What is the importance of business in modern world?

Answer 1

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.

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. If we ask businesses to achieve broader social goals, we risk undermining the very system in which business activity leads to opportunity and prosperity.

The material prosperity created by the activities of business is threatened by the "global Salvationist consensus" that has arisen in recent years and which seeks to change the role of business via the doctrine of corporate social responsibility and this consensus is based upon a set of fallacious beliefs about the nature of capitalism, profiteering and business.

In the contemporary business world only thing that seems to be constant is change and the nature of the competition is such that companies need to leverage on the way they manage change to gain a competitive advantage. Moreover, the types of changes the companies experience vary in nature as well, for instance, as industries consolidate, there are increasing number of mergers and acquisitions, the pressures on organization to compete in a more global arena are leading to different competitive pressures and more strategic alliances.

Furthermore, rapid technological changes are forcing organizations to embrace new technologies and change the way they work and interface with suppliers and customers.