PREFACE

Public policy--especially as shaped by a host of government and interest

group interactions--is a pervasive influence on the business firm. This

book is designed to provide an understanding of the different ways in

which government policy affects the activities of the modern corporation.

The third edition represents a basic revision and expansion of the coverage

of the previous editions.

Part One, the shortest section of the book, is an overview of the

different public policy mechanisms that influence business decision mak-

ing. Part Two covers the field of government r6gulation in both the social

and economic areas. Although material in the preceding editions has been

condensed, the coverage here is broader, extending to transportation de-

regulation and antitrust matters.

Part Three presents, in the main, new material reflecting the ex-

panding array of public policy issues affecting business: industrial policy,

protectionism versus free trade, corporate bailouts, defense production,

and national planning. Part Four deals with the key responses of business

to government influence. A new chapter on issues management supple-

ments an expanded treatment of business-government relations. Part Five

contains a new chapter on corporate

In the last chapter, the future of the

from an historical perspective.

governance and corporate activists.

American corporation is considered

As in the previous editions, the focus of this book is on the future

practitioner, the business executive who will be dealing with issues of

public policy as a day-to-day aspect of the job. It is hoped that this book

will also assist government officials and members of interest groups to

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