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Despite the fact that the business system has served the society
well, the relationship between these two entities has faced severe testing over
the past decades. The beneficial aspects of a relationship seem to be taken for
granted to focus on negative and stressful ones (Buchholtz, Carroll, 2015). During
the 19th century and the first half of the 20th century,
business’s responsibility was to produce goods and provide services to earn revenue,
whereas society’s duty was to buy such goods and services (Sharp, n.d.). Nowadays,
business is perceived to be motivated mostly by profit, and the majority of
business executives ignores their companies’ obligations to communities. Questionable
business practices, growing entitlement mentality, the rights movement, philosophy
of victimization, ethics scandals, and corporations that abuse their power are
some of the factors contributing to criticism of business.  And while the relationship between business,
society, and government continues to evolve toward a cooperative partnership,
society expects business not only to comply with a wide array of environmental
and social regulations, but also uphold high ethical standards and devote their
time and money in philanthropy and environmental sustainability programs.

What are the major factors present in the
business environment that affect businesses?

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The major factors that affect businesses are (PayPerVids, 2016):

1.      Social
factors focus on the society
as a whole alongside its lifestyle, culture, educational backgrounds, beliefs, buying
patterns and social values.

2.      Economic
factors focus on the
economic environment in which business operates and includes economic
conditions, policies, business cycles, inflation, and socioeconomic

3.      Political environment focuses on government policies
that affect businesses and is influenced by the government structure, ideology,
country’s political organization and stability, its foreign policy etc.

4.      Technological factors focus on technology-based
advancements, applications and the effect of technology on business.

5.      Legal
factors represent the legal
rules that govern business and focuses on the role of the law in business

Keeping in view the power and influence of
businesses what do you think is the role of business in society?

Business is the driver of innovation, a creator of wealth, and a
source of identity, purpose, and power (Allaire, 2014). Business not only develops,
produces and supplies goods and services that consumers need and want, but
creates resources that enable social progress and welfare. In addition,
companies benefit society by continually developing new processes, goods and
services, creating jobs, investing in new technologies, and building up and
spreading international standards and practices, such as environmental, social and
economic (The role of business in society, 2004).

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