Social Objectives of Economics:

Economics is a social science that deals with the production, distribution, and consumption of goods and services. The social objectives of economics are to promote the welfare of society by ensuring the efficient allocation of resources, alleviating poverty, and reducing inequality.

Existence of Business and Society:

The existence of business is not possible without society. Businesses operate within a social framework, and their success is determined by the needs and wants of society. The following points explain why the existence of business is not possible without society:

1. Demand: Businesses exist to fulfill the needs and wants of society. Without demand for goods and services, businesses would have no reason to exist.

2. Labor: Businesses require labor to produce goods and services. Labor is drawn from the population of society.

3. Capital: Businesses require capital to finance their operations. Capital is drawn from the savings and investment of society.

4. Infrastructure: Businesses require infrastructure, such as roads, airports, and communication networks, to transport goods and services. Infrastructure is built and maintained by society.

5. Regulations: Businesses operate within a regulatory framework that is determined by society. Regulations ensure that businesses operate in a socially responsible manner.

Social Objectives and Business:

The social objectives of economics are closely linked to the success of business. Businesses that contribute to the welfare of society are more likely to succeed in the long term. The following points explain how social objectives can benefit business:

1. Efficiency: Socially responsible businesses are more likely to operate efficiently. They are less likely to waste resources and more likely to innovate.

2. Reputation: Socially responsible businesses develop a positive reputation within society. This can lead to increased demand for their goods and services and a stronger brand.

3. Stakeholder Engagement: Socially responsible businesses engage with their stakeholders, including customers, employees, and the wider community. This can lead to greater loyalty and support.

4. Market Opportunities: Socially responsible businesses are well positioned to take advantage of emerging market opportunities, such as the growing demand for sustainable products and services.

In conclusion, the existence of business is not possible without society. Businesses operate within a social framework, and their success is determined by the needs and wants of society. The social objectives of economics, such as promoting the welfare of society, are closely linked to the success of business. Socially responsible businesses are more likely to operate efficiently, develop a positive reputation, engage with stakeholders, and take advantage of market opportunities.

The Objectives of Business are its driving force. These are the factors that keep the business running. Let’s learn further what the Objectives of Business are and how they are classified.

The business objective is a goal, i.e. where the business wants to reach in the future. For example, a business wants to set up its franchise in another state in the next 3 years or it wants to increase its workforce in the coming months.
Business needs objectives, without objectives the business is like a car without headlights driving blind. Objectives of business are the purpose for which the business is established and performed. We can call objectives the cornerstone of every business.
Objectives are needed in every area where performance and results directly affect the survival and prosperity of a business. The right choice of objectives is critical for the success of the business. The objectives of a business can be classified into two main categories, which are

Economic objectives

Social objectives

Economic Objectives of Business

We learned in the previous topic that business is an economic activity. Hence, its purpose is to show economic results. Let’s understand the economic objectives of the business. They are as follows:

1] Profit Earning

Business is a set of activities undertaken with the prospect of sale for the purpose of earning a profit. Profit is the extra income over the expenses. The main objective of any business is to earn a profit. Just as a plant cannot survive without water, similarly a business cannot sustain without profit.
Profit is necessary for growing and expanding business activities. Profit guarantee a consistent stream of capital for the modernization and augmentation of business activities in the future. Profits likewise show the scale of stability, efficiency, and advancement of the business organization.

2] Market Share / Creation of Customers

In the words of Drucker, “There is only one valid definition of business purpose; to create a customer. “ Profits are not generated out of thin air. They are the result of the hard work of the businessman to satisfy the needs of the customers.
In the long run, the survival of the business completely depends upon the market share captured by the business.  The creation of good and satisfaction of the needs of the customer is a crucial purpose of the business. So to generate profit and demand, the business must supply premium quality and give value for money products.

3] Innovation & Utilization of Resources

Innovation normally means to change processes or creating more effective processes, products and ideas. Nowadays, business is ever-changing and dynamic. To keep up with the growing competition a businessman has to introduce efficient design, latest trends, upgraded machinery, new techniques, etc.
Large corporations invest a humongous amount of capital in their Research & Development department to boost innovation. Whereas, on the parallel lines, utilization of resources is a proper use of workforce, raw material, capital and technology used in the business. A business has limited resources and that’s why its main objective is to put these resources to correct divisions.

4] Increasing Productivity

Productivity is a scale to measure the efficiency of the business activity. It is usually the last objective but just as important because productivity is measured by the output given by the activities. It is the end result of any business activity. Each business must go for more prominent productivity – to guarantee its survival and development. This goal can be accomplished by decreasing wastages and making proficient utilization of machines and supplies, HR, cash and so forth.

Social Objectives of Business

According to Dayton Hudson “The business of business is serving society, not just making money.” Business is one of the pillars on which the society stands.  Therefore, it is a part of the society. In fact, it cannot thrive without the resources from the society.  The business earns its income from the sale of products and services to the society. It is mandatory on the part of the business to take care of the social factors. The necessary social objectives of a business are as follows:

1] Providing Goods & Services at Reasonable Prices

Business exists in the first place to satisfy the needs of the society. It’s the first and major social objective of the business. Products and services ought to be of better quality and these ought to be provided at sensible costs. It is additionally the social commitment of business to keep away from misbehaviors like boarding, Black promoting and manipulative advertising.

2] Employment Generation

One of the major problem today’s generation facing is unemployment. Business generates employment. Therefore, it is the social objective of a business to give chances to beneficial employment to individuals of the society. In a nation like India, unemployment has turned into a critical issue.

3] Fair Remuneration to Employees

The business does not run on its own but the people are responsible for the success and failure of the business. The people on the inside of the business are more valuable i.e. employees. They are an asset of the business and make a ground-breaking contribution to the business. They must be given reasonable pay for their work.
Notwithstanding wages and salary, a significant piece of profits ought to be distrib­uted among them in acknowledgment of their commitments. Such sharing of benefits will expand the inspiration and proficiency of employees.

4] Community Service

Business must give back something to the society. As a result, the Library, dispensary, educational foundations and so on which a business can make and help in the advancement of society are created. Business enterprises can build schools, colleges, libraries, hospitals, sports bodies and research institutions. They can help non-government organizations (NGOs) like CRY, Help Age, and others which render services to weaker sections of society.