Relationship Between Business And Society

Evolving Relationship between Business and Society
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Business is a system in the society that is affected by and also affects other systems in a given society. Business in a society has evolved to include analysis, evaluation, and description of business' complex ecological and societal relations. The changing social contract implies meaningful involvement with shareholders to achieve improved social, environmental and economic performance (Kanter, 2011).Therefore; businesses need to work with this system to attain its economic goals in a way that will also benefit the society as a whole. Some of the systems that affect the relationship between business and society include;
1 Strategic Philanthropy.
Strategic philanthropy refers to the practice of companies by which they target their respective charitable and non-profitable activities around a specific issue or cause that will in return support their own business objectives. That is to say that company uses philanthropy to simultaneously and directly benefit both their business interests and those of a beneficiary organization (Anheier, Simmons, and Winder, 2007). Strategic philanthropy is a unique and powerful tool that combines a company's marketing goals with the desire to contribute and increase the well- being of mankind. For example, a company can decide to create a programme where any community service group or school can distribute coupons (i.e. they do the company's marketing) so that when their supporters buy at the company's store, the group gets a certain percentage of the sales. A company can also form a non-profit foundation and engage in different activities to help the society. For example, it can pay medical bills for families with terminally ill children, offer voluntary services to homes for the elderly and provide foodstuff for them as well. In return, the company benefits by increasing its brand recognition and distinction, its profit margin increases, and it also earns a reputable image.
2 Environmental Issues
Environmental issues are a common ground that bring...