What do you understand by Green Management? Discuss its nature and scope.

Answer:

Environmental degradation has been a part of human history forever specifically from business operations. The Industrial Revolution of the 18th and 19th centuries, however, brought with it the ability to degrade the natural environment to a greater extent and at a faster rate than ever before.

In 1987, the United Nations World Commission on Environment and Development (The Brundtland Commission) defined sustainable development as one that ―meets the needs of the present without compromising the ability of future generations to meet their own needs.

Definition of Green Management

Both improved environmental and business performance are basic goals of green management. When definitions of the exact term ―green management‖ are found in the literature, they often appear either too vague or incomplete. One of the most recent studies on green management defined the term as ―practices that produce environmentally-friendly products and minimize the impact on the environment through green production, green research and development, and green marketing. (Peng & Lin, 2008).

Characteristics of Green Businesses

Hirsch identifies nine categories of green business behaviour. Hirsch explains claiming that: when firms go green, they exceed legal requirements by:

1. Directly reducing their own regulated—or unregulated—environmental impacts in ways that will reduce regulatory risk, improve company brand, and allow firms to get out in front of anticipated regulations;

2. Reducing their customers‘environmental impacts and decreasing their customers‘exposure to unhealthy substances;

3. Increasing their reuse and recycling of materials used in the production process;

4. Improving their energy efficiency or that of their customers;

5. Improving their resource productivity or that of their customers;

6. Implementing systems to identify waste reduction, pollution prevention, energy efficiency, or resource productivity opportunities throughout the company or facility;

7. collecting and disseminating more information about the firm‘s environmental impacts and performance than the law requires;

8. Providing more opportunities for stakeholder input into corporate environmental decision making than the law requires; and

9. Financing and investing in green products and business models, such as those described above.

Nature of green management :

Green Management is designed to reduce the overall impact of the built environment on human health and natural environment by:

a)      Efficiently using energy, water and natural resources

b)      Protecting occupant health and improving employees productivity

c)      Reducing waste, pollution and environment  degradation.

Scope of Green Management:

•      Green Foods: Green business ideas allows people too grow  “garden parks” or small seeded trays that can be placed  anywhere at your surroundings.

•      Green Consulting: Green consulting is the one of the best low  budget businesses. All you need is to know best advertising  methods for business and need a mobile or email id, so that  people can contact.

•      Green vehicles: Using of electric scooters an small electric  cars. The cope is endless – once you start thinking about your  environment for the pollution free and fuel saving market.

•      Green Appliances (energy star logo)

What do you mean by Environment of Business?

Answer:

Micro Environment of Business:

A business can be established, but to successfully sustain a business, the business needs resources like finance, for which it has to depend on financial institutions. Acceptance of social norms, for which it has to depend on the society. Proper market conditions, for which it has to depend on the market. The sale of products/services, for which it has to depend on the customers. The labour, for which it has to depend on the society. Then there are natural resources and raw material, for which it has to depend on Nature. Also, the legal support of the government, for which it has to depend on the government. There are many factors and dimensions that affect Business Environment. These factors are many different components of a single concept called Business Environment.

The definition of Business Environment, “The sum total of all individuals, institutions and other forces that are outside the control of a business enterprise but the business still depends upon them as they affect the overall performance and sustainability of the business.”

(1) Internal Environment (Micro Environment)

The micro environment consists of the factors of the firm’s immediate environment, a. Suppliers,

b. Customers

c. Competitors,

d. The public, and

e. Marketing intermediaries.

a. Suppliers:

Suppliers or vendors are those persons or firms who supply inputs like new materials, certain parts, cutting tools etc., to the company. The vendor quality and reliability is a must for the smooth functioning of the business.

They should supply all imputes of right quality and stated quantity in time. In order to be on safe side, adequate stock of input elements should be preserved in the company and services should be taken of more than one vendor to supply the goods.

b. Customers:

Today with the advancement of technology and because of foreign collaborations, it has become easy to manufacture any product, but it is still very difficult to sell i.e., to create, increase and sustain the customers.

Every day we watch a new advertisement e.g., buy one tooth paste tube and take another free along with it or take two shampoo bottles at the price of one etc., to allure the customers. Monitoring the customer sensitivity is, therefore, a prerequisite for the business success. How many different categories of customers shall be there to buy a product, depends upon the product itself.

c. Competitors:

Take an example of a firm ‘A’ making Televisions. Its competitors are not only the firms making and marketing T.V., but are all those firms who compete for the discretionary income of the customers. There are so many firms making T.V., scooters, refrigerators, cooking ranges, stereo sets etc.

