1. BUSINESS AND SOCIETY
•Organisation of business activities is influenced by
the social structure and culture of a society
•Type of products to be manufactured
•Marketing strategies
•Value / norms of business
•Business activities have a great influence on
society
•Social Attitudes
•Values
•Outlooks
•Customs etc.

2. BUSINESS AND SOCIETY
• It is almost impossible to change most
elements of the social environment in the
short run
• Hence business may have to adapt to these
uncontrollable external environment

3. OBJECTIVES OF BUSINESS
• Outlook of large business organisations has
undergone change
• Profit Maximisation is no longer the sole
business objective
• Firms may limit profits in the short run to
– Discourage potential competition
– Avoid public criticism
– Put government intervention at bay
– Restrain higher monetary demands by labour
– To maintain goodwill

4. OBJECTIVES OF BUSINESS
• As a result of recognition of social
responsibility, business objectives have
transcended
• Economic Objectives
• Social Objectives

5. Economic Objectives
• Survival
“The primary business of every business is to stay in
business”
– Constant Monitoring
– Strategic Planning
• Return on business
– Important for public and private sector enterprises
– Level is influenced by social outlook, government
policy, competition, condition of the industry

6. Economic Objectives
• Growth - “Natural urge of a dynamic enterprise”
– Vertical
– Horizontal
• Innovation - “To create new customers”
– Not enough for business to provide a good/service
– Must provide better and more economic ones
• Market Share
– Strive to increase or maintain it
– Companies also aim for market leadership

7. Social Objectives
• To protect consumer interests
» to provide quality products
» to charge reasonably
» to provide the required after sales service
» avoid misleading by improper advertisements
» provide all details including adverse affect

8. Social Objectives
• To protect interests of workers
» Participative work culture
» Transparent environment
» Medical facilities
» Recreation
» Provident Fund, Gratuity
» Holiday, leave encashment

9. Social Objectives
• To protect interests of the society
» Environmental Improvement
» Generation of job potential
» Development of backward areas
» Conserve scarce resources
» Promoting small scale industries

10. Social Objectives
• To benefit the government
• Pay due taxes on time
• Abide by laws and regulations
• To satisfy its shareholders
• Safeguard capital of shareholders
• Provide reasonable dividend
• Protect the image of the company