Good relationship between Business and Society

In the society, business is part of it and the society defines the role of a particular company or organization. There are numerous problems that have made relationship between the business and the society to be at a stake. These challenges include: abuses of corporate power, reduced health insurance benefits to employees, down scaling of pension programs, toxic waste disposal by some organizations/companies, sexual harassment in workplaces, use of political committee by business persons to influence the outcome of legislation and lack or inadequate financial education among people is the major challenge that has contributed to poor relationship between the business and the society.  

Before embarking on the main theme of this article “What is wrong about the relationship between business and society”, let us understand the meaning of ‘business’ and ‘society’. Business can be defined as a collection of private , commercially oriented or profit-oriented  organizations, ranging in size from one person proprietorship to corporate giants. Between these ends (one person proprietorship to corporate giants) there are medium-sized proprietorships, partnerships and corporations. Society on the other hand means a community, a nation, or a broad grouping of people having the common traditions, values, institutions and collective activities and interests. 

Any organization is located in a particular region /location what can be referred to as the ‘macro-environment’   which is the complete context where the company resides. Macro-environment composes of four divisions: (1) social- which focuses on demographic, lifestyles and social values of a society which must be elaborated for one to comprehend well the relationship between the society and business. (2)  Political environment- this focuses on the process in which laws are passed and officials elected and all other aspects of interaction between the political process and government. (3) Economic environment – this focuses on the nature and direction in which the business functions. (4)Technology environment- this focuses on representation of the total set of technology advancements taking in the society.

The demographic and lifestyle of given group always influences the way business is being carried out in that region. People in the society may have what they regard as good but on the other hand affects an organization negatively or vice versa. Abuse of corporate power: this whereby the corporate leaders use the power they have wrongly like oppressing the employees or persons in that society, this always lead to unhealthy relationship between the society and business. The company instead of creating an environment where both employees feel they should be incorporated in the decision making process for various issues affecting them or the organization, the organization uses their powers  for their beneficial like reducing the health insurance benefits and down scaling  pension  programs for their employees. This creates a situation where employees feel their rights are violated and something needs to be done.

Some companies do not have the right ways of disposing their waste correctly; instead they just dispose on environment hence this lead to interference with the lives of people in the society. For instance, air pollution, land pollution, water pollution and this expose the communities surround at danger.  In Kenya there was a story featured on television about  certain company which exposed its workers to lead poisoning and the society. This left myriad damage to the people. The company concentrates only on the benefits but not taking the consideration of the lives of their workers and the communities. In most companies some corporate leaders in anywhere in the world are harassing the juniors sexually, this do not leave out some junior staffs who practice the same. Some use sex as the tool for them to be promoted. This always gives birth to disconnection between the right way of doing business and good morals the society expect from the business entities.

Political environment, business people use their powers to influence the legislators to make laws that best suit them and  law-makers always  have the powers to negatively influence the way the businesses should operate in particular area. All these affects the community, for example the government may force legislators to make laws that bar certain business from functioning in a given country. This disconnect the relationship between the business people and the government and also the society. Lastly the economic and technology environment also leads to negative relationship between business and the society. For example some companies may take a wrong direction in doing their businesses to maximize their profits like the one I mentioned above which was exposing the community and its workers to lead poisoning. This is not the right way to earn good relationship between business and the society. Technology, although it’s the modern way companies use to advance their operation to reduce their cost of production and maximize their profits. It has some negative impact to the society; take an example where the community is involved in providing labor in tea leaves picking farm and then then company has decided to bring a machine for tea leaves picking. People in this society will be rendered jobless and this creates that bad relationship between the society and business.

Now what is the best way to enhance good relationship between business and the society? Businesses are attempting to deal with societal concerns by coming up with rights movements, stop of discrimination in work places, preventing the loss of jobs to foreign countries by creating more jobs that meet the societal qualifications, lastly the business have step in to stop violence in work places that might be as result of wrong way of running day to day activities of the business and also among its staffs.  

Pluralistic society is the way forward which will enhance good relationship between the society and business. What is pluralistic society? Before defining this, let me start by defining “pluralism”-it is the diffusion of power among society’s many groups and organizations. Pluralistic society is one which there is wide decentralization and diversity of power centralization. Why pluralistic society will bear fruit? It will; by preventing power from being concentrated in the hands of few, it maximizes freedom of expression and action, and it provides built-set checks and balances so that no single group dominates. Even though the pluralistic society is the most perfect way to solve this problem, these should be taken in consideration:  it can lead to environment where each organization push for their own interests, where institutions proliferate to the extent that their goals tend to overlap thus causing confusion as to which organizations best serve which functions. 

I will conclude by emphasizing on financial education and entrepreneurship for everyone in the society to think of as we debate on best way which can lead to good relationship between the business and society. They are the key ingredients for better society and how we think by managing our finances towards creating more businesses for society and maintaining that good relationship between the existing businesses, new businesses and the society.