Several critical things you cite:
"business isn't really sure what they want" - And it sounds like they're aware of that and have been forced to understand that Engineering can only do the things you ask them to do, they can't read your mind.
"We tell business what we need from them in order to do our work, instead of the other way around." This is probably the most important thing. It seems to me that the preponderance of businesses out there basically allow sales and marketing to run the show, and since they don't understand what Engineering does beyond drink coffee and consume budget, it can't be important or hard. I recently interviewed with a company with in-house engineering, and I asked them to describe how a project usually is structured there. I was told that the business decided that they wanted a feature added and picked a timeline based on their own strategy (to coincide with a trade show, quarterly earnings, etc) and told Engineering what the requirements were. The deadlines were set at that point, before Engineering even knew that the business wanted the feature. No consultation with Engineering about feasibility or resources required, just "Do this, you have until X." They had also previously asked me how I felt about routinely working more than 40 hours in a week (and, being an Exempt position, this would have meant no additional compensation). Fortunately I did not get offered the job, and would have likely turned it down had it been offered.
"We don't accept issues that don't meet our standards" - I am skeptical of this being as simple as it is stated here. Every environment I have worked in has resisted this heavily, especially when the issues being created are filed by people with "Executive" in their job title. Usually it's "This is broken go fix it" and if the person filing the issue has enough juice, nobody will dare go back to them for more information, they're far too important for that. Some companies are worse than others, but I have yet to be at a company (and I've worked for several Fortune 500 companies) where IT/Engineering were first class citizens, able to require more information to solve a problem.
"business, admin and others show up at our standups and our sprint demo" - See above, usually people who actually can make decisions won't deign to attend meetings with people who do actual work.