Role of business in society and the economy

Role of business in society and the economy
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It is well known that businesses have both positive and negative impacts in the society and the economy.

Yes, businesses pursue profit, but there must be a seek for profit having in mind the impact that they do in society.

Businesses have taken the role of the organizations that can deliver products and services to their markets, and without them, it would be both impossible to sustain cities nor countries.

The productivity that is achieved through their operations help communities in different ways, and first by having the option to offer their products and services to the consumers.

The entrepreneurs were the founders of such businesses that showed leadership attributes, and regardless of their motivation, they gave the first step to build an organization to reach their goal.

What is the role of business in society and the economy?

The role of business in society and the economy is to produce goods and services to satisfy what people want and need.

By producing goods and services that people want and need, businesses help to make our economy more efficient. 

Businesses provide jobs for people, generate tax revenue for governments, and create wealth for their owners.

By creating jobs, businesses provide opportunities for people to earn a living and contribute to our economy.

And by generating tax revenue, businesses help to fund vital public services like education and infrastructure.

Businesses have taken the role of the center of employment so that people can actual exchange value between each other.

Business contributes highly to their communities in those different aspects.

What is the importance of business in society?

Business plays an important role in society as they are essential for growth and development.

Thanks to businesses, there has been advancement on technological equipment.

Businesses invest on their growth and expand, and this way, societies get the benefits of innovative products that serve better their demands.

In terms of employment, businesses and corporations as they increase in income, they also distribute them through salary and wages.

The correct distribution of wealth can be achieved through healthy finances and management of businesses.

It is crucial that business managers understand their role in society, because their business operations also can affect their environment.

As simple as the example of businesses that use natural resources to convert the raw material into end quality product.

Being conscious of what it is being taken out from nature, it is important for businesses, since those factors of production can diminish over time, and it should not risk the future generations resource availability.

Does small businesses have an impact in society and economy?

Yes, small businesses have a significant impact in society and economy.

It is not a matter of how small or big a business is, they both create jobs, spur innovation, and drive economic growth.

For sure, small businesses might not have a huge impact, but the sum of all can make the difference.

Worldwide, the percentage of small businesses is around a 90% and most of the workforce of each country are employed by them.

What relevance does it take Corporate Social Responsibility for businesses?

Corporate social responsibility (CSR) is a business approach that takes into account the ethical, social, and environmental impact of a company’s activities.

It is also sometimes known as “corporate citizenship” or “sustainable development”.

There are many reasons why businesses might choose to adopt a CSR approach.

For example, it can help them to build trust and reputation with stakeholders, attract and retain employees, and improve their bottom line.

In some cases, it may also be required by law or regulation.

In general, CSR activities can be divided into four categories: environment, human rights, community development, and workplace issues.

While each business will have its own specific priorities, all four of these areas are important in terms of the overall impact a company has on society.

A CSR approach within important business values is an approach that consider how to take business decision ethically.

Business ethics will eventually bring up results on their operations performance.

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