Government, Public Policy, and Sustainable Business

Read this chapter to find out more about the interplay between individuals, organizations, and governments in shaping public policy.

How are policies influenced? What factors affect the policy-making process? How does public policy affect innovation and sustainability practices?

Government creates, defines, and regulates markets, including the private market economy overall and the market for sustainable goods and services.
Government, at all levels, national (federal), state, and local, can exert considerable influence on the activities that businesses undertake and on the revenues, costs, and earnings of sustainable businesses.
Government impacts the market economy through laws, regulations, judicial decisions, taxes, and government spending.
Government actions at all levels are constantly changing and are part of the dynamic environment for sustainable businesses.
The US government and the governments of many other nations are increasingly focused on policies to reduce energy use and business activities that damage the environment. These policies include targets for use of renewable energy, programs to enhance energy efficiency, and regulations to reduce environmental damage. These all can provide expanded markets and business opportunities for sustainable businesses and can impose additional costs on other businesses and reduce the market demand for some businesses that are not providing sustainable goods or services.
There are business "winners" and "losers" on different public policy issues. On the same policy issue, there will be businesses in favor and against the policy.