What is the role of business in society

Why Is Business Important To Society

Why is Business important to society?

This is a very important question.

To understand how society works, you need to take a close look at the role and importance of business in society.

Businesses play a huge role in culture and society in general.

They not only take up the most amount of time in most people’s lives, but they also help create innovations and make important technological advancements.

In actuality, society itself would hardly exist as you know it if it weren’t for businesses.

The benefits they allow and the opportunities they provide are crucial to the way the world is viewed.

It gives forward thinkers and dreamers a place to turn their visions into reality.

As such, the world can thrive on their new creations, helping spring forward the way society works as a whole.

In order to understand exactly how business influences society, you need to take a deep look at how they run.

Businesses thrive on excited and motivated employees reaching for a common goal.

They read their local environments and provide services or products based on the needs of those around them.

They are the influencers that control trends and bring importance to critical issues.

Understanding society means having a firm grasp on the businesses that make it up.

Here are a few of the different ways that businesses directly influence the movements of society in today’s modern world.

Why Business Is Important To Society

It Creates Opportunities and Innovations

One of the major ways that businesses affect society is through the creation of opportunities and exciting innovations.

Every time a business is created, it’s giving entrepreneurs and business people the opportunity to create the perfect product or service.

Entrepreneurs are amazing innovators, with the main purpose of finding the ideal solution for any set of problems.

They are constantly looking for new openings where they could create a business that would fill a much-needed gap.

Business people, similarly, work to provide an answer for a need.

However, they are doing so in an already developed market.

By taking their strategic minds to create something new the industry hasn’t seen, they help move it to new heights.

The kind of progress that these businesses are able to cultivate is essential to society.

If a culture remains stagnant, it’s sure to fade.

Businesses keep things new and exciting, inspiring society to reach for new heights all the time.

The opportunities and innovations created by businesses can dramatically affect the ways in which people live.

First, it can help make getting the proper health care much easier and at much more affordable rates.

Also, it can even drastically improve the overall quality of life experienced by the vast majority of the population with things like access to clean water and decent quality food.

These upgrades and changes will keep moving society forward.

Businesses Drive Innovation

Businesses are constantly challenged to offer better products and services than their competitors.

This pushes business owners to search for new ways to improve their products and services to satisfy consumers’ needs.

This drives innovation and the creation of new products/services that improve the overall quality of life.

Business Is Important To Society Because It Creates Stronger Employment Rates

Of course, you can’t think about a business’s effect on society without thinking about the opportunities they create for employment.

Job Creation is another important role of most businesses in developed and developing countries.

Likewise, as business expands, the job market benefits as well.

Every new business created help provides a substantial amount of jobs for local individuals to fill.

Overall, the more gainfully employed citizens within the country, the better the country’s economy.

By helping to decrease the rate of unemployment in any given area, businesses are able to substantially impact society.

The most obvious way it has an effect is economic.

When people aren’t employed, they have significantly less money to spend.

When they can’t spend an income, businesses have fewer customers and start to suffer.

This might lead to the business having to make dramatic cuts, which could result in even more people losing their jobs.

It’s a difficult cycle, but one that’s constantly on the horizon.

Additionally, it’s important to recognize that even unemployed people still have certain requirements in life.

There are just certain things everyone needs for survival, and they’ll do whatever it takes to get it.

Businesses are able to better society as a whole by keeping unemployment and crime rates down.

Rather than turning to vandalism and theft to get what they need, people are able to work in a respectable job.

Hence, letting them feel that they are contributing to society in general.

People want to work; they just need the opportunity to do so, and local companies are a great way to find those opportunities.

As such, businesses directly influence the direction society takes by offering an alternative way of life.

It Causes Dramatic Effect on World Economy

In order to really grasp how businesses and even small, local businesses are able to make a big impact on the global economy, it’s important to look at things in smaller chunks.

First, these businesses provide a stable income for their workers.

These workers are then able to go out and spend that hard-earned check in other local businesses, including restaurants, shops, home improvement, and so on.

These local businesses will rely on other small or larger businesses for their products and materials.

These larger orders will greatly impact the larger companies, who will then see a substantial rise in profit, continuing the cycle on a global scale.

So, when individuals are able to earn a substantial income and spend that income out in the world, the entire global economy will eventually rise as a result.

So, this string of business activities creates income circulation within the society/country, directly improving the local and global economy.

