AbstractThe involvement of government in the affairs of business has been increasing rapidly over the past two decades in most western economies. This paper examines the impact of a particular instrument designed by government in the U.K. to attempt to be involved with corporate planning at the level of the individual company. The paper reports the views, attitudes, and expectations of government and those of a number of the major companies which were politically and economically selected by government as being suitable candidates for planning agreements. Finally, the attitute of senior trade unionists were sought to complete a tripartite analysis consistent with that of other institutions created for indicative economic planning. The results do not appear favourable to this particular instrument nor would they augur well for others unless the basic climate of trust and understanding between the different parties dramatically improved.