understanding
? Improves our knowledge of society
? Linkages between social and economic
conditions
? Response of political system to those
conditions
? Professional advice
Application of knowledge to the solutions of
practical problems
? Policy recommendations ? to inform
political discussion, advance the level of
political awareness and improve the
quality of public policy.
Government and public policy
? Close relationship between public policy
and government or public authorities.
? No policy becomes public policy unless it
is adopted, implemented and enforced by
some governmental institution.
? It lends legitimacy to policies
? Government policies involve universality
as these extend to all sections in society
? Governments alone can exercise coercion
in society-only govt can legitimately
imprison violators of its policies.
Areas of Public Policy
? Economic management
? Labour management relations
? The welfare state
? Shaping of public policies affecting
corporate sector
Economic management
? It is assumed that government intervention
is essential and even inevitable in
economic activities.
? Great depression, recession, depression?
Labour Management Relations
? The concept of industrial democracy made
it imperative that a national labour policy
should be adopted by the state to protect
the rights of workers of unions.
The Welfare State
? At present it is believed that every man
has the right to get a good job, decent
food, clothing and shelter.
? It is the responsibility of the government to
guarantee these rights.
Shaping of public policies
affecting corporate sector
? Stakeholder expectations if unmet, trigger
action to transform social concern into
pressure on business and govt.
Need for Public Policy in
Business
? Social forces include the size and composition of
population, life style and pattern of living which have a
definite effect on both the demand and supply of goods
and services that corporate deals in.
? Economic forces are those that shape corporate
behaviour as well as the reaction of govt to solve the
problems arising therefrom.
? Political forces have an impact on govt making and how
govt?s are prompted to shape their policies affecting
corporate.
? Technological forces allow corporations to update their
products, processes and help them meet competition.
Cont..
? To create a competitive environment
? To have control on foreign investment
Government may adopt protectionist policies for
the following reasons:
? To protect the growing local industries
? To regulate demand and supply
? To regulate the prices in the unhealthy
competitive environment
? To protect the environment
FirstRanker.com - FirstRanker's Choice
MODULE - 4
PUBLIC POLICY
? Public ? it comprises domain of human
activity which is regarded as requiring
governmental interventions or common
action.
? Policy ? a purposive course of action taken
or adopted by those in power in pursuit of
certain goals and objectives.
? Public policy is ?whatever governments
choose to do or not to do?.
Public Policy
? Public Policy is an attempt by a
government to address a public issue by
instituting laws, regulations, decisions or
actions pertinent to the problem at hand.
? Issues ? crime, education, foreign policy,
health and social welfare can be
addressed.
? It is thus a plan of action undertaken by
govt to achieve some broad public
purpose.
? Public policy is basically a set of rules and
regulations set forth that the public is
expected to adhere to.
? Ex: public laws
Categories of Public Policies
? Substantive and procedural policies- with respect
to time of execution (former or latter)
? Distributive, Regulatory, Self-regulatory, and Re-
distributive policies ? with respect to allocation
and control.
vDistributive policies concern the allocation of
services and benefits of public resources to
various segments of the economy.
vRegulatory policies imposes restrictions or
limitations on the ways and manners the
individuals and group of individuals and firms
could behave an economy.
vSelf-regulatory policies are the policies similar to
regulatory policies but each unions or bodies
supervised themselves.
vRe-distributive policies are the policies that
allocate resources among the already divided
sections of the society
? Material and symbolic policies- with
respect to the tangibility of power and
assets involved.
It includes policy on patriotism, peace, social
justice etc.
? Policies involving public goods and private
goods- public goods are collectively
owned, divisible and non-excludable.
? Liberal and conservative policies ? with
respect to freedom and ability to influence
or change policies.
vLiberal policies ? easily amendable.
vConservative policies ?rigid or difficult to
change.
Relevance of Public Policy
? Scientific understanding
? Improves our knowledge of society
? Linkages between social and economic
conditions
? Response of political system to those
conditions
? Professional advice
Application of knowledge to the solutions of
practical problems
? Policy recommendations ? to inform
political discussion, advance the level of
political awareness and improve the
quality of public policy.
Government and public policy
? Close relationship between public policy
and government or public authorities.
? No policy becomes public policy unless it
is adopted, implemented and enforced by
some governmental institution.
? It lends legitimacy to policies
? Government policies involve universality
as these extend to all sections in society
? Governments alone can exercise coercion
in society-only govt can legitimately
imprison violators of its policies.
Areas of Public Policy
? Economic management
? Labour management relations
? The welfare state
? Shaping of public policies affecting
corporate sector
Economic management
? It is assumed that government intervention
is essential and even inevitable in
economic activities.
? Great depression, recession, depression?
Labour Management Relations
? The concept of industrial democracy made
it imperative that a national labour policy
should be adopted by the state to protect
the rights of workers of unions.
The Welfare State
? At present it is believed that every man
has the right to get a good job, decent
food, clothing and shelter.
? It is the responsibility of the government to
guarantee these rights.
Shaping of public policies
affecting corporate sector
? Stakeholder expectations if unmet, trigger
action to transform social concern into
pressure on business and govt.
Need for Public Policy in
Business
? Social forces include the size and composition of
population, life style and pattern of living which have a
definite effect on both the demand and supply of goods
and services that corporate deals in.
? Economic forces are those that shape corporate
behaviour as well as the reaction of govt to solve the
problems arising therefrom.
? Political forces have an impact on govt making and how
govt?s are prompted to shape their policies affecting
corporate.
? Technological forces allow corporations to update their
products, processes and help them meet competition.
Cont..
? To create a competitive environment
? To have control on foreign investment
Government may adopt protectionist policies for
the following reasons:
? To protect the growing local industries
? To regulate demand and supply
? To regulate the prices in the unhealthy
competitive environment
? To protect the environment
Different Levels of Public Policy
Depending on the intended geographic reach and the degree of
sovereignty the authority concerned enjoys.
v National Level: IDRA and MRTP Act.
v State level: policies to protect ground water from contamination,
policies to take over the wine shops in states.
v Regional Level: Common Agricultural Policy, sharing of river water
etc.
v International Level: IPR?s, TRIMs etc.
FirstRanker.com - FirstRanker's Choice
MODULE - 4
PUBLIC POLICY
? Public ? it comprises domain of human
activity which is regarded as requiring
governmental interventions or common
action.
? Policy ? a purposive course of action taken
or adopted by those in power in pursuit of
certain goals and objectives.
? Public policy is ?whatever governments
choose to do or not to do?.
Public Policy
? Public Policy is an attempt by a
government to address a public issue by
instituting laws, regulations, decisions or
actions pertinent to the problem at hand.
? Issues ? crime, education, foreign policy,
health and social welfare can be
addressed.
? It is thus a plan of action undertaken by
govt to achieve some broad public
purpose.
? Public policy is basically a set of rules and
regulations set forth that the public is
expected to adhere to.
? Ex: public laws
Categories of Public Policies
? Substantive and procedural policies- with respect
to time of execution (former or latter)
? Distributive, Regulatory, Self-regulatory, and Re-
distributive policies ? with respect to allocation
and control.
vDistributive policies concern the allocation of
services and benefits of public resources to
various segments of the economy.
vRegulatory policies imposes restrictions or
limitations on the ways and manners the
individuals and group of individuals and firms
could behave an economy.
vSelf-regulatory policies are the policies similar to
regulatory policies but each unions or bodies
supervised themselves.
vRe-distributive policies are the policies that
allocate resources among the already divided
sections of the society
? Material and symbolic policies- with
respect to the tangibility of power and
assets involved.
It includes policy on patriotism, peace, social
justice etc.
? Policies involving public goods and private
goods- public goods are collectively
owned, divisible and non-excludable.
? Liberal and conservative policies ? with
respect to freedom and ability to influence
or change policies.
vLiberal policies ? easily amendable.
vConservative policies ?rigid or difficult to
change.
Relevance of Public Policy
? Scientific understanding
? Improves our knowledge of society
? Linkages between social and economic
conditions
? Response of political system to those
conditions
? Professional advice
Application of knowledge to the solutions of
practical problems
? Policy recommendations ? to inform
political discussion, advance the level of
political awareness and improve the
quality of public policy.
Government and public policy
? Close relationship between public policy
and government or public authorities.
? No policy becomes public policy unless it
is adopted, implemented and enforced by
some governmental institution.
? It lends legitimacy to policies
? Government policies involve universality
as these extend to all sections in society
? Governments alone can exercise coercion
in society-only govt can legitimately
imprison violators of its policies.
Areas of Public Policy
? Economic management
? Labour management relations
? The welfare state
? Shaping of public policies affecting
corporate sector
Economic management
? It is assumed that government intervention
is essential and even inevitable in
economic activities.
? Great depression, recession, depression?
Labour Management Relations
? The concept of industrial democracy made
it imperative that a national labour policy
should be adopted by the state to protect
the rights of workers of unions.
The Welfare State
? At present it is believed that every man
has the right to get a good job, decent
food, clothing and shelter.
? It is the responsibility of the government to
guarantee these rights.
Shaping of public policies
affecting corporate sector
? Stakeholder expectations if unmet, trigger
action to transform social concern into
pressure on business and govt.
Need for Public Policy in
Business
? Social forces include the size and composition of
population, life style and pattern of living which have a
definite effect on both the demand and supply of goods
and services that corporate deals in.
? Economic forces are those that shape corporate
behaviour as well as the reaction of govt to solve the
problems arising therefrom.
? Political forces have an impact on govt making and how
govt?s are prompted to shape their policies affecting
corporate.
? Technological forces allow corporations to update their
products, processes and help them meet competition.
Cont..
? To create a competitive environment
? To have control on foreign investment
Government may adopt protectionist policies for
the following reasons:
? To protect the growing local industries
? To regulate demand and supply
? To regulate the prices in the unhealthy
competitive environment
? To protect the environment
Different Levels of Public Policy
Depending on the intended geographic reach and the degree of
sovereignty the authority concerned enjoys.
v National Level: IDRA and MRTP Act.
v State level: policies to protect ground water from contamination,
policies to take over the wine shops in states.
v Regional Level: Common Agricultural Policy, sharing of river water
etc.
v International Level: IPR?s, TRIMs etc.
Elements of Public Policy
FirstRanker.com - FirstRanker's Choice
MODULE - 4
PUBLIC POLICY
? Public ? it comprises domain of human
activity which is regarded as requiring
governmental interventions or common
action.
? Policy ? a purposive course of action taken
or adopted by those in power in pursuit of
certain goals and objectives.
? Public policy is ?whatever governments
choose to do or not to do?.
Public Policy
? Public Policy is an attempt by a
government to address a public issue by
instituting laws, regulations, decisions or
actions pertinent to the problem at hand.
? Issues ? crime, education, foreign policy,
health and social welfare can be
addressed.
? It is thus a plan of action undertaken by
govt to achieve some broad public
purpose.
? Public policy is basically a set of rules and
regulations set forth that the public is
expected to adhere to.
? Ex: public laws
Categories of Public Policies
? Substantive and procedural policies- with respect
to time of execution (former or latter)
? Distributive, Regulatory, Self-regulatory, and Re-
distributive policies ? with respect to allocation
and control.
vDistributive policies concern the allocation of
services and benefits of public resources to
various segments of the economy.
vRegulatory policies imposes restrictions or
limitations on the ways and manners the
individuals and group of individuals and firms
could behave an economy.
vSelf-regulatory policies are the policies similar to
regulatory policies but each unions or bodies
supervised themselves.
vRe-distributive policies are the policies that
allocate resources among the already divided
sections of the society
? Material and symbolic policies- with
respect to the tangibility of power and
assets involved.
It includes policy on patriotism, peace, social
justice etc.
? Policies involving public goods and private
goods- public goods are collectively
owned, divisible and non-excludable.
? Liberal and conservative policies ? with
respect to freedom and ability to influence
or change policies.
vLiberal policies ? easily amendable.
vConservative policies ?rigid or difficult to
change.
Relevance of Public Policy
? Scientific understanding
? Improves our knowledge of society
? Linkages between social and economic
conditions
? Response of political system to those
conditions
? Professional advice
Application of knowledge to the solutions of
practical problems
? Policy recommendations ? to inform
political discussion, advance the level of
political awareness and improve the
quality of public policy.
Government and public policy
? Close relationship between public policy
and government or public authorities.
? No policy becomes public policy unless it
is adopted, implemented and enforced by
some governmental institution.
? It lends legitimacy to policies
? Government policies involve universality
as these extend to all sections in society
? Governments alone can exercise coercion
in society-only govt can legitimately
imprison violators of its policies.
Areas of Public Policy
? Economic management
? Labour management relations
? The welfare state
? Shaping of public policies affecting
corporate sector
Economic management
? It is assumed that government intervention
is essential and even inevitable in
economic activities.
? Great depression, recession, depression?
Labour Management Relations
? The concept of industrial democracy made
it imperative that a national labour policy
should be adopted by the state to protect
the rights of workers of unions.
The Welfare State
? At present it is believed that every man
has the right to get a good job, decent
food, clothing and shelter.
? It is the responsibility of the government to
guarantee these rights.
Shaping of public policies
affecting corporate sector
? Stakeholder expectations if unmet, trigger
action to transform social concern into
pressure on business and govt.
Need for Public Policy in
Business
? Social forces include the size and composition of
population, life style and pattern of living which have a
definite effect on both the demand and supply of goods
and services that corporate deals in.
? Economic forces are those that shape corporate
behaviour as well as the reaction of govt to solve the
problems arising therefrom.
? Political forces have an impact on govt making and how
govt?s are prompted to shape their policies affecting
corporate.
? Technological forces allow corporations to update their
products, processes and help them meet competition.
Cont..
? To create a competitive environment
? To have control on foreign investment
Government may adopt protectionist policies for
the following reasons:
? To protect the growing local industries
? To regulate demand and supply
? To regulate the prices in the unhealthy
competitive environment
? To protect the environment
Different Levels of Public Policy
Depending on the intended geographic reach and the degree of
sovereignty the authority concerned enjoys.
v National Level: IDRA and MRTP Act.
v State level: policies to protect ground water from contamination,
policies to take over the wine shops in states.
v Regional Level: Common Agricultural Policy, sharing of river water
etc.
v International Level: IPR?s, TRIMs etc.
Elements of Public Policy Inputs
? Govt may determine its course of action on
the basis of
? Economic or foreign policy concerns
? Domestic political pressure from
constituents and interest groups
? Technical information
? Tax imperatives
? Reaction to natural or national calamities
FirstRanker.com - FirstRanker's Choice
MODULE - 4
PUBLIC POLICY
? Public ? it comprises domain of human
activity which is regarded as requiring
governmental interventions or common
action.
? Policy ? a purposive course of action taken
or adopted by those in power in pursuit of
certain goals and objectives.
? Public policy is ?whatever governments
choose to do or not to do?.
Public Policy
? Public Policy is an attempt by a
government to address a public issue by
instituting laws, regulations, decisions or
actions pertinent to the problem at hand.
? Issues ? crime, education, foreign policy,
health and social welfare can be
addressed.
? It is thus a plan of action undertaken by
govt to achieve some broad public
purpose.
? Public policy is basically a set of rules and
regulations set forth that the public is
expected to adhere to.
? Ex: public laws
Categories of Public Policies
? Substantive and procedural policies- with respect
to time of execution (former or latter)
? Distributive, Regulatory, Self-regulatory, and Re-
distributive policies ? with respect to allocation
and control.
vDistributive policies concern the allocation of
services and benefits of public resources to
various segments of the economy.
vRegulatory policies imposes restrictions or
limitations on the ways and manners the
individuals and group of individuals and firms
could behave an economy.
vSelf-regulatory policies are the policies similar to
regulatory policies but each unions or bodies
supervised themselves.
vRe-distributive policies are the policies that
allocate resources among the already divided
sections of the society
? Material and symbolic policies- with
respect to the tangibility of power and
assets involved.
It includes policy on patriotism, peace, social
justice etc.
? Policies involving public goods and private
goods- public goods are collectively
owned, divisible and non-excludable.
? Liberal and conservative policies ? with
respect to freedom and ability to influence
or change policies.
vLiberal policies ? easily amendable.
vConservative policies ?rigid or difficult to
change.
Relevance of Public Policy
? Scientific understanding
? Improves our knowledge of society
? Linkages between social and economic
conditions
? Response of political system to those
conditions
? Professional advice
Application of knowledge to the solutions of
practical problems
? Policy recommendations ? to inform
political discussion, advance the level of
political awareness and improve the
quality of public policy.
Government and public policy
? Close relationship between public policy
and government or public authorities.
? No policy becomes public policy unless it
is adopted, implemented and enforced by
some governmental institution.
? It lends legitimacy to policies
? Government policies involve universality
as these extend to all sections in society
? Governments alone can exercise coercion
in society-only govt can legitimately
imprison violators of its policies.
Areas of Public Policy
? Economic management
? Labour management relations
? The welfare state
? Shaping of public policies affecting
corporate sector
Economic management
? It is assumed that government intervention
is essential and even inevitable in
economic activities.
? Great depression, recession, depression?
Labour Management Relations
? The concept of industrial democracy made
it imperative that a national labour policy
should be adopted by the state to protect
the rights of workers of unions.
The Welfare State
? At present it is believed that every man
has the right to get a good job, decent
food, clothing and shelter.
? It is the responsibility of the government to
guarantee these rights.
Shaping of public policies
affecting corporate sector
? Stakeholder expectations if unmet, trigger
action to transform social concern into
pressure on business and govt.
Need for Public Policy in
Business
? Social forces include the size and composition of
population, life style and pattern of living which have a
definite effect on both the demand and supply of goods
and services that corporate deals in.
? Economic forces are those that shape corporate
behaviour as well as the reaction of govt to solve the
problems arising therefrom.
? Political forces have an impact on govt making and how
govt?s are prompted to shape their policies affecting
corporate.
? Technological forces allow corporations to update their
products, processes and help them meet competition.
Cont..
? To create a competitive environment
? To have control on foreign investment
Government may adopt protectionist policies for
the following reasons:
? To protect the growing local industries
? To regulate demand and supply
? To regulate the prices in the unhealthy
competitive environment
? To protect the environment
Different Levels of Public Policy
Depending on the intended geographic reach and the degree of
sovereignty the authority concerned enjoys.
v National Level: IDRA and MRTP Act.
v State level: policies to protect ground water from contamination,
policies to take over the wine shops in states.
v Regional Level: Common Agricultural Policy, sharing of river water
etc.
v International Level: IPR?s, TRIMs etc.
Elements of Public Policy Inputs
? Govt may determine its course of action on
the basis of
? Economic or foreign policy concerns
? Domestic political pressure from
constituents and interest groups
? Technical information
? Tax imperatives
? Reaction to natural or national calamities
Goals
? Goals may be ideal oriented, narrow or
self serving.
? But it is always important to inquire
whether it served the citizens of the
country whose welfare it intends to serve.
FirstRanker.com - FirstRanker's Choice
MODULE - 4
PUBLIC POLICY
? Public ? it comprises domain of human
activity which is regarded as requiring
governmental interventions or common
action.
? Policy ? a purposive course of action taken
or adopted by those in power in pursuit of
certain goals and objectives.
? Public policy is ?whatever governments
choose to do or not to do?.
Public Policy
? Public Policy is an attempt by a
government to address a public issue by
instituting laws, regulations, decisions or
actions pertinent to the problem at hand.
? Issues ? crime, education, foreign policy,
health and social welfare can be
addressed.
? It is thus a plan of action undertaken by
govt to achieve some broad public
purpose.
? Public policy is basically a set of rules and
regulations set forth that the public is
expected to adhere to.
? Ex: public laws
Categories of Public Policies
? Substantive and procedural policies- with respect
to time of execution (former or latter)
? Distributive, Regulatory, Self-regulatory, and Re-
distributive policies ? with respect to allocation
and control.
vDistributive policies concern the allocation of
services and benefits of public resources to
various segments of the economy.
vRegulatory policies imposes restrictions or
limitations on the ways and manners the
individuals and group of individuals and firms
could behave an economy.
vSelf-regulatory policies are the policies similar to
regulatory policies but each unions or bodies
supervised themselves.
vRe-distributive policies are the policies that
allocate resources among the already divided
sections of the society
? Material and symbolic policies- with
respect to the tangibility of power and
assets involved.
It includes policy on patriotism, peace, social
justice etc.
? Policies involving public goods and private
goods- public goods are collectively
owned, divisible and non-excludable.
? Liberal and conservative policies ? with
respect to freedom and ability to influence
or change policies.
vLiberal policies ? easily amendable.
vConservative policies ?rigid or difficult to
change.
Relevance of Public Policy
? Scientific understanding
? Improves our knowledge of society
? Linkages between social and economic
conditions
? Response of political system to those
conditions
? Professional advice
Application of knowledge to the solutions of
practical problems
? Policy recommendations ? to inform
political discussion, advance the level of
political awareness and improve the
quality of public policy.
Government and public policy
? Close relationship between public policy
and government or public authorities.
? No policy becomes public policy unless it
is adopted, implemented and enforced by
some governmental institution.
? It lends legitimacy to policies
? Government policies involve universality
as these extend to all sections in society
? Governments alone can exercise coercion
in society-only govt can legitimately
imprison violators of its policies.
Areas of Public Policy
? Economic management
? Labour management relations
? The welfare state
? Shaping of public policies affecting
corporate sector
Economic management
? It is assumed that government intervention
is essential and even inevitable in
economic activities.
? Great depression, recession, depression?
Labour Management Relations
? The concept of industrial democracy made
it imperative that a national labour policy
should be adopted by the state to protect
the rights of workers of unions.
The Welfare State
? At present it is believed that every man
has the right to get a good job, decent
food, clothing and shelter.
? It is the responsibility of the government to
guarantee these rights.
Shaping of public policies
affecting corporate sector
? Stakeholder expectations if unmet, trigger
action to transform social concern into
pressure on business and govt.
Need for Public Policy in
Business
? Social forces include the size and composition of
population, life style and pattern of living which have a
definite effect on both the demand and supply of goods
and services that corporate deals in.
? Economic forces are those that shape corporate
behaviour as well as the reaction of govt to solve the
problems arising therefrom.
? Political forces have an impact on govt making and how
govt?s are prompted to shape their policies affecting
corporate.
? Technological forces allow corporations to update their
products, processes and help them meet competition.
Cont..
? To create a competitive environment
? To have control on foreign investment
Government may adopt protectionist policies for
the following reasons:
? To protect the growing local industries
? To regulate demand and supply
? To regulate the prices in the unhealthy
competitive environment
? To protect the environment
Different Levels of Public Policy
Depending on the intended geographic reach and the degree of
sovereignty the authority concerned enjoys.
v National Level: IDRA and MRTP Act.
v State level: policies to protect ground water from contamination,
policies to take over the wine shops in states.
v Regional Level: Common Agricultural Policy, sharing of river water
etc.
v International Level: IPR?s, TRIMs etc.
Elements of Public Policy Inputs
? Govt may determine its course of action on
the basis of
? Economic or foreign policy concerns
? Domestic political pressure from
constituents and interest groups
? Technical information
? Tax imperatives
? Reaction to natural or national calamities
Goals
? Goals may be ideal oriented, narrow or
self serving.
? But it is always important to inquire
whether it served the citizens of the
country whose welfare it intends to serve.
Mechanisms
? Ex: budget negotiations?.
? Instruments of public policy are those
combinations of incentives and
disincentives that govt uses to prompt
citizens, to act in ways that achieve policy
goals.
?
FirstRanker.com - FirstRanker's Choice
MODULE - 4
PUBLIC POLICY
? Public ? it comprises domain of human
activity which is regarded as requiring
governmental interventions or common
action.
? Policy ? a purposive course of action taken
or adopted by those in power in pursuit of
certain goals and objectives.
? Public policy is ?whatever governments
choose to do or not to do?.
Public Policy
? Public Policy is an attempt by a
government to address a public issue by
instituting laws, regulations, decisions or
actions pertinent to the problem at hand.
? Issues ? crime, education, foreign policy,
health and social welfare can be
addressed.
? It is thus a plan of action undertaken by
govt to achieve some broad public
purpose.
? Public policy is basically a set of rules and
regulations set forth that the public is
expected to adhere to.
? Ex: public laws
Categories of Public Policies
? Substantive and procedural policies- with respect
to time of execution (former or latter)
? Distributive, Regulatory, Self-regulatory, and Re-
distributive policies ? with respect to allocation
and control.
vDistributive policies concern the allocation of
services and benefits of public resources to
various segments of the economy.
vRegulatory policies imposes restrictions or
limitations on the ways and manners the
individuals and group of individuals and firms
could behave an economy.
vSelf-regulatory policies are the policies similar to
regulatory policies but each unions or bodies
supervised themselves.
vRe-distributive policies are the policies that
allocate resources among the already divided
sections of the society
? Material and symbolic policies- with
respect to the tangibility of power and
assets involved.
It includes policy on patriotism, peace, social
justice etc.
? Policies involving public goods and private
goods- public goods are collectively
owned, divisible and non-excludable.
? Liberal and conservative policies ? with
respect to freedom and ability to influence
or change policies.
vLiberal policies ? easily amendable.
vConservative policies ?rigid or difficult to
change.
Relevance of Public Policy
? Scientific understanding
? Improves our knowledge of society
? Linkages between social and economic
conditions
? Response of political system to those
conditions
? Professional advice
Application of knowledge to the solutions of
practical problems
? Policy recommendations ? to inform
political discussion, advance the level of
political awareness and improve the
quality of public policy.
Government and public policy
? Close relationship between public policy
and government or public authorities.
? No policy becomes public policy unless it
is adopted, implemented and enforced by
some governmental institution.
? It lends legitimacy to policies
? Government policies involve universality
as these extend to all sections in society
? Governments alone can exercise coercion
in society-only govt can legitimately
imprison violators of its policies.
Areas of Public Policy
? Economic management
? Labour management relations
? The welfare state
? Shaping of public policies affecting
corporate sector
Economic management
? It is assumed that government intervention
is essential and even inevitable in
economic activities.
? Great depression, recession, depression?
Labour Management Relations
? The concept of industrial democracy made
it imperative that a national labour policy
should be adopted by the state to protect
the rights of workers of unions.
The Welfare State
? At present it is believed that every man
has the right to get a good job, decent
food, clothing and shelter.
? It is the responsibility of the government to
guarantee these rights.
Shaping of public policies
affecting corporate sector
? Stakeholder expectations if unmet, trigger
action to transform social concern into
pressure on business and govt.
Need for Public Policy in
Business
? Social forces include the size and composition of
population, life style and pattern of living which have a
definite effect on both the demand and supply of goods
and services that corporate deals in.
? Economic forces are those that shape corporate
behaviour as well as the reaction of govt to solve the
problems arising therefrom.
? Political forces have an impact on govt making and how
govt?s are prompted to shape their policies affecting
corporate.
? Technological forces allow corporations to update their
products, processes and help them meet competition.
Cont..
? To create a competitive environment
? To have control on foreign investment
Government may adopt protectionist policies for
the following reasons:
? To protect the growing local industries
? To regulate demand and supply
? To regulate the prices in the unhealthy
competitive environment
? To protect the environment
Different Levels of Public Policy
Depending on the intended geographic reach and the degree of
sovereignty the authority concerned enjoys.
v National Level: IDRA and MRTP Act.
v State level: policies to protect ground water from contamination,
policies to take over the wine shops in states.
v Regional Level: Common Agricultural Policy, sharing of river water
etc.
v International Level: IPR?s, TRIMs etc.
Elements of Public Policy Inputs
? Govt may determine its course of action on
the basis of
? Economic or foreign policy concerns
? Domestic political pressure from
constituents and interest groups
? Technical information
? Tax imperatives
? Reaction to natural or national calamities
Goals
? Goals may be ideal oriented, narrow or
self serving.
? But it is always important to inquire
whether it served the citizens of the
country whose welfare it intends to serve.
Mechanisms
? Ex: budget negotiations?.
? Instruments of public policy are those
combinations of incentives and
disincentives that govt uses to prompt
citizens, to act in ways that achieve policy
goals.
