Business is not only for profit but also for nation building discuss

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Mary Ann Gayanilo

Subject: Managerial Accounting

“Business is not only for profit but also for nation building”

Business is the cornerstone of prosperity in society: companies create the resources that permit development and welfare. The roles of business in society, through their commercial operations, actively contribute to progress of the nation.

The basic objective of business is to develop, produce and supply goods and services to customers. This has to be done in such a way as to allow companies to make a profit, which in turn demands far more than just skills in companies’ own fields and processes. Astute entrepreneurs often demonstrate an almost intuitive understanding of the synergies that create success. The skills of company owners, together with relationships maintained with customers, suppliers and other business people, are always vital if companies are to be run well and developed with a view to the future. Companies improve their resources by developing materials and ideas. The goods and services produced must meet demands made by customers, other companies or public institutions if companies are to survive. Profitability results when customers are prepared to pay more for goods and services than it costs to produce them. The ability to produce this kind of added value – profit – is the basic prerequisite for business, but it is also a foundation for prosperity in society. Only profitable companies are sustainable in the long term and capable of creating goods, services, processes, return on capital, work opportunities and a tax base. This is what business does better than any other sector. Hence, companies’ basic commercial are the primary benefit they bring to society.

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Companies benefit the nation by (1) supplying goods and services that customer cannot, or do not want to, produce themselves (2) creating jobs for customers, suppliers, distributors and co-workers; making money to support themselves and their families, pay taxes and use their wages to buy goods and services (3) continually developing new goods, services and processes (3) investing in new technologies and in the skills of employees (4) building up and spreading international standards, e.g. for environmental practices (5) spreading “good practice” in different areas, such as the environment and workplace safety.

The role of business in the ...

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