Manufacturing uses the raw materials of agriculture, mining, forestry, fishing, etc., and makes a variety of consumer and capital goods which are needed by the consumers. Without manufacturing,
the business will stand idle. There would be no automobiles, no roads, no airplanes, no electric power, etc. To sum up, the industrial. occupations which are concerned with the growing, extracting and manufacturing of material goods are cornerstone of business.
2. Distribution aspect of business. The distribution aspect of business is very complex. The goods which are produced should reach the consumers at the right place, right time and at right price also. Business due to self-interest of earning profits, provides goods to the people both witliin and outside the country. The transport industries facilitate the movement of goods from one place to another where they are wanted. Finance, banking and insurance greatly contribute in the financing of business. Without banks, investment and insurance companies, commerce and industry would not have developed on an extensive scale.
3. Business supplies services. Services occupy an important place in business life. Though the service organizations do not contribute directly in the production of goods but they facilitate in the production and distribution of goods to the customers. The major services which are. growing in importance with each passing year are banking and finance, insurance. medical and health, legal, engineering and other professionals, hotels, domestic servants, education, automobile repairs, etc., etc. All the services which perform simple or difficult tasks for earning money are regarded an important part of business.
4. Business has helped in raising standard of living. Business has helped people to earn a living either as owners of business or as employees. The mass production of standard goods, specialization, automation have increased the incomes of those who are directly or indirectly engaged in business. Higher incomes have led to the increase in the standard of living of the people. Business also pays a large share of taxes to a government. Criticisms of business.
There is no doubt that modern business has developed a material standard of living but it has also created discontentment with the economic and social system. The main criticisms directed towards business are as under:
- Business of today has become too much profit oriented. The employees are usually exploited by the owners.
- Business is guilty of polluting air and water which directly affects the health of the people.
- Human values and worker comforts are ignored by business. Business, due to self-interest, often ignores the welfare of the consumers and supplies aduherated goods.
Conclusion. We agree that business is a dominant social force and influences the pattern of life of the citizens. We must admit here also that business alone cannot solve all social problems. It must have the co-operation of education, religion, government and other social institutions. 3. OBJECTIVES OF BUSINESS
Objectives of Business. Objective of business means the purpose for which the business is established. It is generally believed that the main objective of business is to make profit and avoid loss. We do admit that profit is a driving force in undertaking any business activity but it is not the sole objective of any business. In the words of Urwick "earning of profit cannot be objective of a business any more than eating is the objective of living" . A business which is hunting after profits and ignores other objectives will not be doing service to the community. We here classify the objectives of business under three heads and then examine them briefly
(1) Economic objectives
(2) Social objectives
(3) Human objectives
Business, as we know, is primarily an economic activity. The major economic objectives to be achieved by business are:'
(1) earning of profit
(2) creation of market and innovation.
Profit earning. The primary objective of business is to produce and sell goods for profit, of course, through the satisfaction of human wants. A business which does not earn profit cannot stay in the market for a longer period. The.income of enterprise, therefore, must exceed expenditure over a period of time. Profit is necessary for the enterprise to insure its own survival, growth and expansion. In the words of Petter F.D. Rucker liThe problem of any business is not the maximization of profit but the achievement of sufficient profit to cover the risk of economic activities and thus to avoid losses". It is clear from the above definition that a business enterprise should work for reasonable profit which should cover its own future risk. If the profit is
made by over-charging customers, indulging in malpractices such as hoarding, blackrnarketinq, smuggling, etc, it will be against the ethics of business. It win be regarded robbery and not a business activity.
Creating Markets. Every business tries to create customers for its products and services. The more the customers are created, the wider will be the market for the goods and larger the profit.
Technological Improvements. The business, if it is to stay in the market, must offset stagnation by using efficient methods of production. The creation of new products, new designs and application of new techniques of production contributes to growth, change and expansion in the economy. II. Social Objectives:
The social objectives of business are gaining more and more recognition with each passing year. The main social objectives of business are as follows:--
Supply of standard quality of goods. One of the social responsibilities of business is to produce goods of standard quality. If the enterprise is producing inferior, substandard and adulterated goods, it will be doing disservice to the society.
Avoidance of anti-social practices. It is not fair on the part of a business to indulge in anti-social practices such as hoarding, black marketing, smuggling, overcharging etc., to earn profit. A reasonable profit on a legitimate business is regarded a healthy sign and considered hilal from Islamic point of view also.
Provision of more employment. Business provides employment to the people. It thus helps in increasing the standard of living of the members of the society.
Cooperation with the government. The business community should adopt a positive approach towards the policies of the government of the country. They should pay all taxes and dues in time to the government. All business activity should be carried within the legal frame work of the country.
Use of national resources. The business should use the national resources in the best interest of the country. Wastage should be reduced to the maximum. The motto should be more and more goods for more and more people at lower and lower prices. III. Human Objectives:
The business activity is carried on by the people (entrepreneurs) through the people (employees) and for the people (customers). Human factor is thus an important element in business. A business which overlooks the human factor cannot
prosper and ultimately suffers losses. The human objectives of business are that
(1) the employees working in a business should be fairly rewarded
(2) A healthy climate is created by providing opportunities to the employers for developing new skills and abilities
(3) The employees should have say in the affairs which directly affect them.
(4) The thinking of modern business must go well beyond material benefits of its employees. It must reduce unpleasantness of work and plan for job satisfaction to the workers.