?
Results
? Intended or unintended results.
FirstRanker.com - FirstRanker's Choice
MODULE - 4
PUBLIC POLICY
? Public ? it comprises domain of human
activity which is regarded as requiring
governmental interventions or common
action.
? Policy ? a purposive course of action taken
or adopted by those in power in pursuit of
certain goals and objectives.
? Public policy is ?whatever governments
choose to do or not to do?.
Public Policy
? Public Policy is an attempt by a
government to address a public issue by
instituting laws, regulations, decisions or
actions pertinent to the problem at hand.
? Issues ? crime, education, foreign policy,
health and social welfare can be
addressed.
? It is thus a plan of action undertaken by
govt to achieve some broad public
purpose.
? Public policy is basically a set of rules and
regulations set forth that the public is
expected to adhere to.
? Ex: public laws
Categories of Public Policies
? Substantive and procedural policies- with respect
to time of execution (former or latter)
? Distributive, Regulatory, Self-regulatory, and Re-
distributive policies ? with respect to allocation
and control.
vDistributive policies concern the allocation of
services and benefits of public resources to
various segments of the economy.
vRegulatory policies imposes restrictions or
limitations on the ways and manners the
individuals and group of individuals and firms
could behave an economy.
vSelf-regulatory policies are the policies similar to
regulatory policies but each unions or bodies
supervised themselves.
vRe-distributive policies are the policies that
allocate resources among the already divided
sections of the society
? Material and symbolic policies- with
respect to the tangibility of power and
assets involved.
It includes policy on patriotism, peace, social
justice etc.
? Policies involving public goods and private
goods- public goods are collectively
owned, divisible and non-excludable.
? Liberal and conservative policies ? with
respect to freedom and ability to influence
or change policies.
vLiberal policies ? easily amendable.
vConservative policies ?rigid or difficult to
change.
Relevance of Public Policy
? Scientific understanding
? Improves our knowledge of society
? Linkages between social and economic
conditions
? Response of political system to those
conditions
? Professional advice
Application of knowledge to the solutions of
practical problems
? Policy recommendations ? to inform
political discussion, advance the level of
political awareness and improve the
quality of public policy.
Government and public policy
? Close relationship between public policy
and government or public authorities.
? No policy becomes public policy unless it
is adopted, implemented and enforced by
some governmental institution.
? It lends legitimacy to policies
? Government policies involve universality
as these extend to all sections in society
? Governments alone can exercise coercion
in society-only govt can legitimately
imprison violators of its policies.
Areas of Public Policy
? Economic management
? Labour management relations
? The welfare state
? Shaping of public policies affecting
corporate sector
Economic management
? It is assumed that government intervention
is essential and even inevitable in
economic activities.
? Great depression, recession, depression?
Labour Management Relations
? The concept of industrial democracy made
it imperative that a national labour policy
should be adopted by the state to protect
the rights of workers of unions.
The Welfare State
? At present it is believed that every man
has the right to get a good job, decent
food, clothing and shelter.
? It is the responsibility of the government to
guarantee these rights.
Shaping of public policies
affecting corporate sector
? Stakeholder expectations if unmet, trigger
action to transform social concern into
pressure on business and govt.
Need for Public Policy in
Business
? Social forces include the size and composition of
population, life style and pattern of living which have a
definite effect on both the demand and supply of goods
and services that corporate deals in.
? Economic forces are those that shape corporate
behaviour as well as the reaction of govt to solve the
problems arising therefrom.
? Political forces have an impact on govt making and how
govt?s are prompted to shape their policies affecting
corporate.
? Technological forces allow corporations to update their
products, processes and help them meet competition.
Cont..
? To create a competitive environment
? To have control on foreign investment
Government may adopt protectionist policies for
the following reasons:
? To protect the growing local industries
? To regulate demand and supply
? To regulate the prices in the unhealthy
competitive environment
? To protect the environment
Different Levels of Public Policy
Depending on the intended geographic reach and the degree of
sovereignty the authority concerned enjoys.
v National Level: IDRA and MRTP Act.
v State level: policies to protect ground water from contamination,
policies to take over the wine shops in states.
v Regional Level: Common Agricultural Policy, sharing of river water
etc.
v International Level: IPR?s, TRIMs etc.
Elements of Public Policy Inputs
? Govt may determine its course of action on
the basis of
? Economic or foreign policy concerns
? Domestic political pressure from
constituents and interest groups
? Technical information
? Tax imperatives
? Reaction to natural or national calamities
Goals
? Goals may be ideal oriented, narrow or
self serving.
? But it is always important to inquire
whether it served the citizens of the
country whose welfare it intends to serve.
Mechanisms
? Ex: budget negotiations?.
? Instruments of public policy are those
combinations of incentives and
disincentives that govt uses to prompt
citizens, to act in ways that achieve policy
goals.
?
Results
? Intended or unintended results. ? Agenda building-
?Consists of major issues or problems to
which officials give serious attention and
upon which they feel compelled to act.
?Ex: 33% reservation for women in
Parliament and Legislatures?
FirstRanker.com - FirstRanker's Choice
MODULE - 4
PUBLIC POLICY
? Public ? it comprises domain of human
activity which is regarded as requiring
governmental interventions or common
action.
? Policy ? a purposive course of action taken
or adopted by those in power in pursuit of
certain goals and objectives.
? Public policy is ?whatever governments
choose to do or not to do?.
Public Policy
? Public Policy is an attempt by a
government to address a public issue by
instituting laws, regulations, decisions or
actions pertinent to the problem at hand.
? Issues ? crime, education, foreign policy,
health and social welfare can be
addressed.
? It is thus a plan of action undertaken by
govt to achieve some broad public
purpose.
? Public policy is basically a set of rules and
regulations set forth that the public is
expected to adhere to.
? Ex: public laws
Categories of Public Policies
? Substantive and procedural policies- with respect
to time of execution (former or latter)
? Distributive, Regulatory, Self-regulatory, and Re-
distributive policies ? with respect to allocation
and control.
vDistributive policies concern the allocation of
services and benefits of public resources to
various segments of the economy.
vRegulatory policies imposes restrictions or
limitations on the ways and manners the
individuals and group of individuals and firms
could behave an economy.
vSelf-regulatory policies are the policies similar to
regulatory policies but each unions or bodies
supervised themselves.
vRe-distributive policies are the policies that
allocate resources among the already divided
sections of the society
? Material and symbolic policies- with
respect to the tangibility of power and
assets involved.
It includes policy on patriotism, peace, social
justice etc.
? Policies involving public goods and private
goods- public goods are collectively
owned, divisible and non-excludable.
? Liberal and conservative policies ? with
respect to freedom and ability to influence
or change policies.
vLiberal policies ? easily amendable.
vConservative policies ?rigid or difficult to
change.
Relevance of Public Policy
? Scientific understanding
? Improves our knowledge of society
? Linkages between social and economic
conditions
? Response of political system to those
conditions
? Professional advice
Application of knowledge to the solutions of
practical problems
? Policy recommendations ? to inform
political discussion, advance the level of
political awareness and improve the
quality of public policy.
Government and public policy
? Close relationship between public policy
and government or public authorities.
? No policy becomes public policy unless it
is adopted, implemented and enforced by
some governmental institution.
? It lends legitimacy to policies
? Government policies involve universality
as these extend to all sections in society
? Governments alone can exercise coercion
in society-only govt can legitimately
imprison violators of its policies.
Areas of Public Policy
? Economic management
? Labour management relations
? The welfare state
? Shaping of public policies affecting
corporate sector
Economic management
? It is assumed that government intervention
is essential and even inevitable in
economic activities.
? Great depression, recession, depression?
Labour Management Relations
? The concept of industrial democracy made
it imperative that a national labour policy
should be adopted by the state to protect
the rights of workers of unions.
The Welfare State
? At present it is believed that every man
has the right to get a good job, decent
food, clothing and shelter.
? It is the responsibility of the government to
guarantee these rights.
Shaping of public policies
affecting corporate sector
? Stakeholder expectations if unmet, trigger
action to transform social concern into
pressure on business and govt.
Need for Public Policy in
Business
? Social forces include the size and composition of
population, life style and pattern of living which have a
definite effect on both the demand and supply of goods
and services that corporate deals in.
? Economic forces are those that shape corporate
behaviour as well as the reaction of govt to solve the
problems arising therefrom.
? Political forces have an impact on govt making and how
govt?s are prompted to shape their policies affecting
corporate.
? Technological forces allow corporations to update their
products, processes and help them meet competition.
Cont..
? To create a competitive environment
? To have control on foreign investment
Government may adopt protectionist policies for
the following reasons:
? To protect the growing local industries
? To regulate demand and supply
? To regulate the prices in the unhealthy
competitive environment
? To protect the environment
Different Levels of Public Policy
Depending on the intended geographic reach and the degree of
sovereignty the authority concerned enjoys.
v National Level: IDRA and MRTP Act.
v State level: policies to protect ground water from contamination,
policies to take over the wine shops in states.
v Regional Level: Common Agricultural Policy, sharing of river water
etc.
v International Level: IPR?s, TRIMs etc.
Elements of Public Policy Inputs
? Govt may determine its course of action on
the basis of
? Economic or foreign policy concerns
? Domestic political pressure from
constituents and interest groups
? Technical information
? Tax imperatives
? Reaction to natural or national calamities
Goals
? Goals may be ideal oriented, narrow or
self serving.
? But it is always important to inquire
whether it served the citizens of the
country whose welfare it intends to serve.
Mechanisms
? Ex: budget negotiations?.
? Instruments of public policy are those
combinations of incentives and
disincentives that govt uses to prompt
citizens, to act in ways that achieve policy
goals.
?
Results
? Intended or unintended results. ? Agenda building-
?Consists of major issues or problems to
which officials give serious attention and
upon which they feel compelled to act.
?Ex: 33% reservation for women in
Parliament and Legislatures?
? Policy formulation ?
?It occurs when interested groups take a
position on some public issue and try to
persuade others to adopt their viewpoints
as public policy.
FirstRanker.com - FirstRanker's Choice
MODULE - 4
PUBLIC POLICY
? Public ? it comprises domain of human
activity which is regarded as requiring
governmental interventions or common
action.
? Policy ? a purposive course of action taken
or adopted by those in power in pursuit of
certain goals and objectives.
? Public policy is ?whatever governments
choose to do or not to do?.
Public Policy
? Public Policy is an attempt by a
government to address a public issue by
instituting laws, regulations, decisions or
actions pertinent to the problem at hand.
? Issues ? crime, education, foreign policy,
health and social welfare can be
addressed.
? It is thus a plan of action undertaken by
govt to achieve some broad public
purpose.
? Public policy is basically a set of rules and
regulations set forth that the public is
expected to adhere to.
? Ex: public laws
Categories of Public Policies
? Substantive and procedural policies- with respect
to time of execution (former or latter)
? Distributive, Regulatory, Self-regulatory, and Re-
distributive policies ? with respect to allocation
and control.
vDistributive policies concern the allocation of
services and benefits of public resources to
various segments of the economy.
vRegulatory policies imposes restrictions or
limitations on the ways and manners the
individuals and group of individuals and firms
could behave an economy.
vSelf-regulatory policies are the policies similar to
regulatory policies but each unions or bodies
supervised themselves.
vRe-distributive policies are the policies that
allocate resources among the already divided
sections of the society
? Material and symbolic policies- with
respect to the tangibility of power and
assets involved.
It includes policy on patriotism, peace, social
justice etc.
? Policies involving public goods and private
goods- public goods are collectively
owned, divisible and non-excludable.
? Liberal and conservative policies ? with
respect to freedom and ability to influence
or change policies.
vLiberal policies ? easily amendable.
vConservative policies ?rigid or difficult to
change.
Relevance of Public Policy
? Scientific understanding
? Improves our knowledge of society
? Linkages between social and economic
conditions
? Response of political system to those
conditions
? Professional advice
Application of knowledge to the solutions of
practical problems
? Policy recommendations ? to inform
political discussion, advance the level of
political awareness and improve the
quality of public policy.
Government and public policy
? Close relationship between public policy
and government or public authorities.
? No policy becomes public policy unless it
is adopted, implemented and enforced by
some governmental institution.
? It lends legitimacy to policies
? Government policies involve universality
as these extend to all sections in society
? Governments alone can exercise coercion
in society-only govt can legitimately
imprison violators of its policies.
Areas of Public Policy
? Economic management
? Labour management relations
? The welfare state
? Shaping of public policies affecting
corporate sector
Economic management
? It is assumed that government intervention
is essential and even inevitable in
economic activities.
? Great depression, recession, depression?
Labour Management Relations
? The concept of industrial democracy made
it imperative that a national labour policy
should be adopted by the state to protect
the rights of workers of unions.
The Welfare State
? At present it is believed that every man
has the right to get a good job, decent
food, clothing and shelter.
? It is the responsibility of the government to
guarantee these rights.
Shaping of public policies
affecting corporate sector
? Stakeholder expectations if unmet, trigger
action to transform social concern into
pressure on business and govt.
Need for Public Policy in
Business
? Social forces include the size and composition of
population, life style and pattern of living which have a
definite effect on both the demand and supply of goods
and services that corporate deals in.
? Economic forces are those that shape corporate
behaviour as well as the reaction of govt to solve the
problems arising therefrom.
? Political forces have an impact on govt making and how
govt?s are prompted to shape their policies affecting
corporate.
? Technological forces allow corporations to update their
products, processes and help them meet competition.
Cont..
? To create a competitive environment
? To have control on foreign investment
Government may adopt protectionist policies for
the following reasons:
? To protect the growing local industries
? To regulate demand and supply
? To regulate the prices in the unhealthy
competitive environment
? To protect the environment
Different Levels of Public Policy
Depending on the intended geographic reach and the degree of
sovereignty the authority concerned enjoys.
v National Level: IDRA and MRTP Act.
v State level: policies to protect ground water from contamination,
policies to take over the wine shops in states.
v Regional Level: Common Agricultural Policy, sharing of river water
etc.
v International Level: IPR?s, TRIMs etc.
Elements of Public Policy Inputs
? Govt may determine its course of action on
the basis of
? Economic or foreign policy concerns
? Domestic political pressure from
constituents and interest groups
? Technical information
? Tax imperatives
? Reaction to natural or national calamities
Goals
? Goals may be ideal oriented, narrow or
self serving.
? But it is always important to inquire
whether it served the citizens of the
country whose welfare it intends to serve.
Mechanisms
? Ex: budget negotiations?.
? Instruments of public policy are those
combinations of incentives and
disincentives that govt uses to prompt
citizens, to act in ways that achieve policy
goals.
?
Results
? Intended or unintended results. ? Agenda building-
?Consists of major issues or problems to
which officials give serious attention and
upon which they feel compelled to act.
?Ex: 33% reservation for women in
Parliament and Legislatures?
? Policy formulation ?
?It occurs when interested groups take a
position on some public issue and try to
persuade others to adopt their viewpoints
as public policy.
? Policy Decision-
?Occurs when some arm of the govt, either
authorizes or fail to authorise the course of
action.
FirstRanker.com - FirstRanker's Choice
MODULE - 4
PUBLIC POLICY
? Public ? it comprises domain of human
activity which is regarded as requiring
governmental interventions or common
action.
? Policy ? a purposive course of action taken
or adopted by those in power in pursuit of
certain goals and objectives.
? Public policy is ?whatever governments
choose to do or not to do?.
Public Policy
? Public Policy is an attempt by a
government to address a public issue by
instituting laws, regulations, decisions or
actions pertinent to the problem at hand.
? Issues ? crime, education, foreign policy,
health and social welfare can be
addressed.
? It is thus a plan of action undertaken by
govt to achieve some broad public
purpose.
? Public policy is basically a set of rules and
regulations set forth that the public is
expected to adhere to.
? Ex: public laws
Categories of Public Policies
? Substantive and procedural policies- with respect
to time of execution (former or latter)
? Distributive, Regulatory, Self-regulatory, and Re-
distributive policies ? with respect to allocation
and control.
vDistributive policies concern the allocation of
services and benefits of public resources to
various segments of the economy.
vRegulatory policies imposes restrictions or
limitations on the ways and manners the
individuals and group of individuals and firms
could behave an economy.
vSelf-regulatory policies are the policies similar to
regulatory policies but each unions or bodies
supervised themselves.
vRe-distributive policies are the policies that
allocate resources among the already divided
sections of the society
? Material and symbolic policies- with
respect to the tangibility of power and
assets involved.
It includes policy on patriotism, peace, social
justice etc.
? Policies involving public goods and private
goods- public goods are collectively
owned, divisible and non-excludable.
? Liberal and conservative policies ? with
respect to freedom and ability to influence
or change policies.
vLiberal policies ? easily amendable.
vConservative policies ?rigid or difficult to
change.
Relevance of Public Policy
? Scientific understanding
? Improves our knowledge of society
? Linkages between social and economic
conditions
? Response of political system to those
conditions
? Professional advice
Application of knowledge to the solutions of
practical problems
? Policy recommendations ? to inform
political discussion, advance the level of
political awareness and improve the
quality of public policy.
Government and public policy
? Close relationship between public policy
and government or public authorities.
? No policy becomes public policy unless it
is adopted, implemented and enforced by
some governmental institution.
? It lends legitimacy to policies
? Government policies involve universality
as these extend to all sections in society
? Governments alone can exercise coercion
in society-only govt can legitimately
imprison violators of its policies.
Areas of Public Policy
? Economic management
? Labour management relations
? The welfare state
? Shaping of public policies affecting
corporate sector
Economic management
? It is assumed that government intervention
is essential and even inevitable in
economic activities.
? Great depression, recession, depression?
Labour Management Relations
? The concept of industrial democracy made
it imperative that a national labour policy
should be adopted by the state to protect
the rights of workers of unions.
The Welfare State
? At present it is believed that every man
has the right to get a good job, decent
food, clothing and shelter.
? It is the responsibility of the government to
guarantee these rights.
Shaping of public policies
affecting corporate sector
? Stakeholder expectations if unmet, trigger
action to transform social concern into
pressure on business and govt.
Need for Public Policy in
Business
? Social forces include the size and composition of
population, life style and pattern of living which have a
definite effect on both the demand and supply of goods
and services that corporate deals in.
? Economic forces are those that shape corporate
behaviour as well as the reaction of govt to solve the
problems arising therefrom.
? Political forces have an impact on govt making and how
govt?s are prompted to shape their policies affecting
corporate.
? Technological forces allow corporations to update their
products, processes and help them meet competition.
Cont..
? To create a competitive environment
? To have control on foreign investment
Government may adopt protectionist policies for
the following reasons:
? To protect the growing local industries
? To regulate demand and supply
? To regulate the prices in the unhealthy
competitive environment
? To protect the environment
Different Levels of Public Policy
Depending on the intended geographic reach and the degree of
sovereignty the authority concerned enjoys.
v National Level: IDRA and MRTP Act.
v State level: policies to protect ground water from contamination,
policies to take over the wine shops in states.
v Regional Level: Common Agricultural Policy, sharing of river water
etc.
v International Level: IPR?s, TRIMs etc.
Elements of Public Policy Inputs
? Govt may determine its course of action on
the basis of
? Economic or foreign policy concerns
? Domestic political pressure from
constituents and interest groups
? Technical information
? Tax imperatives
? Reaction to natural or national calamities
Goals
? Goals may be ideal oriented, narrow or
self serving.
? But it is always important to inquire
whether it served the citizens of the
country whose welfare it intends to serve.
Mechanisms
? Ex: budget negotiations?.
? Instruments of public policy are those
combinations of incentives and
disincentives that govt uses to prompt
citizens, to act in ways that achieve policy
goals.
?
Results
? Intended or unintended results. ? Agenda building-
?Consists of major issues or problems to
which officials give serious attention and
upon which they feel compelled to act.
?Ex: 33% reservation for women in
Parliament and Legislatures?
? Policy formulation ?
?It occurs when interested groups take a
position on some public issue and try to
persuade others to adopt their viewpoints
as public policy.
? Policy Decision-
?Occurs when some arm of the govt, either
authorizes or fail to authorise the course of
action.
? Policy implementation-
?Occurs when action is taken to enforce a
public policy decision.
FirstRanker.com - FirstRanker's Choice
MODULE - 4
PUBLIC POLICY
? Public ? it comprises domain of human
activity which is regarded as requiring
governmental interventions or common
action.
? Policy ? a purposive course of action taken
or adopted by those in power in pursuit of
certain goals and objectives.
? Public policy is ?whatever governments
choose to do or not to do?.
Public Policy
? Public Policy is an attempt by a
government to address a public issue by
instituting laws, regulations, decisions or
actions pertinent to the problem at hand.
? Issues ? crime, education, foreign policy,
health and social welfare can be
addressed.
? It is thus a plan of action undertaken by
govt to achieve some broad public
purpose.
? Public policy is basically a set of rules and
regulations set forth that the public is
expected to adhere to.
? Ex: public laws
Categories of Public Policies
? Substantive and procedural policies- with respect
to time of execution (former or latter)
? Distributive, Regulatory, Self-regulatory, and Re-
distributive policies ? with respect to allocation
and control.
vDistributive policies concern the allocation of
services and benefits of public resources to
various segments of the economy.
vRegulatory policies imposes restrictions or
limitations on the ways and manners the
individuals and group of individuals and firms
could behave an economy.
vSelf-regulatory policies are the policies similar to
regulatory policies but each unions or bodies
supervised themselves.
vRe-distributive policies are the policies that
allocate resources among the already divided
sections of the society
? Material and symbolic policies- with
respect to the tangibility of power and
assets involved.
It includes policy on patriotism, peace, social
justice etc.
? Policies involving public goods and private
goods- public goods are collectively
owned, divisible and non-excludable.
? Liberal and conservative policies ? with
respect to freedom and ability to influence
or change policies.
vLiberal policies ? easily amendable.
vConservative policies ?rigid or difficult to
change.
Relevance of Public Policy
? Scientific understanding
? Improves our knowledge of society
? Linkages between social and economic
conditions
? Response of political system to those
conditions
? Professional advice
Application of knowledge to the solutions of
practical problems
? Policy recommendations ? to inform
political discussion, advance the level of
political awareness and improve the
quality of public policy.
Government and public policy
? Close relationship between public policy
and government or public authorities.
? No policy becomes public policy unless it
is adopted, implemented and enforced by
some governmental institution.
? It lends legitimacy to policies
? Government policies involve universality
as these extend to all sections in society
? Governments alone can exercise coercion
in society-only govt can legitimately
imprison violators of its policies.
Areas of Public Policy
? Economic management
? Labour management relations
? The welfare state
? Shaping of public policies affecting
corporate sector
Economic management
? It is assumed that government intervention
is essential and even inevitable in
economic activities.
? Great depression, recession, depression?
Labour Management Relations
? The concept of industrial democracy made
it imperative that a national labour policy
should be adopted by the state to protect
the rights of workers of unions.
The Welfare State
? At present it is believed that every man
has the right to get a good job, decent
food, clothing and shelter.
? It is the responsibility of the government to
guarantee these rights.
Shaping of public policies
affecting corporate sector
? Stakeholder expectations if unmet, trigger
action to transform social concern into
pressure on business and govt.
Need for Public Policy in
Business
? Social forces include the size and composition of
population, life style and pattern of living which have a
definite effect on both the demand and supply of goods
and services that corporate deals in.
? Economic forces are those that shape corporate
behaviour as well as the reaction of govt to solve the
problems arising therefrom.
? Political forces have an impact on govt making and how
govt?s are prompted to shape their policies affecting
corporate.
? Technological forces allow corporations to update their
products, processes and help them meet competition.
Cont..
? To create a competitive environment
? To have control on foreign investment
Government may adopt protectionist policies for
the following reasons:
? To protect the growing local industries
? To regulate demand and supply
? To regulate the prices in the unhealthy
competitive environment
? To protect the environment
Different Levels of Public Policy
Depending on the intended geographic reach and the degree of
sovereignty the authority concerned enjoys.
v National Level: IDRA and MRTP Act.
v State level: policies to protect ground water from contamination,
policies to take over the wine shops in states.
v Regional Level: Common Agricultural Policy, sharing of river water
etc.
v International Level: IPR?s, TRIMs etc.
Elements of Public Policy Inputs
? Govt may determine its course of action on
the basis of
? Economic or foreign policy concerns
? Domestic political pressure from
constituents and interest groups
? Technical information
? Tax imperatives
? Reaction to natural or national calamities
Goals
? Goals may be ideal oriented, narrow or
self serving.
? But it is always important to inquire
whether it served the citizens of the
country whose welfare it intends to serve.
Mechanisms
? Ex: budget negotiations?.
? Instruments of public policy are those
combinations of incentives and
disincentives that govt uses to prompt
citizens, to act in ways that achieve policy
goals.
?
Results
? Intended or unintended results. ? Agenda building-
?Consists of major issues or problems to
which officials give serious attention and
upon which they feel compelled to act.
?Ex: 33% reservation for women in
Parliament and Legislatures?
? Policy formulation ?
?It occurs when interested groups take a
position on some public issue and try to
persuade others to adopt their viewpoints
as public policy.
? Policy Decision-
?Occurs when some arm of the govt, either
authorizes or fail to authorise the course of
action.
? Policy implementation-
?Occurs when action is taken to enforce a
public policy decision.
? Policy Evaluation-
?Occurs when the impact of public policy
becomes evident.
?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,
less expensive way.
FirstRanker.com - FirstRanker's Choice
MODULE - 4
PUBLIC POLICY
? Public ? it comprises domain of human
activity which is regarded as requiring
governmental interventions or common
action.
? Policy ? a purposive course of action taken
or adopted by those in power in pursuit of
certain goals and objectives.
? Public policy is ?whatever governments
choose to do or not to do?.
Public Policy
? Public Policy is an attempt by a
government to address a public issue by
instituting laws, regulations, decisions or
actions pertinent to the problem at hand.
? Issues ? crime, education, foreign policy,
health and social welfare can be
addressed.
? It is thus a plan of action undertaken by
govt to achieve some broad public
purpose.
? Public policy is basically a set of rules and
regulations set forth that the public is
expected to adhere to.
? Ex: public laws
Categories of Public Policies
? Substantive and procedural policies- with respect
to time of execution (former or latter)
? Distributive, Regulatory, Self-regulatory, and Re-
distributive policies ? with respect to allocation
and control.
vDistributive policies concern the allocation of
services and benefits of public resources to
various segments of the economy.
vRegulatory policies imposes restrictions or
limitations on the ways and manners the
individuals and group of individuals and firms
could behave an economy.
vSelf-regulatory policies are the policies similar to
regulatory policies but each unions or bodies
supervised themselves.
vRe-distributive policies are the policies that
allocate resources among the already divided
sections of the society
? Material and symbolic policies- with
respect to the tangibility of power and
assets involved.
It includes policy on patriotism, peace, social
justice etc.
? Policies involving public goods and private
goods- public goods are collectively
owned, divisible and non-excludable.
? Liberal and conservative policies ? with
respect to freedom and ability to influence
or change policies.
vLiberal policies ? easily amendable.
vConservative policies ?rigid or difficult to
change.
Relevance of Public Policy
? Scientific understanding
? Improves our knowledge of society
? Linkages between social and economic
conditions
? Response of political system to those
conditions
? Professional advice
Application of knowledge to the solutions of
practical problems
? Policy recommendations ? to inform
political discussion, advance the level of
political awareness and improve the
quality of public policy.
Government and public policy
? Close relationship between public policy
and government or public authorities.
? No policy becomes public policy unless it
is adopted, implemented and enforced by
some governmental institution.
? It lends legitimacy to policies
? Government policies involve universality
as these extend to all sections in society
? Governments alone can exercise coercion
in society-only govt can legitimately
imprison violators of its policies.
Areas of Public Policy
? Economic management
? Labour management relations
? The welfare state
? Shaping of public policies affecting
corporate sector
Economic management
? It is assumed that government intervention
is essential and even inevitable in
economic activities.
? Great depression, recession, depression?
Labour Management Relations
? The concept of industrial democracy made
it imperative that a national labour policy
should be adopted by the state to protect
the rights of workers of unions.
