Course: MBA Non-Thesal

Subject: Philosophy of Business (BM 215)

REACTION PAPER 2

THE NATURE OF BUSINESS

Part 1: Introduction

Business is a company that is engaged in commercial, industrial, or

professional activities. In the Philippines, one of the huge contributors of the

government’s tax revenues are businesses. Most people earn money by

operating a business or by working for a business entity through the salary

earned. Furthermore, businesses are the drivers of economy, and these could

be a reflection of the country’s wealth. Without the existence of businesses in

the country, the citizens will become stagnant and the tendency for some

people is to immigrate to another country.

This topic covers the definition of business, specific concepts of

business, business in a philosophical framework, the philosophical triad of

business, business and the individual, business and society, the rationale for

a philosophical inquiry, sourcing business principles, dimensional foundations

of business, business notion from the philosophers, and the populist

philosophical concepts.

Part 2: Summary of the Topics

 There are many definitions of a business. Business is an economic

activity that involves the production and distribution of goods and services on

a continuous and regular basis in order to meet human needs. Humans are

constantly involved in some activity or another in order to satisfy their limitless

needs and wants. Today, businesses have become an essential part of the

world. Without it, people will lose their source of income, their purpose in life,

and no one might serve others anymore. All of us have basic needs in life

which includes food, clothing, and shelter. In our daily lives, we also have

plenty of other domestic needs to meet. We get these domestic needs from

the entrepreneurs or sellers. Another simple definition of business refers to

the organizations that aims to earn profits by providing goods or services in

exchange for payment. Most of the services we get (internet, water supply,

electricity) and the things we use in our lives (smartphones, television, air

conditioner) are acquired through the existing businesses. Hence, businesses

have become an inherent part of people’s lives in today’s modern world.

There are several specific concepts of business. The first one is

exchange of goods and services, where all business activities involve the

exchange of goods or services for money or money's worth, whether directly

or indirectly. The second concept is deals in numerous transactions, where in

business, the exchange of goods and services are on a regular basis and

involves a number of transactions. The third concept is profit is the main

objective, where the profit is the intention of entering into a business and is
considered as a reward of the entrepreneur for the services or products

provided. The fourth concept is business skills for economic success, where

the business is run by people who have certain qualities and skills, and not

everyone can pull off a successful business. The fifth concept is risk and

uncertainties, where there is no assurance that your business will be

successful because the future, the situations, and the people are

unpredictable. The sixth concept is the buyer and the seller, where every

transaction has always at least one seller and one buyer, it is not a one-man

activity. The seventh concept is connected with production, where the

business activities are related or connected with the production of goods and

services. The next concept is marketing and distribution of goods, where the

goods and services are to be promoted and distributed to the consumers. The

ninth concept is to satisfy human wants, where the businessman also seeks

to satisfy the wants of the customers through operating a business. The tenth

concept is deals in goods and services which includes consumer goods for

final consumption, producer goods which are used for further production, and

equipment for transport, warehousing and insurance services Lastly, the tenth

concept is social obligations, where modern companies are now aware of

their social responsibilities.

A business philosophy is the foundation from which all other

components of the business get its concepts, criteria, and techniques, and it

should investigate the nature, causes, and reasons for the business process.
Business has a position in philosophical framework as a science, an art, and

an object of both intellect and will, as articulated in a philosophical triad of

business, which has three fundamental components which includes the

following: first is philosophical imperatives which lays the groundwork for all

established and recognized standards and offers company a sense of

direction, next is ethics which explains what a firm should not do in

accordance with a set of principles and lends a conscience to the business,

and lastly is social responsibility which explains what else business can do

except meet its obligations and follow its ethics, and provides business a soul.

Part 3: Recommendations

Philosophy provides a rational basis for making ethical decisions.

Hence, I recommend that businesses should apply philosophy as they

engage or operate economic transactions since business decisions are critical

for the survival of the business, and it comes more appropriate if made

ethically.

Part 4: Conclusion

In conclusion, in running a business there are many things to

consider like for example how should the firm operate and compete in the

industry, what is the culture in the working environment, where the firm will be
located, how can the business contribute something for the society, etc. It is

the business philosophy that tells the entrepreneurs why they are doing things

the way they are doing them. Also, in the company the way the people will act

or interact with each other will depend on or is being defined by unwritten

attitude or written philosophy. Furthermore, having philosophical inquiry

among the employees will help them improve their learning as they engage in

work, and also enhance active participation in the company.