The relationship between business and society DOCX

Title	The relationship between business and society
Author	Madan Mohit
Pages	3
File Size	15.3 KB
File Type	DOCX
Total Downloads	682
Total Views	989

Summary

The relationship between business and society. Business defined Business today is arguably the most dominant institution in the world. The term “business” refers here to any organization that is involved in the trade of goods, services, or both to consumers for a profit. The most common forms of bus...

Description

The relationship between business and society. Business defned Business today is arguably the most dominant institution in the world. The term "business" refers here to any organization that is involved in the trade of goods, services, or both to consumers for a proft. The most common forms of business ownership are: Sole proprietorship, where the business is owned by one person and operates for proft. Partnership, where the business is owned by two or more people. Corporation, where the business has a separate legal personality from its owners. Corporations can be either state-owned or owned by individuals and may operate either for proft or for non-proft. A corporation is owned by its investors and shareholders, who elect a board of directors for policy orientation and hire managerial team and workers for execution of its vision and mission. A corporation can be either privately held by a small group of individuals, or publicly held, with publicly traded shares listed on a stock exchange. Business, therefore, is an ongoing activity. For example, businesses recruit workers, buy supplies, and borrow money; they also sell products, and pay taxes. Business and society are highly interdependent. Business activities impact upon other activities in society, and actions by various social actors continuously afect business. To manage these interdependencies, managers need an understanding of their company's key relationships and how the social and economic system of which they are a part afects, and is afected, by their decisions. Society defned Society, on the other hand, is a network of individuals, groups and organizations. Society, in its broadest sense, refers to human beings and to the social structures they collectively create. In a more specifc sense, the term is used to refer to segments of humankind, such as members of a particular community, nation, or interest group. As a set of organizations created by humans, business is clearly a part of society. Business, therefore, is inextricable linked to society. The dynamic environment of business One core argument is that the external environment of business is dynamic and ever changing. Businesses and their stakeholders do not interact in a vacuum. On the contrary, most companies operate in a swirl of social, ethical, global, political, ecological, and technological change that produces both opportunities and threats....