Objectives of Business

A business does not exist for a single purpose; it pursues several kinds of objectives at the same time, and management writers commonly group them under four broad heads.

Economic objectives are the objectives that flow directly from business being an economic activity: earning a reasonable profit to survive and grow; building market standing by creating and retaining satisfied customers; encouraging innovation -- better products, better processes, better ways of reaching customers; raising productivity -- getting more output from the same resources; and securing the optimum utilisation of physical and financial resources so that capital, material, and labour are not wasted.

Social objectives recognise that a business operates inside a society and depends on that society's goodwill: supplying goods and services of the right quality at a fair price; avoiding unfair or restrictive trade practices; generating employment; and contributing honestly to the community the business operates in.

Human (organic) objectives concern the people who work inside the business: fair wages and a safe working environment; opportunities for growth and participation; and the welfare of employees and their families. …