What are the social objectives of a business?
What are the social objectives of a business?
The objectives of business should not always be economic. No doubt economic object is indispensable for existence and development, but economic objectives can be achieved only when a business has social standing. In other words, the object of business should be to earn profit through social service. According to Henry Ford, 'Service first and profit next should be the motto of every businessman.' Ruskin called it as, "Service first and fee second." According to F. E. L Bresh, "Business has no meaning unless to serve and satisfy a customer at a profit." The social objectives of a business may be summarised as follows:
1. Production of quality goods: The objective of business is not only to provide goods to the society but also to provide goods and services of high quality. The business should also try to improve the quality of goods and services continuously. A businessman may earn a good profit by selling adulterated goods. But he cannot carry on his business for a long time like this.
2. To charge fair prices: The social objective of business is not only to provide quality goods to the society but also at reasonable prices. Undue profits earned by increasing the prices of the goods may not last long.
3. To provide employment: The social objective of business is also to provide employment to the society. With the development of business, the need for employees arises. Thus, the business needs the services of good employees. So, the business provides employment to the society.
4. To provide regular and fair returns to investors: It is also a social objective of a business to provide regular and fair returns to investors. Investors invest money and bear risks. So, the investors must be suitably rewarded.
5. To promote the progress of the society: Business is a part of the society. The society provides a regular market for goods and services of the business apart from factors of production. The progress of the business is linked with the progress of the society. So, to promote the progress of the society has also become the object of the business.
The objectives of business should not always be economic. No doubt economic object is indispensable for existence and development, but economic objectives can be achieved only when a business has social standing. In other words, the object of business should be to earn profit through social service. According to Henry Ford, 'Service first and profit next should be the motto of every businessman.' Ruskin called it as, "Service first and fee second." According to F. E. L Bresh, "Business has no meaning unless to serve and satisfy a customer at a profit." The social objectives of a business may be summarised as follows:
1. Production of quality goods: The objective of business is not only to provide goods to the society but also to provide goods and services of high quality. The business should also try to improve the quality of goods and services continuously. A businessman may earn a good profit by selling adulterated goods. But he cannot carry on his business for a long time like this.
2. To charge fair prices: The social objective of business is not only to provide quality goods to the society but also at reasonable prices. Undue profits earned by increasing the prices of the goods may not last long.
3. To provide employment: The social objective of business is also to provide employment to the society. With the development of business, the need for employees arises. Thus, the business needs the services of good employees. So, the business provides employment to the society.
4. To provide regular and fair returns to investors: It is also a social objective of a business to provide regular and fair returns to investors. Investors invest money and bear risks. So, the investors must be suitably rewarded.
5. To promote the progress of the society: Business is a part of the society. The society provides a regular market for goods and services of the business apart from factors of production. The progress of the business is linked with the progress of the society. So, to promote the progress of the society has also become the object of the business.
