What is the final objective of Business-Profit earning or CSR?

The final objective of a business has always been profit. The very informal definition of business demands profit which answers all mechanical and basic demands of the organization and of the society. Be it under the veil of CSR or for publicity, the ultimate motive of business has been to generate income and improve efficiency. Society can be helped only if the business is flourishing and generating currency. People get social when they have time apart from business but the ultimate help of the society can be by good business. The recent mandatory nature of CSR for companies can be analysed and we understand that only the companies which have prospered very much in capital and business can only help the society, not the ones which have failed. Companies like Reliance and Tata give 2% of the CSR to the budget of government and this helps the society in sectors like health and education. So, generating more foreign currency and by developing markets, business can grow and give back to society. After the initial requirements of business are met, societal demands can be fulfilled.

Business has its existence from time immemorial. It’s definition and aspects have changed with time and it has bore the brunt of society for being capitalist in nature and not philanthropic in outlook. This view has changed a lot and apart from the government’s mandatory CSR demand, business also tries to connect to the society and benefit it in any way possible. After all the new success mantra seems to be ‘giving back to the society from which everything has been taken-be it raw materials, human resource, market demand etc’. So business tries to cross the mechanical mundane limits and express to the stakeholders possible. An example can be cited of Tata conglomerate. Right from developing Jamshedpur city infrastructure wise from developing institutions related to the upliftment of the society like TISS, TIFR, the organization has shown its intent to make the society a better place to live in.

Bhartrihari Pandiya
Research Scholar, Dept of Management
IIIT Allahabad