[영문]This article explores how business firms participated in the social policy formulation process in the context of the adoption of a state monopoly over workers’ compensation in Israel. The analyses suggest that the adoption of a monopolistic state strategy for the provision of workers' compensation in Israel primarily resulted from the inability of business to mobilize successful opposition to labor. The findings suggest the need for a more nuanced view that identifies crosscutting interests within the business sector and their effect on positions and actions involving the social policy formulation process.