The Welfare State
? At present it is believed that every man
has the right to get a good job, decent
food, clothing and shelter.
? It is the responsibility of the government to
guarantee these rights.
Shaping of public policies
affecting corporate sector
? Stakeholder expectations if unmet, trigger
action to transform social concern into
pressure on business and govt.
Need for Public Policy in
Business
? Social forces include the size and composition of
population, life style and pattern of living which have a
definite effect on both the demand and supply of goods
and services that corporate deals in.
? Economic forces are those that shape corporate
behaviour as well as the reaction of govt to solve the
problems arising therefrom.
? Political forces have an impact on govt making and how
govt?s are prompted to shape their policies affecting
corporate.
? Technological forces allow corporations to update their
products, processes and help them meet competition.
Cont..
? To create a competitive environment
? To have control on foreign investment
Government may adopt protectionist policies for
the following reasons:
? To protect the growing local industries
? To regulate demand and supply
? To regulate the prices in the unhealthy
competitive environment
? To protect the environment
Different Levels of Public Policy
Depending on the intended geographic reach and the degree of
sovereignty the authority concerned enjoys.
v National Level: IDRA and MRTP Act.
v State level: policies to protect ground water from contamination,
policies to take over the wine shops in states.
v Regional Level: Common Agricultural Policy, sharing of river water
etc.
v International Level: IPR?s, TRIMs etc.
Elements of Public Policy Inputs
? Govt may determine its course of action on
the basis of
? Economic or foreign policy concerns
? Domestic political pressure from
constituents and interest groups
? Technical information
? Tax imperatives
? Reaction to natural or national calamities
Goals
? Goals may be ideal oriented, narrow or
self serving.
? But it is always important to inquire
whether it served the citizens of the
country whose welfare it intends to serve.
Mechanisms
? Ex: budget negotiations?.
? Instruments of public policy are those
combinations of incentives and
disincentives that govt uses to prompt
citizens, to act in ways that achieve policy
goals.
?
Results
? Intended or unintended results. ? Agenda building-
?Consists of major issues or problems to
which officials give serious attention and
upon which they feel compelled to act.
?Ex: 33% reservation for women in
Parliament and Legislatures?
? Policy formulation ?
?It occurs when interested groups take a
position on some public issue and try to
persuade others to adopt their viewpoints
as public policy.
? Policy Decision-
?Occurs when some arm of the govt, either
authorizes or fail to authorise the course of
action.
? Policy implementation-
?Occurs when action is taken to enforce a
public policy decision.
? Policy Evaluation-
?Occurs when the impact of public policy
becomes evident.
?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,
less expensive way.
The Corporation and Public
Policy
1. Limits to Powers of democratic govt ?
constitutional law and common law.
2. Limits to powers of non-democratic
monarchy, dictatorship, religious rulers,
socialist state.
FirstRanker.com - FirstRanker's Choice
MODULE - 4
PUBLIC POLICY
? Public ? it comprises domain of human
activity which is regarded as requiring
governmental interventions or common
action.
? Policy ? a purposive course of action taken
or adopted by those in power in pursuit of
certain goals and objectives.
? Public policy is ?whatever governments
choose to do or not to do?.
Public Policy
? Public Policy is an attempt by a
government to address a public issue by
instituting laws, regulations, decisions or
actions pertinent to the problem at hand.
? Issues ? crime, education, foreign policy,
health and social welfare can be
addressed.
? It is thus a plan of action undertaken by
govt to achieve some broad public
purpose.
? Public policy is basically a set of rules and
regulations set forth that the public is
expected to adhere to.
? Ex: public laws
Categories of Public Policies
? Substantive and procedural policies- with respect
to time of execution (former or latter)
? Distributive, Regulatory, Self-regulatory, and Re-
distributive policies ? with respect to allocation
and control.
vDistributive policies concern the allocation of
services and benefits of public resources to
various segments of the economy.
vRegulatory policies imposes restrictions or
limitations on the ways and manners the
individuals and group of individuals and firms
could behave an economy.
vSelf-regulatory policies are the policies similar to
regulatory policies but each unions or bodies
supervised themselves.
vRe-distributive policies are the policies that
allocate resources among the already divided
sections of the society
? Material and symbolic policies- with
respect to the tangibility of power and
assets involved.
It includes policy on patriotism, peace, social
justice etc.
? Policies involving public goods and private
goods- public goods are collectively
owned, divisible and non-excludable.
? Liberal and conservative policies ? with
respect to freedom and ability to influence
or change policies.
vLiberal policies ? easily amendable.
vConservative policies ?rigid or difficult to
change.
Relevance of Public Policy
? Scientific understanding
? Improves our knowledge of society
? Linkages between social and economic
conditions
? Response of political system to those
conditions
? Professional advice
Application of knowledge to the solutions of
practical problems
? Policy recommendations ? to inform
political discussion, advance the level of
political awareness and improve the
quality of public policy.
Government and public policy
? Close relationship between public policy
and government or public authorities.
? No policy becomes public policy unless it
is adopted, implemented and enforced by
some governmental institution.
? It lends legitimacy to policies
? Government policies involve universality
as these extend to all sections in society
? Governments alone can exercise coercion
in society-only govt can legitimately
imprison violators of its policies.
Areas of Public Policy
? Economic management
? Labour management relations
? The welfare state
? Shaping of public policies affecting
corporate sector
Economic management
? It is assumed that government intervention
is essential and even inevitable in
economic activities.
? Great depression, recession, depression?
Labour Management Relations
? The concept of industrial democracy made
it imperative that a national labour policy
should be adopted by the state to protect
the rights of workers of unions.
The Welfare State
? At present it is believed that every man
has the right to get a good job, decent
food, clothing and shelter.
? It is the responsibility of the government to
guarantee these rights.
Shaping of public policies
affecting corporate sector
? Stakeholder expectations if unmet, trigger
action to transform social concern into
pressure on business and govt.
Need for Public Policy in
Business
? Social forces include the size and composition of
population, life style and pattern of living which have a
definite effect on both the demand and supply of goods
and services that corporate deals in.
? Economic forces are those that shape corporate
behaviour as well as the reaction of govt to solve the
problems arising therefrom.
? Political forces have an impact on govt making and how
govt?s are prompted to shape their policies affecting
corporate.
? Technological forces allow corporations to update their
products, processes and help them meet competition.
Cont..
? To create a competitive environment
? To have control on foreign investment
Government may adopt protectionist policies for
the following reasons:
? To protect the growing local industries
? To regulate demand and supply
? To regulate the prices in the unhealthy
competitive environment
? To protect the environment
Different Levels of Public Policy
Depending on the intended geographic reach and the degree of
sovereignty the authority concerned enjoys.
v National Level: IDRA and MRTP Act.
v State level: policies to protect ground water from contamination,
policies to take over the wine shops in states.
v Regional Level: Common Agricultural Policy, sharing of river water
etc.
v International Level: IPR?s, TRIMs etc.
Elements of Public Policy Inputs
? Govt may determine its course of action on
the basis of
? Economic or foreign policy concerns
? Domestic political pressure from
constituents and interest groups
? Technical information
? Tax imperatives
? Reaction to natural or national calamities
Goals
? Goals may be ideal oriented, narrow or
self serving.
? But it is always important to inquire
whether it served the citizens of the
country whose welfare it intends to serve.
Mechanisms
? Ex: budget negotiations?.
? Instruments of public policy are those
combinations of incentives and
disincentives that govt uses to prompt
citizens, to act in ways that achieve policy
goals.
?
Results
? Intended or unintended results. ? Agenda building-
?Consists of major issues or problems to
which officials give serious attention and
upon which they feel compelled to act.
?Ex: 33% reservation for women in
Parliament and Legislatures?
? Policy formulation ?
?It occurs when interested groups take a
position on some public issue and try to
persuade others to adopt their viewpoints
as public policy.
? Policy Decision-
?Occurs when some arm of the govt, either
authorizes or fail to authorise the course of
action.
? Policy implementation-
?Occurs when action is taken to enforce a
public policy decision.
? Policy Evaluation-
?Occurs when the impact of public policy
becomes evident.
?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,
less expensive way.
The Corporation and Public
Policy
1. Limits to Powers of democratic govt ?
constitutional law and common law.
2. Limits to powers of non-democratic
monarchy, dictatorship, religious rulers,
socialist state.
Framing of Public policy-
Powers of Govt
? Constitutional Govt?s:- the will of the
people and their desires get reflected in
public policies.
? Non-democratic Govt?s :- special interest
lobbying of the leadership elite, complete
with illegal bribes and payments,
international pressure for change, play
decisive role in public policies.
FirstRanker.com - FirstRanker's Choice
MODULE - 4
PUBLIC POLICY
? Public ? it comprises domain of human
activity which is regarded as requiring
governmental interventions or common
action.
? Policy ? a purposive course of action taken
or adopted by those in power in pursuit of
certain goals and objectives.
? Public policy is ?whatever governments
choose to do or not to do?.
Public Policy
? Public Policy is an attempt by a
government to address a public issue by
instituting laws, regulations, decisions or
actions pertinent to the problem at hand.
? Issues ? crime, education, foreign policy,
health and social welfare can be
addressed.
? It is thus a plan of action undertaken by
govt to achieve some broad public
purpose.
? Public policy is basically a set of rules and
regulations set forth that the public is
expected to adhere to.
? Ex: public laws
Categories of Public Policies
? Substantive and procedural policies- with respect
to time of execution (former or latter)
? Distributive, Regulatory, Self-regulatory, and Re-
distributive policies ? with respect to allocation
and control.
vDistributive policies concern the allocation of
services and benefits of public resources to
various segments of the economy.
vRegulatory policies imposes restrictions or
limitations on the ways and manners the
individuals and group of individuals and firms
could behave an economy.
vSelf-regulatory policies are the policies similar to
regulatory policies but each unions or bodies
supervised themselves.
vRe-distributive policies are the policies that
allocate resources among the already divided
sections of the society
? Material and symbolic policies- with
respect to the tangibility of power and
assets involved.
It includes policy on patriotism, peace, social
justice etc.
? Policies involving public goods and private
goods- public goods are collectively
owned, divisible and non-excludable.
? Liberal and conservative policies ? with
respect to freedom and ability to influence
or change policies.
vLiberal policies ? easily amendable.
vConservative policies ?rigid or difficult to
change.
Relevance of Public Policy
? Scientific understanding
? Improves our knowledge of society
? Linkages between social and economic
conditions
? Response of political system to those
conditions
? Professional advice
Application of knowledge to the solutions of
practical problems
? Policy recommendations ? to inform
political discussion, advance the level of
political awareness and improve the
quality of public policy.
Government and public policy
? Close relationship between public policy
and government or public authorities.
? No policy becomes public policy unless it
is adopted, implemented and enforced by
some governmental institution.
? It lends legitimacy to policies
? Government policies involve universality
as these extend to all sections in society
? Governments alone can exercise coercion
in society-only govt can legitimately
imprison violators of its policies.
Areas of Public Policy
? Economic management
? Labour management relations
? The welfare state
? Shaping of public policies affecting
corporate sector
Economic management
? It is assumed that government intervention
is essential and even inevitable in
economic activities.
? Great depression, recession, depression?
Labour Management Relations
? The concept of industrial democracy made
it imperative that a national labour policy
should be adopted by the state to protect
the rights of workers of unions.
The Welfare State
? At present it is believed that every man
has the right to get a good job, decent
food, clothing and shelter.
? It is the responsibility of the government to
guarantee these rights.
Shaping of public policies
affecting corporate sector
? Stakeholder expectations if unmet, trigger
action to transform social concern into
pressure on business and govt.
Need for Public Policy in
Business
? Social forces include the size and composition of
population, life style and pattern of living which have a
definite effect on both the demand and supply of goods
and services that corporate deals in.
? Economic forces are those that shape corporate
behaviour as well as the reaction of govt to solve the
problems arising therefrom.
? Political forces have an impact on govt making and how
govt?s are prompted to shape their policies affecting
corporate.
? Technological forces allow corporations to update their
products, processes and help them meet competition.
Cont..
? To create a competitive environment
? To have control on foreign investment
Government may adopt protectionist policies for
the following reasons:
? To protect the growing local industries
? To regulate demand and supply
? To regulate the prices in the unhealthy
competitive environment
? To protect the environment
Different Levels of Public Policy
Depending on the intended geographic reach and the degree of
sovereignty the authority concerned enjoys.
v National Level: IDRA and MRTP Act.
v State level: policies to protect ground water from contamination,
policies to take over the wine shops in states.
v Regional Level: Common Agricultural Policy, sharing of river water
etc.
v International Level: IPR?s, TRIMs etc.
Elements of Public Policy Inputs
? Govt may determine its course of action on
the basis of
? Economic or foreign policy concerns
? Domestic political pressure from
constituents and interest groups
? Technical information
? Tax imperatives
? Reaction to natural or national calamities
Goals
? Goals may be ideal oriented, narrow or
self serving.
? But it is always important to inquire
whether it served the citizens of the
country whose welfare it intends to serve.
Mechanisms
? Ex: budget negotiations?.
? Instruments of public policy are those
combinations of incentives and
disincentives that govt uses to prompt
citizens, to act in ways that achieve policy
goals.
?
Results
? Intended or unintended results. ? Agenda building-
?Consists of major issues or problems to
which officials give serious attention and
upon which they feel compelled to act.
?Ex: 33% reservation for women in
Parliament and Legislatures?
? Policy formulation ?
?It occurs when interested groups take a
position on some public issue and try to
persuade others to adopt their viewpoints
as public policy.
? Policy Decision-
?Occurs when some arm of the govt, either
authorizes or fail to authorise the course of
action.
? Policy implementation-
?Occurs when action is taken to enforce a
public policy decision.
? Policy Evaluation-
?Occurs when the impact of public policy
becomes evident.
?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,
less expensive way.
The Corporation and Public
Policy
1. Limits to Powers of democratic govt ?
constitutional law and common law.
2. Limits to powers of non-democratic
monarchy, dictatorship, religious rulers,
socialist state.
Framing of Public policy-
Powers of Govt
? Constitutional Govt?s:- the will of the
people and their desires get reflected in
public policies.
? Non-democratic Govt?s :- special interest
lobbying of the leadership elite, complete
with illegal bribes and payments,
international pressure for change, play
decisive role in public policies.
Involvement of Business in
Public Policy Decision Making
? Business should be involved:- 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.
? Business should not be involved:-
business and politics should be separated
as their combination will have several toxic
effects
FirstRanker.com - FirstRanker's Choice
MODULE - 4
PUBLIC POLICY
? Public ? it comprises domain of human
activity which is regarded as requiring
governmental interventions or common
action.
? Policy ? a purposive course of action taken
or adopted by those in power in pursuit of
certain goals and objectives.
? Public policy is ?whatever governments
choose to do or not to do?.
Public Policy
? Public Policy is an attempt by a
government to address a public issue by
instituting laws, regulations, decisions or
actions pertinent to the problem at hand.
? Issues ? crime, education, foreign policy,
health and social welfare can be
addressed.
? It is thus a plan of action undertaken by
govt to achieve some broad public
purpose.
? Public policy is basically a set of rules and
regulations set forth that the public is
expected to adhere to.
? Ex: public laws
Categories of Public Policies
? Substantive and procedural policies- with respect
to time of execution (former or latter)
? Distributive, Regulatory, Self-regulatory, and Re-
distributive policies ? with respect to allocation
and control.
vDistributive policies concern the allocation of
services and benefits of public resources to
various segments of the economy.
vRegulatory policies imposes restrictions or
limitations on the ways and manners the
individuals and group of individuals and firms
could behave an economy.
vSelf-regulatory policies are the policies similar to
regulatory policies but each unions or bodies
supervised themselves.
vRe-distributive policies are the policies that
allocate resources among the already divided
sections of the society
? Material and symbolic policies- with
respect to the tangibility of power and
assets involved.
It includes policy on patriotism, peace, social
justice etc.
? Policies involving public goods and private
goods- public goods are collectively
owned, divisible and non-excludable.
? Liberal and conservative policies ? with
respect to freedom and ability to influence
or change policies.
vLiberal policies ? easily amendable.
vConservative policies ?rigid or difficult to
change.
Relevance of Public Policy
? Scientific understanding
? Improves our knowledge of society
? Linkages between social and economic
conditions
? Response of political system to those
conditions
? Professional advice
Application of knowledge to the solutions of
practical problems
? Policy recommendations ? to inform
political discussion, advance the level of
political awareness and improve the
quality of public policy.
Government and public policy
? Close relationship between public policy
and government or public authorities.
? No policy becomes public policy unless it
is adopted, implemented and enforced by
some governmental institution.
? It lends legitimacy to policies
? Government policies involve universality
as these extend to all sections in society
? Governments alone can exercise coercion
in society-only govt can legitimately
imprison violators of its policies.
Areas of Public Policy
? Economic management
? Labour management relations
? The welfare state
? Shaping of public policies affecting
corporate sector
Economic management
? It is assumed that government intervention
is essential and even inevitable in
economic activities.
? Great depression, recession, depression?
Labour Management Relations
? The concept of industrial democracy made
it imperative that a national labour policy
should be adopted by the state to protect
the rights of workers of unions.
The Welfare State
? At present it is believed that every man
has the right to get a good job, decent
food, clothing and shelter.
? It is the responsibility of the government to
guarantee these rights.
Shaping of public policies
affecting corporate sector
? Stakeholder expectations if unmet, trigger
action to transform social concern into
pressure on business and govt.
Need for Public Policy in
Business
? Social forces include the size and composition of
population, life style and pattern of living which have a
definite effect on both the demand and supply of goods
and services that corporate deals in.
? Economic forces are those that shape corporate
behaviour as well as the reaction of govt to solve the
problems arising therefrom.
? Political forces have an impact on govt making and how
govt?s are prompted to shape their policies affecting
corporate.
? Technological forces allow corporations to update their
products, processes and help them meet competition.
Cont..
? To create a competitive environment
? To have control on foreign investment
Government may adopt protectionist policies for
the following reasons:
? To protect the growing local industries
? To regulate demand and supply
? To regulate the prices in the unhealthy
competitive environment
? To protect the environment
Different Levels of Public Policy
Depending on the intended geographic reach and the degree of
sovereignty the authority concerned enjoys.
v National Level: IDRA and MRTP Act.
v State level: policies to protect ground water from contamination,
policies to take over the wine shops in states.
v Regional Level: Common Agricultural Policy, sharing of river water
etc.
v International Level: IPR?s, TRIMs etc.
Elements of Public Policy Inputs
? Govt may determine its course of action on
the basis of
? Economic or foreign policy concerns
? Domestic political pressure from
constituents and interest groups
? Technical information
? Tax imperatives
? Reaction to natural or national calamities
Goals
? Goals may be ideal oriented, narrow or
self serving.
? But it is always important to inquire
whether it served the citizens of the
country whose welfare it intends to serve.
Mechanisms
? Ex: budget negotiations?.
? Instruments of public policy are those
combinations of incentives and
disincentives that govt uses to prompt
citizens, to act in ways that achieve policy
goals.
?
Results
? Intended or unintended results. ? Agenda building-
?Consists of major issues or problems to
which officials give serious attention and
upon which they feel compelled to act.
?Ex: 33% reservation for women in
Parliament and Legislatures?
? Policy formulation ?
?It occurs when interested groups take a
position on some public issue and try to
persuade others to adopt their viewpoints
as public policy.
? Policy Decision-
?Occurs when some arm of the govt, either
authorizes or fail to authorise the course of
action.
? Policy implementation-
?Occurs when action is taken to enforce a
public policy decision.
? Policy Evaluation-
?Occurs when the impact of public policy
becomes evident.
?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,
less expensive way.
The Corporation and Public
Policy
1. Limits to Powers of democratic govt ?
constitutional law and common law.
2. Limits to powers of non-democratic
monarchy, dictatorship, religious rulers,
socialist state.
Framing of Public policy-
Powers of Govt
? Constitutional Govt?s:- the will of the
people and their desires get reflected in
public policies.
? Non-democratic Govt?s :- special interest
lobbying of the leadership elite, complete
with illegal bribes and payments,
international pressure for change, play
decisive role in public policies.
Involvement of Business in
Public Policy Decision Making
? Business should be involved:- 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.
? Business should not be involved:-
business and politics should be separated
as their combination will have several toxic
effects
Cont..
? Effects are:-
vExecutives are not fit to engage in political
debates.
vBusiness is too big and too powerful, while
politics is fragmented by its very nature
and makes gains by divide-and-rule policy.
FirstRanker.com - FirstRanker's Choice
MODULE - 4
PUBLIC POLICY
? Public ? it comprises domain of human
activity which is regarded as requiring
governmental interventions or common
action.
? Policy ? a purposive course of action taken
or adopted by those in power in pursuit of
certain goals and objectives.
? Public policy is ?whatever governments
choose to do or not to do?.
Public Policy
? Public Policy is an attempt by a
government to address a public issue by
instituting laws, regulations, decisions or
actions pertinent to the problem at hand.
? Issues ? crime, education, foreign policy,
health and social welfare can be
addressed.
? It is thus a plan of action undertaken by
govt to achieve some broad public
purpose.
? Public policy is basically a set of rules and
regulations set forth that the public is
expected to adhere to.
? Ex: public laws
Categories of Public Policies
? Substantive and procedural policies- with respect
to time of execution (former or latter)
? Distributive, Regulatory, Self-regulatory, and Re-
distributive policies ? with respect to allocation
and control.
vDistributive policies concern the allocation of
services and benefits of public resources to
various segments of the economy.
vRegulatory policies imposes restrictions or
limitations on the ways and manners the
individuals and group of individuals and firms
could behave an economy.
vSelf-regulatory policies are the policies similar to
regulatory policies but each unions or bodies
supervised themselves.
vRe-distributive policies are the policies that
allocate resources among the already divided
sections of the society
? Material and symbolic policies- with
respect to the tangibility of power and
assets involved.
It includes policy on patriotism, peace, social
justice etc.
? Policies involving public goods and private
goods- public goods are collectively
owned, divisible and non-excludable.
? Liberal and conservative policies ? with
respect to freedom and ability to influence
or change policies.
vLiberal policies ? easily amendable.
vConservative policies ?rigid or difficult to
change.
Relevance of Public Policy
? Scientific understanding
? Improves our knowledge of society
? Linkages between social and economic
conditions
? Response of political system to those
conditions
? Professional advice
Application of knowledge to the solutions of
practical problems
? Policy recommendations ? to inform
political discussion, advance the level of
political awareness and improve the
quality of public policy.
Government and public policy
? Close relationship between public policy
and government or public authorities.
? No policy becomes public policy unless it
is adopted, implemented and enforced by
some governmental institution.
? It lends legitimacy to policies
? Government policies involve universality
as these extend to all sections in society
? Governments alone can exercise coercion
in society-only govt can legitimately
imprison violators of its policies.
Areas of Public Policy
? Economic management
? Labour management relations
? The welfare state
? Shaping of public policies affecting
corporate sector
Economic management
? It is assumed that government intervention
is essential and even inevitable in
economic activities.
? Great depression, recession, depression?
Labour Management Relations
? The concept of industrial democracy made
it imperative that a national labour policy
should be adopted by the state to protect
the rights of workers of unions.
The Welfare State
? At present it is believed that every man
has the right to get a good job, decent
food, clothing and shelter.
? It is the responsibility of the government to
guarantee these rights.
Shaping of public policies
affecting corporate sector
? Stakeholder expectations if unmet, trigger
action to transform social concern into
pressure on business and govt.
Need for Public Policy in
Business
? Social forces include the size and composition of
population, life style and pattern of living which have a
definite effect on both the demand and supply of goods
and services that corporate deals in.
? Economic forces are those that shape corporate
behaviour as well as the reaction of govt to solve the
problems arising therefrom.
? Political forces have an impact on govt making and how
govt?s are prompted to shape their policies affecting
corporate.
? Technological forces allow corporations to update their
products, processes and help them meet competition.
Cont..
? To create a competitive environment
? To have control on foreign investment
Government may adopt protectionist policies for
the following reasons:
? To protect the growing local industries
? To regulate demand and supply
? To regulate the prices in the unhealthy
competitive environment
? To protect the environment
Different Levels of Public Policy
Depending on the intended geographic reach and the degree of
sovereignty the authority concerned enjoys.
v National Level: IDRA and MRTP Act.
v State level: policies to protect ground water from contamination,
policies to take over the wine shops in states.
v Regional Level: Common Agricultural Policy, sharing of river water
etc.
v International Level: IPR?s, TRIMs etc.
Elements of Public Policy Inputs
? Govt may determine its course of action on
the basis of
? Economic or foreign policy concerns
? Domestic political pressure from
constituents and interest groups
? Technical information
? Tax imperatives
? Reaction to natural or national calamities
Goals
? Goals may be ideal oriented, narrow or
self serving.
? But it is always important to inquire
whether it served the citizens of the
country whose welfare it intends to serve.
Mechanisms
? Ex: budget negotiations?.
? Instruments of public policy are those
combinations of incentives and
disincentives that govt uses to prompt
citizens, to act in ways that achieve policy
goals.
?
Results
? Intended or unintended results. ? Agenda building-
?Consists of major issues or problems to
which officials give serious attention and
upon which they feel compelled to act.
?Ex: 33% reservation for women in
Parliament and Legislatures?
? Policy formulation ?
?It occurs when interested groups take a
position on some public issue and try to
persuade others to adopt their viewpoints
as public policy.
? Policy Decision-
?Occurs when some arm of the govt, either
authorizes or fail to authorise the course of
action.
? Policy implementation-
?Occurs when action is taken to enforce a
public policy decision.
? Policy Evaluation-
?Occurs when the impact of public policy
becomes evident.
?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,
less expensive way.
The Corporation and Public
Policy
1. Limits to Powers of democratic govt ?
constitutional law and common law.
2. Limits to powers of non-democratic
monarchy, dictatorship, religious rulers,
socialist state.
Framing of Public policy-
Powers of Govt
? Constitutional Govt?s:- the will of the
people and their desires get reflected in
public policies.
? Non-democratic Govt?s :- special interest
lobbying of the leadership elite, complete
with illegal bribes and payments,
international pressure for change, play
decisive role in public policies.
Involvement of Business in
Public Policy Decision Making
? Business should be involved:- 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.
? Business should not be involved:-
business and politics should be separated
as their combination will have several toxic
effects
Cont..
? Effects are:-
vExecutives are not fit to engage in political
debates.
vBusiness is too big and too powerful, while
politics is fragmented by its very nature
and makes gains by divide-and-rule policy.
Business and Political- levels of
involvement
? Level 1:Financial Involvement
? Level 2: Organisational Involvement
? Level 3: Strategic public policy
involvement
FirstRanker.com - FirstRanker's Choice
MODULE - 4
PUBLIC POLICY
? Public ? it comprises domain of human
activity which is regarded as requiring
governmental interventions or common
action.
? Policy ? a purposive course of action taken
or adopted by those in power in pursuit of
certain goals and objectives.
? Public policy is ?whatever governments
choose to do or not to do?.
Public Policy
? Public Policy is an attempt by a
government to address a public issue by
instituting laws, regulations, decisions or
actions pertinent to the problem at hand.
? Issues ? crime, education, foreign policy,
health and social welfare can be
addressed.
? It is thus a plan of action undertaken by
govt to achieve some broad public
purpose.
? Public policy is basically a set of rules and
regulations set forth that the public is
expected to adhere to.
? Ex: public laws
Categories of Public Policies
? Substantive and procedural policies- with respect
to time of execution (former or latter)
? Distributive, Regulatory, Self-regulatory, and Re-
distributive policies ? with respect to allocation
and control.
vDistributive policies concern the allocation of
services and benefits of public resources to
various segments of the economy.
vRegulatory policies imposes restrictions or
limitations on the ways and manners the
individuals and group of individuals and firms
could behave an economy.
vSelf-regulatory policies are the policies similar to
regulatory policies but each unions or bodies
supervised themselves.
vRe-distributive policies are the policies that
allocate resources among the already divided
sections of the society
? Material and symbolic policies- with
respect to the tangibility of power and
assets involved.