An increase in the income circulating will inevitably result in a booming economy.

When jobs and opportunities are abundant, people will invest in products from around the world.

This gives multiple businesses in a wide range of industries the opportunity to grow, and hire more employees.

The better the world’s economy, the more those nations are able to provide for their citizens.

Hence, giving people the ability to achieve greater possibilities.

Businesses Are The Back Bone Of The Economy

Businesses facilitate other activities that help to develop the economy.

For instance, businesses facilitate international and local trades.

It also encourages the creation of infrastructures like roads, water, buildings, etc.

More importantly, existing businesses seek to expand locally and internationally while aspiring entrepreneurs seek to establish a business.

When this happens, more job opportunities are created for which citizens of the country can be gainfully employed.

This inevitably reduces the unemployment rate in the country and improves the economy.

Creates Positive Effects on the Local Environment

It’s important to remember that the effects of businesses are much more than just financial.

A different example of how businesses affect society is a consideration of their dramatic impact on the local area.

Businesses can tremendously alter the environment around them by providing stability and security that’s never been seen.

The more small businesses in a town, the more likely the citizens will be to work in those establishments.

This helps motivate them to keep the town in good condition and welcoming to clients that help fund their paychecks.

When individuals feel they’re a part of something, they’re much more likely to care about the area that it’s in.

By giving people the opportunity to care about the town they live in, you’ll start to see a rise in clean-ups, renovations, and restorations of buildings and parks.

This helps to create an environment that everyone wants to be a part of.

People will often surprise you when they’re given access to opportunities that they never had.

Businesses not only give people those opportunities, but they also give them a sense of pride.

Dedicated employees make sure that the area surrounding where they work is well cared for at every moment, creating a space the whole town can enjoy.

It Provides a Safe and Useful Place to Spend the Day

In addition to the benefits of the local environment, there’s also a multitude of benefits these companies can offer individuals.

All too often do people forget that humans are, by nature, social creatures.

They need interaction and recognition that working for a business can provide.

Working for a company can give you a sense of approval and inclusion that people need to feel successful.

Whatever your own personal ambitions, businesses are able to help you accomplish those goals.

Most people spend the majority of their waking hours doing some sort of work.

As a result, they end up using their time in order to help promote the progression of society.

By working either in your own business or someone else business, you are creating headway towards the future.

This is something that’s incredibly important to society, as it’s based critically on constant movement and discovery.

So, by giving someone space where they feel comfortable to create, inspired to achieve excellence, and safe enough to share their ideas, businesses help fuel that necessary progress every day.

Business Is Important To Society Because It Meets the Needs of Society

Another way businesses are able to benefit society as a whole is by meeting it’s ever-changing needs constantly.

As a society grows and progresses, the demand for newer and more exciting products and services grows with it.

Businesses are constantly trying to one-up one another through competition.

As such, they are able to create an environment that thrives on innovation and creation.

Only by being the company with the strongest, most effective product will you be guaranteed success.

Whether it’s development in healthcare, transportation, or even entertainment, what matters most is that a business can provide customers with something they’ve never seen.

Companies are constantly pushing boundaries to see what their clients are looking for and what society wants as a whole.

By constantly striving to match the needs of the people, businesses have a dramatic impact on the way society runs and how quickly it can progress.

Generates Revenue Through Taxes

While this is probably one of the most forgotten about ways that society is affected by business, it’s also one of the most important.

When businesses employ individuals, and those individuals spend their income elsewhere, they are paying taxes in multiple different areas.

These taxes are critically important for how society functions as a whole.

Without them, there can be no successful governing force to manage society as need be.

In order to really control and provide for their citizens, a government needs a vast majority of the population to contribute to its revenue through taxes on a daily basis.

Government-run systems, including hospitals, schools, roadways, and even healthcare, are completely dependent on individual taxes to function properly.

If society suddenly stops providing that revenue, the government will not be able to fulfill its duties in these particular ways.

Hence, making it much more likely that people will suffer dramatically and that society itself will start to fail.

Don’t let yourself forget the important role that taxes play in keeping things running smoothly.

The success of society tremendously depends on these government-run systems, and businesses are what keeps them funded.

Creates Social Trends

If you’re looking to be on top of the newest social trend, you’ll definitely want to keep a close eye on new business ideas.

