Abstract The essay explores the role of political institutions and political actors in influencing business activities in our modern society. Political Institutions play a significant role in establishing policies that facilitate economic empowerment and political stability in nations. Governments endeavor to strengthen political institutions by formulating laws that guide how such institutions exercise their responsibilities. The essay further explains how political actors have constantly kept the political institution in check, shown by the voting pattern during elections and how their demands on policy issues are handled by the political systems in place. Finally, the essay assesses how the two entities influence the economic growth and sustainability of the business. Introduction Political institutions have played an important role in influencing the decisions that have characterized the functioning of political actors; these two entities operate hand in hand to create an environment of mutual co-existence. This has been viewed as the rule of the game in any political field (Ward & Steward, 2006, p.217). The interaction that occurs between these players has shaped the role of business. Consequently, this has exceeded the way different organization that seeks profit maximization to be influenced by policies outlined by the two entities (Brett, 2006, p.76). The policies that have shaped interaction within the two entities range from political, business management, public relations among other disciplines. Social Issues Social issues have been a major aspect in defining how businesses operate and it has created an area of concern for both Political institutions and political actors (Ward & Steward, 2006, p.112). Social issues in a given country reflect the image of its government and the political structures that govern it. Among the major functions of political actors in the formulation of sound Business policies meant to drive a country’s economy. The issue of individual institutions exercising all the functions of overseeing the implementation of a variety of social issues is a major hindrance to business growth and development (Ward & Steward, 2006, p.166). This is because it creates dominancy and tends to create favoritism on policies that seem to favor their interests. Having elaborate and diverse institutions creates a competitive arena, which is anchored in the constitution enhances the protection of diverse businesses and facilitates vibrant growth of the economy across the country (Ward & Steward, 2006, p.187). Political Institutions versus Political Actors The relationship developed between political institutions and political actors is important for the growth and development of businesses. Political institutions play an important role in addressing issues of public concern, they also regulate how businesses are conducted (Weller, 2004, p.44). In this sense, government agencies are viewed as the only institutions directly concerned with the welfare of the society, while the business sector is regarded as the economic stimulant (Weller, 2004, p.56). Some business firms attempt to influence the political environment to favor their business ways, mai