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Relationship Between Business and Society

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CAPITALISM Capitalism is an economic system that is based on private ownership of means of production and the production of goods or services for profit. It could also be defied as a social and economic system where capital assets are mainly owned by private individuals, where labor is purchased for money wages, capital gains accrue to private owners, and the price mechanism is utilized to allocate capital goods between uses. Capitalism is characterized by private ownership of factors of production and the government of the nation does not interfere in the economic activities of the country. It can also be referred to as ‘Free Market Economy’. CHARACTERISTICS OF CAPITALISM * Private ownership of property: In a capitalist economy, people have full right to use their private property anyhow they like without the intervention of the government. Property can be passed to successors in case of the owner’s death. * Price mechanism: In capitalism, price is determined by the forces of demand and supply. Government does not interfere in the fixation of price. * Consumer sovereignty: In this economy, consumer is sovereign; he only buys those things which give him maximum satisfaction. * Freedom of enterprise: In capitalism, every enterprise is free to choose any business it deems fit and can also take independent decisions on its own. * Profit motive: Capitalism also based on profit maximization. * Competition: Capitalism leads to more and more competitions which ultimately results in efficiency of industrial units and production of goods at low costs. MERITS OF CAPITALISM * It is self-regulatory by market mechanism leading to several benefits for the economy. E.g. it saves additional wastes and resources. * Economic growth it said to be faster here because the investors try to invest in only those project’s, which are economically viable as dictated by the market forces. * It promotes an optimum allocation of productive resources of the economy in order to achieve production. * There is no restriction whatsoever on the sale and purchase of goods and services and in the use of his property. * Competition and profit maximization promote efficiency, competence and hard work. * A capitalist economy has a tendency to registrar high growth rate both in national and per capital income. It also produces a large and growing variety of products, and an inherent tendency to develop technology.
DEMERITS
* Capitalism generates inequalities of income and wealth which tends to the society as a whole. * These inequalities of income and wealth leads to wide differences in economic opportunities. * Laborers get wages which are less than their marginal productivity i.e. exploitation. * Wastage of productive resources in the process of competitions e.g. the advertisement, selling expenses.. * Some capitalist system may produce a number of goods and services, which are harmful to the society. * There is large coordination due to lack of central planning; some goods are produced in short of the some other goods are produced in short of the required quantities. Having examined capitalism, its characteristics, merits and demerits, let’s now take an overview of Altruism.

ALTRUISM Altruism is the principle or practice of concern for the welfare of others. It could also be defined as an unselfish regard/concern for or devotion to the welfare of others. It is the opposite of selfishness or egoism and it involves doing for others without any expectation of rewards. According to the dictionary, it is defined as the belief in or practice of disinterested and self-less concern for the well-being of others. It is a traditional virtue in many cultures, and a care aspect of religious traditions. Altruism can be distinguished from feelings of duty and loyalty. Altruism is a motivation to provide something of value to a party who must be anyone but one’s self while duty focuses on a moral obligation towards a specific individual. CHARACTERISTICS OF ALTRUISM 1) It is not self-centered 2) It opposes selfishness and egoism 3) It seeks for the well-being of others. 4) It does not expect rewards for its help. ADVANTAGES OF ALTRUISM. We mostly gain inner benefits when practice altruism. 1) You feel good when you help people who are in bad situation. 2) When you help people, you build up a good karma or relationship so that if in case you become helpless in future, your good works will show up for you. 3) It is beneficial to the survival of our species 4) It can give people choices 5) It can level the playing field 6) It saves or helps individuals in circumstances beyond their control. DISADVANTAGES: 1. Altruism can make people over dependent. 2. You will have to deal with selfish people who take advantage of your kindness. 3. It can be expensive i.e. in terms of sacrifices 4. It lowers the recipient 5. It can propagate weakness throughout time. 6. It takes away from personal responsibilities from my point of view the advantages of altruism outweigh the disadvantages.

CONCLUSION Capitalism some who opposes altruism in the sense that incentives or rewards (profit) is one of the bases of capitalism; it is bent on profit maximization while altruism is centered on rendering help to someone without looking toward to receiving rewards for your services. Howbeit, altruism is a virtue which should be upheld by all so as to make the word a better place.

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