Businesses tend to create the next best thing that people just can’t live without.

Staying on top of what’s coming will help you determine which trends society will pick up as necessities.

This is particularly true for industries such as technology and communication.

It appears that every single day there’s some new form of technology for staying in contact with family and acquaintances.

Those who are able to quickly jump on the train long before it takes off are the ones who can control the direction society takes.

Understanding where companies are headed and the products that they’re trying to push out within the next two years will give you a distinct social advantage.

It’s important for anyone hoping to gracefully ride the waves of society to have in-depth knowledge of where businesses are looking to head.

By realizing how much of an impact businesses can have on how society chooses to progress, you’ll quickly find yourself being amazed by how much strength it has held.

Brings Attention to Important Issues

Businesses play such an important role in people’s lives.

Hence, they are easily able to sway the way employees, clients, and society, in general, feels about specific issues.

When businesses pick interest in a cause or a problem, they can help direct the way a large percentage of the population interacts with that issue as a whole.

Whether that is something related to race relations, protecting the environment, sexual harassment, or even HIV testing, businesses have always had to take a stand-in and pick a side for things to really progress.

When businesses make it their goal to promote understanding and education on certain topics, society takes note.

Whether it’s through backlash or support, they are able to get people talking about something which perhaps wasn’t getting the attention that it really deserved.

This is just another way that businesses are able to influence the way society progresses.

Businesses are important when they use their voices in order to further the work and cause of others daily.

Business Is Important To Society Because It Helps Inspire Next Generation

Arguably the most important way that a business can impact society as a whole is through its ability to inspire the younger generation that will come behind them.

The younger generation is the future of the world.

The way that they interact with products and start thinking of different ways to use it or opportunities for improvement is what will allow society to progress to the next step.

Businesses also play a crucial role in helping to give these children a safe and supportive home to grow up in and let their imaginations run wild.

When a family is able to support themselves, children are able to easily get the meals that they need to grow up healthy.

They are also able to get the materials they need to expand their creativity, and the education they need to make all their dreams come true.

Businesses are important factors that help secure a society’s future.

Businesses help in making sure that children are able to reach their full potential.

More On The Role Of Business In Society And Economy; How Businesses Contribute To Society

Among the additional benefits businesses provide to their communities are:

They Provide Our Goods And Services That Meet Essential Human Needs

This is one of the main roles of businesses in society.

Indeed businesses exist to make profits.

However, beyond that, they exist primarily to provide for our needs, such as food, clothing, internet, health care, etc through their goods and services.

That’s the only way they can make profits.

So, without small and large businesses, we’ll be left to produce our essential needs ourselves.

Businesses Facilitate Community Development

Businesses also contribute to the growth and development of the immediate community where they’re based.

Some business owners engage in charity activities whereby they donate a percentage of their profit towards a public cause.

Likewise, some of these businesses use proceeds from their businesses to create public facilities within the community.

Furthermore, some entrepreneurs establish their businesses as a way of giving back to the community by creating products/services that solve problems, creating jobs, and empowering youths with skills.

All of these facilitate growth within the community, which is why business is so important in society.

Businesses Improve The Quality Of Life And Standard Of Living

Businesses also improve the quality of life and standard of living on different levels.

To start with, businesses create products/services that solve problems and meet our needs.

By meeting those needs, they’ve improved our lives.

For instance, home appliances manufacturers have created different appliances, air conditioners, electric cookers, blenders, refrigerators, washing machines, etc.

Each of these appliances makes our lives at home easier and more efficient.

Furthermore, apart from just creating products/services that meet our needs, businesses are constantly improving to stay ahead of the competition.

By improving their business, they develop innovative products that also improve and make our lives more enjoyable.

Take, for instance, the advancement of TV technology.

Before now, the best TV resolution was Standard Definition (SD).

Then it moved to High Definition (HD), from HD to Full High Definition (FHD), before the most recent 4k resolution.

Now, 4k is taking over FHD as it offers better and sharper visual quality.

So, as businesses improve, they directly improve our lives as well.

Finally, businesses create job opportunities, allowing individuals to be gainfully employed and earn an income.

With this income, they can afford basic amenities like groceries, health care, clothing, etc.

In the end, society, the economy, and business are all intertwined as they tend to impact each other one way or the other.

The Importance of Small Business

Small businesses differ from the typical big businesses because (as the name implies) of their size.

