The Business Environment

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The Business Environment Describe the role of business in the economy. A business is any activity that provides goods and services in an effort to earn a profit (Kelly / McGowan). The economy of the country depends upon the employment provided by big and small businesses and produces the goods and provides the services upon which we rely on in our daily lives. Businesses pay taxes to the government and allow the government to function on the tax collected from them. Hence business is the pivotal part of economy. “It is now a widely held view that a new era has dawned in which businesses must adopt a new conception of their mission, purpose and conduct, by endorsing and implementing corporate social responsibility. In The Role of Business in the Modern World, Professor David Henderson argues that now, as in the past, the primary role of business is to act as a vehicle for economic progress. This role depends upon business enterprises operating within the framework of a competitive market economy (David Henderson, “The Role of Business in the modern world, The Enterprise Institute).” Compare and contrast the roles of for profit and nonprofit organizations in the economy. Nonprofit business, like establishments that employ people and produce goods and services with the fundamental goal of contributing to the community rather than generating financial gain (Kelly / McGowan). Nonprofit organizations have to be present in the economy to create services and goods that are necessary for people but, are not profitable for companies to produce them. For-profit organizations pay taxes to government and in doing so that makes it possible for nonprofit organizations to fulfill their role in the economy. Both business and nonprofit rely on factors of production; natural resources, capital, human resources, and entrepreneurship? Discuss the impact of current fiscal
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