It includes policy on patriotism, peace, social
justice etc.
? Policies involving public goods and private
goods- public goods are collectively
owned, divisible and non-excludable.
? Liberal and conservative policies ? with
respect to freedom and ability to influence
or change policies.
vLiberal policies ? easily amendable.
vConservative policies ?rigid or difficult to
change.
Relevance of Public Policy
? Scientific understanding
? Improves our knowledge of society
? Linkages between social and economic
conditions
? Response of political system to those
conditions
? Professional advice
Application of knowledge to the solutions of
practical problems
? Policy recommendations ? to inform
political discussion, advance the level of
political awareness and improve the
quality of public policy.
Government and public policy
? Close relationship between public policy
and government or public authorities.
? No policy becomes public policy unless it
is adopted, implemented and enforced by
some governmental institution.
? It lends legitimacy to policies
? Government policies involve universality
as these extend to all sections in society
? Governments alone can exercise coercion
in society-only govt can legitimately
imprison violators of its policies.
Areas of Public Policy
? Economic management
? Labour management relations
? The welfare state
? Shaping of public policies affecting
corporate sector
Economic management
? It is assumed that government intervention
is essential and even inevitable in
economic activities.
? Great depression, recession, depression?
Labour Management Relations
? The concept of industrial democracy made
it imperative that a national labour policy
should be adopted by the state to protect
the rights of workers of unions.
The Welfare State
? At present it is believed that every man
has the right to get a good job, decent
food, clothing and shelter.
? It is the responsibility of the government to
guarantee these rights.
Shaping of public policies
affecting corporate sector
? Stakeholder expectations if unmet, trigger
action to transform social concern into
pressure on business and govt.
Need for Public Policy in
Business
? Social forces include the size and composition of
population, life style and pattern of living which have a
definite effect on both the demand and supply of goods
and services that corporate deals in.
? Economic forces are those that shape corporate
behaviour as well as the reaction of govt to solve the
problems arising therefrom.
? Political forces have an impact on govt making and how
govt?s are prompted to shape their policies affecting
corporate.
? Technological forces allow corporations to update their
products, processes and help them meet competition.
Cont..
? To create a competitive environment
? To have control on foreign investment
Government may adopt protectionist policies for
the following reasons:
? To protect the growing local industries
? To regulate demand and supply
? To regulate the prices in the unhealthy
competitive environment
? To protect the environment
Different Levels of Public Policy
Depending on the intended geographic reach and the degree of
sovereignty the authority concerned enjoys.
v National Level: IDRA and MRTP Act.
v State level: policies to protect ground water from contamination,
policies to take over the wine shops in states.
v Regional Level: Common Agricultural Policy, sharing of river water
etc.
v International Level: IPR?s, TRIMs etc.
Elements of Public Policy Inputs
? Govt may determine its course of action on
the basis of
? Economic or foreign policy concerns
? Domestic political pressure from
constituents and interest groups
? Technical information
? Tax imperatives
? Reaction to natural or national calamities
Goals
? Goals may be ideal oriented, narrow or
self serving.
? But it is always important to inquire
whether it served the citizens of the
country whose welfare it intends to serve.
Mechanisms
? Ex: budget negotiations?.
? Instruments of public policy are those
combinations of incentives and
disincentives that govt uses to prompt
citizens, to act in ways that achieve policy
goals.
?
Results
? Intended or unintended results. ? Agenda building-
?Consists of major issues or problems to
which officials give serious attention and
upon which they feel compelled to act.
?Ex: 33% reservation for women in
Parliament and Legislatures?
? Policy formulation ?
?It occurs when interested groups take a
position on some public issue and try to
persuade others to adopt their viewpoints
as public policy.
? Policy Decision-
?Occurs when some arm of the govt, either
authorizes or fail to authorise the course of
action.
? Policy implementation-
?Occurs when action is taken to enforce a
public policy decision.
? Policy Evaluation-
?Occurs when the impact of public policy
becomes evident.
?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,
less expensive way.
The Corporation and Public
Policy
1. Limits to Powers of democratic govt ?
constitutional law and common law.
2. Limits to powers of non-democratic
monarchy, dictatorship, religious rulers,
socialist state.
Framing of Public policy-
Powers of Govt
? Constitutional Govt?s:- the will of the
people and their desires get reflected in
public policies.
? Non-democratic Govt?s :- special interest
lobbying of the leadership elite, complete
with illegal bribes and payments,
international pressure for change, play
decisive role in public policies.
Involvement of Business in
Public Policy Decision Making
? Business should be involved:- 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.
? Business should not be involved:-
business and politics should be separated
as their combination will have several toxic
effects
Cont..
? Effects are:-
vExecutives are not fit to engage in political
debates.
vBusiness is too big and too powerful, while
politics is fragmented by its very nature
and makes gains by divide-and-rule policy.
Business and Political- levels of
involvement
? Level 1:Financial Involvement
? Level 2: Organisational Involvement
? Level 3: Strategic public policy
involvement
Level 1:Financial Involvement
? Formation of Political Action Committee (PAC) :-
PAC may solicit contributions from stock-holders
and employees and then channel the fund to
those seeking political office.
? Trade Association Support: many large
corporations place full time liaison officers in
national capitals.
? FICCI,CII,ASSOCHAM and Chambers of
Commerce.
FirstRanker.com - FirstRanker's Choice
MODULE - 4
PUBLIC POLICY
? Public ? it comprises domain of human
activity which is regarded as requiring
governmental interventions or common
action.
? Policy ? a purposive course of action taken
or adopted by those in power in pursuit of
certain goals and objectives.
? Public policy is ?whatever governments
choose to do or not to do?.
Public Policy
? Public Policy is an attempt by a
government to address a public issue by
instituting laws, regulations, decisions or
actions pertinent to the problem at hand.
? Issues ? crime, education, foreign policy,
health and social welfare can be
addressed.
? It is thus a plan of action undertaken by
govt to achieve some broad public
purpose.
? Public policy is basically a set of rules and
regulations set forth that the public is
expected to adhere to.
? Ex: public laws
Categories of Public Policies
? Substantive and procedural policies- with respect
to time of execution (former or latter)
? Distributive, Regulatory, Self-regulatory, and Re-
distributive policies ? with respect to allocation
and control.
vDistributive policies concern the allocation of
services and benefits of public resources to
various segments of the economy.
vRegulatory policies imposes restrictions or
limitations on the ways and manners the
individuals and group of individuals and firms
could behave an economy.
vSelf-regulatory policies are the policies similar to
regulatory policies but each unions or bodies
supervised themselves.
vRe-distributive policies are the policies that
allocate resources among the already divided
sections of the society
? Material and symbolic policies- with
respect to the tangibility of power and
assets involved.
It includes policy on patriotism, peace, social
justice etc.
? Policies involving public goods and private
goods- public goods are collectively
owned, divisible and non-excludable.
? Liberal and conservative policies ? with
respect to freedom and ability to influence
or change policies.
vLiberal policies ? easily amendable.
vConservative policies ?rigid or difficult to
change.
Relevance of Public Policy
? Scientific understanding
? Improves our knowledge of society
? Linkages between social and economic
conditions
? Response of political system to those
conditions
? Professional advice
Application of knowledge to the solutions of
practical problems
? Policy recommendations ? to inform
political discussion, advance the level of
political awareness and improve the
quality of public policy.
Government and public policy
? Close relationship between public policy
and government or public authorities.
? No policy becomes public policy unless it
is adopted, implemented and enforced by
some governmental institution.
? It lends legitimacy to policies
? Government policies involve universality
as these extend to all sections in society
? Governments alone can exercise coercion
in society-only govt can legitimately
imprison violators of its policies.
Areas of Public Policy
? Economic management
? Labour management relations
? The welfare state
? Shaping of public policies affecting
corporate sector
Economic management
? It is assumed that government intervention
is essential and even inevitable in
economic activities.
? Great depression, recession, depression?
Labour Management Relations
? The concept of industrial democracy made
it imperative that a national labour policy
should be adopted by the state to protect
the rights of workers of unions.
The Welfare State
? At present it is believed that every man
has the right to get a good job, decent
food, clothing and shelter.
? It is the responsibility of the government to
guarantee these rights.
Shaping of public policies
affecting corporate sector
? Stakeholder expectations if unmet, trigger
action to transform social concern into
pressure on business and govt.
Need for Public Policy in
Business
? Social forces include the size and composition of
population, life style and pattern of living which have a
definite effect on both the demand and supply of goods
and services that corporate deals in.
? Economic forces are those that shape corporate
behaviour as well as the reaction of govt to solve the
problems arising therefrom.
? Political forces have an impact on govt making and how
govt?s are prompted to shape their policies affecting
corporate.
? Technological forces allow corporations to update their
products, processes and help them meet competition.
Cont..
? To create a competitive environment
? To have control on foreign investment
Government may adopt protectionist policies for
the following reasons:
? To protect the growing local industries
? To regulate demand and supply
? To regulate the prices in the unhealthy
competitive environment
? To protect the environment
Different Levels of Public Policy
Depending on the intended geographic reach and the degree of
sovereignty the authority concerned enjoys.
v National Level: IDRA and MRTP Act.
v State level: policies to protect ground water from contamination,
policies to take over the wine shops in states.
v Regional Level: Common Agricultural Policy, sharing of river water
etc.
v International Level: IPR?s, TRIMs etc.
Elements of Public Policy Inputs
? Govt may determine its course of action on
the basis of
? Economic or foreign policy concerns
? Domestic political pressure from
constituents and interest groups
? Technical information
? Tax imperatives
? Reaction to natural or national calamities
Goals
? Goals may be ideal oriented, narrow or
self serving.
? But it is always important to inquire
whether it served the citizens of the
country whose welfare it intends to serve.
Mechanisms
? Ex: budget negotiations?.
? Instruments of public policy are those
combinations of incentives and
disincentives that govt uses to prompt
citizens, to act in ways that achieve policy
goals.
?
Results
? Intended or unintended results. ? Agenda building-
?Consists of major issues or problems to
which officials give serious attention and
upon which they feel compelled to act.
?Ex: 33% reservation for women in
Parliament and Legislatures?
? Policy formulation ?
?It occurs when interested groups take a
position on some public issue and try to
persuade others to adopt their viewpoints
as public policy.
? Policy Decision-
?Occurs when some arm of the govt, either
authorizes or fail to authorise the course of
action.
? Policy implementation-
?Occurs when action is taken to enforce a
public policy decision.
? Policy Evaluation-
?Occurs when the impact of public policy
becomes evident.
?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,
less expensive way.
The Corporation and Public
Policy
1. Limits to Powers of democratic govt ?
constitutional law and common law.
2. Limits to powers of non-democratic
monarchy, dictatorship, religious rulers,
socialist state.
Framing of Public policy-
Powers of Govt
? Constitutional Govt?s:- the will of the
people and their desires get reflected in
public policies.
? Non-democratic Govt?s :- special interest
lobbying of the leadership elite, complete
with illegal bribes and payments,
international pressure for change, play
decisive role in public policies.
Involvement of Business in
Public Policy Decision Making
? Business should be involved:- 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.
? Business should not be involved:-
business and politics should be separated
as their combination will have several toxic
effects
Cont..
? Effects are:-
vExecutives are not fit to engage in political
debates.
vBusiness is too big and too powerful, while
politics is fragmented by its very nature
and makes gains by divide-and-rule policy.
Business and Political- levels of
involvement
? Level 1:Financial Involvement
? Level 2: Organisational Involvement
? Level 3: Strategic public policy
involvement
Level 1:Financial Involvement
? Formation of Political Action Committee (PAC) :-
PAC may solicit contributions from stock-holders
and employees and then channel the fund to
those seeking political office.
? Trade Association Support: many large
corporations place full time liaison officers in
national capitals.
? FICCI,CII,ASSOCHAM and Chambers of
Commerce.
Level 2: Organisational
Involvement
? Lobbying: involves direct contact with a
government official to influence the
thinking or actions of that person on an
issue or public policy.
? Employee grassroot involvement :
grassroot programs are organised efforts
to get constituents to influence govt
officials to vote or act in a favourable way.
FirstRanker.com - FirstRanker's Choice
MODULE - 4
PUBLIC POLICY
? Public ? it comprises domain of human
activity which is regarded as requiring
governmental interventions or common
action.
? Policy ? a purposive course of action taken
or adopted by those in power in pursuit of
certain goals and objectives.
? Public policy is ?whatever governments
choose to do or not to do?.
Public Policy
? Public Policy is an attempt by a
government to address a public issue by
instituting laws, regulations, decisions or
actions pertinent to the problem at hand.
? Issues ? crime, education, foreign policy,
health and social welfare can be
addressed.
? It is thus a plan of action undertaken by
govt to achieve some broad public
purpose.
? Public policy is basically a set of rules and
regulations set forth that the public is
expected to adhere to.
? Ex: public laws
Categories of Public Policies
? Substantive and procedural policies- with respect
to time of execution (former or latter)
? Distributive, Regulatory, Self-regulatory, and Re-
distributive policies ? with respect to allocation
and control.
vDistributive policies concern the allocation of
services and benefits of public resources to
various segments of the economy.
vRegulatory policies imposes restrictions or
limitations on the ways and manners the
individuals and group of individuals and firms
could behave an economy.
vSelf-regulatory policies are the policies similar to
regulatory policies but each unions or bodies
supervised themselves.
vRe-distributive policies are the policies that
allocate resources among the already divided
sections of the society
? Material and symbolic policies- with
respect to the tangibility of power and
assets involved.
It includes policy on patriotism, peace, social
justice etc.
? Policies involving public goods and private
goods- public goods are collectively
owned, divisible and non-excludable.
? Liberal and conservative policies ? with
respect to freedom and ability to influence
or change policies.
vLiberal policies ? easily amendable.
vConservative policies ?rigid or difficult to
change.
Relevance of Public Policy
? Scientific understanding
? Improves our knowledge of society
? Linkages between social and economic
conditions
? Response of political system to those
conditions
? Professional advice
Application of knowledge to the solutions of
practical problems
? Policy recommendations ? to inform
political discussion, advance the level of
political awareness and improve the
quality of public policy.
Government and public policy
? Close relationship between public policy
and government or public authorities.
? No policy becomes public policy unless it
is adopted, implemented and enforced by
some governmental institution.
? It lends legitimacy to policies
? Government policies involve universality
as these extend to all sections in society
? Governments alone can exercise coercion
in society-only govt can legitimately
imprison violators of its policies.
Areas of Public Policy
? Economic management
? Labour management relations
? The welfare state
? Shaping of public policies affecting
corporate sector
Economic management
? It is assumed that government intervention
is essential and even inevitable in
economic activities.
? Great depression, recession, depression?
Labour Management Relations
? The concept of industrial democracy made
it imperative that a national labour policy
should be adopted by the state to protect
the rights of workers of unions.
The Welfare State
? At present it is believed that every man
has the right to get a good job, decent
food, clothing and shelter.
? It is the responsibility of the government to
guarantee these rights.
Shaping of public policies
affecting corporate sector
? Stakeholder expectations if unmet, trigger
action to transform social concern into
pressure on business and govt.
Need for Public Policy in
Business
? Social forces include the size and composition of
population, life style and pattern of living which have a
definite effect on both the demand and supply of goods
and services that corporate deals in.
? Economic forces are those that shape corporate
behaviour as well as the reaction of govt to solve the
problems arising therefrom.
? Political forces have an impact on govt making and how
govt?s are prompted to shape their policies affecting
corporate.
? Technological forces allow corporations to update their
products, processes and help them meet competition.
Cont..
? To create a competitive environment
? To have control on foreign investment
Government may adopt protectionist policies for
the following reasons:
? To protect the growing local industries
? To regulate demand and supply
? To regulate the prices in the unhealthy
competitive environment
? To protect the environment
Different Levels of Public Policy
Depending on the intended geographic reach and the degree of
sovereignty the authority concerned enjoys.
v National Level: IDRA and MRTP Act.
v State level: policies to protect ground water from contamination,
policies to take over the wine shops in states.
v Regional Level: Common Agricultural Policy, sharing of river water
etc.
v International Level: IPR?s, TRIMs etc.
Elements of Public Policy Inputs
? Govt may determine its course of action on
the basis of
? Economic or foreign policy concerns
? Domestic political pressure from
constituents and interest groups
? Technical information
? Tax imperatives
? Reaction to natural or national calamities
Goals
? Goals may be ideal oriented, narrow or
self serving.
? But it is always important to inquire
whether it served the citizens of the
country whose welfare it intends to serve.
Mechanisms
? Ex: budget negotiations?.
? Instruments of public policy are those
combinations of incentives and
disincentives that govt uses to prompt
citizens, to act in ways that achieve policy
goals.
?
Results
? Intended or unintended results. ? Agenda building-
?Consists of major issues or problems to
which officials give serious attention and
upon which they feel compelled to act.
?Ex: 33% reservation for women in
Parliament and Legislatures?
? Policy formulation ?
?It occurs when interested groups take a
position on some public issue and try to
persuade others to adopt their viewpoints
as public policy.
? Policy Decision-
?Occurs when some arm of the govt, either
authorizes or fail to authorise the course of
action.
? Policy implementation-
?Occurs when action is taken to enforce a
public policy decision.
? Policy Evaluation-
?Occurs when the impact of public policy
becomes evident.
?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,
less expensive way.
The Corporation and Public
Policy
1. Limits to Powers of democratic govt ?
constitutional law and common law.
2. Limits to powers of non-democratic
monarchy, dictatorship, religious rulers,
socialist state.
Framing of Public policy-
Powers of Govt
? Constitutional Govt?s:- the will of the
people and their desires get reflected in
public policies.
? Non-democratic Govt?s :- special interest
lobbying of the leadership elite, complete
with illegal bribes and payments,
international pressure for change, play
decisive role in public policies.
Involvement of Business in
Public Policy Decision Making
? Business should be involved:- 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.
? Business should not be involved:-
business and politics should be separated
as their combination will have several toxic
effects
Cont..
? Effects are:-
vExecutives are not fit to engage in political
debates.
vBusiness is too big and too powerful, while
politics is fragmented by its very nature
and makes gains by divide-and-rule policy.
Business and Political- levels of
involvement
? Level 1:Financial Involvement
? Level 2: Organisational Involvement
? Level 3: Strategic public policy
involvement
Level 1:Financial Involvement
? Formation of Political Action Committee (PAC) :-
PAC may solicit contributions from stock-holders
and employees and then channel the fund to
those seeking political office.
? Trade Association Support: many large
corporations place full time liaison officers in
national capitals.
? FICCI,CII,ASSOCHAM and Chambers of
Commerce.
Level 2: Organisational
Involvement
? Lobbying: involves direct contact with a
government official to influence the
thinking or actions of that person on an
issue or public policy.
? Employee grassroot involvement :
grassroot programs are organised efforts
to get constituents to influence govt
officials to vote or act in a favourable way.
Level 3: Strategic public policy
involvement
? Through executive participation where the
representatives participate in decision
making by acting as the part of the
executive.
FirstRanker.com - FirstRanker's Choice
MODULE - 4
PUBLIC POLICY
? Public ? it comprises domain of human
activity which is regarded as requiring
governmental interventions or common
action.
? Policy ? a purposive course of action taken
or adopted by those in power in pursuit of
certain goals and objectives.
? Public policy is ?whatever governments
choose to do or not to do?.
Public Policy
? Public Policy is an attempt by a
government to address a public issue by
instituting laws, regulations, decisions or
actions pertinent to the problem at hand.
? Issues ? crime, education, foreign policy,
health and social welfare can be
addressed.
? It is thus a plan of action undertaken by
govt to achieve some broad public
purpose.
? Public policy is basically a set of rules and
regulations set forth that the public is
expected to adhere to.
? Ex: public laws
Categories of Public Policies
? Substantive and procedural policies- with respect
to time of execution (former or latter)
? Distributive, Regulatory, Self-regulatory, and Re-
distributive policies ? with respect to allocation
and control.
vDistributive policies concern the allocation of
services and benefits of public resources to
various segments of the economy.
vRegulatory policies imposes restrictions or
limitations on the ways and manners the
individuals and group of individuals and firms
could behave an economy.
vSelf-regulatory policies are the policies similar to
regulatory policies but each unions or bodies
supervised themselves.
vRe-distributive policies are the policies that
allocate resources among the already divided
sections of the society
? Material and symbolic policies- with
respect to the tangibility of power and
assets involved.
It includes policy on patriotism, peace, social
justice etc.
? Policies involving public goods and private
goods- public goods are collectively
owned, divisible and non-excludable.
? Liberal and conservative policies ? with
respect to freedom and ability to influence
or change policies.
vLiberal policies ? easily amendable.
vConservative policies ?rigid or difficult to
change.
Relevance of Public Policy
? Scientific understanding
? Improves our knowledge of society
? Linkages between social and economic
conditions
? Response of political system to those
conditions
? Professional advice
Application of knowledge to the solutions of
practical problems
? Policy recommendations ? to inform
political discussion, advance the level of
political awareness and improve the
quality of public policy.
Government and public policy
? Close relationship between public policy
and government or public authorities.
? No policy becomes public policy unless it
is adopted, implemented and enforced by
some governmental institution.
? It lends legitimacy to policies
? Government policies involve universality
as these extend to all sections in society
? Governments alone can exercise coercion
in society-only govt can legitimately
imprison violators of its policies.
Areas of Public Policy
? Economic management
? Labour management relations
? The welfare state
? Shaping of public policies affecting
corporate sector
Economic management
? It is assumed that government intervention
is essential and even inevitable in
economic activities.
? Great depression, recession, depression?
Labour Management Relations
? The concept of industrial democracy made
it imperative that a national labour policy
should be adopted by the state to protect
the rights of workers of unions.
The Welfare State
? At present it is believed that every man
has the right to get a good job, decent
food, clothing and shelter.
? It is the responsibility of the government to
guarantee these rights.
Shaping of public policies
affecting corporate sector
? Stakeholder expectations if unmet, trigger
action to transform social concern into
pressure on business and govt.
Need for Public Policy in
Business
? Social forces include the size and composition of
population, life style and pattern of living which have a
definite effect on both the demand and supply of goods
and services that corporate deals in.
? Economic forces are those that shape corporate
behaviour as well as the reaction of govt to solve the
problems arising therefrom.
? Political forces have an impact on govt making and how
govt?s are prompted to shape their policies affecting
corporate.
? Technological forces allow corporations to update their
products, processes and help them meet competition.
Cont..
? To create a competitive environment
? To have control on foreign investment
Government may adopt protectionist policies for
the following reasons:
? To protect the growing local industries
? To regulate demand and supply
? To regulate the prices in the unhealthy
competitive environment
? To protect the environment
Different Levels of Public Policy
Depending on the intended geographic reach and the degree of
sovereignty the authority concerned enjoys.
v National Level: IDRA and MRTP Act.
v State level: policies to protect ground water from contamination,
policies to take over the wine shops in states.
v Regional Level: Common Agricultural Policy, sharing of river water
etc.
v International Level: IPR?s, TRIMs etc.
Elements of Public Policy Inputs
? Govt may determine its course of action on
the basis of
? Economic or foreign policy concerns
? Domestic political pressure from
constituents and interest groups
? Technical information
? Tax imperatives
? Reaction to natural or national calamities
Goals
? Goals may be ideal oriented, narrow or
self serving.
? But it is always important to inquire
whether it served the citizens of the
country whose welfare it intends to serve.
Mechanisms
? Ex: budget negotiations?.
? Instruments of public policy are those
combinations of incentives and
disincentives that govt uses to prompt
citizens, to act in ways that achieve policy
goals.
?
Results
? Intended or unintended results. ? Agenda building-
?Consists of major issues or problems to
which officials give serious attention and
upon which they feel compelled to act.
?Ex: 33% reservation for women in
Parliament and Legislatures?
? Policy formulation ?
?It occurs when interested groups take a
position on some public issue and try to
persuade others to adopt their viewpoints
as public policy.
? Policy Decision-
?Occurs when some arm of the govt, either
authorizes or fail to authorise the course of
action.
? Policy implementation-
?Occurs when action is taken to enforce a
public policy decision.
? Policy Evaluation-
?Occurs when the impact of public policy
becomes evident.
?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,
less expensive way.
The Corporation and Public
Policy
1. Limits to Powers of democratic govt ?
constitutional law and common law.
2. Limits to powers of non-democratic
monarchy, dictatorship, religious rulers,
socialist state.
Framing of Public policy-
Powers of Govt
? Constitutional Govt?s:- the will of the
people and their desires get reflected in
public policies.
? Non-democratic Govt?s :- special interest
lobbying of the leadership elite, complete
with illegal bribes and payments,
international pressure for change, play
decisive role in public policies.
Involvement of Business in
Public Policy Decision Making
? Business should be involved:- 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.
? Business should not be involved:-
business and politics should be separated
as their combination will have several toxic
effects
Cont..
? Effects are:-
vExecutives are not fit to engage in political
debates.
vBusiness is too big and too powerful, while
politics is fragmented by its very nature
and makes gains by divide-and-rule policy.
Business and Political- levels of
involvement
? Level 1:Financial Involvement
? Level 2: Organisational Involvement
? Level 3: Strategic public policy
involvement
Level 1:Financial Involvement
? Formation of Political Action Committee (PAC) :-
PAC may solicit contributions from stock-holders
and employees and then channel the fund to
those seeking political office.
? Trade Association Support: many large
corporations place full time liaison officers in
national capitals.
? FICCI,CII,ASSOCHAM and Chambers of
Commerce.
Level 2: Organisational
Involvement
? Lobbying: involves direct contact with a
government official to influence the
thinking or actions of that person on an
issue or public policy.
? Employee grassroot involvement :
grassroot programs are organised efforts
to get constituents to influence govt
officials to vote or act in a favourable way.
Level 3: Strategic public policy
involvement
? Through executive participation where the
representatives participate in decision
making by acting as the part of the
executive.
Public Policy and Business
? Govt?s everywhere significantly influence
business activities.
? Federal or central govt?s try to promote economic
development of their countries ? by using
appropriate economic policies.
? State govt?s ? through a slew of state-specific
economic policies.
? Local self govt?s ? policies that involve permits,
licenses and various clearances.
FirstRanker.com - FirstRanker's Choice
MODULE - 4
PUBLIC POLICY
? Public ? it comprises domain of human
activity which is regarded as requiring
governmental interventions or common
action.
? Policy ? a purposive course of action taken
or adopted by those in power in pursuit of
certain goals and objectives.
? Public policy is ?whatever governments
choose to do or not to do?.
Public Policy
? Public Policy is an attempt by a
government to address a public issue by
instituting laws, regulations, decisions or
actions pertinent to the problem at hand.
? Issues ? crime, education, foreign policy,
health and social welfare can be
addressed.
? It is thus a plan of action undertaken by
govt to achieve some broad public
purpose.
? Public policy is basically a set of rules and
regulations set forth that the public is
expected to adhere to.
? Ex: public laws
Categories of Public Policies
? Substantive and procedural policies- with respect
to time of execution (former or latter)
? Distributive, Regulatory, Self-regulatory, and Re-
distributive policies ? with respect to allocation
and control.
vDistributive policies concern the allocation of
services and benefits of public resources to
various segments of the economy.
vRegulatory policies imposes restrictions or
limitations on the ways and manners the
individuals and group of individuals and firms
could behave an economy.
vSelf-regulatory policies are the policies similar to
regulatory policies but each unions or bodies
supervised themselves.
vRe-distributive policies are the policies that
allocate resources among the already divided
sections of the society
? Material and symbolic policies- with
respect to the tangibility of power and
assets involved.
It includes policy on patriotism, peace, social
justice etc.
? Policies involving public goods and private
goods- public goods are collectively
owned, divisible and non-excludable.
? Liberal and conservative policies ? with
respect to freedom and ability to influence
or change policies.
vLiberal policies ? easily amendable.
vConservative policies ?rigid or difficult to
change.
