Government Regulations Essay Example
Government Regulations Essay Example

Government Regulations Essay Example

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This paper will discuss the proposed views on the advantages and disadvantages of government regulations on businesses.

Government Regulations on Businesses Advantages and Disadvantages

There are advantages and disadvantages that may be associated with the regulations that government imposes on businesses. It is best to examine the reasoning behind regulations first prior to determining the potential advantages or disadvantages that are viewed with government regulations. Government serves as an overseer of the way that businesses operate in society, and regulations establish the guidelines and rules for businesses in the marketplace. Businesses would not have a standard to go by without regulations and it could result in corruption because there would be no rules to avoid problems. Regulations established by the government forces businesses to think of ways to maintain success within the boundaries of rules, which will benefit the market for society. Government regulations fall under the basis of two types social and economic regulations.

Social regulations


protect the interest of the public, such as health and the environment, from economic activity (http://smallbusiness. chron. com/government-regulations-business-2964. html). Economic regulations adjust prices and conditions of the economy (http://smallbusiness. html). Advertising is an area that could fall under the basis of social or economic regulations. Regulations for advertising protect consumers and keep companies honest about their products; businesses need to be able to back up claims made in advertisement at any time; advertisement must be fair for consumers and competitors (http://smallbusiness.chron. com/five-areas-government-regulation-business-701. html). Environmental is an area of government regulations that could also be considered socially inclined. Environmental regulations reduce the negative repercussions of manufacturing on the environment (http://smallbusiness.

chron. com/government-regulations-small-business-1319. tml). Environmental cleanup regulations require companies that contribute to hazardou

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waste sites to either provide cleanup staff or pay for the cleanup (http://smallbusiness. chron. com/government-regulations-small-business-1319.html). Privacy regulations are social regulations to protect sensitive information normally provided by the consumer. Information collected can include social security number, address, name, health conditions, credit card and bank numbers (http://smallbusiness. chron. com/five-areas-government-regulation-business-701. html).

Laws exist that will keep businesses from spreading information, and people can sue companies for disclosing sensitive information (http://smallbusiness. chron. com/five-areas-government-regulation-business-701. html).

Employment and labor regulations could fall under economic or social regulation types. These laws pertain to minimum wages, benefits, safety and health compliance, working conditions, equal opportunity employment and much more that covers the largest area of business regulations (http://smallbusiness. chron. com/five-areas-government-regulation-business-701. html). These regulations help keep employer-employee relationship relatively fair and protect people from harassment, discrimination and unfair treatment (http://smallbusiness.chron. com/government-regulations-small-business-1319. html). The different types of government regulations and the various areas covered by the use of regulations helps aligned a better understanding of the potential advantages and disadvantages that may incur within the market.

Economic regulations generally focus on money operations of a business, and social regulations are laws that businesses generally have to follow for employees and consumer relationships. Advantages and disadvantages of regulations could be thought to be impactful on consumers or the businesses. The businesses undoubtedly will create the largest arguments that regulations have many disadvantages and limited advantages. Businesses pay large amounts to comply with government regulations. Companies could break down and fail to flourish due to government regulations. Businesses are thought to charge more for products because of the cost to follow the guidelines of government regulations.

Consumers have argued that they could get better priced products if businesses did not

have to pay so much to keep within regulations.Consumers undoubtedly benefit the most from regulations, because the rules appear to protect consumers the most. Consumer’s safety, health, and much more benefit from the advantages of government regulations. Businesses benefit from a competitive market that regulations create, so that many businesses may thrive and grow.

Often time’s government can be viewed as pro-consumer or pro-business, but the effects of government regulations help define market place ethics. There are arguments that cover many advantages or disadvantages to government regulations but everyone may be impartial and agree to either side of all arguments.


  1. Five Areas of Government Regulations of Business Retrieved from: http://smallbusiness. chron. com/five-areas-government-regulation-business-701.
  2. Government Regulations in a Business Retrieved from: http://smallbusiness.chron. com/government-regulations-business-2964.
  3. html Government Regulation Factors in Business Retrieved from: http://smallbusiness. chron. com/government-regulation-factors-business-2966.
  4. html What Are the Government Regulations for a Small Business?
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