The first is the desire competition amongst them.  

The second is the product form competition  

The third is the brand competition I

d. Public:

Public means a group of people. Public opinion can be a threat to a business firm whereas it can be an opportunity for another business firm. Public normally forms an opinion about different brands of the same product after using the same.Opinion travels from friend-to-friend, neighbour-to-neighbour etc

e. Marketing Intermediaries:

Marketing Intermediaries are those firms/individuals who help the company in promoting, selling and distributing its goods to final buyers. The intermediaries are: (i) Middlemen (agents/merchants) (ii) Physical distribution firms who assist the company in stocking and moving goods from their origin to their destination, such as warehouses and transportation firms. (iii) Marketing service agencies such as advertising agencies, market research firms etc., which assist the company in targeting and promoting its products to the right markets.

(2) External Environment (Macro Environment)

I  Economic environment.

It indicates the condition of economy in which business organization operates. It has continuous and great impact on business. It includes national income, production, inflation, savings, investment, price, government activities. Business person must have constant watch on this factor.

 II Political or legal environment

It is defined as rules and regulations determined by the government. Business must fulfil demand of government. There should be non-violation of rules and regulation of government. Business should avoid unfair trade and should provide essential information to the government.

Social environment.

Business must have good environment where a business can be established neatly. Business also helps in employment opportunities generation. There should be socio cultural understanding and application of anti-pollution measures.

Technological environment:

It defines about the methods available for converting resources into product or services. It transforms inputs into output. Inputs means material, capital, man, machine. It affects on business. It helps to change the level of job, skill, and product and so on. There can be innovation, development of scientific techniques which encouraged mass production and distribution.

Describe main provisions of Consumer Protection Act 1986. What more needs to be done in this regard.

Answer:

Salient features of consumer protection act are as follows:

Coverage of Items:

This Act is applicable on all the products and services, until or unless any product or service is especially debarred out of the scope of this Act by the Central Government.

Coverage of Sectors:

This Act is applicable to all the areas whether private, public or cooperative.

Compensatory Nature of Provisions:

Many Acts have been passed for the help of consumers. Consumers enjoy the benefits of these Acts but if a consumer wishes the Consumer Protection Act can provide extra help. As a result the nature of provisions of this Act is compensating for the loss or providing extra help. Consumer is totally free to enjoy the benefits provided in the Act.

Group of Consumer’s Rights:

This Act provides many rights to consumers. These rights are related to safety, information, choice, representation, redressal, education etc.

Effective Safeguards:

This Act provides safety to consumers regarding defective products, dissatisfactory services and unfair trade practices. So under the purview of this Act there is a provision to ban all those activities which can cause a risk for consumer.

Three-tier Grievances Redressal Machinery:

Consumer courts have been established so that the consumers can enjoy their rights. This Act presents Three- tier Grievances Redressal Machinery:

(i) At District Level-District Forum

(ii) At State Level -State Commission

(iii) At National Level – National Commission.

Time Bound Redressal:

A main feature of the Act is that under this, the cases are decided in a limited time of period.

Consumer Protection Council:

To favour consumer protection and to encourage consumer’s awareness there is a provision in this Act to establish Consumer Protection Councils.

Protection of Consumer through National/State Councils and District Forums:

The basic purpose of the above councils and forums is to listen to the complaints of the consum­ers and pass judgments on complaints.

The Organisations for this purpose are as under:

1. The Central Consumer Protection Council.

2. The State Consumer Protection Councils.

3. District Forums.

 The Central Consumer Protection Council:

 The State Consumer Protection Council:

Consumer Disputes Redressal Agencies:

Appeal to State Commission:

Any person aggrieved by an order of the District Forum has been given the right to appeal to the State Commission within a period of thirty days from the date of order.

Appeal to National Commission:

Second appeal is allowed before the National Commission within 30 days of order of State Commission but the National Commission can extend the period for appeal beyond 30 days.

Appeal to Supreme Court:

Third appeal is permitted to Supreme Court within 30 days of the order of National Commission.

What more needs to be done in this regard.

The judgments of the forums and commissions have encouraged the consumers to approach more frequently to these bodies.

Actually the protection cannot be by law alone but proper business culture and competition in the system is needed.

While in foreign countries suppliers replace the product without any question to maintain their reputation but Indian manufacturers try to find out all types of excuses.

