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The term sustainability means to maintain at a certain level in the business.
The topic given is very subjective. Each and every business is formed to earn profits, to fulfill certain goals and objectives and to contribute to the society. But as and when a business grows, the focus shifts from these noble objects to only remain in the business and get and be on the top of the industry to which the business belongs. For this, an enterprise would undertake any activity, be it legal or illegal. And for reasons like these laws like the Corporations Act, Income tax Acts, etc have been developed so that the businesses have a boundary and know their limits. For the same reason, ...view middle of the document...
The economists have to know that an enterprise is much more than an institution to earn profits. It contributes to the building up of the society by employing the people who graduate each and every year. Also, an enterprise would contribute to the society and environment by producing and developing new ideas everyday of how to save the planet. The traditional economists believe an enterprise to be a money sucking institution; rather they must understand it as an institution that does the following:
a. Improves the lives of the people by producing goods and by rendering the services.
b. They improve the quality of life that is lived by the citizens by giving them jobs and by allowing them to use their ideas to make new inventions each and every day, so that the lives of the other people can me made better.
c. By developing a strong network of suppliers and business partner’s.
d. By ensuring the financial viability, which in turn would provide new inventions, improvements and give certain benefits to the investor’s.
From the institutional perspective, an enterprise would undertake actions that would benefit the society even if it is no way connected with the core operations of the business. The financial logic would say that an enterprise would think only and only about maximizing its returns, be it to the shareholder’s or to the partner’s of the firm. What I would say is that both the logics are well versed and that they have to be present in order for an institution to work, but there must be a balance between both, earning the profits and contributing to the society.
As already said above, each and every company has to have an out of the box thinking so that they not only add value to their wealth but they make the lives of the people much easier.
Consider an example of Tetra pack, this company sold about 170billion packets of its product in 170 different market’s of the world. What made it even famous is their thought that the packets could be made such that there was no need for them to be kept in the refrigerator. Also, these packets were available in shapes like a pyramid, square, so that they could easily fit in the refrigerator, if there was a need. Likewise, Nike is known for the quality of its product, its relationships with the great athletes and Apple is known for the development of its own software that can be easily used and that cannot be easily hacked. It is completely in line with what are called the good quality products. These companies are at the top of their respective industries to which they belong because of their innovations, new ideas, contribution to the fulfillment of the needs of the consumer’s. With the introduction of these new ideas and innovations, the customer’s reciprocated by buying them, which lead to higher and increased sales. And with the increased sales, increased the revenue, and with the increase in revenue, money followed. As a result, there was an addition in the shareholder’s value and in their...