Relationship Between Business And Society

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The relationships between both organisations in society and business corporations are very complex. Throughout time the relationship between both business and society has become increasingly essential in the success of any business. These relationships have been distinct in how the business needs to interact and integrate itself with civilization. Over time the relationship between the corporate world and society has grown stronger, and is even more vital to both business success and social benefit. With the constant changing of government policies, public expectations, technology and increasing ecological concerns, managers of organisations are facing the difficult challenge in producing economic results while at the same time having to…show more content…
This responsibility is a duty of every corporate body to protect the interest of the external society, although the primary goal of business is to earn profit. Corporations need to take initiative towards the welfare of society and should perform its business within the boundaries of environmental norms. The concept of CSR is challenged by the idea that business corporations are no longer able to act as isolated economic entities that are operating separated from the external broader society. It is because of the adaption of CSR the relationship between business and society have gotten stronger over the years, but are still in a state of continual change. Each stakeholder has a unique relationship with a corporate organisation, and managers must respond accordingly. Shareholders have a vested interest in the corporation and majority of the time; have a ownership interest in the firm. In the exchange for investment, it is expected that the stakeholder will receive divided and as time passes, capital appreciation. The economic wealth and health of a corporation affects these stakeholder financial; many investing personal wealth or even retirement funds. Customer stakeholders are more interested in the gain of value and quality when purchasing goods and services. Employees, in exchange for work effort and time, would like to receive
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