In certain cases considerable punishment has been awarded but there is much to learn from foreign companies who withdraw their product if found defective even without complaint.

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What do you understand by Green Management? Discuss its nature and scope.

Answer:

Environmental degradation has been a part of human history forever specifically from business operations. The Industrial Revolution of the 18th and 19th centuries, however, brought with it the ability to degrade the natural environment to a greater extent and at a faster rate than ever before.

In 1987, the United Nations World Commission on Environment and Development (The Brundtland Commission) defined sustainable development as one that ―meets the needs of the present without compromising the ability of future generations to meet their own needs.

Definition of Green Management

Both improved environmental and business performance are basic goals of green management. When definitions of the exact term ―green management‖ are found in the literature, they often appear either too vague or incomplete. One of the most recent studies on green management defined the term as ―practices that produce environmentally-friendly products and minimize the impact on the environment through green production, green research and development, and green marketing. (Peng & Lin, 2008).

Characteristics of Green Businesses

Hirsch identifies nine categories of green business behaviour. Hirsch explains claiming that: when firms go green, they exceed legal requirements by:

1. Directly reducing their own regulated—or unregulated—environmental impacts in ways that will reduce regulatory risk, improve company brand, and allow firms to get out in front of anticipated regulations;

2. Reducing their customers‘environmental impacts and decreasing their customers‘exposure to unhealthy substances;

3. Increasing their reuse and recycling of materials used in the production process;

4. Improving their energy efficiency or that of their customers;

5. Improving their resource productivity or that of their customers;

6. Implementing systems to identify waste reduction, pollution prevention, energy efficiency, or resource productivity opportunities throughout the company or facility;

7. collecting and disseminating more information about the firm‘s environmental impacts and performance than the law requires;

8. Providing more opportunities for stakeholder input into corporate environmental decision making than the law requires; and

9. Financing and investing in green products and business models, such as those described above.

Nature of green management :Green Management is designed to reduce the overall impact of the built environment on human health and natural environment by:

a)      Efficiently using energy, water and natural resources

b)      Protecting occupant health and improving employees productivity

c)       Reducing waste, pollution and environment  degradation.

Scope of Green Management:

•       Green Foods: Green business ideas allows people too grow  “garden parks” or small seeded trays that can be placed  anywhere at your surroundings.

•       Green Consulting: Green consulting is the one of the best low  budget businesses. All you need is to know best advertising  methods for business and need a mobile or email id, so that  people can contact.

•       Green vehicles: Using of electric scooters an small electric  cars. The cope is endless – once you start thinking about your  environment for the pollution free and fuel saving market.

•       Green Appliances (energy star logo)

***

Explain the meaning of Culture and factors affecting the Cultural environment.

Definition of Culture:

There is no one definition of culture nor there is unanimity among various thinkers. Mr. A.L. Korelaber and T. Parsons in an article on the Concepts of Culture and of Social Systems American Sociological Review has defined culture as “a complex of values, ideas, attitudes, and other meaningful symbols created by a man to shape human behaviour and the anti facts of that behaviour as they are transmitted from one generation to the next”.

According to another author “culture refers to a set of values, ideas, anti facts, and other meaningful symbols that help individuals communicate, interpret, and evaluate as members of society”. Another writer feels that “culture is a set of socially acquired values that society accepts as a whole and transmits to its members through language, and symbols”. 

The culture may also be defined as “the largest simple grouping of people sharing a distinctly unique social heritage”.

Attitude and Behaviours Influenced by Ones Culture:

1. Personality i.e. sense of self and society.

2. Language i.e. communication.

3. Dress

4. Food habits

5. Religion and religious faiths that is beliefs.

6. Customs of marriages and religions and special social customs.

7. Social relationship (system of marriage, family structure and relations, social and religious organisations, government)

8. System of education, 

9. Work habits and products. 

10. Time value (punctuality, late coming working hours, rest hours and so on.

11. Values and norms (discussed later).

12. Beliefs and faiths (religion, vegetarianism – meat eating, nonviolence – rebirth, fate and luck and so on.

13. Festivals

14. Art, music, pictures, TV Radio, movies, theatres etc.

15. Technology and innovation.

16. Products and services.

17. Knowledge.

18. Laws of the Government and social traditions and laws laid down by religion.

Explain the relevance of Ecological Issues to Business Environment.