Relevance of Public Policy
? Scientific understanding
? Improves our knowledge of society
? Linkages between social and economic
conditions
? Response of political system to those
conditions
? Professional advice
Application of knowledge to the solutions of
practical problems
? Policy recommendations ? to inform
political discussion, advance the level of
political awareness and improve the
quality of public policy.
Government and public policy
? Close relationship between public policy
and government or public authorities.
? No policy becomes public policy unless it
is adopted, implemented and enforced by
some governmental institution.
? It lends legitimacy to policies
? Government policies involve universality
as these extend to all sections in society
? Governments alone can exercise coercion
in society-only govt can legitimately
imprison violators of its policies.
Areas of Public Policy
? Economic management
? Labour management relations
? The welfare state
? Shaping of public policies affecting
corporate sector
Economic management
? It is assumed that government intervention
is essential and even inevitable in
economic activities.
? Great depression, recession, depression?
Labour Management Relations
? The concept of industrial democracy made
it imperative that a national labour policy
should be adopted by the state to protect
the rights of workers of unions.
The Welfare State
? At present it is believed that every man
has the right to get a good job, decent
food, clothing and shelter.
? It is the responsibility of the government to
guarantee these rights.
Shaping of public policies
affecting corporate sector
? Stakeholder expectations if unmet, trigger
action to transform social concern into
pressure on business and govt.
Need for Public Policy in
Business
? Social forces include the size and composition of
population, life style and pattern of living which have a
definite effect on both the demand and supply of goods
and services that corporate deals in.
? Economic forces are those that shape corporate
behaviour as well as the reaction of govt to solve the
problems arising therefrom.
? Political forces have an impact on govt making and how
govt?s are prompted to shape their policies affecting
corporate.
? Technological forces allow corporations to update their
products, processes and help them meet competition.
Cont..
? To create a competitive environment
? To have control on foreign investment
Government may adopt protectionist policies for
the following reasons:
? To protect the growing local industries
? To regulate demand and supply
? To regulate the prices in the unhealthy
competitive environment
? To protect the environment
Different Levels of Public Policy
Depending on the intended geographic reach and the degree of
sovereignty the authority concerned enjoys.
v National Level: IDRA and MRTP Act.
v State level: policies to protect ground water from contamination,
policies to take over the wine shops in states.
v Regional Level: Common Agricultural Policy, sharing of river water
etc.
v International Level: IPR?s, TRIMs etc.
Elements of Public Policy Inputs
? Govt may determine its course of action on
the basis of
? Economic or foreign policy concerns
? Domestic political pressure from
constituents and interest groups
? Technical information
? Tax imperatives
? Reaction to natural or national calamities
Goals
? Goals may be ideal oriented, narrow or
self serving.
? But it is always important to inquire
whether it served the citizens of the
country whose welfare it intends to serve.
Mechanisms
? Ex: budget negotiations?.
? Instruments of public policy are those
combinations of incentives and
disincentives that govt uses to prompt
citizens, to act in ways that achieve policy
goals.
?
Results
? Intended or unintended results. ? Agenda building-
?Consists of major issues or problems to
which officials give serious attention and
upon which they feel compelled to act.
?Ex: 33% reservation for women in
Parliament and Legislatures?
? Policy formulation ?
?It occurs when interested groups take a
position on some public issue and try to
persuade others to adopt their viewpoints
as public policy.
? Policy Decision-
?Occurs when some arm of the govt, either
authorizes or fail to authorise the course of
action.
? Policy implementation-
?Occurs when action is taken to enforce a
public policy decision.
? Policy Evaluation-
?Occurs when the impact of public policy
becomes evident.
?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,
less expensive way.
The Corporation and Public
Policy
1. Limits to Powers of democratic govt ?
constitutional law and common law.
2. Limits to powers of non-democratic
monarchy, dictatorship, religious rulers,
socialist state.
Framing of Public policy-
Powers of Govt
? Constitutional Govt?s:- the will of the
people and their desires get reflected in
public policies.
? Non-democratic Govt?s :- special interest
lobbying of the leadership elite, complete
with illegal bribes and payments,
international pressure for change, play
decisive role in public policies.
Involvement of Business in
Public Policy Decision Making
? Business should be involved:- 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.
? Business should not be involved:-
business and politics should be separated
as their combination will have several toxic
effects
Cont..
? Effects are:-
vExecutives are not fit to engage in political
debates.
vBusiness is too big and too powerful, while
politics is fragmented by its very nature
and makes gains by divide-and-rule policy.
Business and Political- levels of
involvement
? Level 1:Financial Involvement
? Level 2: Organisational Involvement
? Level 3: Strategic public policy
involvement
Level 1:Financial Involvement
? Formation of Political Action Committee (PAC) :-
PAC may solicit contributions from stock-holders
and employees and then channel the fund to
those seeking political office.
? Trade Association Support: many large
corporations place full time liaison officers in
national capitals.
? FICCI,CII,ASSOCHAM and Chambers of
Commerce.
Level 2: Organisational
Involvement
? Lobbying: involves direct contact with a
government official to influence the
thinking or actions of that person on an
issue or public policy.
? Employee grassroot involvement :
grassroot programs are organised efforts
to get constituents to influence govt
officials to vote or act in a favourable way.
Level 3: Strategic public policy
involvement
? Through executive participation where the
representatives participate in decision
making by acting as the part of the
executive.
Public Policy and Business
? Govt?s everywhere significantly influence
business activities.
? Federal or central govt?s try to promote economic
development of their countries ? by using
appropriate economic policies.
? State govt?s ? through a slew of state-specific
economic policies.
? Local self govt?s ? policies that involve permits,
licenses and various clearances.
National Economic Growth
FirstRanker.com - FirstRanker's Choice
MODULE - 4
PUBLIC POLICY
? Public ? it comprises domain of human
activity which is regarded as requiring
governmental interventions or common
action.
? Policy ? a purposive course of action taken
or adopted by those in power in pursuit of
certain goals and objectives.
? Public policy is ?whatever governments
choose to do or not to do?.
Public Policy
? Public Policy is an attempt by a
government to address a public issue by
instituting laws, regulations, decisions or
actions pertinent to the problem at hand.
? Issues ? crime, education, foreign policy,
health and social welfare can be
addressed.
? It is thus a plan of action undertaken by
govt to achieve some broad public
purpose.
? Public policy is basically a set of rules and
regulations set forth that the public is
expected to adhere to.
? Ex: public laws
Categories of Public Policies
? Substantive and procedural policies- with respect
to time of execution (former or latter)
? Distributive, Regulatory, Self-regulatory, and Re-
distributive policies ? with respect to allocation
and control.
vDistributive policies concern the allocation of
services and benefits of public resources to
various segments of the economy.
vRegulatory policies imposes restrictions or
limitations on the ways and manners the
individuals and group of individuals and firms
could behave an economy.
vSelf-regulatory policies are the policies similar to
regulatory policies but each unions or bodies
supervised themselves.
vRe-distributive policies are the policies that
allocate resources among the already divided
sections of the society
? Material and symbolic policies- with
respect to the tangibility of power and
assets involved.
It includes policy on patriotism, peace, social
justice etc.
? Policies involving public goods and private
goods- public goods are collectively
owned, divisible and non-excludable.
? Liberal and conservative policies ? with
respect to freedom and ability to influence
or change policies.
vLiberal policies ? easily amendable.
vConservative policies ?rigid or difficult to
change.
Relevance of Public Policy
? Scientific understanding
? Improves our knowledge of society
? Linkages between social and economic
conditions
? Response of political system to those
conditions
? Professional advice
Application of knowledge to the solutions of
practical problems
? Policy recommendations ? to inform
political discussion, advance the level of
political awareness and improve the
quality of public policy.
Government and public policy
? Close relationship between public policy
and government or public authorities.
? No policy becomes public policy unless it
is adopted, implemented and enforced by
some governmental institution.
? It lends legitimacy to policies
? Government policies involve universality
as these extend to all sections in society
? Governments alone can exercise coercion
in society-only govt can legitimately
imprison violators of its policies.
Areas of Public Policy
? Economic management
? Labour management relations
? The welfare state
? Shaping of public policies affecting
corporate sector
Economic management
? It is assumed that government intervention
is essential and even inevitable in
economic activities.
? Great depression, recession, depression?
Labour Management Relations
? The concept of industrial democracy made
it imperative that a national labour policy
should be adopted by the state to protect
the rights of workers of unions.
The Welfare State
? At present it is believed that every man
has the right to get a good job, decent
food, clothing and shelter.
? It is the responsibility of the government to
guarantee these rights.
Shaping of public policies
affecting corporate sector
? Stakeholder expectations if unmet, trigger
action to transform social concern into
pressure on business and govt.
Need for Public Policy in
Business
? Social forces include the size and composition of
population, life style and pattern of living which have a
definite effect on both the demand and supply of goods
and services that corporate deals in.
? Economic forces are those that shape corporate
behaviour as well as the reaction of govt to solve the
problems arising therefrom.
? Political forces have an impact on govt making and how
govt?s are prompted to shape their policies affecting
corporate.
? Technological forces allow corporations to update their
products, processes and help them meet competition.
Cont..
? To create a competitive environment
? To have control on foreign investment
Government may adopt protectionist policies for
the following reasons:
? To protect the growing local industries
? To regulate demand and supply
? To regulate the prices in the unhealthy
competitive environment
? To protect the environment
Different Levels of Public Policy
Depending on the intended geographic reach and the degree of
sovereignty the authority concerned enjoys.
v National Level: IDRA and MRTP Act.
v State level: policies to protect ground water from contamination,
policies to take over the wine shops in states.
v Regional Level: Common Agricultural Policy, sharing of river water
etc.
v International Level: IPR?s, TRIMs etc.
Elements of Public Policy Inputs
? Govt may determine its course of action on
the basis of
? Economic or foreign policy concerns
? Domestic political pressure from
constituents and interest groups
? Technical information
? Tax imperatives
? Reaction to natural or national calamities
Goals
? Goals may be ideal oriented, narrow or
self serving.
? But it is always important to inquire
whether it served the citizens of the
country whose welfare it intends to serve.
Mechanisms
? Ex: budget negotiations?.
? Instruments of public policy are those
combinations of incentives and
disincentives that govt uses to prompt
citizens, to act in ways that achieve policy
goals.
?
Results
? Intended or unintended results. ? Agenda building-
?Consists of major issues or problems to
which officials give serious attention and
upon which they feel compelled to act.
?Ex: 33% reservation for women in
Parliament and Legislatures?
? Policy formulation ?
?It occurs when interested groups take a
position on some public issue and try to
persuade others to adopt their viewpoints
as public policy.
? Policy Decision-
?Occurs when some arm of the govt, either
authorizes or fail to authorise the course of
action.
? Policy implementation-
?Occurs when action is taken to enforce a
public policy decision.
? Policy Evaluation-
?Occurs when the impact of public policy
becomes evident.
?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,
less expensive way.
The Corporation and Public
Policy
1. Limits to Powers of democratic govt ?
constitutional law and common law.
2. Limits to powers of non-democratic
monarchy, dictatorship, religious rulers,
socialist state.
Framing of Public policy-
Powers of Govt
? Constitutional Govt?s:- the will of the
people and their desires get reflected in
public policies.
? Non-democratic Govt?s :- special interest
lobbying of the leadership elite, complete
with illegal bribes and payments,
international pressure for change, play
decisive role in public policies.
Involvement of Business in
Public Policy Decision Making
? Business should be involved:- 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.
? Business should not be involved:-
business and politics should be separated
as their combination will have several toxic
effects
Cont..
? Effects are:-
vExecutives are not fit to engage in political
debates.
vBusiness is too big and too powerful, while
politics is fragmented by its very nature
and makes gains by divide-and-rule policy.
Business and Political- levels of
involvement
? Level 1:Financial Involvement
? Level 2: Organisational Involvement
? Level 3: Strategic public policy
involvement
Level 1:Financial Involvement
? Formation of Political Action Committee (PAC) :-
PAC may solicit contributions from stock-holders
and employees and then channel the fund to
those seeking political office.
? Trade Association Support: many large
corporations place full time liaison officers in
national capitals.
? FICCI,CII,ASSOCHAM and Chambers of
Commerce.
Level 2: Organisational
Involvement
? Lobbying: involves direct contact with a
government official to influence the
thinking or actions of that person on an
issue or public policy.
? Employee grassroot involvement :
grassroot programs are organised efforts
to get constituents to influence govt
officials to vote or act in a favourable way.
Level 3: Strategic public policy
involvement
? Through executive participation where the
representatives participate in decision
making by acting as the part of the
executive.
Public Policy and Business
? Govt?s everywhere significantly influence
business activities.
? Federal or central govt?s try to promote economic
development of their countries ? by using
appropriate economic policies.
? State govt?s ? through a slew of state-specific
economic policies.
? Local self govt?s ? policies that involve permits,
licenses and various clearances.
National Economic Growth Cont..
? Economic growth is stimulated by govt
policies that encourage investment, foster
technology development, provide key
services and create a capable workforce
through education.
? Poor economic development will
accelerate nation?s social problems.
FirstRanker.com - FirstRanker's Choice
MODULE - 4
PUBLIC POLICY
? Public ? it comprises domain of human
activity which is regarded as requiring
governmental interventions or common
action.
? Policy ? a purposive course of action taken
or adopted by those in power in pursuit of
certain goals and objectives.
? Public policy is ?whatever governments
choose to do or not to do?.
Public Policy
? Public Policy is an attempt by a
government to address a public issue by
instituting laws, regulations, decisions or
actions pertinent to the problem at hand.
? Issues ? crime, education, foreign policy,
health and social welfare can be
addressed.
? It is thus a plan of action undertaken by
govt to achieve some broad public
purpose.
? Public policy is basically a set of rules and
regulations set forth that the public is
expected to adhere to.
? Ex: public laws
Categories of Public Policies
? Substantive and procedural policies- with respect
to time of execution (former or latter)
? Distributive, Regulatory, Self-regulatory, and Re-
distributive policies ? with respect to allocation
and control.
vDistributive policies concern the allocation of
services and benefits of public resources to
various segments of the economy.
vRegulatory policies imposes restrictions or
limitations on the ways and manners the
individuals and group of individuals and firms
could behave an economy.
vSelf-regulatory policies are the policies similar to
regulatory policies but each unions or bodies
supervised themselves.
vRe-distributive policies are the policies that
allocate resources among the already divided
sections of the society
? Material and symbolic policies- with
respect to the tangibility of power and
assets involved.
It includes policy on patriotism, peace, social
justice etc.
? Policies involving public goods and private
goods- public goods are collectively
owned, divisible and non-excludable.
? Liberal and conservative policies ? with
respect to freedom and ability to influence
or change policies.
vLiberal policies ? easily amendable.
vConservative policies ?rigid or difficult to
change.
Relevance of Public Policy
? Scientific understanding
? Improves our knowledge of society
? Linkages between social and economic
conditions
? Response of political system to those
conditions
? Professional advice
Application of knowledge to the solutions of
practical problems
? Policy recommendations ? to inform
political discussion, advance the level of
political awareness and improve the
quality of public policy.
Government and public policy
? Close relationship between public policy
and government or public authorities.
? No policy becomes public policy unless it
is adopted, implemented and enforced by
some governmental institution.
? It lends legitimacy to policies
? Government policies involve universality
as these extend to all sections in society
? Governments alone can exercise coercion
in society-only govt can legitimately
imprison violators of its policies.
Areas of Public Policy
? Economic management
? Labour management relations
? The welfare state
? Shaping of public policies affecting
corporate sector
Economic management
? It is assumed that government intervention
is essential and even inevitable in
economic activities.
? Great depression, recession, depression?
Labour Management Relations
? The concept of industrial democracy made
it imperative that a national labour policy
should be adopted by the state to protect
the rights of workers of unions.
The Welfare State
? At present it is believed that every man
has the right to get a good job, decent
food, clothing and shelter.
? It is the responsibility of the government to
guarantee these rights.
Shaping of public policies
affecting corporate sector
? Stakeholder expectations if unmet, trigger
action to transform social concern into
pressure on business and govt.
Need for Public Policy in
Business
? Social forces include the size and composition of
population, life style and pattern of living which have a
definite effect on both the demand and supply of goods
and services that corporate deals in.
? Economic forces are those that shape corporate
behaviour as well as the reaction of govt to solve the
problems arising therefrom.
? Political forces have an impact on govt making and how
govt?s are prompted to shape their policies affecting
corporate.
? Technological forces allow corporations to update their
products, processes and help them meet competition.
Cont..
? To create a competitive environment
? To have control on foreign investment
Government may adopt protectionist policies for
the following reasons:
? To protect the growing local industries
? To regulate demand and supply
? To regulate the prices in the unhealthy
competitive environment
? To protect the environment
Different Levels of Public Policy
Depending on the intended geographic reach and the degree of
sovereignty the authority concerned enjoys.
v National Level: IDRA and MRTP Act.
v State level: policies to protect ground water from contamination,
policies to take over the wine shops in states.
v Regional Level: Common Agricultural Policy, sharing of river water
etc.
v International Level: IPR?s, TRIMs etc.
Elements of Public Policy Inputs
? Govt may determine its course of action on
the basis of
? Economic or foreign policy concerns
? Domestic political pressure from
constituents and interest groups
? Technical information
? Tax imperatives
? Reaction to natural or national calamities
Goals
? Goals may be ideal oriented, narrow or
self serving.
? But it is always important to inquire
whether it served the citizens of the
country whose welfare it intends to serve.
Mechanisms
? Ex: budget negotiations?.
? Instruments of public policy are those
combinations of incentives and
disincentives that govt uses to prompt
citizens, to act in ways that achieve policy
goals.
?
Results
? Intended or unintended results. ? Agenda building-
?Consists of major issues or problems to
which officials give serious attention and
upon which they feel compelled to act.
?Ex: 33% reservation for women in
Parliament and Legislatures?
? Policy formulation ?
?It occurs when interested groups take a
position on some public issue and try to
persuade others to adopt their viewpoints
as public policy.
? Policy Decision-
?Occurs when some arm of the govt, either
authorizes or fail to authorise the course of
action.
? Policy implementation-
?Occurs when action is taken to enforce a
public policy decision.
? Policy Evaluation-
?Occurs when the impact of public policy
becomes evident.
?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,
less expensive way.
The Corporation and Public
Policy
1. Limits to Powers of democratic govt ?
constitutional law and common law.
2. Limits to powers of non-democratic
monarchy, dictatorship, religious rulers,
socialist state.
Framing of Public policy-
Powers of Govt
? Constitutional Govt?s:- the will of the
people and their desires get reflected in
public policies.
? Non-democratic Govt?s :- special interest
lobbying of the leadership elite, complete
with illegal bribes and payments,
international pressure for change, play
decisive role in public policies.
Involvement of Business in
Public Policy Decision Making
? Business should be involved:- 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.
? Business should not be involved:-
business and politics should be separated
as their combination will have several toxic
effects
Cont..
? Effects are:-
vExecutives are not fit to engage in political
debates.
vBusiness is too big and too powerful, while
politics is fragmented by its very nature
and makes gains by divide-and-rule policy.
Business and Political- levels of
involvement
? Level 1:Financial Involvement
? Level 2: Organisational Involvement
? Level 3: Strategic public policy
involvement
Level 1:Financial Involvement
? Formation of Political Action Committee (PAC) :-
PAC may solicit contributions from stock-holders
and employees and then channel the fund to
those seeking political office.
? Trade Association Support: many large
corporations place full time liaison officers in
national capitals.
? FICCI,CII,ASSOCHAM and Chambers of
Commerce.
Level 2: Organisational
Involvement
? Lobbying: involves direct contact with a
government official to influence the
thinking or actions of that person on an
issue or public policy.
? Employee grassroot involvement :
grassroot programs are organised efforts
to get constituents to influence govt
officials to vote or act in a favourable way.
Level 3: Strategic public policy
involvement
? Through executive participation where the
representatives participate in decision
making by acting as the part of the
executive.
Public Policy and Business
? Govt?s everywhere significantly influence
business activities.
? Federal or central govt?s try to promote economic
development of their countries ? by using
appropriate economic policies.
? State govt?s ? through a slew of state-specific
economic policies.
? Local self govt?s ? policies that involve permits,
licenses and various clearances.
National Economic Growth Cont..
? Economic growth is stimulated by govt
policies that encourage investment, foster
technology development, provide key
services and create a capable workforce
through education.
? Poor economic development will
accelerate nation?s social problems.
Economic Policy
? Faster economic growth
? Reduction in inequalities of income and
wealth
? Full employment
? Price stability
? Balance of payment equilibrium
? These can be achieved through monetary
policy, fiscal policy, commercial policy
FirstRanker.com - FirstRanker's Choice
MODULE - 4
PUBLIC POLICY
? Public ? it comprises domain of human
activity which is regarded as requiring
governmental interventions or common
action.
? Policy ? a purposive course of action taken
or adopted by those in power in pursuit of
certain goals and objectives.
? Public policy is ?whatever governments
choose to do or not to do?.
Public Policy
? Public Policy is an attempt by a
government to address a public issue by
instituting laws, regulations, decisions or
actions pertinent to the problem at hand.
? Issues ? crime, education, foreign policy,
health and social welfare can be
addressed.
? It is thus a plan of action undertaken by
govt to achieve some broad public
purpose.
? Public policy is basically a set of rules and
regulations set forth that the public is
expected to adhere to.
? Ex: public laws
Categories of Public Policies
? Substantive and procedural policies- with respect
to time of execution (former or latter)
? Distributive, Regulatory, Self-regulatory, and Re-
distributive policies ? with respect to allocation
and control.
vDistributive policies concern the allocation of
services and benefits of public resources to
various segments of the economy.
vRegulatory policies imposes restrictions or
limitations on the ways and manners the
individuals and group of individuals and firms
could behave an economy.
vSelf-regulatory policies are the policies similar to
regulatory policies but each unions or bodies
supervised themselves.
vRe-distributive policies are the policies that
allocate resources among the already divided
sections of the society
? Material and symbolic policies- with
respect to the tangibility of power and
assets involved.
It includes policy on patriotism, peace, social
justice etc.
? Policies involving public goods and private
goods- public goods are collectively
owned, divisible and non-excludable.
? Liberal and conservative policies ? with
respect to freedom and ability to influence
or change policies.
vLiberal policies ? easily amendable.
vConservative policies ?rigid or difficult to
change.
Relevance of Public Policy
? Scientific understanding
? Improves our knowledge of society
? Linkages between social and economic
conditions
? Response of political system to those
conditions
? Professional advice
Application of knowledge to the solutions of
practical problems
? Policy recommendations ? to inform
political discussion, advance the level of
political awareness and improve the
quality of public policy.
Government and public policy
? Close relationship between public policy
and government or public authorities.
? No policy becomes public policy unless it
is adopted, implemented and enforced by
some governmental institution.
? It lends legitimacy to policies
? Government policies involve universality
as these extend to all sections in society
? Governments alone can exercise coercion
in society-only govt can legitimately
imprison violators of its policies.
Areas of Public Policy
? Economic management
? Labour management relations
? The welfare state
? Shaping of public policies affecting
corporate sector
Economic management
? It is assumed that government intervention
is essential and even inevitable in
economic activities.
? Great depression, recession, depression?
Labour Management Relations
? The concept of industrial democracy made
it imperative that a national labour policy
should be adopted by the state to protect
the rights of workers of unions.
The Welfare State
? At present it is believed that every man
has the right to get a good job, decent
food, clothing and shelter.
? It is the responsibility of the government to
guarantee these rights.
Shaping of public policies
affecting corporate sector
? Stakeholder expectations if unmet, trigger
action to transform social concern into
pressure on business and govt.
Need for Public Policy in
Business
? Social forces include the size and composition of
population, life style and pattern of living which have a
definite effect on both the demand and supply of goods
and services that corporate deals in.
? Economic forces are those that shape corporate
behaviour as well as the reaction of govt to solve the
problems arising therefrom.
? Political forces have an impact on govt making and how
govt?s are prompted to shape their policies affecting
corporate.
? Technological forces allow corporations to update their
products, processes and help them meet competition.
Cont..
? To create a competitive environment
? To have control on foreign investment
Government may adopt protectionist policies for
the following reasons:
? To protect the growing local industries
? To regulate demand and supply
? To regulate the prices in the unhealthy
competitive environment
? To protect the environment
Different Levels of Public Policy
Depending on the intended geographic reach and the degree of
sovereignty the authority concerned enjoys.
v National Level: IDRA and MRTP Act.
v State level: policies to protect ground water from contamination,
policies to take over the wine shops in states.
v Regional Level: Common Agricultural Policy, sharing of river water
etc.
v International Level: IPR?s, TRIMs etc.
Elements of Public Policy Inputs
? Govt may determine its course of action on
the basis of
? Economic or foreign policy concerns
? Domestic political pressure from
constituents and interest groups
? Technical information
? Tax imperatives
? Reaction to natural or national calamities
Goals
? Goals may be ideal oriented, narrow or
self serving.
? But it is always important to inquire
whether it served the citizens of the
country whose welfare it intends to serve.
Mechanisms
? Ex: budget negotiations?.
? Instruments of public policy are those
combinations of incentives and
disincentives that govt uses to prompt
citizens, to act in ways that achieve policy
goals.
?
Results
? Intended or unintended results. ? Agenda building-
?Consists of major issues or problems to
which officials give serious attention and
upon which they feel compelled to act.
?Ex: 33% reservation for women in
Parliament and Legislatures?
? Policy formulation ?
?It occurs when interested groups take a
position on some public issue and try to
persuade others to adopt their viewpoints
as public policy.
? Policy Decision-
?Occurs when some arm of the govt, either
authorizes or fail to authorise the course of
action.
? Policy implementation-
?Occurs when action is taken to enforce a
public policy decision.
? Policy Evaluation-
?Occurs when the impact of public policy
becomes evident.
?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,
less expensive way.
The Corporation and Public
Policy
1. Limits to Powers of democratic govt ?
constitutional law and common law.
2. Limits to powers of non-democratic
monarchy, dictatorship, religious rulers,
socialist state.
Framing of Public policy-
Powers of Govt
? Constitutional Govt?s:- the will of the
people and their desires get reflected in
public policies.
? Non-democratic Govt?s :- special interest
lobbying of the leadership elite, complete
with illegal bribes and payments,
international pressure for change, play
decisive role in public policies.
Involvement of Business in
Public Policy Decision Making
? Business should be involved:- 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.
? Business should not be involved:-
business and politics should be separated
as their combination will have several toxic
effects
Cont..
? Effects are:-
vExecutives are not fit to engage in political
debates.
vBusiness is too big and too powerful, while
politics is fragmented by its very nature
and makes gains by divide-and-rule policy.
Business and Political- levels of
involvement
? Level 1:Financial Involvement
? Level 2: Organisational Involvement
? Level 3: Strategic public policy
involvement
Level 1:Financial Involvement
? Formation of Political Action Committee (PAC) :-
PAC may solicit contributions from stock-holders
and employees and then channel the fund to
those seeking political office.
? Trade Association Support: many large
corporations place full time liaison officers in
national capitals.
? FICCI,CII,ASSOCHAM and Chambers of
Commerce.
Level 2: Organisational
Involvement
? Lobbying: involves direct contact with a
government official to influence the
thinking or actions of that person on an
issue or public policy.
? Employee grassroot involvement :
grassroot programs are organised efforts
to get constituents to influence govt
officials to vote or act in a favourable way.
Level 3: Strategic public policy
involvement
? Through executive participation where the
representatives participate in decision
making by acting as the part of the
executive.
Public Policy and Business
? Govt?s everywhere significantly influence
business activities.
? Federal or central govt?s try to promote economic
development of their countries ? by using
appropriate economic policies.
? State govt?s ? through a slew of state-specific
economic policies.
? Local self govt?s ? policies that involve permits,
licenses and various clearances.
National Economic Growth Cont..
? Economic growth is stimulated by govt
policies that encourage investment, foster
technology development, provide key
services and create a capable workforce
through education.
? Poor economic development will
accelerate nation?s social problems.
