Final answer:
Corporate boards aiming to avoid government regulation should consider lobbying against the regulations by partnering with other businesses, as this provides a proactive approach to influencing policy while maintaining ethical conduct. Option C is the correct answer.
Step-by-step explanation:
When discussing the action a corporate board should take if they want to avoid government regulation of their industry, several approaches can be contemplated. Aboard might consider seeking a government exemption, communicating honestly with shareholders, partnering with other businesses to lobby against the regulations, or minimizing public information about the business. However, the most proactive and ethically sound approach is generally to partner with other businesses to lobby against the regulations. This involves actively engaging with policymakers to influence and shape legislation that might impact the industry.
Government corporations are sometimes created to address market failures, provide public services that are not adequately offered by the private sector, or to ensure national security interests. The Freedom of Information Act of 1966 empowers citizens to hold bureaucracy accountable by allowing for the oversight of government actions.
However, there is a risk known as regulatory capture, where regulated firms wield significant influence over the regulatory agencies intended to oversee them. This phenomenon can result in rules that favor industry incumbents and suppress competition. It may also result in government price regulation being used as a tool by existing competitors to maintain high prices and suppress competition. Therefore, one effective way to prevent regulatory capture is by limiting corporate lobbying and enforcing stricter campaign finance rules, mitigating the influence businesses have over regulation and government decision-making.
Corporate lobbying is a critical area where transparency and ethical conduct must be closely monitored to prevent undue influence over the legislative process that is meant to protect public interest.
In conclusion, the recommended action for a corporate board is to c) partner with other businesses to lobby against the regulations. This choice actively engages with the legislative process and seeks to alter potential regulations in a way that balances industry interests with public good.