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Business A Part of the Paper Presented The President of the Association of Human Resources Practitioners of Nigeria At the Young Entrepreneurs Forum on What Shall We Now Do Seeing We Have Left The University

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The purpose of this paper is to inform and educate students and young entrepreneurs on what business and its purpose are. The essence being that many are confused when the word business is mentioned. A look at this article would help in bringing the
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  Business A Part of the Paper Presented By Prof. B. E. Nwaneri PhD, The President of the Association of Human Resources Practitioners of NigeriaAt the Young Entrepreneurs orum on !"hat #ha$$ "e Now Do% #eeing "e Ha&e 'eft The (ni&ersity "It is not enough to be busy; so are the ants.The question is: What are we busy about?"  Henry David Thoreau The purpose of this paper is to inform and educate students and young entrepreneurs onwhat business and its purpose are. The essence being that many are confused when the wordbusiness is mentioned. A look at this article would help in bringing the reader into theknowledge of what business is.  The Business Dictionary defined )usiness as “a person’s regular occupation, profession, or trade”.  It went on to include works done, line of work followed, his career, employment, day job,position, vocation, calling field, walk and work life, or sphere. Business covers everythinginvolving commerce, trading, buying and selling, merchandising, bargaining or what one maylike to call dealing. In a more expansive manner, business is a concern, it is an affair, aresponsibility, duty, function, tasks, assignment andor any form of obligation.    This is the reason why Henry David Thoreau said that it is not enough to be busy; so are theants. The question is: What are we busy about? W  e are busy about our regular occupation,trade, walk and work life, calling, day job, vocation, buying and selling, bargaining, discussingcommerce and the affairs of this life for profitbenefit purpose. Therefore, mentioning theword !business", in a broader perspective, the first thing that come to mind is# $conomicsAccording to investopedia, economics is a social or dismal science that studies howindividuals, governments, firms and nations make choices on allocating scarceresources to satisfy their unlimited wants. It can generally be broken down into#  %acroeconomics, This concentrates on the behavior of the aggregate or total economy& while  %icroeconomics,'ocuses on individual consumers. (o it is important for the business to know that economics is a strong aspect of business because it deals with# o man and his behaviours in relation to scarcity o satis!action o! wants how man gets his income and how he uses it and o choice maing resource allocation and scales o! #re!erence. Business is an arrangement by a person, persons, a partners, or corporation of persons engaged in commerce, manufacturing, or a service with the purpose of makingprofit. (ometimes, it is seen as the practice of buying and selling of goods and services in anattempt to make profit. )rofit making is very important in the definition of business& even inthis sense, profit itself need to be defined because it has different faces or concepts. Thus, itcould come in the form of return on investment, value creation or whatever is made as anaddition to the initial investment.  The Purpose of a Business The primary purpose of a business is to maximi*e profits for its owners or stakeholders whilemaintaining corporate social responsibility. $conomic value added suggests that a principalchallenge for a business is balancing the interests of parties affected by the business, suchinterests are sometimes in conflict with one another. Alternate definitions state that abusiness+ principal purpose is to serve the interests of a larger group of stakeholders,including employees, customers, and even society as a whole.%any observers hold the concepts that economic value added are useful in balancing profitmaking objectives with other ends. (ocial progress is an emerging theme for businesses. It isintegral for businesses to maintain high levels of social responsibility. %ain terms in Businessfor our purpose may include# *ompany+*orporation A group of individuals, created by law or under authority of law, having a continuousexistence independent of the existences of its members, and powers and liabilities distinctfrom those of its members. #taeho$der A person or organi*ation with a legitimate interest in a given situation, action, or enterprise. *orporate #ocia$ Responsi)i$ity -*#R A company-s sense of responsibility towards the community and environment both ecologicaland social/ in which it operates. 0ompanies express this citi*enship 12/ through their waste and pollution reduction processes, 3/ by contributing to educational and social programs and 4/ by earning ade5uate returns on the employed resources  6/ by repairing and maintenance of roads7/ by market development8/ by provide drinking water and supply of electricity etc.America has surpassed $urope in revenue growth over time. 9owever, socialresponsibility may also have a critical role in business operations, so American revenuegrowth should not be solely considered in corporate success.(takeholder theorists believe that people who have legitimate interests in a businessshould influence its operation. 0onsumers, and even community members who could beaffected by what the business does, ought to have some voice in the decision making.Advocates of business contract theory believe that a business is a community of participants organi*ed around a common purpose. 0ontract theorists see the enterprisebeing run by employees and managers as a kind of representative democracy. The /oa$s of a Business )rofit %aximi*ationAccording to economist %ilton 'riedman, the main purpose of a business is to maximi*eprofits for its owners, and in the case of a publiclytraded company, the stockholders are itsowners. :thers contend that a business+s principal purpose is to serve the interests of alarger group of stakeholders, including employees, customers, and even society as a whole.)hilosophers often assert that businesses should abide by some legal and social regulations.Anu Aga, exchairperson of Thermax ;imited, once said, "We survive by breathing but we can$t say we live to breathe. %iewise maingmoney is very im#ortant !or a business to survive but money alone cannot bethe reason !or business to e&ist. #ocia$ Benefit %any observers would hold that concepts such as economic value added are useful inbalancing profitmaking objectives with other ends. They argue that sustainable financialreturns are not possible without taking into account the aspirations and interests of otherstakeholders such as customers, employees, society and the environment. This concept is  called corporate social responsibility 0(</. This concept suggests that a principal challengefor a business is to balance the interests of parties affected by the business, interests that aresometimes in conflict with one another. )resident Bill 0linton in his wisdom said that major multinational companies must put theircustomers and employees+ interests before those of shareholders in order to promoteeconomic development and growth, especially in emerging markets. 'or example, Alibaba, a 0hinese Internet venture, strives to operate in the *one that 0lintoncalls =doublebottom line capitalism.= The emerging new business tune is to create socialprogress as well as create profits. In a sense, corporate social responsibility highlights thefact that business, consumers and society are part of a shared ecosystem, and that the longterm health of this ecosystem must be maintained above all else. >oing by that philosophy, I would like business owners to know that, profit maximi*ationalong is not to the interest of a business because when profits are maximi*ed, number orvalue of customers are reduced. )rofit does not create customer instead customers createprofit for a business. The more the customer, the more the profit and longer life for thebusiness but the more the profit the less the customer and shorter life for the business. 0nno&ation as a /oa$ <ohit ?ishore persuades that business can also be viewed to exist for the purpose of creativeexpansion. (uccessful firms like >oogle manage to align their activities towards the purposeof creative expansion from the perspective of all stakeholders, especially employees. This alsovalidates the growing importance of innovation as a core principle for corporation survival andsuccess. *ontract Theory Advocates of business contract theory believe that a business is a community of participantsorgani*ed around a common purpose. These participants have legitimate interests in how thebusiness is conducted and, therefore, they have legitimate rights over its affairs. %ostcontract theorists see the enterprise being run by employees and managers as a kind of representative democracy.
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