Society plays a vital role in the life of every business. As business uses resources of society, so it has some responsibilities to give back something to the society in return. As society includes people from different communities, religions, caste, and backgrounds, all business activities have to be executed in a such way that it should not harm anyone’s feelings and violate religious thoughts.
In this article, we have listed the factors which affect the relationship between Business and society. Every businessman should give attention to these factors as they have huge impact on business in long-terms.
List of Factors –
Employees are considered as the most important assets of every business. They are also part of the society. Businesses should treat its employees fairly. It should provide them good and safe working conditions and fair wages and salaries so to keep them satisfied. However, Employees working in a particular company belong to different backgrounds and religion, every company should ensure that everyone is treated equally. There should be no discrimination. Automatically, A strong image of business forms among the people. Moreover, Employees also contribute their best to complete each and every company assigned in the workplace.
Each and every company’s primary aim is to satisfy its consumers. Consumer satisfaction is a very important key factor which is responsible for the survival and growth of business in the competitive market. To satisfy its consumer every business needs to provide its product or services at reasonable prices along with consumer’s Expected quality.
In the long run customer loyalty have an impact on the profitability of the company.
In the current scenario, people are becoming more aware of environmental crises. So they expect each and every company to use eco-friendly technology in their production house. For example, a company’s production houses emitting smoke into the air may reflect bad image to the people.
Moreover, using eco-friendly technology is not the only way to promote environmental health. Companies can replace their plastic packing of their products with recyclable packing.
Government also plays an important role in affecting the business activities. Every businessman has to complete its business activities by remaining inside the limitations or rules®ulations induced by the government of a particular country or state.
Businessman should pay his tax on time so to confirm that all legal responsibilities are complete. Moreover, paying taxes on time also reflects the good reputation of the company to its creditors and investors.
A big business has investors. Investors are very important for the expansion and growth of business. Funds gathered from the investments of investors are used by the company in the new projects. In return, they also expect something from the company. So company should
Give good and stable rate of interest on their investments every year to keep them satisfied. Moreover, investor’s satisfaction also ensures that they will invest more in the company. Automatically money flow starts increasing in the company. The company can use this money to expand or modernize its existing business.
A company uses the resources of local society to do business activities, this leaves a huge impact on their lives. So the company should do something for the local communities such as planting trees, Running free schools and hospitals, and the most important thing company should provide employment opportunities to the local people.
The company can also build spiritual or religious places or gardens for the society. Moreover, it can also support poor students to continue their studies by providing them scholarships. Arranging champaigns to aware more and more about social problems and crises also leads to a good relationship between business and society.
Advantages of Maintaining good relationship between business and society
1. Good reputation
In a competitive market a company has a good reputation and has an advantage. People not only prefer to buy from a reputed company but also insist on it. Moreover, a good reputation of the company also decides whether the company will be able to stand in the market for a long time or not.
2. Reducing the production cost
When the company uses eco-friendly technology in its production houses the production cost also gets reduced to some extent. Moreover, the company can make more profit by using its waste material in making of some other product.
3. Good performance
As mentioned earlier employees are the most important assets of every company. They try to show their best performance in completing the task when they are offered different schemes like free health insurance for their family, free education for their children. Likewise, when employees start giving their best automatically the performance of company starts going higher and higher.