BUSINESS, GOVERNMENT AND INDIAN SOCIETY

WHAT IS THE BUSINESS –GOVERNMENT –SOCIETY FIELD?

In the universe of human endeavor, we can distinguish subdivisions of economic, political, and social activity - that is, business, government, and society – in every civilization throughout time.  Interplay among these activities creates an environment in which business operate, the business-government-society (BGS) filed is the study of this environment and its importance for managers.

Business: It is a Profit-making activity that provides products and services to satisfy human needs.

Government: Structures and processes in society that authoritatively make and apply policies and rules.

Society: A network of human relations composed of ideas, institutions, and material things.

• Ideas: An intangible object of thought.
• Value: An enduring belief about which fundamental life choices are correct.
• Institution: A formal pattern of relations that links people together to accomplish a goal.
• Material things: Tangible artifacts of a society that shapes and are shaped by ideas and institutions.

Importance of BGS TO Managers

• Ø To understand the role of Business in society
• Ø To understand the business power in society
• Ø It becomes criteria for managerial decisions
• Ø To understand  the extent of corporate responsibility
• Ø To know the ethical duties of managers and the need for regulations
• Ø To succeed in meeting business objectives
• Ø To excel in managerial performance
• Ø To monitor the non-economic environment by taking stock of the situation before anything happens.
• Ø By recognizing that a company operates not only within markets but within a society is critical.
• Ø To think beyond profit, to understand the forces governing social responsibility
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Nature of business

• Society cannot do without business as much as business needs society.
  
• The Purpose of Business goes beyond earning of profit;
• a)     Business is an important institution in society
• b)    Be it for the supply of goods and services
• c)     Creation of Job opportunities 
• d)    Offer better quality of life
• e)     Contributing to economic growth of the country.

BUSINESS TODAY

·        Modern business is dynamic

·        Today’s business is characterized by diversification

BUSINESS IN THE NEAR FUTURE

• ·        Large organizations are replaced by mini organization
• ·        File pushing and paper shuffling will be done by information technology
• ·        Flat organization
• ·        Authority structure will flow downward
• ·        No definite job – jobs change for 5 years
• ·        Remuneration will depend on one’s contribution to organization.

BUSINESS GOALS

• ·        Profit
• ·        Growth
• ·        Power-economic and political power.
• ·        Employees satisfaction and development
• ·        Quality products and Services
• ·        Market leadership
• ·        Challenging
• ·        Joy of creation
• ·        Service to society.

BUSINESS ENVIRONMENT

Ø Business environment refers to all external forces, which have a bearing on functioning of business.

Ø Environmental factors “are largely if not totally , external and beyond the control of individual industrial enterprises and their management.

Ø Business environment poses threats to a firm or offers immense opportunities for potential market exploitation.

TYPES OF ENVIRONMENT

1.     Technological environment

2.     Economic environment

3.     Political environment

4.     Natural environment

5.     Global or International environment

6.     Socio-cultural environment

B) Models of BGS relationships

The Market Capitalism Model

Some scholars, such as Dahl (1998), argue that democracy and market capitalism are fundamentally not compatible, because market capitalism creates inequalities and that inequalities can lead to political unrest. In this situation, some citizens have undue advantages, as Adams would say, and the fairness of government and of the law is compromised.

Some hold the view that expecting business organizations to embrace social responsibility is a weak attempt to make capitalism compatible with democracy. When businesses do openly engage in social responsibility, cynics accuse the leaders of these organizations of simply making use of their good actions to market themselves as solid citizens.