After reading and pondering on the chapters 7 and 8 (Van, 2010) I managed to gain a better understanding of the purpose of the business and the right way of conducting it. While most economic textbooks state that the ultimate goal of business activity is to generate profit. But the aim of business goes further, not only it must do no harm, but also facilitate to the sustainable development of society by introducing innovations that contribute to further the welfare of community and amending oppression and injustice that harms the members of community.
I also learnt that it is not enough to just bear in mind the ultimate aim of the business, it is also important to set limitations of its activities to make the way to this purpose sustainable, which means that business should be conducted so that it doesn’t harm any of its parties, whether it be stockholders, employees, consumers or anyone else. This notion also includes conducting business transparently, not hiding anything from any of the parties engaged with it.
It also should be noted that although business is considered to be the means of contribution to the society, to make its results most fruitful, it is necessary to cooperate with other institutions. Such collaboration shall be carried out in a spirit of mutual assistance and respect.
As for profit, it is essential to perceive it not as a reward but as the means of doing good for the society. It cannot be denied that no company can exist without generating profit, but it should be understood that this profit is suppose to serve to a greater purposes. It is also a tool of making a business employ resources in the most efficient way. What is important, the importance of generating profit is not denied, but the very way of understanding the notion and the purpose of it lets us look at it from another point.
References
Van, D. J. B. (2010). Why business matters to God: (and what still needs to be fixed). Downers Grove, Ill: IVP Academic.
