Question 1: "In order to protect the dairy farmers, the Canadian government has assured

the provinces it will pay compensation to cheese producers, and that it will set up a

marketing campaign for local cheese. This is essentially a government subsidy to dairy

farmers." Explain why the Canadian Government should and should not play the role of

guardian of business in this way.

Many concerns have been raised that protecting dairy farmers could lead to significant

market disruptions, eroding competitiveness, and the potential for business interaction. This

could render producers reliant on support without the incentive to enhance productivity and

efficiency. However, the Government should play the guardian of businesses to protect dairy

farmers, as this is a vital service-providing sector for the population and a cornerstone of food

security. Distinct from other industries, the Government will strive to maintain a free market

where economic entities engage in fair competition, benefiting both the economy and

consumers. Dairy, alongside grains, meat, fish, vegetables, sugar, and salt, necessitates

government support to ensure a stable, safe, and nutritionally adequate supply at reasonable

prices accessible to all. Additionally, the dairy sector faces numerous challenges from diverse

factors such as climate change, price volatility, industry competition, and stringent food safety

requirements. For instance, abrupt weather changes can impact feed quality and supply stability

for livestock. Moreover, funding the dairy sector and supporting dairy farmers provides essential

nutrition for children, which is crucial for their development and well-being. Furthermore,

government support generates employment opportunities for numerous laborers within this

sector and contributes to the economic development of rural areas. This, in turn, mitigates the

urban-rural divide and promotes balanced labor distribution and population allocation between

regions.

References

Jim, C. (2020, May 7th). Canada helps dairy as part of agriculture package.

https://www.dairyreporter.com/Article/2020/05/07/Canada-helps-dairy-as-part-of-

agriculture-package.
Karakowsky, L. and Guriel, N. (2015). The Context of Business: Understanding the Canadian

Business Environment. Pearson Canada Inc.

Question 2: How can business lobbying of government be justified?

Lobbying is defined as: An activity which is characterized as all endeavors to exert

influence, whether direct or indirect, over any governmental undertaking. This encompasses any

effort aimed at influencing lawmakers, their aides, public officials, and individuals within

regulatory bodies (Sexty, 2020). Business lobbying of government is a contentious topic in

contemporary society, as businesses across various sectors seek to gain specific advantages to

facilitate their commercial endeavors. Some individuals support this practice due to its perceived

benefits, while others believe it holds potential risks that could undermine societal fairness. I will

delve into the subject of business lobbying of government and provide my perspective on the

issue.

There are numerous reasons why some individuals advocate for business lobbying of

the government. Firstly, they aim to protect the interests of their respective sectors, a portion of

which might receive limited attention from the government or need to be entirely recognized by

the community. Lobbying could be the only way to ensure their voices are received attention

and their fundamental interests are safeguarded. Furthermore, businesses frequently confront

fiercely competitive market environments. In the competition to attract customers, generate

employment, and sustain business growth, exerting influence in the political sphere to support

policies that encourage their development becomes indispensable. Engaging in the policy-

shaping process can help them maintain competitiveness and ensure stability within the industry

amidst the challenges they are currently facing. Examples include emerging fields such as

Artificial Intelligence (AI), blockchain, and self-driving technology, which still need specific

mechanisms and policies, thus still needing the appropriate government support and attention.

From my perspective, business lobbying of the government can lead to various

detrimental consequences in society. Firstly, business lobbying of the government can serve as
a source of unethical practices such as corruption, improper political contributions, blackmail,

waste, and abuse of the public interest. In other words, businesses utilize their financial

resources and influence to coerce or influence government decisions in ways that are not

morally sound, prioritizing their interests over those of society. Secondly, business lobbying

aims to secure maximum advantages for a particular group with shared interests, thereby

generating inequality and a lack of fairness as a privileged few gain more influence and benefits

than the rest. This could trigger social discord and foster a society characterized by turmoil and

mistrust among its members. Lastly, business lobbying of government is an expensive endeavor

that certain magnates exploit to further their interests. Ironically, the consumers end up

shouldering these costs as they use products or services provided by these companies.

In summary, although business lobbying of the government does offer certain benefits in

assisting disadvantaged businesses to receive appropriate attention and support, numerous

issues can arise from the practice if it is excessively exploited and conducted in an unethical

and unfair manner.

References

Sexty, R. (2020), Canadian Business & Society: Ethics, Responsibilties and Sustainability, pp.

187-188. 5th Edition Toronto, ON: Mc Graw Hill Education.

Karakowsky, L. and Guriel, N. (2015). The Context of Business Understanding the Canadian

Business Environment, pp. 187-188. Pearson Canada Inc.