“What is good for society is also good for business. “- Peter Stordalen.
The body needs food to survive. But consumption of food is not the sole reason for our being. Similarly, though profit maximisation is the most rudimentary objective of a business - essential to avert any potential threat to Going Concern - it is definitely not its only purpose.
Businesses are the biggest contributors to employment across countries. If a company has 100 employees and if we assume each employee has a family of 4 members, then a single business is responsible for supporting 400 people. Not only do they employ the largest number of people, they also contribute to the formation and sustenance of a healthy economy. They act as major drivers of the economy when they hire workers, raise salaries and invest in growing their business.
Businesses work hand-in-hand with government on various pressing concerns like social infrastructure, promoting environmental protection and ensuring an overall betterment of underprivileged communities. They work towards social upliftment and environmental transformation, address healthcare and sanitation issues, ensure gender and social equality and more.
A business does not only stand for itself. To illustrate, a company in the automobile industry gives rise to several other industries such as tyre industries, engineering industries, steel industries, petroleum industries and many more.
In the present-day scenario it can no longer be said that profit-making is the sole motive of a business. Business are now playing a significant role in taking the economy to new heights. Modern times are witnessing a greater interdependence between business and society.