 Answer:

Environment literally means Surrounding in which we are living. Environment includes all those things on which we are directly or indirectly dependent for our survival, whether it is living component like animals, plants or non living component like soil, air water. Environmental Protection Act (1986) defined “Environment as the sum total of water, air and land, their interrelationship among themselves and with the human beings, other living beings and property.”

Ecology and Scope of Ecological Studies:

Ecology is that part of environmental studies in which we study about organisms, plants and animals and their relationship or interdependence on other living and non living environment.

The relevance of Ecological Issues to business environment are as follows:

1. To clarify modern environmental concept like how to conserve biodiversity.

2. To know the more sustainable way of living.

3. To use natural resources more efficiently.

4. To know the behaviour of organism under natural conditions.

5. To know the interrelationship between organisms in populations and communities.

6. To aware and educate people regarding environmental issues and problems at local, national and international levels.

Need of Public Awareness about Environment:

In today’s world because of industrialization and increasing population, the natural resources are being rapidly utilised and our environment is being increasingly degraded by human activities, so we need to protect the environment.

It is not only the duty of government but also the people to take active role for protecting the environment, so protecting our environment is economically more viable than cleaning it up once, it is damaged.

The role of mass media such as newspapers, radio, television, etc is also very important to make people aware regarding environment. There are various institutions, which are playing positive role towards environment to make people aware regarding environment.

Many entrepreneurs are doing the environmental protection work under the CSR and many others have been forced by the law to undertake such activities. Now a days environmental clearance is essential for large business projects.

___

Ecology is the study of the relationships among organisms and their surroundings. Discuss

  Q. Ecology is the study of the relationships among organisms and their surroundings. Discuss

Answer

These surroundings are called the environment of the organism.

Concepts in Ecology:

The term “ecology” was coined by combining two Greek words, oikos (house or dwelling place), and Logos (the study of), to denote the relationship between organisms and their environment. Ecology is a multidisciplinary enterprise, which cannot be made to fit into one channel of scientific inquiry: it ranges from reductionism in the study of individual species populations, through less reductionist approaches in the study of communities, to the holistic in the studies of the totality of communities on earth.

The basic concepts of ecology include the following:

i. All living organisms and the environment they live in are mutually reactive, affecting each other in various ways.

ii. Environment plays a major role in the critical stages of the life cycle of the species.

iii. The species reacts to the environmental changes and adjusts itself structurally and physiologically.

iv. The environment also changes according to certain species- specific activities like growth, dispersal, reproduction, death, decay, etc.

v. All plants and animals are related to each other by their co-action and reaction on the environment.

vi. Under similar climatic conditions, there may simultaneously develop more than one community, some reaching the climax stage, and others under different stages of succession.

Ecosystem Ecology:

A group of individual organisms of the same species in a given area is called a population. While, a group of populations of different species in a given area is called a community. And, an ecosystem or an ecological system is the whole biotic community in a given area and its abiotic environment. It therefore includes the physical and chemical nature of the sediments, water and gases as well as all the organisms.

An ecosystem can be any size, from an area as small as a pinhead to the whole biosphere. The term was first used in the 1930s to describe the interdependence of organisms among themselves and with the living (biotic) and non-living (abiotic) environment. At ecosystem level, the units of study are comparatively very large and there are no practical units, if the nature is conceived as a single, giant ecosystem.

Social sciences have borrowed the concept of ecology from biology. As a branch of biology, ecology is the study of the relationship between living beings and their environment. Sociology has been greatly influenced by biology. Sociology also studies the relationship between man and environment through ecology. Field of study of human ecology in sociology is centered around man and his environment.

Discuss the Nature of Business.

Nature of Business

A.     Business is a Social System:

A system conveys the idea that everything is inter-related and inter-dependent. The human body is a good example of system, which consists of a number of body organism, parts, or subsystems, which act together as a system to perform a certain bodily function independently yet in perfect harmony with other sub-systems. Each subsystem is dependent on another sub-system. Thus, system is a combination of interrelated parts operating as a whole; and the parts form a sub-system of the system. The system becomes a social system when it relates to people. A business is a complex economic and social system, which interacts with other parts or sub-systems in the society. It normally aims to earn profit and provide social service to the community. Every action of business is related to external forces, which have a bearing on the functioning of business.  The social systems receive inputs from its environment. Business is a social system having production, marketing, financing personnel, R&D and its sub-systems. A product must be produced, and this is accomplished by the production function (or the production sub-system). The product must be sold and distributed and the marketing sub-system performs this job. Each of these sub-systems, in turn, is composed of few other sub-systems. For example the marketing sub-system would have advertising, marketing sales, research, inventory, consumer relations sub-systems. For a firm it is essential that all its sub-systems operate in a coordinated way so that the whole system operates in a balanced and integrated manner.