In addition, Small Businesses are typically have less staff and revenue compared to big businesses.

However, though these companies are defined as small business, they play an important role in society and the economy.

Small businesses strengthen the global economy at the grassroots level by improving the lives of people in the local community directly and indirectly.

Further more, small Businesses are important for the following reasons;

Small Businesses Provide More Employment Than Large Businesses

This is one of the ways small businesses provide help to the community they’re in by providing meaningful jobs.

All businesses provide employment opportunities.

However, small businesses account for a higher percentage of job creation/employment rate.

Precisely, research reveals that small businesses provide 60-65% of net new jobs.

Regarding local communities, the more small business created, the higher the employment rate within the community because small business owners will need employees to keep up with business operations.

Small Businesses Create A Sense Of Communal Responsibility

This is another reason that validates small business importance.

For instance, small business owners establish businesses within the community to make profits.

Aside from making profits, small business owners also see this as a way of giving back to their community in the following ways;

Fulfilling these communal responsibilities give these small business owners a feeling of satisfaction, strengthens their business reputation, and improves the community.

Small Businesses Foster A Thriving Local Economy

The existence of small businesses in communities also improves the local economy.

Precisely, it facilitates cash flow within the local economy.

Members of the community spend money to acquire goods and services from these local businesses.

These local businesses use these monies to pay their employees, who also spend their salaries on other local businesses to acquire their basic necessities.

This helps to ensure the circulation of finances within the community.

It also improves the quality of life and the local economy.

Small Businesses Offer Higher Job Satisfaction

Finally, small businesses also create an engaging work environment that improves employee job satisfaction.

Research reveals that 75% of employees feel satisfied and happy working for small businesses.

Particularly, small businesses create a more interactive and engaging work environment due to their small structure.

Also, there are chances where employees are familiar with each other, given that they all live within the same community.

Even more, local businesses afford community members the opportunity to work and live close to their families other than most large businesses that would require traveling for one purpose or the other.

All of these can contribute to an employee’s job satisfaction.

Overall, these are the reasons why small businesses are important.

Finally On Why Is Business Important To Society

Understanding how business shapes society is incredibly important.

Irrespective of the industry, business people and entrepreneurs are responsible for making society what it is around the world.

Between creating numerous jobs, offering incredible opportunities for innovations and creations, and by helping to keep certain systems running smoothly, these businesses are able to directly affect where society is headed.

Consider these factors and think more about how a business can affect the entire world around you on a daily basis.

Then you’ll really understand the role entrepreneurs and business people play in our society.

Frequently Asked Questions (FAQs)

How Important Are Small Businesses to Local Economies?

Small businesses are important to the economy (local economies) because they contribute to its growth and development.

This they do by creating job opportunities for local citizens, facilitating cash inflow and outflow within the local economy, and driving innovations within the community.

Furthermore, thriving small businesses will pay local taxes.

Overall, proceeds from these taxes can be used to sponsor the creation of other essential facilities within the community.

How Do Businesses Help The Society?

Businesses help the society first through the distribution of goods and services which are essential for survival.

Furthermore, they create employment opportunities that help individuals within the society earn an income to afford their needs.

This also reduces the unemployment rate and poverty within the society, as well as improves the local economy.

What Are The Benefits of Business In Society?

Other major benefits of business in society aside from job creation, poverty alleviation, and distribution of goods/services include;

They facilitate the circulation of money in the society.

For instance, if a local citizen goes into a grocery store to shop, he pays the store owner for the groceries.

The store owner, in turn, pays his suppliers to stock up his store.

Likewise, the suppliers pay the manufacturers/wholesalers to get goods to supply to their clients.

This is just one of the ways by which business activities facilitate the circulation of money in the society.

Also, businesses facilitate innovation and societal development when they try to stand out from the competition and remain relevant.

The result of this is newer and better products/services.

Finally, having several successful entrepreneurs and businesses is something every society would be proud of.

This gives the society a good reputation and prestige among other neighbouring communities.

It could also attract tourists and investors to the society.

This shows that businesses help society thrive and grow in multiple ways.

What Is The Role Of Business In The Economy?

Essentially, business is the engine that drives every economy.

Businesses pay taxes to the government.

These taxes are then used to fund other sectors of the economy and create facilities within the country.

