Discuss the relationship between business and society? (30 marks)
A business is also known as an enterprise or firm. It is an organization designed to provide goods and services or both to consumers. Businesses are predominant in capitalist economy. A society may be defined as a community or a large group of people having common or different traditions, cultures and values. The environment of society is a key concept of understanding business and society relationships. The social framework in which the organisation exits is known as the macroenvironment and it is composed of four segments namely: social,economic,political and technological.These are described briefly below: Social environment focuses on demographics, lifestyles and social values. Economic environment focuses on the economy. Political environment focuses on the legislative process, election process and the interaction between firms, politics and government. Technological environment focuses on the changes in technological advancement. Businesses interact within their community in different ways and for different reasons and their interaction with it is an important part of social integration and conduct. In the past that interaction was largely limited to the ir local environment, consisting of the people from whom the business drew its employees and where it mostly sold its goods and services. There was a local relationship and philanthropy played a large part in how the business interacted with its community. Others however went further and saw a role in improving working conditions and in the development of wider social infrastructure, such as housing, education and health care. Businesses have, therefore, always played a key role in the economic and social development of the communities in which they operate. As outlined above, they generate employment opportunities and profits and thereby contribute substantially to improving the quality of life for their...
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