Main Characteristics of Business as a Social system:

a.      Sub-systems make a system: business is a system that consists of various sub-systems. It can be compared with human body in which different organs performs different functions e.g. eyes perform the function of seeing while the hands do work. However, various parts are interrelated, affecting each other in various ways through their inputs and outputs among themselves. Similarly, business is also a part of larger system, which again is a part of the complete industrial system and so on, until all related parts, makes a larger known system. Thus, what is a whole system from one angle is a sub-system from the other angle. The sub-system is also called a “lower order system” compared with a “higher order system”[1].

b.      Social system is dynamic in nature: The social system is not static but dynamic in nature. The dynamism is due to the fact the social system relates to the human beings that are living, thinking and always active. This characteristic of social system makes it variable and uncertain making social system difficult challenge for the managers. One should not draw conclusion that everything in business is uncertain and unstable. With this dynamism is found equilibrium among its various parts and its external environment. Keith and Blostorm[2] compare this equilibrium with a quite ocean filled with moving sea life and waves-all of which operates in a balanced manner. In the dynamic set-up, a business needs to maintain satisfactory equilibrium, both internally and externally, in order to survive and make reasonable progress to achieve its objectives. If this harmony does not exist, business may not achieve its objectives.

c.       Business viability: Viability implies the drive to live and grow. Business viability means adaptability to change as per circumstances. The change may be in the business environment, technology, working condition, or raw material combination. Business has to respond, change and adjust so that it continues for a long period.

d.      Public visibility; Business should be visible to the society. The idea of public visibility is that business activities are subject to public examination, discussion and judgement by the society. If any of the activity do harm to the society it is subject to face criticism in press and media. The activities of the organisation may be directly observed, such as polluted atmosphere when smoke is seen coming out of a mill chimney or polluted water due to discharge of industrial waste in the nearby water bodies. Sometimes the government keeps an eye over such industrial units and enacts laws to protect the society from the harmful effects of the business.

e.       Social values: Business normally operates in an environment of social values both of society and those of business itself. For business, such values are derived from various sources such as the mission of the business as a social institution, the country in which the business is located, the type of industry in which it is active and the nature of its employees. After some time these, become official policy of the business. Social values perform certain important functions. One, they become guides for the employee decisions in the interest of business and its environment; and two, they become strong motivators for people in the business. Thus, they become a key factor in the system relationship of business with society[3].

f.        Interface with external environment: Business maintains an effective equilibrium by keeping a cooperative relationship between the internal and the external factors. An individual business cannot work in isolation and is, therefore, related to other business and social groups. This area of contact between one system and another system has been termed as interface. Areas of interface are of vital significance because they are sources of inputs into the systems. These systems help in producing outputs. The business interacts with external agencies as well to receive regular inputs, information and feedback, which enables it to take corrective actions to maintain equilibrium with its environment. Thus, it should be noted that business organizations are open systems interconnected with such external groups as customer, trade unions, employee associations’ government and other agencies.

Business is a product of the technological, political-legal, economic, social, cultural global and natural factors.

B.     Business as an economic activity:

Although during recent time, the nature of business has undergone change and it is being looked at as a social institution but still mainly, it is an economic activity as it relates to earning profit. The following are the characteristics of business as an economic activity;

a.      Economic activity: Economic activity relates to the satisfaction of human wants by utilising and coordinating the scarce resources and multiple wants. Economic activity may take various forms such as consumption, production, distribution, and exchange. Depending on these the nature of business may also differ e.g.  business may consist of a manufacturing or production unit, marketing unit or a service unit. All these activities have one thing in common and that is profit motive.

b.      Business adds Utility: Business is a transformation Unit that utilise various inputs such as labour, land, technology, capital, skill, energy, etc. and transforms various inputs into final output for consumption. Thus, it adds utility to a product or service and sell it on profit. This transformation helps him to keep surplus value with him. The transformation process has been shown in Figure 1.2.

a.      Business resources are limited and scarce: Business has to take decisions and fix priorities. The aim of business is to earn profit. As the resources available are scare or limited, the moat beneficial alternative is selected.

