“The Role Of Business Is To Serve The Larger Society, Which Is Best Accomplished By Being Responsive To The Larger Society.”
According to the above statement, the role of business is to serve the larger society. There are many arguments about whether business firms should serve the larger society or not. According to the traditional view, earning profit is the primary objective of the business. Some people hold the view that “the business of business is businesses”. Critics argue that responsiveness of business towards the society distracts from the fundamental economic role of businesses, others argue that it is nothing more than superficial window-dressing, still others argue that it is an attempt to pre-empt the role of governments as a watchdog over powerful multinational corporations.
However in the present context of globalization and market economy, there is new emerging view that business has social obligation, because it is also one of the indispensable organ of the society. Therefore they can not escape from social obligation, and the objective can be to bear social obligation along with earning profit. Proponents argue that by being socially responsible, corporations benefit in multiple ways by operating with a perspective broader and longer than their own immediate, short-term profits.
The objective of the business is to produce the goods and services that are demanded and affordable by the people. The function of the business is not to provide donation and charity. But the business should remain within its environment, which consists of social, economic, legal, technological and political environment. It should pay attention to the factors around it in order to live within its environment. According to Koontz and Fulmer, “While t ...