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The Business Of Business

The Business of Business


Abstract
The role of business has been changing over the centuries. Throughout the existence of shareholding organisations there have been different theories regarding the role of business. Organisations too have been changing their role to adapt to resource, capital and societal pressures. From an initial thrust on operational efficiency, organisations had over time started increasing their focus on marketing and sales. Since the late 20th century we see an increasing focus on the CSR initiatives as well as on public relations. Is this only a new found mantra or is it a strategic initiative of organisations. From a brief description on existing theories of role of the organisations the essay tries to answer some of the questions about the role of organisations. The essay also explores possible mechanisms of institutionalizing corporate behaviour and converting responsible behaviour into a strategic intent.

No. of Words - 3921


Table of Contents
Problems with existing theories 6
The stakeholder view 9
Why Stakeholder View is Important? 9
Is there one Solution that fits all? 11
The Social Contract 13
Conclusion 16
Figure 1: The J-Curve 17
Figure 2: Stages of Organisational Learning 18
Figure 3: Balanced Score Card 19
References 21

Table of Figures
Figure 1: The J-Curve 17
Figure 2: Stages of Organisational Learning 18
Figure 3: Balanced Score Card 19
Figure 4: Modified Balanced ScoreCard 20

Theories about the Role of Business
Before describing the various theories the one pertinent question we must raise is regarding the focus on the role of business in the present economic and socio-political setup?
The shareholding pattern of corporations has been in existence for at least 3 centuries. Existing laws confer ownership of modern firms on shareholders - people who have invested their money in financial equity. As a result, they have been given exclusive rights to the profits earned. The "social" focus of...