More so, private businesses (small, medium-sized, and large businesses) account for a large percentage of the job market share than most government-owned enterprises.

In a nutshell, businesses generate wealth for the economy, which the government depends on to keep the country functioning.

What Are Some Negative Impacts Of Business In Our Society Today?

Businesses also have negative impacts on our society today.

Firstly, certain business activities pollute the environment.

For instance, some industrial equipment used in many manufacturing companies produces toxins that go into the environment and pollute the air.

Business activities also give rise to other negative situations like child labor, exploitation, corruption, global warming, among others.

What Is The Relationship Between Society And Business?

The relationship between society and business is complementary.

Businesses depend on society to thrive and vice versa.

Particularly, businesses exist to solve societal problems with their goods and services.

Technically, the members of the society make up their potential customers, especially local brick-and-mortar businesses.

So, they depend on these customers to sell their goods/services and make profits in their business.

Furthermore, businesses need to employ a workforce to keep up with business operations, the majority of which would be local citizens within the community.

Also, businesses will patronize other businesses for supplies, making them reliant on society to thrive.

Finally, society also depends on the business to grow.

Businesses create jobs, pay taxes, meet societal needs, facilitate the circulation of money, and improve the standard of living.

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What Is the Role of Business in Society?

The role of a business is to produce and distribute goods and services to satisfy a public need or demand. According to Business News Daily corporate social responsibility (CSR) is “a business practice that involves participating in initiatives that benefit a society.”

However, corporate social responsibility is more than just a simple business practice. When you pursue a Master of Business Administration (MBA), you will learn how to differentiate the blurred lines of working for profit and working to help maintain the social order. Society does not exist without some form of an economy, and businesses are what make up the economic system of the world.

Corporate Social Responsibility (CSR)

Corporations can enact CSR as a business practice in multiple ways. Corporate social responsibility as a business practice involves putting certain funds toward organizations or people who need aid. Some corporations put part of their proceeds toward programs that feed the hungry, others toward organizations that clean up the environment.

Businesses are also expected to maintain a certain level of responsibility in the way they run their operations. A company can be viewed as ethically irresponsible if it knowingly brings harm to the environment or if its business tactics cause employees to be treated unfairly.

As the world has become increasingly connected, the consumer has developed more concern for the ethics behind the goods and services that they purchase. Consumers are not the only ones looking for socially responsible corporations, however; employees are doing the same. Many individuals looking to go into the field of business want to work for an ethically responsible company. CSR is crucial to nearly every facet of a business: not only is it essential to setting the tone for a company culture and retaining employees, but it has a significant effect on customer loyalty and overall profit.

MBA Teaches Ethical Behavior

While businesses are designed to make money and bring in a profit, it is important to know how to resolve ethical and governance issues in a socially responsible manner. Businesses have to be aware of new technologies, the trending demands of their clientele and changes in market conditions so that they can continue to operate in ways that are both responsible and profitable.

Entrepreneurs have begun to reevaluate the ways in which advanced business degree programs teach ethics. Many MBA programs teach courses that cover CSR and the role of business in society — but there is a sweet spot for teaching business ethics that accounts for the following: society’s changing values, different generational desires and the balance between making the right moral decisions and not jeopardizing the bottom line.

Corporate social responsibility is understood in multiple ways. For some, it is a business tactic by which a company donates money, goods and/or volunteer hours toward a worthwhile cause such as the homeless population or the local education system. There are multiple outlets and means by which a company can demonstrate that it is socially responsible. However, corporate social responsibility is also the way in which a company chooses to run itself. The effects a company has on the environment or the way in which it treats its employees also play a part in what makes any given company socially responsible. You can learn how to make morally sound decisions for your company or business when you earn your MBA online.

What is the role of business in society?

September 29, 2011

Last week I took part in a panel discussion that debated “What is the role of business in society”. I thought you would be interested in what I had to say.

When thinking about the purpose of business we must first focus on the role it plays in meeting the world’s increasing needs and desire for goods and services. One can question the intrinsic value of some, but as we know, they range from the creation of life saving drugs, technological innovations which are transforming our lives through to the froth of «The X Factor», Hello Magazine and designer coffee.