Economic Policy
? Faster economic growth
? Reduction in inequalities of income and
wealth
? Full employment
? Price stability
? Balance of payment equilibrium
? These can be achieved through monetary
policy, fiscal policy, commercial policy
Monetary Policy
? Refers to the policy adopted by the
monetary authority with respect to the
supply of money.
? Objective ? maximum feasible output, high
rate of growth, providing more
employment, price stability, greater equity
in the distribution of income and wealth,
favourable BOP.
FirstRanker.com - FirstRanker's Choice
MODULE - 4
PUBLIC POLICY
? Public ? it comprises domain of human
activity which is regarded as requiring
governmental interventions or common
action.
? Policy ? a purposive course of action taken
or adopted by those in power in pursuit of
certain goals and objectives.
? Public policy is ?whatever governments
choose to do or not to do?.
Public Policy
? Public Policy is an attempt by a
government to address a public issue by
instituting laws, regulations, decisions or
actions pertinent to the problem at hand.
? Issues ? crime, education, foreign policy,
health and social welfare can be
addressed.
? It is thus a plan of action undertaken by
govt to achieve some broad public
purpose.
? Public policy is basically a set of rules and
regulations set forth that the public is
expected to adhere to.
? Ex: public laws
Categories of Public Policies
? Substantive and procedural policies- with respect
to time of execution (former or latter)
? Distributive, Regulatory, Self-regulatory, and Re-
distributive policies ? with respect to allocation
and control.
vDistributive policies concern the allocation of
services and benefits of public resources to
various segments of the economy.
vRegulatory policies imposes restrictions or
limitations on the ways and manners the
individuals and group of individuals and firms
could behave an economy.
vSelf-regulatory policies are the policies similar to
regulatory policies but each unions or bodies
supervised themselves.
vRe-distributive policies are the policies that
allocate resources among the already divided
sections of the society
? Material and symbolic policies- with
respect to the tangibility of power and
assets involved.
It includes policy on patriotism, peace, social
justice etc.
? Policies involving public goods and private
goods- public goods are collectively
owned, divisible and non-excludable.
? Liberal and conservative policies ? with
respect to freedom and ability to influence
or change policies.
vLiberal policies ? easily amendable.
vConservative policies ?rigid or difficult to
change.
Relevance of Public Policy
? Scientific understanding
? Improves our knowledge of society
? Linkages between social and economic
conditions
? Response of political system to those
conditions
? Professional advice
Application of knowledge to the solutions of
practical problems
? Policy recommendations ? to inform
political discussion, advance the level of
political awareness and improve the
quality of public policy.
Government and public policy
? Close relationship between public policy
and government or public authorities.
? No policy becomes public policy unless it
is adopted, implemented and enforced by
some governmental institution.
? It lends legitimacy to policies
? Government policies involve universality
as these extend to all sections in society
? Governments alone can exercise coercion
in society-only govt can legitimately
imprison violators of its policies.
Areas of Public Policy
? Economic management
? Labour management relations
? The welfare state
? Shaping of public policies affecting
corporate sector
Economic management
? It is assumed that government intervention
is essential and even inevitable in
economic activities.
? Great depression, recession, depression?
Labour Management Relations
? The concept of industrial democracy made
it imperative that a national labour policy
should be adopted by the state to protect
the rights of workers of unions.
The Welfare State
? At present it is believed that every man
has the right to get a good job, decent
food, clothing and shelter.
? It is the responsibility of the government to
guarantee these rights.
Shaping of public policies
affecting corporate sector
? Stakeholder expectations if unmet, trigger
action to transform social concern into
pressure on business and govt.
Need for Public Policy in
Business
? Social forces include the size and composition of
population, life style and pattern of living which have a
definite effect on both the demand and supply of goods
and services that corporate deals in.
? Economic forces are those that shape corporate
behaviour as well as the reaction of govt to solve the
problems arising therefrom.
? Political forces have an impact on govt making and how
govt?s are prompted to shape their policies affecting
corporate.
? Technological forces allow corporations to update their
products, processes and help them meet competition.
Cont..
? To create a competitive environment
? To have control on foreign investment
Government may adopt protectionist policies for
the following reasons:
? To protect the growing local industries
? To regulate demand and supply
? To regulate the prices in the unhealthy
competitive environment
? To protect the environment
Different Levels of Public Policy
Depending on the intended geographic reach and the degree of
sovereignty the authority concerned enjoys.
v National Level: IDRA and MRTP Act.
v State level: policies to protect ground water from contamination,
policies to take over the wine shops in states.
v Regional Level: Common Agricultural Policy, sharing of river water
etc.
v International Level: IPR?s, TRIMs etc.
Elements of Public Policy Inputs
? Govt may determine its course of action on
the basis of
? Economic or foreign policy concerns
? Domestic political pressure from
constituents and interest groups
? Technical information
? Tax imperatives
? Reaction to natural or national calamities
Goals
? Goals may be ideal oriented, narrow or
self serving.
? But it is always important to inquire
whether it served the citizens of the
country whose welfare it intends to serve.
Mechanisms
? Ex: budget negotiations?.
? Instruments of public policy are those
combinations of incentives and
disincentives that govt uses to prompt
citizens, to act in ways that achieve policy
goals.
?
Results
? Intended or unintended results. ? Agenda building-
?Consists of major issues or problems to
which officials give serious attention and
upon which they feel compelled to act.
?Ex: 33% reservation for women in
Parliament and Legislatures?
? Policy formulation ?
?It occurs when interested groups take a
position on some public issue and try to
persuade others to adopt their viewpoints
as public policy.
? Policy Decision-
?Occurs when some arm of the govt, either
authorizes or fail to authorise the course of
action.
? Policy implementation-
?Occurs when action is taken to enforce a
public policy decision.
? Policy Evaluation-
?Occurs when the impact of public policy
becomes evident.
?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,
less expensive way.
The Corporation and Public
Policy
1. Limits to Powers of democratic govt ?
constitutional law and common law.
2. Limits to powers of non-democratic
monarchy, dictatorship, religious rulers,
socialist state.
Framing of Public policy-
Powers of Govt
? Constitutional Govt?s:- the will of the
people and their desires get reflected in
public policies.
? Non-democratic Govt?s :- special interest
lobbying of the leadership elite, complete
with illegal bribes and payments,
international pressure for change, play
decisive role in public policies.
Involvement of Business in
Public Policy Decision Making
? Business should be involved:- 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.
? Business should not be involved:-
business and politics should be separated
as their combination will have several toxic
effects
Cont..
? Effects are:-
vExecutives are not fit to engage in political
debates.
vBusiness is too big and too powerful, while
politics is fragmented by its very nature
and makes gains by divide-and-rule policy.
Business and Political- levels of
involvement
? Level 1:Financial Involvement
? Level 2: Organisational Involvement
? Level 3: Strategic public policy
involvement
Level 1:Financial Involvement
? Formation of Political Action Committee (PAC) :-
PAC may solicit contributions from stock-holders
and employees and then channel the fund to
those seeking political office.
? Trade Association Support: many large
corporations place full time liaison officers in
national capitals.
? FICCI,CII,ASSOCHAM and Chambers of
Commerce.
Level 2: Organisational
Involvement
? Lobbying: involves direct contact with a
government official to influence the
thinking or actions of that person on an
issue or public policy.
? Employee grassroot involvement :
grassroot programs are organised efforts
to get constituents to influence govt
officials to vote or act in a favourable way.
Level 3: Strategic public policy
involvement
? Through executive participation where the
representatives participate in decision
making by acting as the part of the
executive.
Public Policy and Business
? Govt?s everywhere significantly influence
business activities.
? Federal or central govt?s try to promote economic
development of their countries ? by using
appropriate economic policies.
? State govt?s ? through a slew of state-specific
economic policies.
? Local self govt?s ? policies that involve permits,
licenses and various clearances.
National Economic Growth Cont..
? Economic growth is stimulated by govt
policies that encourage investment, foster
technology development, provide key
services and create a capable workforce
through education.
? Poor economic development will
accelerate nation?s social problems.
Economic Policy
? Faster economic growth
? Reduction in inequalities of income and
wealth
? Full employment
? Price stability
? Balance of payment equilibrium
? These can be achieved through monetary
policy, fiscal policy, commercial policy
Monetary Policy
? Refers to the policy adopted by the
monetary authority with respect to the
supply of money.
? Objective ? maximum feasible output, high
rate of growth, providing more
employment, price stability, greater equity
in the distribution of income and wealth,
favourable BOP.
Fiscal Policy
? fiscal policy is the use of government revenue
collection (taxation) and expenditure (spending)
to influence the economy.
? To generate revenue and to incur expenditure,
the government frames a policy called budgetary
policy or fiscal policy.
? The fiscal policy is concerned with government
expenditure and government revenue
FirstRanker.com - FirstRanker's Choice
MODULE - 4
PUBLIC POLICY
? Public ? it comprises domain of human
activity which is regarded as requiring
governmental interventions or common
action.
? Policy ? a purposive course of action taken
or adopted by those in power in pursuit of
certain goals and objectives.
? Public policy is ?whatever governments
choose to do or not to do?.
Public Policy
? Public Policy is an attempt by a
government to address a public issue by
instituting laws, regulations, decisions or
actions pertinent to the problem at hand.
? Issues ? crime, education, foreign policy,
health and social welfare can be
addressed.
? It is thus a plan of action undertaken by
govt to achieve some broad public
purpose.
? Public policy is basically a set of rules and
regulations set forth that the public is
expected to adhere to.
? Ex: public laws
Categories of Public Policies
? Substantive and procedural policies- with respect
to time of execution (former or latter)
? Distributive, Regulatory, Self-regulatory, and Re-
distributive policies ? with respect to allocation
and control.
vDistributive policies concern the allocation of
services and benefits of public resources to
various segments of the economy.
vRegulatory policies imposes restrictions or
limitations on the ways and manners the
individuals and group of individuals and firms
could behave an economy.
vSelf-regulatory policies are the policies similar to
regulatory policies but each unions or bodies
supervised themselves.
vRe-distributive policies are the policies that
allocate resources among the already divided
sections of the society
? Material and symbolic policies- with
respect to the tangibility of power and
assets involved.
It includes policy on patriotism, peace, social
justice etc.
? Policies involving public goods and private
goods- public goods are collectively
owned, divisible and non-excludable.
? Liberal and conservative policies ? with
respect to freedom and ability to influence
or change policies.
vLiberal policies ? easily amendable.
vConservative policies ?rigid or difficult to
change.
Relevance of Public Policy
? Scientific understanding
? Improves our knowledge of society
? Linkages between social and economic
conditions
? Response of political system to those
conditions
? Professional advice
Application of knowledge to the solutions of
practical problems
? Policy recommendations ? to inform
political discussion, advance the level of
political awareness and improve the
quality of public policy.
Government and public policy
? Close relationship between public policy
and government or public authorities.
? No policy becomes public policy unless it
is adopted, implemented and enforced by
some governmental institution.
? It lends legitimacy to policies
? Government policies involve universality
as these extend to all sections in society
? Governments alone can exercise coercion
in society-only govt can legitimately
imprison violators of its policies.
Areas of Public Policy
? Economic management
? Labour management relations
? The welfare state
? Shaping of public policies affecting
corporate sector
Economic management
? It is assumed that government intervention
is essential and even inevitable in
economic activities.
? Great depression, recession, depression?
Labour Management Relations
? The concept of industrial democracy made
it imperative that a national labour policy
should be adopted by the state to protect
the rights of workers of unions.
The Welfare State
? At present it is believed that every man
has the right to get a good job, decent
food, clothing and shelter.
? It is the responsibility of the government to
guarantee these rights.
Shaping of public policies
affecting corporate sector
? Stakeholder expectations if unmet, trigger
action to transform social concern into
pressure on business and govt.
Need for Public Policy in
Business
? Social forces include the size and composition of
population, life style and pattern of living which have a
definite effect on both the demand and supply of goods
and services that corporate deals in.
? Economic forces are those that shape corporate
behaviour as well as the reaction of govt to solve the
problems arising therefrom.
? Political forces have an impact on govt making and how
govt?s are prompted to shape their policies affecting
corporate.
? Technological forces allow corporations to update their
products, processes and help them meet competition.
Cont..
? To create a competitive environment
? To have control on foreign investment
Government may adopt protectionist policies for
the following reasons:
? To protect the growing local industries
? To regulate demand and supply
? To regulate the prices in the unhealthy
competitive environment
? To protect the environment
Different Levels of Public Policy
Depending on the intended geographic reach and the degree of
sovereignty the authority concerned enjoys.
v National Level: IDRA and MRTP Act.
v State level: policies to protect ground water from contamination,
policies to take over the wine shops in states.
v Regional Level: Common Agricultural Policy, sharing of river water
etc.
v International Level: IPR?s, TRIMs etc.
Elements of Public Policy Inputs
? Govt may determine its course of action on
the basis of
? Economic or foreign policy concerns
? Domestic political pressure from
constituents and interest groups
? Technical information
? Tax imperatives
? Reaction to natural or national calamities
Goals
? Goals may be ideal oriented, narrow or
self serving.
? But it is always important to inquire
whether it served the citizens of the
country whose welfare it intends to serve.
Mechanisms
? Ex: budget negotiations?.
? Instruments of public policy are those
combinations of incentives and
disincentives that govt uses to prompt
citizens, to act in ways that achieve policy
goals.
?
Results
? Intended or unintended results. ? Agenda building-
?Consists of major issues or problems to
which officials give serious attention and
upon which they feel compelled to act.
?Ex: 33% reservation for women in
Parliament and Legislatures?
? Policy formulation ?
?It occurs when interested groups take a
position on some public issue and try to
persuade others to adopt their viewpoints
as public policy.
? Policy Decision-
?Occurs when some arm of the govt, either
authorizes or fail to authorise the course of
action.
? Policy implementation-
?Occurs when action is taken to enforce a
public policy decision.
? Policy Evaluation-
?Occurs when the impact of public policy
becomes evident.
?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,
less expensive way.
The Corporation and Public
Policy
1. Limits to Powers of democratic govt ?
constitutional law and common law.
2. Limits to powers of non-democratic
monarchy, dictatorship, religious rulers,
socialist state.
Framing of Public policy-
Powers of Govt
? Constitutional Govt?s:- the will of the
people and their desires get reflected in
public policies.
? Non-democratic Govt?s :- special interest
lobbying of the leadership elite, complete
with illegal bribes and payments,
international pressure for change, play
decisive role in public policies.
Involvement of Business in
Public Policy Decision Making
? Business should be involved:- 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.
? Business should not be involved:-
business and politics should be separated
as their combination will have several toxic
effects
Cont..
? Effects are:-
vExecutives are not fit to engage in political
debates.
vBusiness is too big and too powerful, while
politics is fragmented by its very nature
and makes gains by divide-and-rule policy.
Business and Political- levels of
involvement
? Level 1:Financial Involvement
? Level 2: Organisational Involvement
? Level 3: Strategic public policy
involvement
Level 1:Financial Involvement
? Formation of Political Action Committee (PAC) :-
PAC may solicit contributions from stock-holders
and employees and then channel the fund to
those seeking political office.
? Trade Association Support: many large
corporations place full time liaison officers in
national capitals.
? FICCI,CII,ASSOCHAM and Chambers of
Commerce.
Level 2: Organisational
Involvement
? Lobbying: involves direct contact with a
government official to influence the
thinking or actions of that person on an
issue or public policy.
? Employee grassroot involvement :
grassroot programs are organised efforts
to get constituents to influence govt
officials to vote or act in a favourable way.
Level 3: Strategic public policy
involvement
? Through executive participation where the
representatives participate in decision
making by acting as the part of the
executive.
Public Policy and Business
? Govt?s everywhere significantly influence
business activities.
? Federal or central govt?s try to promote economic
development of their countries ? by using
appropriate economic policies.
? State govt?s ? through a slew of state-specific
economic policies.
? Local self govt?s ? policies that involve permits,
licenses and various clearances.
National Economic Growth Cont..
? Economic growth is stimulated by govt
policies that encourage investment, foster
technology development, provide key
services and create a capable workforce
through education.
? Poor economic development will
accelerate nation?s social problems.
Economic Policy
? Faster economic growth
? Reduction in inequalities of income and
wealth
? Full employment
? Price stability
? Balance of payment equilibrium
? These can be achieved through monetary
policy, fiscal policy, commercial policy
Monetary Policy
? Refers to the policy adopted by the
monetary authority with respect to the
supply of money.
? Objective ? maximum feasible output, high
rate of growth, providing more
employment, price stability, greater equity
in the distribution of income and wealth,
favourable BOP.
Fiscal Policy
? fiscal policy is the use of government revenue
collection (taxation) and expenditure (spending)
to influence the economy.
? To generate revenue and to incur expenditure,
the government frames a policy called budgetary
policy or fiscal policy.
? The fiscal policy is concerned with government
expenditure and government revenue
? fiscal policy refers to the policy of the
government with regard to taxation, public
expenditure and public borrowings.
? The importance of fiscal policy is high in
underdeveloped countries.
FirstRanker.com - FirstRanker's Choice
MODULE - 4
PUBLIC POLICY
? Public ? it comprises domain of human
activity which is regarded as requiring
governmental interventions or common
action.
? Policy ? a purposive course of action taken
or adopted by those in power in pursuit of
certain goals and objectives.
? Public policy is ?whatever governments
choose to do or not to do?.
Public Policy
? Public Policy is an attempt by a
government to address a public issue by
instituting laws, regulations, decisions or
actions pertinent to the problem at hand.
? Issues ? crime, education, foreign policy,
health and social welfare can be
addressed.
? It is thus a plan of action undertaken by
govt to achieve some broad public
purpose.
? Public policy is basically a set of rules and
regulations set forth that the public is
expected to adhere to.
? Ex: public laws
Categories of Public Policies
? Substantive and procedural policies- with respect
to time of execution (former or latter)
? Distributive, Regulatory, Self-regulatory, and Re-
distributive policies ? with respect to allocation
and control.
vDistributive policies concern the allocation of
services and benefits of public resources to
various segments of the economy.
vRegulatory policies imposes restrictions or
limitations on the ways and manners the
individuals and group of individuals and firms
could behave an economy.
vSelf-regulatory policies are the policies similar to
regulatory policies but each unions or bodies
supervised themselves.
vRe-distributive policies are the policies that
allocate resources among the already divided
sections of the society
? Material and symbolic policies- with
respect to the tangibility of power and
assets involved.
It includes policy on patriotism, peace, social
justice etc.
? Policies involving public goods and private
goods- public goods are collectively
owned, divisible and non-excludable.
? Liberal and conservative policies ? with
respect to freedom and ability to influence
or change policies.
vLiberal policies ? easily amendable.
vConservative policies ?rigid or difficult to
change.
Relevance of Public Policy
? Scientific understanding
? Improves our knowledge of society
? Linkages between social and economic
conditions
? Response of political system to those
conditions
? Professional advice
Application of knowledge to the solutions of
practical problems
? Policy recommendations ? to inform
political discussion, advance the level of
political awareness and improve the
quality of public policy.
Government and public policy
? Close relationship between public policy
and government or public authorities.
? No policy becomes public policy unless it
is adopted, implemented and enforced by
some governmental institution.
? It lends legitimacy to policies
? Government policies involve universality
as these extend to all sections in society
? Governments alone can exercise coercion
in society-only govt can legitimately
imprison violators of its policies.
Areas of Public Policy
? Economic management
? Labour management relations
? The welfare state
? Shaping of public policies affecting
corporate sector
Economic management
? It is assumed that government intervention
is essential and even inevitable in
economic activities.
? Great depression, recession, depression?
Labour Management Relations
? The concept of industrial democracy made
it imperative that a national labour policy
should be adopted by the state to protect
the rights of workers of unions.
The Welfare State
? At present it is believed that every man
has the right to get a good job, decent
food, clothing and shelter.
? It is the responsibility of the government to
guarantee these rights.
Shaping of public policies
affecting corporate sector
? Stakeholder expectations if unmet, trigger
action to transform social concern into
pressure on business and govt.
Need for Public Policy in
Business
? Social forces include the size and composition of
population, life style and pattern of living which have a
definite effect on both the demand and supply of goods
and services that corporate deals in.
? Economic forces are those that shape corporate
behaviour as well as the reaction of govt to solve the
problems arising therefrom.
? Political forces have an impact on govt making and how
govt?s are prompted to shape their policies affecting
corporate.
? Technological forces allow corporations to update their
products, processes and help them meet competition.
Cont..
? To create a competitive environment
? To have control on foreign investment
Government may adopt protectionist policies for
the following reasons:
? To protect the growing local industries
? To regulate demand and supply
? To regulate the prices in the unhealthy
competitive environment
? To protect the environment
Different Levels of Public Policy
Depending on the intended geographic reach and the degree of
sovereignty the authority concerned enjoys.
v National Level: IDRA and MRTP Act.
v State level: policies to protect ground water from contamination,
policies to take over the wine shops in states.
v Regional Level: Common Agricultural Policy, sharing of river water
etc.
v International Level: IPR?s, TRIMs etc.
Elements of Public Policy Inputs
? Govt may determine its course of action on
the basis of
? Economic or foreign policy concerns
? Domestic political pressure from
constituents and interest groups
? Technical information
? Tax imperatives
? Reaction to natural or national calamities
Goals
? Goals may be ideal oriented, narrow or
self serving.
? But it is always important to inquire
whether it served the citizens of the
country whose welfare it intends to serve.
Mechanisms
? Ex: budget negotiations?.
? Instruments of public policy are those
combinations of incentives and
disincentives that govt uses to prompt
citizens, to act in ways that achieve policy
goals.
?
Results
? Intended or unintended results. ? Agenda building-
?Consists of major issues or problems to
which officials give serious attention and
upon which they feel compelled to act.
?Ex: 33% reservation for women in
Parliament and Legislatures?
? Policy formulation ?
?It occurs when interested groups take a
position on some public issue and try to
persuade others to adopt their viewpoints
as public policy.
? Policy Decision-
?Occurs when some arm of the govt, either
authorizes or fail to authorise the course of
action.
? Policy implementation-
?Occurs when action is taken to enforce a
public policy decision.
? Policy Evaluation-
?Occurs when the impact of public policy
becomes evident.
?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,
less expensive way.
The Corporation and Public
Policy
1. Limits to Powers of democratic govt ?
constitutional law and common law.
2. Limits to powers of non-democratic
monarchy, dictatorship, religious rulers,
socialist state.
Framing of Public policy-
Powers of Govt
? Constitutional Govt?s:- the will of the
people and their desires get reflected in
public policies.
? Non-democratic Govt?s :- special interest
lobbying of the leadership elite, complete
with illegal bribes and payments,
international pressure for change, play
decisive role in public policies.
Involvement of Business in
Public Policy Decision Making
? Business should be involved:- 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.
? Business should not be involved:-
business and politics should be separated
as their combination will have several toxic
effects
Cont..
? Effects are:-
vExecutives are not fit to engage in political
debates.
vBusiness is too big and too powerful, while
politics is fragmented by its very nature
and makes gains by divide-and-rule policy.
Business and Political- levels of
involvement
? Level 1:Financial Involvement
? Level 2: Organisational Involvement
? Level 3: Strategic public policy
involvement
Level 1:Financial Involvement
? Formation of Political Action Committee (PAC) :-
PAC may solicit contributions from stock-holders
and employees and then channel the fund to
those seeking political office.
? Trade Association Support: many large
corporations place full time liaison officers in
national capitals.
? FICCI,CII,ASSOCHAM and Chambers of
Commerce.
Level 2: Organisational
Involvement
? Lobbying: involves direct contact with a
government official to influence the
thinking or actions of that person on an
issue or public policy.
? Employee grassroot involvement :
grassroot programs are organised efforts
to get constituents to influence govt
officials to vote or act in a favourable way.
Level 3: Strategic public policy
involvement
? Through executive participation where the
representatives participate in decision
making by acting as the part of the
executive.
Public Policy and Business
? Govt?s everywhere significantly influence
business activities.
? Federal or central govt?s try to promote economic
development of their countries ? by using
appropriate economic policies.
? State govt?s ? through a slew of state-specific
economic policies.
? Local self govt?s ? policies that involve permits,
licenses and various clearances.
National Economic Growth Cont..
? Economic growth is stimulated by govt
policies that encourage investment, foster
technology development, provide key
services and create a capable workforce
through education.
? Poor economic development will
accelerate nation?s social problems.
Economic Policy
? Faster economic growth
? Reduction in inequalities of income and
wealth
? Full employment
? Price stability
? Balance of payment equilibrium
? These can be achieved through monetary
policy, fiscal policy, commercial policy
Monetary Policy
? Refers to the policy adopted by the
monetary authority with respect to the
supply of money.
? Objective ? maximum feasible output, high
rate of growth, providing more
employment, price stability, greater equity
in the distribution of income and wealth,
favourable BOP.
Fiscal Policy
? fiscal policy is the use of government revenue
collection (taxation) and expenditure (spending)
to influence the economy.
? To generate revenue and to incur expenditure,
the government frames a policy called budgetary
policy or fiscal policy.
? The fiscal policy is concerned with government
expenditure and government revenue
? fiscal policy refers to the policy of the
government with regard to taxation, public
expenditure and public borrowings.
? The importance of fiscal policy is high in
underdeveloped countries.
Main Objectives of Fiscal
Policy In India
? 1. Development by effective Mobilisation of Resources
? 2. Efficient allocation of Financial Resources
? 3. Reduction in inequalities of Income and Wealth
? 4. Price Stability and Control of Inflation
? 5. Employment Generation
? 6. Balanced Regional Development
? 7. Reducing the Deficit in the Balance of Payment
? 8. Capital Formation
? 9. Increasing National Income
? 10. Development of Infrastructure
? 11. Foreign Exchange Earnings
FirstRanker.com - FirstRanker's Choice
MODULE - 4
PUBLIC POLICY
? Public ? it comprises domain of human
activity which is regarded as requiring
governmental interventions or common
action.
? Policy ? a purposive course of action taken
or adopted by those in power in pursuit of
certain goals and objectives.
? Public policy is ?whatever governments
choose to do or not to do?.
Public Policy
? Public Policy is an attempt by a
government to address a public issue by
instituting laws, regulations, decisions or
actions pertinent to the problem at hand.
? Issues ? crime, education, foreign policy,
health and social welfare can be
addressed.
? It is thus a plan of action undertaken by
govt to achieve some broad public
purpose.
? Public policy is basically a set of rules and
regulations set forth that the public is
expected to adhere to.
? Ex: public laws
Categories of Public Policies
? Substantive and procedural policies- with respect
to time of execution (former or latter)
? Distributive, Regulatory, Self-regulatory, and Re-
distributive policies ? with respect to allocation
and control.
vDistributive policies concern the allocation of
services and benefits of public resources to
various segments of the economy.
vRegulatory policies imposes restrictions or
limitations on the ways and manners the
individuals and group of individuals and firms
could behave an economy.
vSelf-regulatory policies are the policies similar to
regulatory policies but each unions or bodies
supervised themselves.
vRe-distributive policies are the policies that
allocate resources among the already divided
sections of the society
? Material and symbolic policies- with
respect to the tangibility of power and
assets involved.
It includes policy on patriotism, peace, social
justice etc.
? Policies involving public goods and private
goods- public goods are collectively
owned, divisible and non-excludable.
? Liberal and conservative policies ? with
respect to freedom and ability to influence
or change policies.
vLiberal policies ? easily amendable.
vConservative policies ?rigid or difficult to
change.
Relevance of Public Policy
? Scientific understanding
? Improves our knowledge of society
? Linkages between social and economic
conditions
? Response of political system to those
conditions
? Professional advice
Application of knowledge to the solutions of
practical problems
? Policy recommendations ? to inform
political discussion, advance the level of
political awareness and improve the
quality of public policy.
Government and public policy
? Close relationship between public policy
and government or public authorities.
? No policy becomes public policy unless it
is adopted, implemented and enforced by
some governmental institution.
? It lends legitimacy to policies
? Government policies involve universality
as these extend to all sections in society
? Governments alone can exercise coercion
in society-only govt can legitimately
imprison violators of its policies.
