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?

There are three general categories of business responses to the public policy environment - reactive, interactive, and proactive.
Business efforts to influence public policy and government include not only individual company efforts but also business association efforts.
For most businesses, some combination of the interactive and proactive approaches with government and other interest groups is most often the best approach.
Businesses, individually and collectively; citizen interest groups; and NGOs all have influence on government policies. These entities often partner to influence public policy.
Business practices can be strongly influenced not only by government but by direct citizen and NGO actions that bypass the formal institutions of government. Especially since the 1990s, business has been increasingly influenced by direct citizen activism.
The media has a strong interest in giving visibility to issues and setting the policy agenda. Businesses must view the media as an important influencing agent affecting their operating environment and must be effective in its relations with the media.