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Businesses play an integral role in society that cannot simply exist without it. American companies and enterprises help the country grow and develop. Specifically, by creating employment opportunities, these firms produce goods and services that people need to survive and thrive. The scope of business enterprise in the nation and the world involves two broad activities - industry and commerce. The latter refers to business activities that are concerned with the production of goods, while the former is the activities that imply the transfer of goods from a business to a consumer. Consequently, the scope of business enterprises in the nation and the world in general includes creating jobs that spur economic growth as well as production and selling of a wide range of goods and services that satisfy people’s needs and wants.
The Major Business Functions of:
Accounting
Accounting is arguably the most important function for any business. This function is a process of recording, classifying, interpreting, and delivering financial information. This profession helps companies understand their financial performance at some specific point. Today, accounting helps organizations make practical or well-informed decisions relating to their operations. Accountants are expected to use the generally accepted accounting principles (GAAP) when discharging their duties. By law, every business or organization in the United States is expected to keep proper accounting records for tax purposes. The importance of accounting as business function lies in the fact that it helps businesses utilize their resources properly to achieve short- and long-term objectives as well as long-term success.
Management
Effective management is the key to organizational success that involves utilizing the available resources to achieve all set objectives. Managers have five functions such as planning, coordinating, controlling, staffing, and organizing resources. These professionals are expected to develop effective plans that can help their organizations achieve a predetermined goal or objective. Management also involves hiring the right people and motivating them to be productive. Consequently, the effective management of organizational resources can help a business benefit from its strengths and available opportunities as well as overcome its threats and weaknesses. In today’s harsh business environment, effective management is a source of competitive advantage (Schraeder et al. 50). Therefore, every business should strive to attract, hire, and retain effective managers, while a proper management of organizational resources, such as employees and physical assets, should be a top priority of any business.
Marketing
Marketing is an essential business function. Modern business world is characterized by stiff competition among organizations. For this reason, businesses must do everything possible to survive and succeed. Many companies use the business function under discussion to increase their revenues. In general, marketing refers to a process that involves encouraging people to buy or use a specific product or service. Today, businesses advertise their products in several areas such as social media, websites, and print media. Moreover, effective marketing can help a business increase brand awareness. Therefore, businesses interested in achieving long-term success should seek to develop effective marketing campaigns, aimed at helping them achieve two things - retain their existing customers and attract new ones.
Economics
The business function of economics involves the understanding of microeconomic and macroeconomic indicators of a country to make thoroughly weighed decisions. Businesses need managerial economics to make effective decisions regarding such issues as pricing, capital budgeting, and inventory management. Understanding macroeconomic indicators, such as the gross development product (GDP) growth rate, can help an international business make effective decisions about a foreign market. For example, a company that plans to enter a foreign market must take the time to understand the macroeconomic indicators of this market to make crucial decisions on such issues as pricing and recruitment. Thus, businesses must closely monitor macroeconomic indicators of the country they have invested in to protect their revenues. Consequently, companies should engage in managerial economics to survive and succeed in today’s harsh business environment.
The Relationships of Each of the Following as They Pertain to Business
Social Responsibility
Today, businesses are expected to be socially responsible. Social responsibility is built on the idea that an individual or an organization should act in a manner that benefits society (Boulouta and Pitelis 349). Many businesses have corporate social responsibility (CSR) programs that are aimed at improving society’s life. CSR includes such efforts as donating money to non-government organizations, empowering women, building schools and other social amenities, and developing environmentally-friendly products. Although CSR is not mandatory, a business can benefit immensely by developing a good program in this sphere. Currently, customers want to associate themselves with organizations that are socially responsible (Gielissen 21). Therefore, being socially responsible can help a business improve its brand image, attract and retain highly-skilled employees, and achieve customer loyalty.
Ethics
Ethics in business operations are important since businesses are expected to operate ethically. Therefore, business ethics can be defined as principles that guide or influence the way an organization should conduct its operations. Currently, being ethical is beneficial for companies since people want to buy goods and services from those firms that are not only socially responsible but also ethical (Gielissen 21). Every business is expected to act in a manner that does not harm its stakeholders. In other words, for example, developing and selling harmful products is unethical and unacceptable since unethical business practices can lead to undesirable outcomes. Therefore, an organization that in interested in achieving long-term success through customer loyalty and a motivated workforce cannot afford to be unethical
Laws in Business
Laws pertaining to business exist to ensure that organizations engage in ethical behavior or act in an ethical and socially responsible manner. In the United States, organizations must comply with both state and federal business laws. Moreover, some laws are related to all aspects of a business, including recruitment, compensation, and workplace safety. Some of these are the Family and Medical Leave Act (FMLA), the Fair Labor Standards Act (FLSA), the Sarbanes-Oxley Act, Americans with Discrimination Act (ADA), Equal Pay Act (EPA), the Employee Retirement Income Security Act, and the Occupational Safety and Health Act. Failure to comply with laws pertaining to business can lead to undesirable consequences such as lawsuits and heavy fines. For this reason, every organization should consider hiring compliance officers.
Conclusion
I did not know that social responsibility could help businesses achieve long-term success. I also was not aware that companies and organizations engage in social responsibility out of their own volition. I thought that businesses developed CSR programs as required by some law. Prior to taking this class, my knowledge about social responsibility and business ethics was limited. Consequently, this class has enhanced my understanding of social responsibility and ethics. Now, I understand that a majority of businesses strive to be ethical and socially responsible as customers are willing to spend more money on products that have been developed by socially responsible and ethical businesses. I agree with the idea that management is a major business function since the effective management of organizational resources can help a business achieve its goals and objectives. I can now apply this knowledge and relate to current local, national, and global news that talk about companies engaging in social responsibility programs. I understand that such companies as Microsoft and Google invest huge sums of money in CSR activities to enhance their brand image and achieve customer loyalty.
