Discuss the impact of social welfare and industrial policy initiatives on organizations and the wider community.

A

The social welfare initiatives are efforts by the government to provide housing, health, education, and transport among others. The number of unemployed citizens is usually a headache to any government and this causes conflict and friction among the business community. The higher the number of the unemployed, the greater the burden to the working population, consequently some governments have developed a financial programme to assist the unemployed, as a result, the companies are taxed more to meet the financial gap. This reduces the return on investment leading to divestment followed by relocation. The state budget is constrained as this requires large capital outlay to the tune of trillion dollars for some economies. Other economic sectors that are vital are sacrificed and this brings an imbalance in the economic systems. Money to be used in development is channelled to other areas.

As an industrial policy, governments have been focusing incentives and subsidies towards exports so as to tap on them and promote foreign investment hoping to reap. The developing countries are challenged by how to develop industrial policies more effectively that when redeployed, brings in more income. Organizations are constrained because the money that could have been made available for investment is re-channelled to other regions. This affects their profitability and growth.

Answer by Academic.tip's expert
An answer to this question is provided by one of our experts who specializes in business & economics. Let us know how much you liked it and give it a rating.

Cite this page

Select a citation style:

References

Academic.Tips. (2022) 'Discuss the impact of social welfare and industrial policy initiatives on organizations and the wider community'. 13 January.

Reference

Academic.Tips. (2022, January 13). Discuss the impact of social welfare and industrial policy initiatives on organizations and the wider community. Retrieved from https://academic.tips/question/discuss-the-impact-of-social-welfare-and-industrial-policy-initiatives-on-organizations-and-the-wider-community/

References

Academic.Tips. 2022. "Discuss the impact of social welfare and industrial policy initiatives on organizations and the wider community." January 13, 2022. https://academic.tips/question/discuss-the-impact-of-social-welfare-and-industrial-policy-initiatives-on-organizations-and-the-wider-community/.

1. Academic.Tips. "Discuss the impact of social welfare and industrial policy initiatives on organizations and the wider community." January 13, 2022. https://academic.tips/question/discuss-the-impact-of-social-welfare-and-industrial-policy-initiatives-on-organizations-and-the-wider-community/.


Bibliography


Academic.Tips. "Discuss the impact of social welfare and industrial policy initiatives on organizations and the wider community." January 13, 2022. https://academic.tips/question/discuss-the-impact-of-social-welfare-and-industrial-policy-initiatives-on-organizations-and-the-wider-community/.

Work Cited

"Discuss the impact of social welfare and industrial policy initiatives on organizations and the wider community." Academic.Tips, 13 Jan. 2022, academic.tips/question/discuss-the-impact-of-social-welfare-and-industrial-policy-initiatives-on-organizations-and-the-wider-community/.

Copy