Before we can answer the question, "What is the aim of a business?" we must first define a firm. According to the article, a company is a group of people who work together to achieve goals that they could not achieve individually. As a result, they could benefit society as a whole (Handy, 2002).
Then there's the big question: what's the point of business? Before reading the post, I was convinced that the objective of a firm is to maximise profits for shareholders. However, while reading the article, I realised that it is not improper for a firm to have profit as one of its aims. Meanwhile, corporations should put their riches to good use by contributing to society. However, this is not the case in society. Short-term investments are frequently popular among shareholders. To be more specific, they prefer short-term projects with high payoffs, which may lead to ignorance of long-term enterprises. Long-term, low-return projects, such as new energy research and development, are typically uninteresting to shareholders. According to the article, some companies fail because they exclusively focus on their products and benefits, while failing to produce social value (Handy, 2002).
As an example, Huawei, a Chinese technology business, is backed by the Chinese government and has a huge sales volume in several nations. While producing new goods to increase earnings, Huawei does not forget to give back to the society. Huawei has given various job positions to developing countries, including some rural areas in southern Africa, while also assisting them in the construction of infrastructure network facilities. Huawei has profited while also improving its reputation and appeal, making it a profitable corporation.
Do you agree and why? If possible ask some questions relate.
