'business is essentially a social institution and not merly a profit making activity' explain.
Dear student,
A business operates in a society to carry out industrial or commercial activities to earn profit. Therefore, business is expected to perform social responsibilities and earn money. It is obligatory for business, not to do anything which is undesirable from society's point of view. A business should fulfil its social responsibility towards its stakeholders which include-
1. Responsibility towards Shareholders - business should ensure fair and regular dividend to ensure safety of investment.
2. Responsibility towards workers - business should ensure fair wages and healthy working conditions to workers.
3.Responsibility towards consumers - business should provide good quality products at fair prices.
4.Responsibility towards Government - business must respect the laws and regulations of the country and pay taxes to the Government regularly.
This justifies that business is essentially a social institution and not merely a profit making activity.
Regards
A business operates in a society to carry out industrial or commercial activities to earn profit. Therefore, business is expected to perform social responsibilities and earn money. It is obligatory for business, not to do anything which is undesirable from society's point of view. A business should fulfil its social responsibility towards its stakeholders which include-
1. Responsibility towards Shareholders - business should ensure fair and regular dividend to ensure safety of investment.
2. Responsibility towards workers - business should ensure fair wages and healthy working conditions to workers.
3.Responsibility towards consumers - business should provide good quality products at fair prices.
4.Responsibility towards Government - business must respect the laws and regulations of the country and pay taxes to the Government regularly.
This justifies that business is essentially a social institution and not merely a profit making activity.
Regards