Political system should beStableHonestEfficientdynamic

Factors affecting political instabilityCivil warDeclaration of emergency in the countryChanges in the form or structure of

administration of Govt

State and GovernmentState, in its wider sense, refers to a set of

institutions that possess the means of legitimate coercion, exercised over a defined territory and its population referred to as society.

The term government refers to the process of governing, to the exercise of power. It also means the people who fill the positions of authority in a state.

Political institutionsLegislatureExecutivejudiciary

LegislatureMost powerful institutionRole is to make the lawPowers- Policy making- Law making- Approval of budgets

ExecutiveReferred to as governmentResponsible for implementing the lawTo shape, direct and control the business

activities

JudiciaryResponsible for interpreting and applying lawIt has to look into the exercise of authority by the

executives is according to the general rules laid down by the legislature.

To settle legal disputes that affects business considerably.

- Disputes between employers and employees- Disputes between two companies- Disputes between employees- Disputes between employers and the public- Disputes between employers and the government

Relationship between business and governmentResponsibilityAccountabilityDuty

Responsibilities of business towards governmentRegular payment of taxesVoluntary programmes- Sponsoring social welfare programmes- Environmental preservation- Promoting education- Assistance in drought, flood etc.Providing Feed back informationGovernment contractsProviding service to the government through

becoming member in advisory boardsCorporate contributions to the political activities

Responsibilities of Government towards businessPolitical institutionsProvision of peaceful atmosphereProvision of a system of money and creditBalanced development and growthProvision of basic infrastructureProvision of informationTo assist small scale industriesTransfer of technologyCompetition with private sectorLicensing and inspectionProtection from foreign competition

The Constitution of IndiaMost significant document which is

fundamental to the governance of the State.The constitution of Indian Republic is the

product of not political revolution, but of the research and deliberations of a body of eminent representatives.

Three parts of the constitutionThe PreambleThe Fundamental RightsThe Directive Principles of State Policy

The PreambleAn introduction to the Constitution and

contains its basic philosophy. It states that “We the people of India having solemnly

resolved to constitute ourselves into a Sovereign, Socialist, Secular, Democratic Republic and to secure to all citizens………..adopt, enact and give to ourselves this Constitution.

Fundamental RightsRight to equalityRight to freedom- Freedom of speech and expression- Freedom to assemble peacefully and without arms- Freedom to form associations or unions- Freedom to move freely throughout the territory of

India- Freedom to reside and settle anywhere in India- Freedom to practice any profession or to carry on trade

or businessRight against exploitationRight to freedom of religionRight to cultural and educational freedomRight to constitutional remedies

Directive principles of state policyA unique feature of our Constitution.Instruments of instructions to the legislature

and the executive.