Business Beyond Profit Motivation Quiz and Flashcards

Study Notes

Business Beyond Profit Motivation

Establishing and sustaining a business enterprise is important as a source of job opportunities and financial freedom.
Employees should play active roles as decision makers in the business enterprise.
Developing new products and introducing innovative ways of doing business is crucial.

Social responsibility is the obligation of an organization's management to make decisions and take actions that enhance the welfare and interest of society as a whole.
Managers must be responsive to a broad spectrum of societal groups, and society plays an integral role in the success of their business.
A responsible business enterprise (RBE) should improve its business performance, return a profit to its owners and investors, and increase the prosperity of its community by meeting the reasonable expectations of its stakeholders.

Reasons to Do Business Beyond Profit

Profit is an output, not a purpose, and a business must have a reason to exist beyond making money and maximizing shareholder value.
Profit cannot be the goal, vision, or purpose of an organization.
Profit is too temporary to guide a business by, and if a business' main purpose is to make a profit, this will lead to a lack of strategic direction and reduced staff motivation.

Companies with a Purpose Beyond Profit

Companies with a purpose beyond profit tend to make more money.
Purpose dictates appropriate measures, and measures give manageability, the capacity to learn and improve.
There is a systematic relationship between purpose, measures, and method.

Sustainability

Many corporate and business strategies now include sustainability.
Businesses need a purpose beyond profit to make it through.

Description

Explore the importance of establishing and sustaining a business enterprise, encouraging employee participation, and developing innovative products. This quiz also covers the social responsibility aspect of doing business beyond profit motivation.