Competing pressures


Competing pressures takes away incentive for companies to focus on shared profit and stockholder value. This specific issue forces them to instead turn their attention internally and become more focused on self interest. A company that creates their own cheese would try to sway the politicians and lawmakers to tighten the laws surrounding the regulation of cheese. A business issue influenced by a social concern forces the business to adapt in ways to appeal to the public. For example, the history surrounding parmigiano reggiano, including the creation of the cheese, allows for the Italian people to create connections to the cheese and be concerned about the authenticity of the brand. 

Government regulation could benefit certain types of cheese by implementing regulations to ensure that for cheese to be branded as authentic, it has undergone specific processes to do so. This could promote the businesses who spend the extra money and resources in their creation of cheese. A way for the free market to ensure that social pressures are not influencing the cheese business could be to create a committee that tests and brands cheeses as authentic or not.

Another issue where it is argued whether the government should have as much regulation vs the free market would be under the topic of climate change, or even just the environment as a stockholder. It is difficult to determine who can speak for the environment, so there is a struggle to determine whether the government should have the final say on environmental issues or whether it should be a democratic vote and therefore up to the people.

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