Business Makers

Business should assume social responsibility due to the following reasons:

It is in the long term interest of business

It will help to improve the public image of business

It will avoid government regulation of business activities

It is important to full fill social obligations unmoral

Consumers are now more conscious of their rights and demand such obligations from business enterprises.
Social obligations refer to the obligations or responsibilities of business to act in manner which will serve the best interests often society.  Social obligations are different form legal obligations. Legal obligations are compulsory and can be fulfilled merely by complying with the law.  Social obligations, on the other hand, relate to the voluntary efforts on the part of businessmen to sue social problems.  The concept of social obligation is based on the assumption that what is good for society is also good for business.
Business should assume social obligations due jot the following reasons:
Long Term Interest of Business:  Business gees its resources form the society.  It is the duty of business to satisfy the needs of society.  If business spends a part of is profits for improving social conditions, it will rat an environment more favorable to the long term prosperity of business.  Education, pollution control, enlistment of the poor and such other measures can be adopted or the improvement of society In the long run, a  successful business can be built on the foundations of a happy community.  Thus. Assumption of social obligations is in the long-term interest of business itself.
Public Image: A business firm can improve its public image by fulfilling its social obligations.  Such a business will enjoy the support of is customs and other interest groups. They will patronize it and as a result, it will earn more profits.
Avoidance of Government Control; If businessmen voluntarily discharge their social obligations, need of government controls avoided. Government control is costly to business as it reduces the flexibility for decision king.  For example, if a factory is causing pollution of air or water, the owner should take steps to prevent I.  if this in not done, government may ask the firm to shift to another area or to close down.  By assuming social obligations, businessmen cnmaintain freedom of enterprise.
MoralJustificatioin: Everybusienss enterprise makes use of physical, financial and human resources of the society.  It also depends intersociety for sale of goods and services.  Moreover, business firms make use of roads, power, water supply and other common facilities provided by the society.  Therefore, it is the moral responsibility of business to use all resource for the well-being of society.  Businessmen also have the knowledge, experience and he financé to cooperate with the government and help the society in solving its problems.
Social Awareness: In recent years, consumes have become increasingly aware of their rights.  Consumed groups and consumed courts are compelling business mentor dress the grievances of consumes.  Works have gone united in the form of trade unions to protect their interests.  These dovecotes make it necessary for businessmen to serve the interests of consumes, employees and other interest groups.
Social Power: Business enjoys considerable social pawed because its decisions affect all sections of society.  Social responsibility is necessary to balance power and responsibility.  If business does not assume obligations to society, the swear of society will be affected.  Other social groups may take away the social power of business.,
Resources Skills: Business has considerable resources ad skills some of which fan is useful involving society’s problems.  Busies is also known for its innovative skills sands efficiency in the use of physical so financial resources.  These deform business should help the society.
Creator of Social Problem: Business causes pollution and makes work places unsafe therefore it is the responsibility of business to help society in dealing with the negative impact of business activities.

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A private company combines the following advantages of partnership and public company

• Large capital: A private company can raise larger financial resources than a partnership.

• Limited Liability: Like a public compan7y, the liability of members in private company is limited to the face value of shares held by them. Unlike a partnership, the risk of members is limited.

• Continuity: A partnership is dissolved on the death, insolvency and lunacy of But a private company like a public company continues to exist irrespective of these events.

• Freedom from Legal Formalities: A private company is free from several legal formalities applicable to a public company. As in the case of partnership, three is flexibility of operations in a privet company.

• Close Supervision and Control: The membership and control of a private company rests with a small group of relatives and friends. Like a partnership, it enjoys benefits of prompt decisions, secrecy and effective control.

Thus, a private company is a mixture of partnership and public company. It enjoys ease of formation, flexibility of operations and personal control which are available in a partnership. At the same time, the main benefits of a public company such as limited liability and stability are available to Privet Company.
Private company enables a small group of persons to control the management without undertaking the risk of unlimited liability. Therefore, it is an ideal form of organization for people who seek personal control of business with the benefit of limited liability. On the others hand, a public company is an ideal form of organization for large scale enterprises like steel, automobiles, computes, etc. because huge capital can be secured form the general public.

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The 12-point resolution that the business sector unanimously approved during the recently concluded Mindanao Business Conference in General Santos City indicates that the sector will always be an active partner of the government in developing Mindanao.

ICT as development agent

Truly believing that information and communications technology (ICT) is a catalyst for development, the business sector believes that it is an essential part of the overall roadmap for the island and that sufficient infrastructure facilities must be laid out for connectivity to be enhanced.

In this modern world, connectivity is as important as physical infrastructure because it allows real time interaction between and among players of a certain sector and even between the producer and the market. It has tremendously shrunk the world to just about a line between two people, even if the distance is between the north and south poles.

The cities of Davao, General Santos, Cagayan and Zamboanga are all poised to become the ICT hubs of Mindanao. These are the areas where connectivity is present along with a rich source of human capital to support ICT developments.

Power, power

Another major issue that the business sector raised during the event was finding ways to ensure sufficient and steady power supply in Mindanao.

Reliable power supply will not only lure more investments to the island, but also sustain growth.

It is not only necessary for government to ensure that power investments are placed in areas where needed most (in case of Mindanao it is in the southern part which consumes nearly one-half of the power produced in the island), it is also very important that power is brought to all the points, particularly to areas where development is slow.

We must remember that reliable power, like infrastructure facilities such as roads, is a key to development.

And according to the analysis of government agencies, like the National Power Corp. and the National Transmission Corp., Mindanao will run out of power within the next three years unless major decisions are made today.

It is good that the national government decided to set up the transmission line that will bring the excess power supply produced in the northern part of Mindanao, particularly from the 200-megawatt coal-fired plant in Tagoloan, Misamis Oriental, to the rest of the Mindanao grid.

But it is also necessary that new power plants are built in areas where they are needed. But this can only be done if investments in the sector get the much-needed support from government policy-makers.

Efficient shipping services

Considering that Mindanao is a known producer of agricultural products, it is also important to find ways to bring these to the markets in easier and cheaper ways. It is currently more expensive to bring goods from Mindanao to Manila than to send them abroad.

This only shows two things, good port handling facilities are absent and that freight rates are also higher in the domestic shipping sector.

There have been so many attempts to persuade both the government and the industry to find common ground, both in reducing shipping rates and improving port handling facilities. These moves must be realized soon. Otherwise, business will continue to languish and development will not take off.

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The term electronic business (e-business) refers to the buying and selling of goods and services online. It comprises on-line shopping, marketing and selling of goods and services over the internet. It involves demonstrating goods on the website, selling or filling orders, conducting transactions and receiving payments.

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