Areas of Public Policy
? Economic management
? Labour management relations
? The welfare state
? Shaping of public policies affecting
corporate sector
Economic management
? It is assumed that government intervention
is essential and even inevitable in
economic activities.
? Great depression, recession, depression?
Labour Management Relations
? The concept of industrial democracy made
it imperative that a national labour policy
should be adopted by the state to protect
the rights of workers of unions.
The Welfare State
? At present it is believed that every man
has the right to get a good job, decent
food, clothing and shelter.
? It is the responsibility of the government to
guarantee these rights.
Shaping of public policies
affecting corporate sector
? Stakeholder expectations if unmet, trigger
action to transform social concern into
pressure on business and govt.
Need for Public Policy in
Business
? Social forces include the size and composition of
population, life style and pattern of living which have a
definite effect on both the demand and supply of goods
and services that corporate deals in.
? Economic forces are those that shape corporate
behaviour as well as the reaction of govt to solve the
problems arising therefrom.
? Political forces have an impact on govt making and how
govt?s are prompted to shape their policies affecting
corporate.
? Technological forces allow corporations to update their
products, processes and help them meet competition.
Cont..
? To create a competitive environment
? To have control on foreign investment
Government may adopt protectionist policies for
the following reasons:
? To protect the growing local industries
? To regulate demand and supply
? To regulate the prices in the unhealthy
competitive environment
? To protect the environment
Different Levels of Public Policy
Depending on the intended geographic reach and the degree of
sovereignty the authority concerned enjoys.
v National Level: IDRA and MRTP Act.
v State level: policies to protect ground water from contamination,
policies to take over the wine shops in states.
v Regional Level: Common Agricultural Policy, sharing of river water
etc.
v International Level: IPR?s, TRIMs etc.
Elements of Public Policy Inputs
? Govt may determine its course of action on
the basis of
? Economic or foreign policy concerns
? Domestic political pressure from
constituents and interest groups
? Technical information
? Tax imperatives
? Reaction to natural or national calamities
Goals
? Goals may be ideal oriented, narrow or
self serving.
? But it is always important to inquire
whether it served the citizens of the
country whose welfare it intends to serve.
Mechanisms
? Ex: budget negotiations?.
? Instruments of public policy are those
combinations of incentives and
disincentives that govt uses to prompt
citizens, to act in ways that achieve policy
goals.
?
Results
? Intended or unintended results. ? Agenda building-
?Consists of major issues or problems to
which officials give serious attention and
upon which they feel compelled to act.
?Ex: 33% reservation for women in
Parliament and Legislatures?
? Policy formulation ?
?It occurs when interested groups take a
position on some public issue and try to
persuade others to adopt their viewpoints
as public policy.
? Policy Decision-
?Occurs when some arm of the govt, either
authorizes or fail to authorise the course of
action.
? Policy implementation-
?Occurs when action is taken to enforce a
public policy decision.
? Policy Evaluation-
?Occurs when the impact of public policy
becomes evident.
?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,
less expensive way.
The Corporation and Public
Policy
1. Limits to Powers of democratic govt ?
constitutional law and common law.
2. Limits to powers of non-democratic
monarchy, dictatorship, religious rulers,
socialist state.
Framing of Public policy-
Powers of Govt
? Constitutional Govt?s:- the will of the
people and their desires get reflected in
public policies.
? Non-democratic Govt?s :- special interest
lobbying of the leadership elite, complete
with illegal bribes and payments,
international pressure for change, play
decisive role in public policies.
Involvement of Business in
Public Policy Decision Making
? Business should be involved:- 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.
? Business should not be involved:-
business and politics should be separated
as their combination will have several toxic
effects
Cont..
? Effects are:-
vExecutives are not fit to engage in political
debates.
vBusiness is too big and too powerful, while
politics is fragmented by its very nature
and makes gains by divide-and-rule policy.
Business and Political- levels of
involvement
? Level 1:Financial Involvement
? Level 2: Organisational Involvement
? Level 3: Strategic public policy
involvement
Level 1:Financial Involvement
? Formation of Political Action Committee (PAC) :-
PAC may solicit contributions from stock-holders
and employees and then channel the fund to
those seeking political office.
? Trade Association Support: many large
corporations place full time liaison officers in
national capitals.
? FICCI,CII,ASSOCHAM and Chambers of
Commerce.
Level 2: Organisational
Involvement
? Lobbying: involves direct contact with a
government official to influence the
thinking or actions of that person on an
issue or public policy.
? Employee grassroot involvement :
grassroot programs are organised efforts
to get constituents to influence govt
officials to vote or act in a favourable way.
Level 3: Strategic public policy
involvement
? Through executive participation where the
representatives participate in decision
making by acting as the part of the
executive.
Public Policy and Business
? Govt?s everywhere significantly influence
business activities.
? Federal or central govt?s try to promote economic
development of their countries ? by using
appropriate economic policies.
? State govt?s ? through a slew of state-specific
economic policies.
? Local self govt?s ? policies that involve permits,
licenses and various clearances.
National Economic Growth Cont..
? Economic growth is stimulated by govt
policies that encourage investment, foster
technology development, provide key
services and create a capable workforce
through education.
? Poor economic development will
accelerate nation?s social problems.
Economic Policy
? Faster economic growth
? Reduction in inequalities of income and
wealth
? Full employment
? Price stability
? Balance of payment equilibrium
? These can be achieved through monetary
policy, fiscal policy, commercial policy
Monetary Policy
? Refers to the policy adopted by the
monetary authority with respect to the
supply of money.
? Objective ? maximum feasible output, high
rate of growth, providing more
employment, price stability, greater equity
in the distribution of income and wealth,
favourable BOP.
Fiscal Policy
? fiscal policy is the use of government revenue
collection (taxation) and expenditure (spending)
to influence the economy.
? To generate revenue and to incur expenditure,
the government frames a policy called budgetary
policy or fiscal policy.
? The fiscal policy is concerned with government
expenditure and government revenue
? fiscal policy refers to the policy of the
government with regard to taxation, public
expenditure and public borrowings.
? The importance of fiscal policy is high in
underdeveloped countries.
Main Objectives of Fiscal
Policy In India
? 1. Development by effective Mobilisation of Resources
? 2. Efficient allocation of Financial Resources
? 3. Reduction in inequalities of Income and Wealth
? 4. Price Stability and Control of Inflation
? 5. Employment Generation
? 6. Balanced Regional Development
? 7. Reducing the Deficit in the Balance of Payment
? 8. Capital Formation
? 9. Increasing National Income
? 10. Development of Infrastructure
? 11. Foreign Exchange Earnings
? The objectives of fiscal policy such as economic
development, price stability, social justice, etc.
can be achieved only if the tools of policy like
Public Expenditure, Taxation, Borrowing and
deficit financing are effectively used.
? The success of fiscal policy depends upon taking
timely measures and their effective
administration during implementation
FirstRanker.com - FirstRanker's Choice
MODULE - 4
PUBLIC POLICY
? Public ? it comprises domain of human
activity which is regarded as requiring
governmental interventions or common
action.
? Policy ? a purposive course of action taken
or adopted by those in power in pursuit of
certain goals and objectives.
? Public policy is ?whatever governments
choose to do or not to do?.
Public Policy
? Public Policy is an attempt by a
government to address a public issue by
instituting laws, regulations, decisions or
actions pertinent to the problem at hand.
? Issues ? crime, education, foreign policy,
health and social welfare can be
addressed.
? It is thus a plan of action undertaken by
govt to achieve some broad public
purpose.
? Public policy is basically a set of rules and
regulations set forth that the public is
expected to adhere to.
? Ex: public laws
Categories of Public Policies
? Substantive and procedural policies- with respect
to time of execution (former or latter)
? Distributive, Regulatory, Self-regulatory, and Re-
distributive policies ? with respect to allocation
and control.
vDistributive policies concern the allocation of
services and benefits of public resources to
various segments of the economy.
vRegulatory policies imposes restrictions or
limitations on the ways and manners the
individuals and group of individuals and firms
could behave an economy.
vSelf-regulatory policies are the policies similar to
regulatory policies but each unions or bodies
supervised themselves.
vRe-distributive policies are the policies that
allocate resources among the already divided
sections of the society
? Material and symbolic policies- with
respect to the tangibility of power and
assets involved.
It includes policy on patriotism, peace, social
justice etc.
? Policies involving public goods and private
goods- public goods are collectively
owned, divisible and non-excludable.
? Liberal and conservative policies ? with
respect to freedom and ability to influence
or change policies.
vLiberal policies ? easily amendable.
vConservative policies ?rigid or difficult to
change.
Relevance of Public Policy
? Scientific understanding
? Improves our knowledge of society
? Linkages between social and economic
conditions
? Response of political system to those
conditions
? Professional advice
Application of knowledge to the solutions of
practical problems
? Policy recommendations ? to inform
political discussion, advance the level of
political awareness and improve the
quality of public policy.
Government and public policy
? Close relationship between public policy
and government or public authorities.
? No policy becomes public policy unless it
is adopted, implemented and enforced by
some governmental institution.
? It lends legitimacy to policies
? Government policies involve universality
as these extend to all sections in society
? Governments alone can exercise coercion
in society-only govt can legitimately
imprison violators of its policies.
Areas of Public Policy
? Economic management
? Labour management relations
? The welfare state
? Shaping of public policies affecting
corporate sector
Economic management
? It is assumed that government intervention
is essential and even inevitable in
economic activities.
? Great depression, recession, depression?
Labour Management Relations
? The concept of industrial democracy made
it imperative that a national labour policy
should be adopted by the state to protect
the rights of workers of unions.
The Welfare State
? At present it is believed that every man
has the right to get a good job, decent
food, clothing and shelter.
? It is the responsibility of the government to
guarantee these rights.
Shaping of public policies
affecting corporate sector
? Stakeholder expectations if unmet, trigger
action to transform social concern into
pressure on business and govt.
Need for Public Policy in
Business
? Social forces include the size and composition of
population, life style and pattern of living which have a
definite effect on both the demand and supply of goods
and services that corporate deals in.
? Economic forces are those that shape corporate
behaviour as well as the reaction of govt to solve the
problems arising therefrom.
? Political forces have an impact on govt making and how
govt?s are prompted to shape their policies affecting
corporate.
? Technological forces allow corporations to update their
products, processes and help them meet competition.
Cont..
? To create a competitive environment
? To have control on foreign investment
Government may adopt protectionist policies for
the following reasons:
? To protect the growing local industries
? To regulate demand and supply
? To regulate the prices in the unhealthy
competitive environment
? To protect the environment
Different Levels of Public Policy
Depending on the intended geographic reach and the degree of
sovereignty the authority concerned enjoys.
v National Level: IDRA and MRTP Act.
v State level: policies to protect ground water from contamination,
policies to take over the wine shops in states.
v Regional Level: Common Agricultural Policy, sharing of river water
etc.
v International Level: IPR?s, TRIMs etc.
Elements of Public Policy Inputs
? Govt may determine its course of action on
the basis of
? Economic or foreign policy concerns
? Domestic political pressure from
constituents and interest groups
? Technical information
? Tax imperatives
? Reaction to natural or national calamities
Goals
? Goals may be ideal oriented, narrow or
self serving.
? But it is always important to inquire
whether it served the citizens of the
country whose welfare it intends to serve.
Mechanisms
? Ex: budget negotiations?.
? Instruments of public policy are those
combinations of incentives and
disincentives that govt uses to prompt
citizens, to act in ways that achieve policy
goals.
?
Results
? Intended or unintended results. ? Agenda building-
?Consists of major issues or problems to
which officials give serious attention and
upon which they feel compelled to act.
?Ex: 33% reservation for women in
Parliament and Legislatures?
? Policy formulation ?
?It occurs when interested groups take a
position on some public issue and try to
persuade others to adopt their viewpoints
as public policy.
? Policy Decision-
?Occurs when some arm of the govt, either
authorizes or fail to authorise the course of
action.
? Policy implementation-
?Occurs when action is taken to enforce a
public policy decision.
? Policy Evaluation-
?Occurs when the impact of public policy
becomes evident.
?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,
less expensive way.
The Corporation and Public
Policy
1. Limits to Powers of democratic govt ?
constitutional law and common law.
2. Limits to powers of non-democratic
monarchy, dictatorship, religious rulers,
socialist state.
Framing of Public policy-
Powers of Govt
? Constitutional Govt?s:- the will of the
people and their desires get reflected in
public policies.
? Non-democratic Govt?s :- special interest
lobbying of the leadership elite, complete
with illegal bribes and payments,
international pressure for change, play
decisive role in public policies.
Involvement of Business in
Public Policy Decision Making
? Business should be involved:- 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.
? Business should not be involved:-
business and politics should be separated
as their combination will have several toxic
effects
Cont..
? Effects are:-
vExecutives are not fit to engage in political
debates.
vBusiness is too big and too powerful, while
politics is fragmented by its very nature
and makes gains by divide-and-rule policy.
Business and Political- levels of
involvement
? Level 1:Financial Involvement
? Level 2: Organisational Involvement
? Level 3: Strategic public policy
involvement
Level 1:Financial Involvement
? Formation of Political Action Committee (PAC) :-
PAC may solicit contributions from stock-holders
and employees and then channel the fund to
those seeking political office.
? Trade Association Support: many large
corporations place full time liaison officers in
national capitals.
? FICCI,CII,ASSOCHAM and Chambers of
Commerce.
Level 2: Organisational
Involvement
? Lobbying: involves direct contact with a
government official to influence the
thinking or actions of that person on an
issue or public policy.
? Employee grassroot involvement :
grassroot programs are organised efforts
to get constituents to influence govt
officials to vote or act in a favourable way.
Level 3: Strategic public policy
involvement
? Through executive participation where the
representatives participate in decision
making by acting as the part of the
executive.
Public Policy and Business
? Govt?s everywhere significantly influence
business activities.
? Federal or central govt?s try to promote economic
development of their countries ? by using
appropriate economic policies.
? State govt?s ? through a slew of state-specific
economic policies.
? Local self govt?s ? policies that involve permits,
licenses and various clearances.
National Economic Growth Cont..
? Economic growth is stimulated by govt
policies that encourage investment, foster
technology development, provide key
services and create a capable workforce
through education.
? Poor economic development will
accelerate nation?s social problems.
Economic Policy
? Faster economic growth
? Reduction in inequalities of income and
wealth
? Full employment
? Price stability
? Balance of payment equilibrium
? These can be achieved through monetary
policy, fiscal policy, commercial policy
Monetary Policy
? Refers to the policy adopted by the
monetary authority with respect to the
supply of money.
? Objective ? maximum feasible output, high
rate of growth, providing more
employment, price stability, greater equity
in the distribution of income and wealth,
favourable BOP.
Fiscal Policy
? fiscal policy is the use of government revenue
collection (taxation) and expenditure (spending)
to influence the economy.
? To generate revenue and to incur expenditure,
the government frames a policy called budgetary
policy or fiscal policy.
? The fiscal policy is concerned with government
expenditure and government revenue
? fiscal policy refers to the policy of the
government with regard to taxation, public
expenditure and public borrowings.
? The importance of fiscal policy is high in
underdeveloped countries.
Main Objectives of Fiscal
Policy In India
? 1. Development by effective Mobilisation of Resources
? 2. Efficient allocation of Financial Resources
? 3. Reduction in inequalities of Income and Wealth
? 4. Price Stability and Control of Inflation
? 5. Employment Generation
? 6. Balanced Regional Development
? 7. Reducing the Deficit in the Balance of Payment
? 8. Capital Formation
? 9. Increasing National Income
? 10. Development of Infrastructure
? 11. Foreign Exchange Earnings
? The objectives of fiscal policy such as economic
development, price stability, social justice, etc.
can be achieved only if the tools of policy like
Public Expenditure, Taxation, Borrowing and
deficit financing are effectively used.
? The success of fiscal policy depends upon taking
timely measures and their effective
administration during implementation
Government Regulations in
Business
? What is government regulations?
It is a mechanism for implementing social
choices and helps in creating the basic
conditions that lead to economic prosperity.
People rely on govt to institute and maintain
rules of conduct for citizens as wells as
organizations.
FirstRanker.com - FirstRanker's Choice
MODULE - 4
PUBLIC POLICY
? Public ? it comprises domain of human
activity which is regarded as requiring
governmental interventions or common
action.
? Policy ? a purposive course of action taken
or adopted by those in power in pursuit of
certain goals and objectives.
? Public policy is ?whatever governments
choose to do or not to do?.
Public Policy
? Public Policy is an attempt by a
government to address a public issue by
instituting laws, regulations, decisions or
actions pertinent to the problem at hand.
? Issues ? crime, education, foreign policy,
health and social welfare can be
addressed.
? It is thus a plan of action undertaken by
govt to achieve some broad public
purpose.
? Public policy is basically a set of rules and
regulations set forth that the public is
expected to adhere to.
? Ex: public laws
Categories of Public Policies
? Substantive and procedural policies- with respect
to time of execution (former or latter)
? Distributive, Regulatory, Self-regulatory, and Re-
distributive policies ? with respect to allocation
and control.
vDistributive policies concern the allocation of
services and benefits of public resources to
various segments of the economy.
vRegulatory policies imposes restrictions or
limitations on the ways and manners the
individuals and group of individuals and firms
could behave an economy.
vSelf-regulatory policies are the policies similar to
regulatory policies but each unions or bodies
supervised themselves.
vRe-distributive policies are the policies that
allocate resources among the already divided
sections of the society
? Material and symbolic policies- with
respect to the tangibility of power and
assets involved.
It includes policy on patriotism, peace, social
justice etc.
? Policies involving public goods and private
goods- public goods are collectively
owned, divisible and non-excludable.
? Liberal and conservative policies ? with
respect to freedom and ability to influence
or change policies.
vLiberal policies ? easily amendable.
vConservative policies ?rigid or difficult to
change.
Relevance of Public Policy
? Scientific understanding
? Improves our knowledge of society
? Linkages between social and economic
conditions
? Response of political system to those
conditions
? Professional advice
Application of knowledge to the solutions of
practical problems
? Policy recommendations ? to inform
political discussion, advance the level of
political awareness and improve the
quality of public policy.
Government and public policy
? Close relationship between public policy
and government or public authorities.
? No policy becomes public policy unless it
is adopted, implemented and enforced by
some governmental institution.
? It lends legitimacy to policies
? Government policies involve universality
as these extend to all sections in society
? Governments alone can exercise coercion
in society-only govt can legitimately
imprison violators of its policies.
Areas of Public Policy
? Economic management
? Labour management relations
? The welfare state
? Shaping of public policies affecting
corporate sector
Economic management
? It is assumed that government intervention
is essential and even inevitable in
economic activities.
? Great depression, recession, depression?
Labour Management Relations
? The concept of industrial democracy made
it imperative that a national labour policy
should be adopted by the state to protect
the rights of workers of unions.
The Welfare State
? At present it is believed that every man
has the right to get a good job, decent
food, clothing and shelter.
? It is the responsibility of the government to
guarantee these rights.
Shaping of public policies
affecting corporate sector
? Stakeholder expectations if unmet, trigger
action to transform social concern into
pressure on business and govt.
Need for Public Policy in
Business
? Social forces include the size and composition of
population, life style and pattern of living which have a
definite effect on both the demand and supply of goods
and services that corporate deals in.
? Economic forces are those that shape corporate
behaviour as well as the reaction of govt to solve the
problems arising therefrom.
? Political forces have an impact on govt making and how
govt?s are prompted to shape their policies affecting
corporate.
? Technological forces allow corporations to update their
products, processes and help them meet competition.
Cont..
? To create a competitive environment
? To have control on foreign investment
Government may adopt protectionist policies for
the following reasons:
? To protect the growing local industries
? To regulate demand and supply
? To regulate the prices in the unhealthy
competitive environment
? To protect the environment
Different Levels of Public Policy
Depending on the intended geographic reach and the degree of
sovereignty the authority concerned enjoys.
v National Level: IDRA and MRTP Act.
v State level: policies to protect ground water from contamination,
policies to take over the wine shops in states.
v Regional Level: Common Agricultural Policy, sharing of river water
etc.
v International Level: IPR?s, TRIMs etc.
Elements of Public Policy Inputs
? Govt may determine its course of action on
the basis of
? Economic or foreign policy concerns
? Domestic political pressure from
constituents and interest groups
? Technical information
? Tax imperatives
? Reaction to natural or national calamities
Goals
? Goals may be ideal oriented, narrow or
self serving.
? But it is always important to inquire
whether it served the citizens of the
country whose welfare it intends to serve.
Mechanisms
? Ex: budget negotiations?.
? Instruments of public policy are those
combinations of incentives and
disincentives that govt uses to prompt
citizens, to act in ways that achieve policy
goals.
?
Results
? Intended or unintended results. ? Agenda building-
?Consists of major issues or problems to
which officials give serious attention and
upon which they feel compelled to act.
?Ex: 33% reservation for women in
Parliament and Legislatures?
? Policy formulation ?
?It occurs when interested groups take a
position on some public issue and try to
persuade others to adopt their viewpoints
as public policy.
? Policy Decision-
?Occurs when some arm of the govt, either
authorizes or fail to authorise the course of
action.
? Policy implementation-
?Occurs when action is taken to enforce a
public policy decision.
? Policy Evaluation-
?Occurs when the impact of public policy
becomes evident.
?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,
less expensive way.
The Corporation and Public
Policy
1. Limits to Powers of democratic govt ?
constitutional law and common law.
2. Limits to powers of non-democratic
monarchy, dictatorship, religious rulers,
socialist state.
Framing of Public policy-
Powers of Govt
? Constitutional Govt?s:- the will of the
people and their desires get reflected in
public policies.
? Non-democratic Govt?s :- special interest
lobbying of the leadership elite, complete
with illegal bribes and payments,
international pressure for change, play
decisive role in public policies.
Involvement of Business in
Public Policy Decision Making
? Business should be involved:- 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.
? Business should not be involved:-
business and politics should be separated
as their combination will have several toxic
effects
Cont..
? Effects are:-
vExecutives are not fit to engage in political
debates.
vBusiness is too big and too powerful, while
politics is fragmented by its very nature
and makes gains by divide-and-rule policy.
Business and Political- levels of
involvement
? Level 1:Financial Involvement
? Level 2: Organisational Involvement
? Level 3: Strategic public policy
involvement
Level 1:Financial Involvement
? Formation of Political Action Committee (PAC) :-
PAC may solicit contributions from stock-holders
and employees and then channel the fund to
those seeking political office.
? Trade Association Support: many large
corporations place full time liaison officers in
national capitals.
? FICCI,CII,ASSOCHAM and Chambers of
Commerce.
Level 2: Organisational
Involvement
? Lobbying: involves direct contact with a
government official to influence the
thinking or actions of that person on an
issue or public policy.
? Employee grassroot involvement :
grassroot programs are organised efforts
to get constituents to influence govt
officials to vote or act in a favourable way.
Level 3: Strategic public policy
involvement
? Through executive participation where the
representatives participate in decision
making by acting as the part of the
executive.
Public Policy and Business
? Govt?s everywhere significantly influence
business activities.
? Federal or central govt?s try to promote economic
development of their countries ? by using
appropriate economic policies.
? State govt?s ? through a slew of state-specific
economic policies.
? Local self govt?s ? policies that involve permits,
licenses and various clearances.
National Economic Growth Cont..
? Economic growth is stimulated by govt
policies that encourage investment, foster
technology development, provide key
services and create a capable workforce
through education.
? Poor economic development will
accelerate nation?s social problems.
Economic Policy
? Faster economic growth
? Reduction in inequalities of income and
wealth
? Full employment
? Price stability
? Balance of payment equilibrium
? These can be achieved through monetary
policy, fiscal policy, commercial policy
Monetary Policy
? Refers to the policy adopted by the
monetary authority with respect to the
supply of money.
? Objective ? maximum feasible output, high
rate of growth, providing more
employment, price stability, greater equity
in the distribution of income and wealth,
favourable BOP.
Fiscal Policy
? fiscal policy is the use of government revenue
collection (taxation) and expenditure (spending)
to influence the economy.
? To generate revenue and to incur expenditure,
the government frames a policy called budgetary
policy or fiscal policy.
? The fiscal policy is concerned with government
expenditure and government revenue
? fiscal policy refers to the policy of the
government with regard to taxation, public
expenditure and public borrowings.
? The importance of fiscal policy is high in
underdeveloped countries.
Main Objectives of Fiscal
Policy In India
? 1. Development by effective Mobilisation of Resources
? 2. Efficient allocation of Financial Resources
? 3. Reduction in inequalities of Income and Wealth
? 4. Price Stability and Control of Inflation
? 5. Employment Generation
? 6. Balanced Regional Development
? 7. Reducing the Deficit in the Balance of Payment
? 8. Capital Formation
? 9. Increasing National Income
? 10. Development of Infrastructure
? 11. Foreign Exchange Earnings
? The objectives of fiscal policy such as economic
development, price stability, social justice, etc.
can be achieved only if the tools of policy like
Public Expenditure, Taxation, Borrowing and
deficit financing are effectively used.
? The success of fiscal policy depends upon taking
timely measures and their effective
administration during implementation
Government Regulations in
Business
? What is government regulations?
It is a mechanism for implementing social
choices and helps in creating the basic
conditions that lead to economic prosperity.
People rely on govt to institute and maintain
rules of conduct for citizens as wells as
organizations.
CONT..
? If citizens have to live peacefully, they
expect the local govt to regulate traffic,
supply of basic necessities .
? At the state level, they want the govt to
regulate industries ?labour laws and
create employment.
? The central govt is expected to regulate
trade and monetary and fiscal policies.
FirstRanker.com - FirstRanker's Choice
MODULE - 4
PUBLIC POLICY
? Public ? it comprises domain of human
activity which is regarded as requiring
governmental interventions or common
action.
? Policy ? a purposive course of action taken
or adopted by those in power in pursuit of
certain goals and objectives.
? Public policy is ?whatever governments
choose to do or not to do?.
Public Policy
? Public Policy is an attempt by a
government to address a public issue by
instituting laws, regulations, decisions or
actions pertinent to the problem at hand.
? Issues ? crime, education, foreign policy,
health and social welfare can be
addressed.
? It is thus a plan of action undertaken by
govt to achieve some broad public
purpose.
? Public policy is basically a set of rules and
regulations set forth that the public is
expected to adhere to.
? Ex: public laws
Categories of Public Policies
? Substantive and procedural policies- with respect
to time of execution (former or latter)
? Distributive, Regulatory, Self-regulatory, and Re-
distributive policies ? with respect to allocation
and control.
vDistributive policies concern the allocation of
services and benefits of public resources to
various segments of the economy.
vRegulatory policies imposes restrictions or
limitations on the ways and manners the
individuals and group of individuals and firms
could behave an economy.
vSelf-regulatory policies are the policies similar to
regulatory policies but each unions or bodies
supervised themselves.
vRe-distributive policies are the policies that
allocate resources among the already divided
sections of the society
? Material and symbolic policies- with
respect to the tangibility of power and
assets involved.
It includes policy on patriotism, peace, social
justice etc.
? Policies involving public goods and private
goods- public goods are collectively
owned, divisible and non-excludable.
? Liberal and conservative policies ? with
respect to freedom and ability to influence
or change policies.
vLiberal policies ? easily amendable.
vConservative policies ?rigid or difficult to
change.
Relevance of Public Policy
? Scientific understanding
? Improves our knowledge of society
? Linkages between social and economic
conditions
? Response of political system to those
conditions
? Professional advice
Application of knowledge to the solutions of
practical problems
? Policy recommendations ? to inform
political discussion, advance the level of
political awareness and improve the
quality of public policy.
Government and public policy
? Close relationship between public policy
and government or public authorities.
? No policy becomes public policy unless it
is adopted, implemented and enforced by
some governmental institution.
? It lends legitimacy to policies
? Government policies involve universality
as these extend to all sections in society
? Governments alone can exercise coercion
in society-only govt can legitimately
imprison violators of its policies.
