Final answer:
A licensee can exert undue influence but it may breach ethical or legal standards. Questions of power balance and the role of the media, as well as awareness of conflicts of interest, are essential in such cases. Strong regulations exist to prevent and penalize undue influence.
Step-by-step explanation:
A licensee can exert undue influence in promoting activities, services, or products for which they have a personal or business interest. However, this represents an ethical dilemma and may be in violation of professional or legal standards, depending on the context.
Licensees are subject to regulations that often include the need to avoid conflicts of interest and to uphold the integrity of their profession. For example, in the medical field, it would be considered unethical for a physician to promote a drug in which they have a financial interest without proper disclosure.
It's important to consider questions such as the true balance of power between those in the political arena and the public, especially related to the media's role as a gatekeeper.
Additionally, the concept of the invisible hand, as described by Adam Smith, can be used to examine how individual self-interest may inadvertently benefit the public, but this should not be confused with the intentional exertion of influence for personal gain.
Laws often restrict the activities of licensees to prevent undue influence, and disclosures are typically required regarding any potential conflicts of interest. Violations can result in severe penalties, including imprisonment.