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[1] Davis, Keith and Blomstorm, Robert,l. (1975)  “Business and Society: Environment and Responsibility”, Mc Graw Hill Book Co. New York. PP13

[2] Davis, Keith and Blomstorm, Robert, l. (1975)  “Business and Society: Environment and Responsibility”, Mc Graw Hill Book Co. New York. PP14

[3] Ibid.p.15

What are the economic and Social Goals of Business?

Business goals may be economic as well as social. First, we shall discuss economic goals and then we will take up the social goals.

Economic Goals:

Economic Goals comprise:

a.      High Standard of Living: It means high levels of production and consumption. This requires high levels of income and achievement of high levels of productivity.

b.      Market Leadership: To earn a niche for one self in the market innovation is key factor. Good businessperson are aware of the fact they have an overriding obligation, “to be innovative” that is each time they have to increase efficiency, productivity and must build, expand and put forth new goods and services in order to remain market leader. Research and Development (R&D) is also essential in addition to investment of profits in the purchase of new machines, tools and equipment.

c.       Economic Progress: Another important economic goal of business is economic progress, which can be achieved by making an optimum utilisation of material and non-material resources of capital by developing inventiveness skills and staff development programmes. It is also essential to utilise energy saving devices and environmental friendly techniques of production so that economic progress is sustained in the end.

d.      Economic stability: Capitalist or a free enterprise economy regularly faces business cycles. Government can achieve economic stability if it utilises its economic and fiscal policy for achieving the goal of stabilisation. Economic stability can also be achieved by making accurate sales forecasts, preparing production schedules, diversifying products and stimulating sales in off-season so that frequent fluctuations are avoided. Government may also utilise its credit control policy, bank rate, CRR and Repo rate policy for this purpose.

Social Goals

Economic Goals comprise:

a.      Justice and Equality: It means that business should not lead to concentration of economic power in the hands of a few. It should try to equitable distribution of wealth and means of production among population. This requires opportunities for all through education, public health services fairness in distribution of income improvement of neighbourhood and family environments and equality of opportunities for advancement to all irrespective of caste, creed, colour, sex, age, physical appearance, political application or social status.

b.      Social Security or safety nets:  Certain contingencies of life which are beyond the means and control of an individual because of old age, physical disability, illness, accident, poverty and other such hazards of life like retrenchment, unemployment, maternity, etc. are provided for by business adopting insurance schemes, provident fund, pension and medical facilities leave with pay for certain specified period. The provision for such contingencies assures a minimum standard of living.

c.       Community Life: The Business should maintain good relations with community. Industry should organise fairs and festivals in which the workers and their families participates and enjoy the community life. In such gatherings, officers should also take part. Special programmes for female staff and children are also important. For this a part of the profit of the company should be set aside.

d.      Community Improvement: The community improvement can be achieved by proper planning, location of factories and markets at proper places, disposal of smoke and waste, removing ugly appearance by proper colouring and whitewash slum clearance, sanitation schemes so that living environment of the community is made healthy. Workers performance also increases in such surroundings.

e.      Educational Programmes: Business must start community schools in the surrounding villages. Education is required for the employees, customers, government and public. Education  is imparted to achieve these objectives: (a) to improve industrial relations in the factory, (b) to safeguard interest of the shareholders, (c) to develop better public relations.

f.        Friendly Atmosphere in the Company: Friendly atmosphere in the company ensures that workers are also partners in growth rather than servants. Opportunities are, therefore, to be provided for personal development of workers by careful job selection, promoting, delegation of powers and sharing responsibilities. The labours are also human beings they should not be treated as a commodity of commerce.

In view of these diverse goals, it has rightly been said that gone are the days service to customers and profit to owners were the twin objectives of the business. In fact, business also has social and national goals to fulfil. However, the true goals of business should be the economic goals viz., to bring satisfaction to the consumer and profit to owners. It is the consumer who is supreme and it is he who directs business, what to produce and sell in the society.

In short business goals are:               

(i)    Earning profit

(ii)  Earning livelihood

(iii)Rendering a public service

(iv)Employee satisfaction and development

(v)  Service to the society

(vi) Joy of creation

(vii) Quality products and services

(viii)  Protecting interests

    

However, it may be noted it is based on above-mentioned economic and social goals that performance of a business is judged. A businessperson should ask these questions to himself while taking decisions. Business decisions should not only serve the interests of the entrepreneurs but also of the society. Its success or failure is judged in terms of public interest and public goods served. 

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