We are also aware of business’s central role in providing financial prosperity, but what we often forget is how diverse these financial benefits are; remuneration for all those employed in the organisation and across its supply chain, taxation paid in numerous forms, which goes to support an array of public services (schools, hospitals, roads. ) and dividends and interest that fund our pensions and support our savings. What we also forget is that every man and women in this country is ultimately a direct beneficiary of business as employees, consumers, pensioners, savers, voters.

But at this time when trust in business is at an all time low, the picture I paint may lack resonance. If this is the case I believe it’s because this picture has been obscured by a predominant mindset which pervades much of society, where wealth and self esteem are defined by financial gain.

Central to this is a floored business measurement model, a model that focuses on financial performance to the exclusion of most other aspects of well being. That’s not to say financial performance isn’t important, but we need to know more about the consequences of how it is achieved. As we now know, today’s model was conceived at a time when people believed that resources were infinite, that many inputs to business, such as water, eco systems services and the environment were free at source. We now know better, and we should be encouraged that business’s view of well being is being rethought as we speak.

In conclusion business is about sustaining the well being of all those who interact with it, it is in most cases a force for good and in the long run its success will, in my view, be central to society’s success.

Did I get it right? Let me know your comments and questions.

The Role of Business in Society and the Economy

By Ahmad Nasrudin · Updated on April 16, 2022

Business plays a vital role in our lives. First, they create goods and services to satisfy our needs and wants. Then, they also recruit households as labor and provide them with compensation, such as wages, salaries, and benefits. Thus, it becomes a source of their income, which can be used to sustain their life.

Where does the business come into play and operate? Business is everywhere. They can operate in the primary sector to extract natural resources such as mining. Or they harvest various agricultural commodities. They usually produce raw materials, which are inputs for other businesses in the secondary sector.

Others operate in the secondary sector. They process raw materials into intermediate products or final products. Intermediate products are sold to other businesses to be further processed into final products and then sold to consumers. Meanwhile, the final products are for final consumption without going through further processing to obtain their benefits.

Then, some businesses operate in the tertiary sector. They offer services. Their activities range from providing trading services (retail and wholesale), tourism services to financial services such as banking and insurance. Apart from providing services to businesses in the primary and secondary sectors, they also provide them to households.

How does business play a role?

Businesses buy inputs such as raw materials from suppliers. They then process it into output, which they can sell at a higher price than the dollars they pay suppliers. This process we call value-adding wherein, they convert lower-priced inputs into higher-priced outputs.

The output then we use to fulfill our needs and wants. What are needs and wants?

What output does the business produce?

Business output falls into two main categories: goods and services. We call them both products.

What inputs are used?

In a broad definition, inputs include not only raw materials. For a business to operate, it requires the following four resources – we refer to as factors of production:

What are the role of business in society and the economy?

As with the opening sentence, the role of business is vital to our society and economy. Businesses don’t just satisfy our needs and wants through the products they produce. But, they also create jobs and income in the economy. In addition, competition between them encourages innovation and efficiency, making goods and services cheaper and of higher quality.

Satisfying our needs and wants

Businesses sell goods and services to satisfy our needs and desires for profit. So, without them, we would have to produce everything ourselves, including our food and clothes.

Then, businesses also have to compete with each other. To keep the money flowing, they must deliver higher satisfaction than competitors do. Competition forces them to be more efficient and innovative, leading to lower prices and better quality.

Creating added value

Businesses create wealth in the economy by adding value to the inputs they use. It makes the output more valuable than the input used. Finally, added value makes their products more attractive, and customers will usually be willing to pay more.

Value creation or value addition can be done in several ways. For example, businesses transform inputs into more valuable forms, such as converting bauxite into aluminum slabs and processing them into car bodies.

Another example is offering convenience, such as saving customers time as fast food businesses offer. Quality also contributes to added value, such as embedding 4G technology in smartphones instead of 3G.

Creating jobs

Business creates jobs in the economy. Therefore, the more businesses there are, the more manpower is needed. Likewise, as their size grows, they also require more manpower.

When starting a business, employers hire workers to support operations. They work in several functional areas such as accounting and finance, human resources, marketing, and production.

Then, as businesses grow, employers also need more workers. The larger business size makes operations more complex and requires more staff to handle tasks and jobs.

Income creation

Entrepreneurs set up businesses for profit. If the business is successful, their income and wealth increase.

Likewise, by working, individuals earn income. The money they get they can use to fulfill their needs and wants.

