Changing social values, scepticism of corporate behaviour and regulation are forcing firms to recognise the impact of these issues on potential success. Political and social action can impact dramatically on individual firms and industry-wide competitiveness by changing rules by which competition occurs. In addition, policies that restrict trade in the international arena, regulatory interventions that impose additional costs and public interest group activities that challenge the legitimacy of the firm and industry product and service offerings also alter the rules of competition. Firms and industries that learn to play by the new rules of engagement can significantly improve their competitive positioning within the economy.
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