Areas of Public Policy
? Economic management
? Labour management relations
? The welfare state
? Shaping of public policies affecting
corporate sector
Economic management
? It is assumed that government intervention
is essential and even inevitable in
economic activities.
? Great depression, recession, depression?
Labour Management Relations
? The concept of industrial democracy made
it imperative that a national labour policy
should be adopted by the state to protect
the rights of workers of unions.
The Welfare State
? At present it is believed that every man
has the right to get a good job, decent
food, clothing and shelter.
? It is the responsibility of the government to
guarantee these rights.
Shaping of public policies
affecting corporate sector
? Stakeholder expectations if unmet, trigger
action to transform social concern into
pressure on business and govt.
Need for Public Policy in
Business
? Social forces include the size and composition of
population, life style and pattern of living which have a
definite effect on both the demand and supply of goods
and services that corporate deals in.
? Economic forces are those that shape corporate
behaviour as well as the reaction of govt to solve the
problems arising therefrom.
? Political forces have an impact on govt making and how
govt?s are prompted to shape their policies affecting
corporate.
? Technological forces allow corporations to update their
products, processes and help them meet competition.
Cont..
? To create a competitive environment
? To have control on foreign investment
Government may adopt protectionist policies for
the following reasons:
? To protect the growing local industries
? To regulate demand and supply
? To regulate the prices in the unhealthy
competitive environment
? To protect the environment
Different Levels of Public Policy
Depending on the intended geographic reach and the degree of
sovereignty the authority concerned enjoys.
v National Level: IDRA and MRTP Act.
v State level: policies to protect ground water from contamination,
policies to take over the wine shops in states.
v Regional Level: Common Agricultural Policy, sharing of river water
etc.
v International Level: IPR?s, TRIMs etc.
Elements of Public Policy Inputs
? Govt may determine its course of action on
the basis of
? Economic or foreign policy concerns
? Domestic political pressure from
constituents and interest groups
? Technical information
? Tax imperatives
? Reaction to natural or national calamities
Goals
? Goals may be ideal oriented, narrow or
self serving.
? But it is always important to inquire
whether it served the citizens of the
country whose welfare it intends to serve.
Mechanisms
? Ex: budget negotiations?.
? Instruments of public policy are those
combinations of incentives and
disincentives that govt uses to prompt
citizens, to act in ways that achieve policy
goals.
?
Results
? Intended or unintended results. ? Agenda building-
?Consists of major issues or problems to
which officials give serious attention and
upon which they feel compelled to act.
?Ex: 33% reservation for women in
Parliament and Legislatures?
? Policy formulation ?
?It occurs when interested groups take a
position on some public issue and try to
persuade others to adopt their viewpoints
as public policy.
? Policy Decision-
?Occurs when some arm of the govt, either
authorizes or fail to authorise the course of
action.
? Policy implementation-
?Occurs when action is taken to enforce a
public policy decision.
? Policy Evaluation-
?Occurs when the impact of public policy
becomes evident.
?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,
less expensive way.
The Corporation and Public
Policy
1. Limits to Powers of democratic govt ?
constitutional law and common law.
2. Limits to powers of non-democratic
monarchy, dictatorship, religious rulers,
socialist state.
Framing of Public policy-
Powers of Govt
? Constitutional Govt?s:- the will of the
people and their desires get reflected in
public policies.
? Non-democratic Govt?s :- special interest
lobbying of the leadership elite, complete
with illegal bribes and payments,
international pressure for change, play
decisive role in public policies.
Involvement of Business in
Public Policy Decision Making
? Business should be involved:- 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.
? Business should not be involved:-
business and politics should be separated
as their combination will have several toxic
effects
Cont..
? Effects are:-
vExecutives are not fit to engage in political
debates.
vBusiness is too big and too powerful, while
politics is fragmented by its very nature
and makes gains by divide-and-rule policy.
Business and Political- levels of
involvement
? Level 1:Financial Involvement
? Level 2: Organisational Involvement
? Level 3: Strategic public policy
involvement
Level 1:Financial Involvement
? Formation of Political Action Committee (PAC) :-
PAC may solicit contributions from stock-holders
and employees and then channel the fund to
those seeking political office.
? Trade Association Support: many large
corporations place full time liaison officers in
national capitals.
? FICCI,CII,ASSOCHAM and Chambers of
Commerce.
Level 2: Organisational
Involvement
? Lobbying: involves direct contact with a
government official to influence the
thinking or actions of that person on an
issue or public policy.
? Employee grassroot involvement :
grassroot programs are organised efforts
to get constituents to influence govt
officials to vote or act in a favourable way.
Level 3: Strategic public policy
involvement
? Through executive participation where the
representatives participate in decision
making by acting as the part of the
executive.
Public Policy and Business
? Govt?s everywhere significantly influence
business activities.
? Federal or central govt?s try to promote economic
development of their countries ? by using
appropriate economic policies.
? State govt?s ? through a slew of state-specific
economic policies.
? Local self govt?s ? policies that involve permits,
licenses and various clearances.
National Economic Growth Cont..
? Economic growth is stimulated by govt
policies that encourage investment, foster
technology development, provide key
services and create a capable workforce
through education.
? Poor economic development will
accelerate nation?s social problems.
Economic Policy
? Faster economic growth
? Reduction in inequalities of income and
wealth
? Full employment
? Price stability
? Balance of payment equilibrium
? These can be achieved through monetary
policy, fiscal policy, commercial policy
Monetary Policy
? Refers to the policy adopted by the
monetary authority with respect to the
supply of money.
? Objective ? maximum feasible output, high
rate of growth, providing more
employment, price stability, greater equity
in the distribution of income and wealth,
favourable BOP.
Fiscal Policy
? fiscal policy is the use of government revenue
collection (taxation) and expenditure (spending)
to influence the economy.
? To generate revenue and to incur expenditure,
the government frames a policy called budgetary
policy or fiscal policy.
? The fiscal policy is concerned with government
expenditure and government revenue
? fiscal policy refers to the policy of the
government with regard to taxation, public
expenditure and public borrowings.
? The importance of fiscal policy is high in
underdeveloped countries.
Main Objectives of Fiscal
Policy In India
? 1. Development by effective Mobilisation of Resources
? 2. Efficient allocation of Financial Resources
? 3. Reduction in inequalities of Income and Wealth
? 4. Price Stability and Control of Inflation
? 5. Employment Generation
? 6. Balanced Regional Development
? 7. Reducing the Deficit in the Balance of Payment
? 8. Capital Formation
? 9. Increasing National Income
? 10. Development of Infrastructure
? 11. Foreign Exchange Earnings
? The objectives of fiscal policy such as economic
development, price stability, social justice, etc.
can be achieved only if the tools of policy like
Public Expenditure, Taxation, Borrowing and
deficit financing are effectively used.
? The success of fiscal policy depends upon taking
timely measures and their effective
administration during implementation
Government Regulations in
Business
? What is government regulations?
It is a mechanism for implementing social
choices and helps in creating the basic
conditions that lead to economic prosperity.
People rely on govt to institute and maintain
rules of conduct for citizens as wells as
organizations.
CONT..
? If citizens have to live peacefully, they
expect the local govt to regulate traffic,
supply of basic necessities .
? At the state level, they want the govt to
regulate industries ?labour laws and
create employment.
? The central govt is expected to regulate
trade and monetary and fiscal policies.
Justification of Government
Regulation
? Market Failure ? add social cost of a product.
? Ethical Failure- ensures fairness and justice.
? Stakeholder Demand- environmental
conservation, consumer protection act.
? Public Reaction- communications
? Political Advocacy- minorities and women call for
govt
FirstRanker.com - FirstRanker's Choice
MODULE - 4
PUBLIC POLICY
? Public ? it comprises domain of human
activity which is regarded as requiring
governmental interventions or common
action.
? Policy ? a purposive course of action taken
or adopted by those in power in pursuit of
certain goals and objectives.
? Public policy is ?whatever governments
choose to do or not to do?.
Public Policy
? Public Policy is an attempt by a
government to address a public issue by
instituting laws, regulations, decisions or
actions pertinent to the problem at hand.
? Issues ? crime, education, foreign policy,
health and social welfare can be
addressed.
? It is thus a plan of action undertaken by
govt to achieve some broad public
purpose.
? Public policy is basically a set of rules and
regulations set forth that the public is
expected to adhere to.
? Ex: public laws
Categories of Public Policies
? Substantive and procedural policies- with respect
to time of execution (former or latter)
? Distributive, Regulatory, Self-regulatory, and Re-
distributive policies ? with respect to allocation
and control.
vDistributive policies concern the allocation of
services and benefits of public resources to
various segments of the economy.
vRegulatory policies imposes restrictions or
limitations on the ways and manners the
individuals and group of individuals and firms
could behave an economy.
vSelf-regulatory policies are the policies similar to
regulatory policies but each unions or bodies
supervised themselves.
vRe-distributive policies are the policies that
allocate resources among the already divided
sections of the society
? Material and symbolic policies- with
respect to the tangibility of power and
assets involved.
It includes policy on patriotism, peace, social
justice etc.
? Policies involving public goods and private
goods- public goods are collectively
owned, divisible and non-excludable.
? Liberal and conservative policies ? with
respect to freedom and ability to influence
or change policies.
vLiberal policies ? easily amendable.
vConservative policies ?rigid or difficult to
change.
Relevance of Public Policy
? Scientific understanding
? Improves our knowledge of society
? Linkages between social and economic
conditions
? Response of political system to those
conditions
? Professional advice
Application of knowledge to the solutions of
practical problems
? Policy recommendations ? to inform
political discussion, advance the level of
political awareness and improve the
quality of public policy.
Government and public policy
? Close relationship between public policy
and government or public authorities.
? No policy becomes public policy unless it
is adopted, implemented and enforced by
some governmental institution.
? It lends legitimacy to policies
? Government policies involve universality
as these extend to all sections in society
? Governments alone can exercise coercion
in society-only govt can legitimately
imprison violators of its policies.
Areas of Public Policy
? Economic management
? Labour management relations
? The welfare state
? Shaping of public policies affecting
corporate sector
Economic management
? It is assumed that government intervention
is essential and even inevitable in
economic activities.
? Great depression, recession, depression?
Labour Management Relations
? The concept of industrial democracy made
it imperative that a national labour policy
should be adopted by the state to protect
the rights of workers of unions.
The Welfare State
? At present it is believed that every man
has the right to get a good job, decent
food, clothing and shelter.
? It is the responsibility of the government to
guarantee these rights.
Shaping of public policies
affecting corporate sector
? Stakeholder expectations if unmet, trigger
action to transform social concern into
pressure on business and govt.
Need for Public Policy in
Business
? Social forces include the size and composition of
population, life style and pattern of living which have a
definite effect on both the demand and supply of goods
and services that corporate deals in.
? Economic forces are those that shape corporate
behaviour as well as the reaction of govt to solve the
problems arising therefrom.
? Political forces have an impact on govt making and how
govt?s are prompted to shape their policies affecting
corporate.
? Technological forces allow corporations to update their
products, processes and help them meet competition.
Cont..
? To create a competitive environment
? To have control on foreign investment
Government may adopt protectionist policies for
the following reasons:
? To protect the growing local industries
? To regulate demand and supply
? To regulate the prices in the unhealthy
competitive environment
? To protect the environment
Different Levels of Public Policy
Depending on the intended geographic reach and the degree of
sovereignty the authority concerned enjoys.
v National Level: IDRA and MRTP Act.
v State level: policies to protect ground water from contamination,
policies to take over the wine shops in states.
v Regional Level: Common Agricultural Policy, sharing of river water
etc.
v International Level: IPR?s, TRIMs etc.
Elements of Public Policy Inputs
? Govt may determine its course of action on
the basis of
? Economic or foreign policy concerns
? Domestic political pressure from
constituents and interest groups
? Technical information
? Tax imperatives
? Reaction to natural or national calamities
Goals
? Goals may be ideal oriented, narrow or
self serving.
? But it is always important to inquire
whether it served the citizens of the
country whose welfare it intends to serve.
Mechanisms
? Ex: budget negotiations?.
? Instruments of public policy are those
combinations of incentives and
disincentives that govt uses to prompt
citizens, to act in ways that achieve policy
goals.
?
Results
? Intended or unintended results. ? Agenda building-
?Consists of major issues or problems to
which officials give serious attention and
upon which they feel compelled to act.
?Ex: 33% reservation for women in
Parliament and Legislatures?
? Policy formulation ?
?It occurs when interested groups take a
position on some public issue and try to
persuade others to adopt their viewpoints
as public policy.
? Policy Decision-
?Occurs when some arm of the govt, either
authorizes or fail to authorise the course of
action.
? Policy implementation-
?Occurs when action is taken to enforce a
public policy decision.
? Policy Evaluation-
?Occurs when the impact of public policy
becomes evident.
?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,
less expensive way.
The Corporation and Public
Policy
1. Limits to Powers of democratic govt ?
constitutional law and common law.
2. Limits to powers of non-democratic
monarchy, dictatorship, religious rulers,
socialist state.
Framing of Public policy-
Powers of Govt
? Constitutional Govt?s:- the will of the
people and their desires get reflected in
public policies.
? Non-democratic Govt?s :- special interest
lobbying of the leadership elite, complete
with illegal bribes and payments,
international pressure for change, play
decisive role in public policies.
Involvement of Business in
Public Policy Decision Making
? Business should be involved:- 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.
? Business should not be involved:-
business and politics should be separated
as their combination will have several toxic
effects
Cont..
? Effects are:-
vExecutives are not fit to engage in political
debates.
vBusiness is too big and too powerful, while
politics is fragmented by its very nature
and makes gains by divide-and-rule policy.
Business and Political- levels of
involvement
? Level 1:Financial Involvement
? Level 2: Organisational Involvement
? Level 3: Strategic public policy
involvement
Level 1:Financial Involvement
? Formation of Political Action Committee (PAC) :-
PAC may solicit contributions from stock-holders
and employees and then channel the fund to
those seeking political office.
? Trade Association Support: many large
corporations place full time liaison officers in
national capitals.
? FICCI,CII,ASSOCHAM and Chambers of
Commerce.
Level 2: Organisational
Involvement
? Lobbying: involves direct contact with a
government official to influence the
thinking or actions of that person on an
issue or public policy.
? Employee grassroot involvement :
grassroot programs are organised efforts
to get constituents to influence govt
officials to vote or act in a favourable way.
Level 3: Strategic public policy
involvement
? Through executive participation where the
representatives participate in decision
making by acting as the part of the
executive.
Public Policy and Business
? Govt?s everywhere significantly influence
business activities.
? Federal or central govt?s try to promote economic
development of their countries ? by using
appropriate economic policies.
? State govt?s ? through a slew of state-specific
economic policies.
? Local self govt?s ? policies that involve permits,
licenses and various clearances.
National Economic Growth Cont..
? Economic growth is stimulated by govt
policies that encourage investment, foster
technology development, provide key
services and create a capable workforce
through education.
? Poor economic development will
accelerate nation?s social problems.
Economic Policy
? Faster economic growth
? Reduction in inequalities of income and
wealth
? Full employment
? Price stability
? Balance of payment equilibrium
? These can be achieved through monetary
policy, fiscal policy, commercial policy
Monetary Policy
? Refers to the policy adopted by the
monetary authority with respect to the
supply of money.
? Objective ? maximum feasible output, high
rate of growth, providing more
employment, price stability, greater equity
in the distribution of income and wealth,
favourable BOP.
Fiscal Policy
? fiscal policy is the use of government revenue
collection (taxation) and expenditure (spending)
to influence the economy.
? To generate revenue and to incur expenditure,
the government frames a policy called budgetary
policy or fiscal policy.
? The fiscal policy is concerned with government
expenditure and government revenue
? fiscal policy refers to the policy of the
government with regard to taxation, public
expenditure and public borrowings.
? The importance of fiscal policy is high in
underdeveloped countries.
Main Objectives of Fiscal
Policy In India
? 1. Development by effective Mobilisation of Resources
? 2. Efficient allocation of Financial Resources
? 3. Reduction in inequalities of Income and Wealth
? 4. Price Stability and Control of Inflation
? 5. Employment Generation
? 6. Balanced Regional Development
? 7. Reducing the Deficit in the Balance of Payment
? 8. Capital Formation
? 9. Increasing National Income
? 10. Development of Infrastructure
? 11. Foreign Exchange Earnings
? The objectives of fiscal policy such as economic
development, price stability, social justice, etc.
can be achieved only if the tools of policy like
Public Expenditure, Taxation, Borrowing and
deficit financing are effectively used.
? The success of fiscal policy depends upon taking
timely measures and their effective
administration during implementation
Government Regulations in
Business
? What is government regulations?
It is a mechanism for implementing social
choices and helps in creating the basic
conditions that lead to economic prosperity.
People rely on govt to institute and maintain
rules of conduct for citizens as wells as
organizations.
CONT..
? If citizens have to live peacefully, they
expect the local govt to regulate traffic,
supply of basic necessities .
? At the state level, they want the govt to
regulate industries ?labour laws and
create employment.
? The central govt is expected to regulate
trade and monetary and fiscal policies.
Justification of Government
Regulation
? Market Failure ? add social cost of a product.
? Ethical Failure- ensures fairness and justice.
? Stakeholder Demand- environmental
conservation, consumer protection act.
? Public Reaction- communications
? Political Advocacy- minorities and women call for
govt
Types of Government
Regulation
? Industry specific: prevention of abuse to buyers in
markets where market forces are distorted by monopoly
or other market power by suppliers.
? Industry wide: primary social issues that affect all
business.
? Functional: specific to certain business operations
? Media attention: media connects communities globally.
Events are chronicled as they occur, the public and govt
officials see social needs that should be highlighted.
FirstRanker.com - FirstRanker's Choice
MODULE - 4
PUBLIC POLICY
? Public ? it comprises domain of human
activity which is regarded as requiring
governmental interventions or common
action.
? Policy ? a purposive course of action taken
or adopted by those in power in pursuit of
certain goals and objectives.
? Public policy is ?whatever governments
choose to do or not to do?.
Public Policy
? Public Policy is an attempt by a
government to address a public issue by
instituting laws, regulations, decisions or
actions pertinent to the problem at hand.
? Issues ? crime, education, foreign policy,
health and social welfare can be
addressed.
? It is thus a plan of action undertaken by
govt to achieve some broad public
purpose.
? Public policy is basically a set of rules and
regulations set forth that the public is
expected to adhere to.
? Ex: public laws
Categories of Public Policies
? Substantive and procedural policies- with respect
to time of execution (former or latter)
? Distributive, Regulatory, Self-regulatory, and Re-
distributive policies ? with respect to allocation
and control.
vDistributive policies concern the allocation of
services and benefits of public resources to
various segments of the economy.
vRegulatory policies imposes restrictions or
limitations on the ways and manners the
individuals and group of individuals and firms
could behave an economy.
vSelf-regulatory policies are the policies similar to
regulatory policies but each unions or bodies
supervised themselves.
vRe-distributive policies are the policies that
allocate resources among the already divided
sections of the society
? Material and symbolic policies- with
respect to the tangibility of power and
assets involved.
It includes policy on patriotism, peace, social
justice etc.
? Policies involving public goods and private
goods- public goods are collectively
owned, divisible and non-excludable.
? Liberal and conservative policies ? with
respect to freedom and ability to influence
or change policies.
vLiberal policies ? easily amendable.
vConservative policies ?rigid or difficult to
change.
Relevance of Public Policy
? Scientific understanding
? Improves our knowledge of society
? Linkages between social and economic
conditions
? Response of political system to those
conditions
? Professional advice
Application of knowledge to the solutions of
practical problems
? Policy recommendations ? to inform
political discussion, advance the level of
political awareness and improve the
quality of public policy.
Government and public policy
? Close relationship between public policy
and government or public authorities.
? No policy becomes public policy unless it
is adopted, implemented and enforced by
some governmental institution.
? It lends legitimacy to policies
? Government policies involve universality
as these extend to all sections in society
? Governments alone can exercise coercion
in society-only govt can legitimately
imprison violators of its policies.
Areas of Public Policy
? Economic management
? Labour management relations
? The welfare state
? Shaping of public policies affecting
corporate sector
Economic management
? It is assumed that government intervention
is essential and even inevitable in
economic activities.
? Great depression, recession, depression?
Labour Management Relations
? The concept of industrial democracy made
it imperative that a national labour policy
should be adopted by the state to protect
the rights of workers of unions.
The Welfare State
? At present it is believed that every man
has the right to get a good job, decent
food, clothing and shelter.
? It is the responsibility of the government to
guarantee these rights.
Shaping of public policies
affecting corporate sector
? Stakeholder expectations if unmet, trigger
action to transform social concern into
pressure on business and govt.
Need for Public Policy in
Business
? Social forces include the size and composition of
population, life style and pattern of living which have a
definite effect on both the demand and supply of goods
and services that corporate deals in.
? Economic forces are those that shape corporate
behaviour as well as the reaction of govt to solve the
problems arising therefrom.
? Political forces have an impact on govt making and how
govt?s are prompted to shape their policies affecting
corporate.
? Technological forces allow corporations to update their
products, processes and help them meet competition.
Cont..
? To create a competitive environment
? To have control on foreign investment
Government may adopt protectionist policies for
the following reasons:
? To protect the growing local industries
? To regulate demand and supply
? To regulate the prices in the unhealthy
competitive environment
? To protect the environment
Different Levels of Public Policy
Depending on the intended geographic reach and the degree of
sovereignty the authority concerned enjoys.
v National Level: IDRA and MRTP Act.
v State level: policies to protect ground water from contamination,
policies to take over the wine shops in states.
v Regional Level: Common Agricultural Policy, sharing of river water
etc.
v International Level: IPR?s, TRIMs etc.
Elements of Public Policy Inputs
? Govt may determine its course of action on
the basis of
? Economic or foreign policy concerns
? Domestic political pressure from
constituents and interest groups
? Technical information
? Tax imperatives
? Reaction to natural or national calamities
Goals
? Goals may be ideal oriented, narrow or
self serving.
? But it is always important to inquire
whether it served the citizens of the
country whose welfare it intends to serve.
Mechanisms
? Ex: budget negotiations?.
? Instruments of public policy are those
combinations of incentives and
disincentives that govt uses to prompt
citizens, to act in ways that achieve policy
goals.
?
Results
? Intended or unintended results. ? Agenda building-
?Consists of major issues or problems to
which officials give serious attention and
upon which they feel compelled to act.
?Ex: 33% reservation for women in
Parliament and Legislatures?
? Policy formulation ?
?It occurs when interested groups take a
position on some public issue and try to
persuade others to adopt their viewpoints
as public policy.
? Policy Decision-
?Occurs when some arm of the govt, either
authorizes or fail to authorise the course of
action.
? Policy implementation-
?Occurs when action is taken to enforce a
public policy decision.
? Policy Evaluation-
?Occurs when the impact of public policy
becomes evident.
?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,
less expensive way.
The Corporation and Public
Policy
1. Limits to Powers of democratic govt ?
constitutional law and common law.
2. Limits to powers of non-democratic
monarchy, dictatorship, religious rulers,
socialist state.
Framing of Public policy-
Powers of Govt
? Constitutional Govt?s:- the will of the
people and their desires get reflected in
public policies.
? Non-democratic Govt?s :- special interest
lobbying of the leadership elite, complete
with illegal bribes and payments,
international pressure for change, play
decisive role in public policies.
Involvement of Business in
Public Policy Decision Making
? Business should be involved:- 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.
? Business should not be involved:-
business and politics should be separated
as their combination will have several toxic
effects
Cont..
? Effects are:-
vExecutives are not fit to engage in political
debates.
vBusiness is too big and too powerful, while
politics is fragmented by its very nature
and makes gains by divide-and-rule policy.
Business and Political- levels of
involvement
? Level 1:Financial Involvement
? Level 2: Organisational Involvement
? Level 3: Strategic public policy
involvement
Level 1:Financial Involvement
? Formation of Political Action Committee (PAC) :-
PAC may solicit contributions from stock-holders
and employees and then channel the fund to
those seeking political office.
? Trade Association Support: many large
corporations place full time liaison officers in
national capitals.
? FICCI,CII,ASSOCHAM and Chambers of
Commerce.
Level 2: Organisational
Involvement
? Lobbying: involves direct contact with a
government official to influence the
thinking or actions of that person on an
issue or public policy.
? Employee grassroot involvement :
grassroot programs are organised efforts
to get constituents to influence govt
officials to vote or act in a favourable way.
Level 3: Strategic public policy
involvement
? Through executive participation where the
representatives participate in decision
making by acting as the part of the
executive.
Public Policy and Business
? Govt?s everywhere significantly influence
business activities.
? Federal or central govt?s try to promote economic
development of their countries ? by using
appropriate economic policies.
? State govt?s ? through a slew of state-specific
economic policies.
? Local self govt?s ? policies that involve permits,
licenses and various clearances.
National Economic Growth Cont..
? Economic growth is stimulated by govt
policies that encourage investment, foster
technology development, provide key
services and create a capable workforce
through education.
? Poor economic development will
accelerate nation?s social problems.
Economic Policy
? Faster economic growth
? Reduction in inequalities of income and
wealth
? Full employment
? Price stability
? Balance of payment equilibrium
? These can be achieved through monetary
policy, fiscal policy, commercial policy
Monetary Policy
? Refers to the policy adopted by the
monetary authority with respect to the
supply of money.
? Objective ? maximum feasible output, high
rate of growth, providing more
employment, price stability, greater equity
in the distribution of income and wealth,
favourable BOP.
Fiscal Policy
? fiscal policy is the use of government revenue
collection (taxation) and expenditure (spending)
to influence the economy.
? To generate revenue and to incur expenditure,
the government frames a policy called budgetary
policy or fiscal policy.
? The fiscal policy is concerned with government
expenditure and government revenue
? fiscal policy refers to the policy of the
government with regard to taxation, public
expenditure and public borrowings.
? The importance of fiscal policy is high in
underdeveloped countries.
Main Objectives of Fiscal
Policy In India
? 1. Development by effective Mobilisation of Resources
? 2. Efficient allocation of Financial Resources
? 3. Reduction in inequalities of Income and Wealth
? 4. Price Stability and Control of Inflation
? 5. Employment Generation
? 6. Balanced Regional Development
? 7. Reducing the Deficit in the Balance of Payment
? 8. Capital Formation
? 9. Increasing National Income
? 10. Development of Infrastructure
? 11. Foreign Exchange Earnings
? The objectives of fiscal policy such as economic
development, price stability, social justice, etc.
can be achieved only if the tools of policy like
Public Expenditure, Taxation, Borrowing and
deficit financing are effectively used.
? The success of fiscal policy depends upon taking
timely measures and their effective
administration during implementation
Government Regulations in
Business
? What is government regulations?
It is a mechanism for implementing social
choices and helps in creating the basic
conditions that lead to economic prosperity.
People rely on govt to institute and maintain
rules of conduct for citizens as wells as
organizations.
CONT..
? If citizens have to live peacefully, they
expect the local govt to regulate traffic,
supply of basic necessities .
? At the state level, they want the govt to
regulate industries ?labour laws and
create employment.
? The central govt is expected to regulate
trade and monetary and fiscal policies.
Justification of Government
Regulation
? Market Failure ? add social cost of a product.
? Ethical Failure- ensures fairness and justice.
? Stakeholder Demand- environmental
conservation, consumer protection act.
? Public Reaction- communications
? Political Advocacy- minorities and women call for
govt
Types of Government
Regulation
? Industry specific: prevention of abuse to buyers in
markets where market forces are distorted by monopoly
or other market power by suppliers.
? Industry wide: primary social issues that affect all
business.
? Functional: specific to certain business operations
? Media attention: media connects communities globally.
Events are chronicled as they occur, the public and govt
officials see social needs that should be highlighted.
Problems of Government
Regulation
? Cost/Benefit : all regulations add cost to products.
? Effectiveness: is the intended purpose achieved
and what are the unintended consequences and
costs?
? Deregulations: stakeholders resist deregulation.
? Policy confusion: TV and cable systems of
delivery has causes confusion.
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This post was last modified on 18 February 2020