Business and Society have a complicated relationship. Organizations make products or deliver services with the goal of making a profit. Human beings and social structures that humans create together make up society. Businesses and society are of an interactive system. Business firms participate in continuous interactions or exchanges with its external environment. Society and business make up a cooperative social system where each other’s actions affect one another.
In the stakeholder theory of the firm, all businesses have a purpose to create value for its diverse stakeholders. For these organizations to stick around, they must make a profit for their owners and, in addition, businesses must understand and take all stakeholders’ interests, power, and alliances into account and thus try to create different kinds of value for their stakeholders, whether for employees, communities, or others. Businesses must recognize who the corporation’s market and nonmarket stakeholders are.
Every business firm has economic and social relationships with society, whether they affect positively or negatively; are intended or unintended. Stakeholders are those who affect or are affected by the firm, whether they have a market relationship or not. Often with multiple interests in mind, the stakeholders can implement their economic, political, and other powers in ways that can help or defy the organization. Stakeholders may act independent or together to impact the companies. Modern corporations developed a range of complex, boundary-crossing departments that manage of interactions with stakeholders and society. For instance, Walmart has a huge impact on society and must effectively and efficiently deal with stakeholders interests. A number of vast factors mold the relationship between business and society. These include changing societal and ethical expectations, shifting public expectations and government policies, fast paced global economy, dealing with ecological...
Please join StudyMode to read the full document