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Objectives of Business means the
purpose for which the business is established. It is
generally believed that the main objective of business
is ta make profit and avoid loss. We do admit that profit
is a driving force in undertaking any business activity
but it is not the sole objective of any business.
In the words of Urwick “earning of profit cannot
be objective of a business any more than eating is the
objective of living” . A business which
is hunting after profits and ignores other objectives
will not be doing service to the community. We here
classify the objectives of business under three heads
and then examine them briefly (1) Economic objectives
(2) Social objectives (3) Human objectives. |
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Business,
as we know. is primarily an economic activity. The major
economic objectives to be achieved by business are:
(1) earning of profit (2) creation of market and innovabon. |
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(i)
Profit earning |
The
primary objective of business is to produce and sell
goods for profit, of course, through the satisfaction
of human wants. A business which does not earn profit
cannot stay in the market for a longer period. The income
of enterprise, therefore, must exceed expenditure over
a period of time. Profit is necessary for the enterprise
to. insure its own survival, growth and expansion. In
the Words of Petter F Rucker NThe problem of any business
is not the maximization of profitbut the achievement
of sufficient profit to cover the fisk of economic activities
and thus to avoid /osses”. It i clear from the
above definition that a business enterprise should work
for reasonable profit which should cover its own future
risk. If the profit is made by over-charging customers,
indulging in malpractices such as hoarding, blackmarketing,
smuggling, etc, it will be against the ethics of business.
It will be regarded robbery and not a business activity. |
| (ii)
Creating Markets |
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Every
business tries to create customers for its products
and services. The more the customers are treated, the
wider will be the market for the goods and larger the
profit.
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| (iii)
Technological Improvements |
| The business,
if it is to stay in, the market, must offset stagnation
by using efficient methods of production. The creation
of new products, new designs and application of new techniques
of production contributes to growth, change and expansion
in the economy. |
| II.
Social Objectives: |
| The social objectives
of business are gaining more and more recognition with
each passing year. The main social objectives of business
are as follows:- |
| (i)
Supply of standard quality of goods |
One
of the social responsibilities of business is to produce
goods of standard quality. If the enterprise is producinginferior,
substandard and adulterated goods, it will be doing
disservice to the society.
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| (ii)
Avoidance of anti-social practices |
It
is not fair on the part of a business to indulge in
anti-social practices such as hoarding, black marketing,
smuggling, overcharginq etc., to earn profit. A reasonable
profit on a legitimate business is regarded a healthy
sign and considered hi/al from Islamic point of view
also.
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| (iii)
Provision of more employment. |
Business
provides employment to the people. It thus helps in
increasing the standard of living of the members of
the society. |
| (iv)
Cooperation with the government |
The
business community should adopt a positive approach
towards the policies of the government of the country.
They should pay all taxes and dues in time to the gqvernment.
All business activity should be carried within the legal
frame work of the country. |
| (v)
Use of national resources |
The
business should use the national resources in the best
interest of the country. Wastage should be reduced to
the maximum. The motto should be more and more goods
for more and more people at lower and lower prices. |
| Ill.
Human Objectives: |
The
business’activity is carried on by the people
(entrepreneurs) through the people (employees) and for
the people (customers). Human factor is thus an important
element in business. A business which overlooks the
human factor cannot prosper and ultimately suffers losses.
The human objectives of business are that (1)
the employees working in a business should be fairly
rewarded (2) A healthy climate is created
by providing opportunities to the employers for deve
new skills and abilities (3) The employees
should have say in the affairs which directiy affect
them. (4) thinking of modern business
must go well beyond material benefits of its employees.
It must reduce unpleasantness of work and plan forjob
satisfaction to the workths. |
| IV.
National Objectives |
Every
business whether operating on small or large scale must
have an obligation towards nation also. It should help
in achieving national goals such as promoting social
justice, increasing valued added goods for exports,
finding out better and cheaper substitutes for imports
and helping in increasing exports for building the foreign
exchange reserves to meet the import bills |
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