Thus, growing business activity creates more income in the economy. More people work for income. Higher incomes drive more demand for goods and services.

Then, with high demand, entrepreneurs see more opportunities to grow their business and introduce new businesses.

Economic development

The business contributes to promoting economic development. In addition, business activity creates a ripple effect, encouraging other businesses to emerge, creating more income and jobs in a region.

Business growth in the region does not only contribute to job creation. But, it will also lead to improvements to infrastructure such as roads and railways in the region. In addition, health facilities, education, shopping centers, and other public and private services are also developing. Eventually, the economy in the region grew.

Living standard improvement

Business activities contribute to improving people’s living standards. It can go through several channels.

First, from the goods and services produced by the business, we can fulfill our needs and wants. Second, from the jobs created, we get income. We can use the money to buy various goods and services to satisfy our needs and wants. We can also invest it to support future needs, for example, during retirement. Then, we can also use it to buy insurance to minimize the losses we may experience.

Third, competition leads to lower prices and higher quality goods and services. Businesses must outperform their competitors in satisfying their customers, forcing them to be more efficient and innovative. It ultimately makes our lives more comfortable and better because we can get lower prices and higher quality products.

For example, we can capture and photograph our best moments with mobile phones without buying a camera. In the past, we couldn’t do it. This is because manufacturers don’t embed high-resolution cameras into phones.

Community empowerment

Some business organizations seek to strike a balance between profit, social and environmental. They do not pursue maximum profit and wealth for the owner. But, they reinvest the profits for social and environmental causes.

For example, microfinance providers raise money through crowdfunding and lend it to small entrepreneurs on flexible terms and low-interest rates. It allows small businesses to thrive, creating more jobs and income for the neighborhood. Then, microfinance providers use the profits to expand the reach of their services to communities elsewhere.

In other cases, social enterprises empower a community by training people in entrepreneurial skills. They then help the community market the product and use the sales money to provide more training and build public facilities such as education and health.

Sample Essay on the Role of Business in Society

Business is the backbone of development in the society. Its roles and responsibilities have been clearly defined in a broader view within the society. The welfare and society’s social development have been enhanced by creation of resources by companies that have resulted in advanced improvement in the society. The demands of concerned parties have also been changing from ‘‘doing no harm’’ to ‘‘being a positive force’’ by contributing towards global social development goals.

The proper role of business in the society includes both social and economic responsibilities and is beyond the giving of charitable donations during good times.

Businesses should join forces and cooperate towards elimination of increased endemic issues and humanitarian crisis in the society including environmental degradation, poverty, human rights violation and diseases such as HIV/AIDS. Companies have a duty of eliminating poverty from the society through job creations for clients, co-workers distributors and suppliers among others.

By doing so, employees will be in a position to provide for their families and pay taxes among other duties, ensuring that the society is empowered economically. Manufacturing, development and distribution of goods are another requirement for any business to its society. The business has to ensure its procedures are regularly enhanced and processed through continual production of new goods, services and processes to meet the demands of the society. This would help create a solid foundation for prosperity in the business and humanity at large.

With new drivers in place to inspire future industries to station themselves as forces of positive transformation in the society, businesses also have to champion for the realization of good governance as well as progressive responsibility throughout its operations in the society. It is also their duty to ensure that systems for risk prevention are put in place as opposed to waiting for a problem to occur later on.

The business by doing so will help in the realization of opportunities such as those of new market creation and value enhancements among others that would lead in attraction of new clients thus ensuring the business is the preferred option.

It is also the role of the business to relate well with clients and society at large. It is a prerequisite for long term presence of a business because poor relationship between the people and the society can impact the development of the business. This means that the business should work conveniently with the society to achieve set objectives and goals in a way that benefits it.

The business can also achieve this role by extending ‘‘good practice’’ to different areas in the society for instance safety of the workplace and the environment. It could also ensure that it creates and spreads global standards for environmental practice purposes.

The proper role of business in the society includes both social and economic responsibilities and is beyond the giving of charitable donations during good times

These roles have been changing over time to ensure a helpful accountability as corporate citizens in the society. The roles of the business also include the way in which they operate and duty to stakeholders, which should not entirely revolve in offering charitable donations in good times only. Lastly, the duty of minimizing stakeholder’s demands and finance by regulation to ensure the effect on the society and the environment they operate in is minimized.