The Purpose of Business: A Report on Social Responsibility and Profit

This report delves into the fundamental purpose of a business, emphasizing its role in providing goods and services to customers while generating profits. It highlights the significance of Corporate Social Responsibility (CSR), where businesses actively contribute to societal well-being through initiatives like charitable donations and eco-friendly practices. Furthermore, the report contrasts traditional business models with social enterprises, which prioritize social or environmental objectives and reinvest profits for societal benefit. It underscores the importance of businesses not only achieving economies of scale but also upholding environmental and social responsibilities. The report concludes that the purpose of business is intrinsically linked with social responsibility and the delivery of high-quality products, aiming to enhance customer loyalty and maximize profitability while considering the welfare of society.

WHAT IS THE PURPOSE OF
BUSINESS

Table of Contents
MAIN BODY...................................................................................................................................1
What is the purpose of business?................................................................................................1
REFERENCES................................................................................................................................2

MAIN BODY
What is the purpose of business?
The main purpose of business to effectively offer goods and services to customers in the
exchange for money. It can be analysed that business should adhere to its Corporate Social
Responsibility. It is the company's efforts for improving the society in a better manner. The
efforts can range from donating money to not-for-profits organisation to implementing Eco-
friendly policies in the firm (Erl, Merson and Stoffers, 2017). On the other hand, social
enterprise is a business having social or environmental objectives and profits are reinvested for
benefiting society only rather than for maximising shareholders' wealth.
Business provides goods and services to consumers with the main aim of attaining profits
so that it may be able to pay for operational costs in day-to-day activities of business. It can be
assessed that firms have a responsibility to make sure that their business practices not only
render benefits of economies of scale but also their practices safeguards environment and deliver
social responsibility which is external nature (Freeman and Parmar, 2017). This means that
company should be able to offer quality goods to customers so that it may be able to enhance its
position in the market. Moreover, it would make consumers loyal towards it and as a result,
higher amount of profits can be attained within stipulated time (Sanusi. 2018). Thus, purpose of
business is integrated with social responsibility and earn profits by offering superior quality
commodities. This means that society welfare should be kept in mind so that people may be
benefited.
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REFERENCES
Books and Journals
Erl, T., Merson, P. and Stoffers, R., 2017. Service-oriented architecture: analysis and design for
services and microservices. Prentice Hall.
Freeman, R. E. and Parmar, B. L., 2017. Managing for Stakeholders and the Purpose of
Business.
ONLINE
Sanusi. 2018 THE PURPOSE OF BUSINESS: THE BUSINESS OF PURPOSE [Online].
Available Through: <https://sheleadsafrica.org/purpose-business-business-purpose/>.
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