Governing business activity Essay Example | Topics and Well Written Essays - 1500 words

Governing business activity - Essay ExampleA blind drunk is an arrangement of individuals, resources both physical, as well as financial and a great deal of information. They know to carry out various constructive tasks in the society, through production and distribution of goods and services. These tasks are constituted by utilizing societys resources such as land, labor, capital and providing adequate meshworks for the work done, in return (Hirschey, 2009).Sm all tolder firms are usually managed by a single owner, who is in charge of all the expose decisions made and hence are more likely to dominate the decisions in their favor, by pickings decisions which are profitable to them. Thus, both the short verge as well as long term goals of a smaller firm could be profit maximization alone. Larger firms on the other hand, are owned by the shareholders but managed by business managers who are in charge of all key decision making within the company. Thus, as compared to smaller f irms, the larger firms may deviate from the conventional profit maximization objective, to pursue other equally important goals such as sustainable teaching, improving timbre of their products, environmental protection etc. which are in the larger interest of the society as a whole. However, such goals are merely short term objectives, as objectives other than profit maximization may serve the community at large, but it does not help the firm in sustaining its competitive spatial relation in the industry. Furthermore, under the Corporate fond Responsibility agenda, which has recently gained widespread popularity and acceptance, it is considered obligatory for firms, to contribute towards development of the society as a whole rather than pursuing their selfish motives of earning profits. But according to Sternberg (2000, Pp. 41)The Social Responsibility of any business is to increase its Profits. For any