Loemongga Irene 29120355

The Normative Foundations of Business

What is the appropriate role for business to play in a capitalist
society?

Summary

Any organization in which private parties provide risk capital and have a claim on the
net economic value achieved is referred to be a business. A capitalist society, on the other
hand, is one that mainly relies on companies to generate and distribute products and services.
Typically, this society is highly regulated, ordered, well-managed, and corporate activities are
boosted. The two dimensions can be used to examine normative business ideologies. The first
is the pursuit of objectives by businesses and their managers. The second type of constraint is
the value constraints on business activity. The appropriate role for business in a capitalist
society is to maximize their profit in a highly competitive environment and also contribute in
developing and building a modern society.
The majority of the time, it's just about making as much profit as possible. This
purpose may appeal to some people as natural and attractive, while others may find it
uninspired and narrow. Various alternative goals have been presented, raising the question of
whether all businesses should have the same goals.
The statement about capitalism good or bad has a different perception and different
result. Capitalism can be good for certain point of view, but also at the same time negatively
impact some people. For the company and its shareholders capitalism can be a great business
method because they could focus on getting the most out of its profit and that profit could be
used for a good cause. Capitalism also could give economic freedom for the society and give
them opportunities to fulfil their needs. However, capitalism has the potential to produce
some negativity and economic imbalance, with the affluent becoming richer and the poor
becoming poorer as a result of each individual's capacity limit. Capitalism is sometimes
viewed as unjust since the rights of the business owner differ from those of its employees or
workers, and persons from different social origins have various opportunities to advance.
Capitalism is unconcerned with social duty, and it is unable to provide a fair social welfare,
favoring only a few people from a particular social order.
The capitalist economy should provide excellent products and services to meet
society's requirements, as well as opportunities such as jobs to improve people's quality of
life. Capitalism should provide a more equitable chance for those in the lower social
hierarchy and be more accountable for its social effects. Profits should benefit not only the
firm owners or specific individuals, but also the community as a whole.
Profit maximization as a single objective of business is not enough,Because
businesses that have profit maximization as their sole goal are thought to be greedy and
unconcerned about their stakeholders. In a capitalist society, a corporation should consider
additional goals, such as putting the customer first, creating meaningful jobs, and serving the
public good.By combining any of these goals, the corporation could improve its reputation
and get more respect in society by not being so self-centered.