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1、THEREGULATIONOFGENETICALLYMODIFIEDFOODS:INWHOSEINTERESTDOWEREGULATE?AnthonyJ.DaboubSchoolofBusinessTheUniversityofTexasatBrowsville80FortBrownBrownsville,TX78520(956)882-8856Email:Anthony.daboub@utb.eduMarch24,200913THEREGULATIONOFGENETICALLYMODIFIEDFOODS:INWHOSEINTERESTDOWEREGULATE?Antho
2、nyJ.Daboub,UniversityofTexasatBrownsvilleABSTRACTThisstudyreviewssomeofthemajortheoriesregardingtheoriginofgovernmentregulationofbusiness.Itthenappliesthesetheoriestoaspecificcase,theregulationofgeneticallymodifiedfoods,inordertoexaminehowsocial,political,economic,andbusinessforcescombine
3、toshapegovernmentandfirmbehaviorovertime.Thiscaseillustratestheinfluenceexercisedbybusinessongovernment,theinfluenceofthegovernmentonbusiness,andtheinfluenceofsociety,i.e.,publicopinion,onboth.Italsoshowstheeffectthatbadmanagementdecisionscanhaveoneventhemosteffectiveuseofcorporatepower.I
4、.INTRODUCTIONThispaperreviewssomeofthemajortheoriesregardingtheoriginofgovernmentregulationofbusiness,suchasconservativetheory,marketfailure,utilitariantheory,normativetheory,andcorporatepower.Itthenappliesthesetheoriestoaspecificcase,theregulationofgeneticallymodifiedfoods,inordertounder
5、standhowandwhythisregulationwascreated.Thecasesupportsthecontentionthatbusinessorganizationsstronglyinfluencetheformulationofgovernmentregulationofbusiness.However,thiscasealsodemonstratestheroleofpublicopinionasacounterweighttobusinessinfluenceovergovernment,whenpublicopinionisfocused.Pu
6、blicopinionisaforcethatmustbeshapedbymanagement,ifanindustryistobesuccessfulinthedevelopmentofnewproducts,especiallycontroversialones.Theissuesaremadecomplexbecauseofthevarietyofinterestgroups,differingperceptionsofriskandreward,andconflictingviewsregardingthecostsandbenefitsassociatedwit
7、hcontroversialproducts.Ourexperiencewiththeevolutionofregulationofgeneticallymodifiedfoodshasimportantimplicationsforthedevelopmentandmarketingofnewcontroversialproducts.Therestofthepaperismadeupthefollowingsections:SectionIIdiscussestheoriesofregulations,SectionIII