The relationship between Business and Society
The complex relationship of business to society becomes evident when expressed in terms of a system concept. The idea of the system provides a means of understanding the dynamic variability of business’s interactions with ether parts of the society.
A system is a combination of interrelated parts operating as a whole. It becomes a social system when it relates to people. A social system involves people and/or their organizations in relationships consisting of some observable whole. Normally the system is seeking certain human objectivities. The following discussion may lead us to the cause of studying the relationship between business and study.
(a) Subsystems that make as interrelated whole
A system such as an individual business is also part of a larger system, which is part of an even larger system and so on until all interrelated parts have been joined in terms of the largest known system. When one refers to a smaller system in relation to a longer one, the system is called a subsystem.
The system concept suggests that the most productive analytical approach for understanding systems is to begin one’s analysis from the view of as large as possible because the view gives a clear understanding of the role and the contribution of all the systems involved. This is one of the reasons why business should give more attention to relations with its broad social environment.
(b) Dynamic and Stabilizing tendencies
A social system is understood to be dynamic. This is one of its important characteristics. People contribute to this dynamism because they are living, thinking, and active beings.
In spite of its dynamic nature, a social system tends to operate in some degree of equilibrium, which means a degree of accommodation and working harmony both among its parts and with its external environment. A business needs to maintain satisfactory equilibrium, both internally and externally, in order to survive and make reasonable progress toward its objectives.
(c) Business Viability
Viability means the drive to live and grow, to accomplish potential not yet reached, and to achieve all that a living system is capable of becoming.
People bring viability to the business system. They seek growth. Thus, the system which they operate can move beyond simple maintenance and achieve growth in the quality and quantity of services it renders, in a world of hanger and ignorance; growth has become a key focus for social development.
(d) Interface with an external environment
A system such as an individual business relates to other business relates to other businesses and social groups throughout society. This area of contact between one system and another is the same interface. Areas of the interface are important because they are sources of inputs into the system. This input gives it additional resources and provides it with information feedback which enables it to take corrective action to maintain equilibrium with its environment.
Public visibility refers to the extent that organizations activities are known to persons outside the organization. The activities may be directly observed. Activities also may be indirectly communicated by news media, neighbor, and other sources. The importance of public visibility is that it makes business activities subject to public examination, discussion, and judgment. If acts are not Kwon, they cannot be the judge.
Overriding all business’s system relationships is the fact that business operates in an environment of social values, both those of society and those which business has.
For an individual business, values drives from a multitude of sources, such as the mission of the business asocial institution, the nation are which the business has located the type of industry in which it is active, and the nature of employees.
All the discussion can lead us to the decision that we really need to have serious thought and study about the relationship between business and society.