Businesses' Role in Governance

Businesses take many actions as part of their role in governance.

Businesses focus mainly on the products they are making or on the services they are providing as part of their business. Within the scope of their activities, they must comply with licensing requirements, pay relevant fees and taxes, and report relevant data to the governing bodies such as the EPA.

Businesses also are active in governance when they lobby governments for amended standards. For example, car manufacturers have lobbied the European Union for less stringent emission standards. When car manufacturers are successful in their lobbying, this means that the cars they produce may emit more harmful emissions. It also means that governments are less effective in protecting the environment and achieving their stated goals.