When starting a business, an entrepreneur identifies the purpose of his or her business and its goals. The goals to be achieved are classified as either short-term or long-term. The business’s management is then tasked with guiding the business toward achieving the set objectives.
Every business hopes to grow. That is in terms of both its scale of operations and the value of its brand. Business expansion requires huge resources as it often involves the acquisition of more assets and an increase in the cost of operations. An organisation may be required to secure a business loan. Singapore is home to numerous financial institutions from which businesses of all sizes may secure their debt capital.
It is the major goal of any business organisation. They aim at facilitating one point of production with the aim of generating profits. A business may choose to be involved in production, that is, in the conversion of raw materials into finished products. They may also prefer to be a player in one or more channels of distribution from the manufacturers to the consumers. Charity organisations are a unique kind of business whose goal is to serve the public as opposed to profit generation.
Corporate Social Responsibility
Corporate social responsibility (CSR) is considered a business’s social duty to the community within which it operates. It is not a legal requirement. That means that it is the management’s decision as to whether to undertake it or not. There have been several arguments put forward both in support and against CSR. Some factions feel that it is illogical for a business to spend resources in non-profit generating activities.
Businesses are often started for many reasons. However, there are some that require to be fulfilled to ensure the survival of a business. For example, successful businesses have identified the essence of CSR as a means of endearing a brand to the public.