It is generally believed that a business has a single objective. That is, to make a profit. But it cannot be the only objective of the business. While pursuing the objective of earning a profit, business units do keep the interest of their owners in view. However, any business unit cannot ignore the interests of its employees, customers, the community, as well the interests of society as a whole. Thus, the objectives of business may be classified as:
- Economic Objectives
- Social Objectives
- Human Objectives
- National Objectives
- Global Objectives
Economic Objectives
Economic objectives of business refer to the objective of earning profit and also other objectives that are necessary to be pursued to achieve the profit objective, which includes the creation of customers, regular innovations and the best possible use of available resources. The following are the economic objectives of business:
- Profit Earning
- Creation of customers
- Regular innovations
- Best possible use of resources
Social Objectives
Social objectives are those objectives of the business, which are desired to be achieved for the benefit of society. Since business operates in a society by utilizing its scarce resources, the society expects something in return for its welfare. No activity of the business should be aimed at giving any kind of trouble to society. The following are the social objectives of business:
- Production and Supply of Quality Goods and Services
- Adoption of Fair Trade Practices
- Contribution to the General Welfare of the Society
- Raise General Standard of Living
Human Objectives
Human objectives refer to the objectives aimed at the well-being as well as fulfilment of expectations of employees as also of people who are disabled, handicapped and deprived of proper education and training. The human objectives of business may thus include the economic well-being of the employees, social and psychological satisfaction of employees and development of human resources. The following are the human objectives of business:
- Economic Well-being of the Employees
- Social and Psychological Satisfaction of Employees
- Development of Human Resources
- The well-being of Socially and Economically Backward People
National Objectives
Being an important part of the country, every business must have the objective of fulfilling national goals and aspirations. The goal of the country may be to provide employment opportunities to its citizen, earn revenue for its exchequer, become self-sufficient in the production of goods and services, promote social justice, etc. Business activities should be conducted keeping these goals of the country in mind, which may be called the national objectives of the business. The following are the national objectives of business:
- Creation of Employment
- Production According to National Priority
- Contribute to the Revenue of the Country
- Self-sufficiency and Export Promotion
Global Objectives
Previously India had a very restricted business relationship with other nations. There was a very rigid policy for the import and export of goods and services. But, nowadays due to liberal economic and export-import policy, restrictions on foreign investments have been largely abolished and duties on imported goods have been substantially reduced. This change has brought about an increase in competition in the market. Today because of globalisation the entire world has become a big market. Goods produced in one country are readily available in other countries. The following are the global objectives of business:
- Reduce Disparities among Nations
- Make Available Globally Competitive Goods and Services
