In any country the government tries to preserve the community and improve its conditions. In that respect the business has to extend its co-operation to the government. If the business discharges its responsibilities the government sincerely and effectively, the government can function more efficiently. This is in the interest of the whole community and indirectly in the interest of the business. The prospects of the business depend upon the status of the community. The development of business depends upon the development of the community; hence business has got to be very particular about discharging its obligations towards the government.
The prominent responsibilities of the business towards the government can be described as follows:
- To obey Laws
The laws reflect the wishes of the community, they show what the community wants the member to do and what the community wants the member to avoid. The laws control the behavior of the individuals with each other and with the community.
If business obeys laws the society can function smoothly and business can prosper only when the society is functioning smoothly but if laws are oppressive or obstructing the path of business, they can be opposed in constitutional manner. The business can take the help of constitution or the judiciary to oppose the laws and get them repealed. The Maharashtra government banned the sale of gutkha in Maharashtra state. The producers of gutkha approached the court which repealed the order of the government of Maharashtra on the ground that tobacco is in the jurisdiction of the central government.
- Payment of taxes
The expenditure of a modern government is heavy and is fast increasing. The main source of income for the government is the different type of taxes imposed by it. The business pays taxes on goods produced by them, taxes on goods imported by them, taxes on own income and taxes on the incomes of the employees. The bulk of the tax revenue is collected from business. If business pays the taxes honestly and on time the government can fulfill its responsibilities efficiently. If taxes are evaded by one group, the burden of taxation increases on some other group. Non payment of a tax is a political offence and also a social dishonesty.
- Social responsibility
In addition to the legal and political responsibilities, the business has to take up several moral responsibilities towards the society. Thus, the business has to provide training facilities for the unemployed persons so that they can get absorbed in some occupation or can setup self employment units. Several business houses established educational institutions, hospitals, libraries, recreation halls, playgrounds etc. for the community. This is helpful in winning them sympathy from the community. It is like an investment made by the business.
- Providing inputs to the government
Often the government requires inputs of technical economic financial or political importance for framing appropriate policies. The business has contacts in different sections of the community. They can be used for collecting the required information and providing it to the government. Any action based upon accurate inputs has greater chances of achieving a higher success. For eg: before imposing a tax on commodity the government likes to know the elasticity of demand for that commodity.
Other things remaining the same the government prefers to impose a tax on a commodity which enjoys relatively less elastic demand.
- Government Contracts
The government has to take up several works such as construction of roads, bridges, flyovers, airports etc. Sometimes these works are undertaken by the government departments but a more common method of undertaking that work is to invite tenders and give contracts to business. It is the responsibility of the business to complete the work in time and maintain a high level of quality of the work. A huge project like the sewi – nhava seva sealink can be conveniently undertaken with the help of business.
- Government Services
The business offers services of its leaders to the government to work on different committees. The business leaders have practical experience of a particular type of business. A committee appointed for doing something in respect of that business is highly benefited if some prominent person from that field is appointed as the chairman of that committee or commission.
- Active participation in politics
Sometimes the businessmen try to participate actively in politics. A member of the TATA family contested election to the lok sabha. Sometimes the leaders of the business are nominated to the Rajya Sabha so that the government gets the benefit of their practical experience of that field, but often the businessmen try to keep themselves away from active politics.