Business activities are carried out to achieve certain goals called objectives. The objectives of business are classified into five categories:
Economic Objectives
Social Objectives
Human Objectives
National Objectives
Global Objectives
1.6.1 ECONOMIC OBJECTIVES
Economic objectives are related to earning profit and ensuring the smooth running of business.
(i) Profit Earning
Profit is the main objective of business.
It helps the business to survive, grow, and expand.
Part of the profit is reinvested to increase business activities.
(ii) Creation of Customers
Business cannot survive without customers.
Customers are created by providing quality goods and services at reasonable prices.
Marketing and advertising help in attracting customers.
(iii) Continuous Innovation
Business must change according to time and environment.
Innovation means improvement in products, production methods, and distribution.
Innovation helps in reducing cost and increasing profit.
(iv) Best Possible Use of Resources
Business uses resources like men, money, materials, and machines.
These resources should be used efficiently.
Wastage should be minimized to increase profit.
1.6.2 SOCIAL OBJECTIVES
Social objectives aim at the welfare of society.
(i) Production and Supply of Quality Goods and Services
Business should supply good quality products.
Goods should be supplied at the right price and right time.
(ii) Adoption of Fair Trade Practices
Business should avoid:
Hoarding
Black marketing
Overcharging
Misleading adBusiness activities are carried out to achieve certain goals called objectives. The objectives of business are classified into five categories:
Economic Objectives
Social Objectives
Human Objectives
National Objectives
Global Objectives
1.6.1 ECONOMIC OBJECTIVES
Economic objectives are related to earning profit and ensuring the smooth running of business.
(i) Profit Earning
Profit is the main objective of business.
It helps the business to survive, grow, and expand.
Part of the profit is reinvested to increase business activities.
(ii) Creation of Customers
Business cannot survive without customers.
Customers are created by providing quality goods and services at reasonable prices.
Marketing and advertising help in attracting customers.
(iii) Continuous Innovation
Business must change according to time and environment.
Innovation means improvement in products, production methods, and distribution.
Innovation helps in reducing cost and increasing profit.
(iv) Best Possible Use of Resources
Business uses resources like men, money, materials, and machines.
These resources should be used efficiently.
Wastage should be minimized to increase profit.
1.6.2 SOCIAL OBJECTIVES
Social objectives aim at the welfare of society.
(i) Production and Supply of Quality Goods and Services
Business should supply good quality products.
Goods should be supplied at the right price and right time.
(ii) Adoption of Fair Trade Practices
Business should avoid:
Hoarding
Black marketing
Overcharging
Misleading advertisements
Honest business practices protect consumers and society.
(iii) Contribution to General Welfare of Society
Business should help society by:
Running schools and colleges
Opening hospitals
Providing training centres
Creating parks and sports facilities
1.6.3 HUMAN OBJECTIVES
Human objectives focus on the well-being of employees and disadvantaged people.
(i) Economic Well-being of Employees
Employees should receive:
Fair wages
Incentives
Medical facilities
Pension and housing benefits
(ii) Social and Psychological Satisfaction of Employees
Jobs should be interesting and suitable.
Employees’ grievances should be heard.
Suggestions of employees should be considered.
(iii) Development of Human Resources
Employees should be trained to improve skills.
Training and development help both employees and business.
(iv) Welfare of Socially and Economically Backward People
Business should help:
Disabled and handicapped people
Economically backward sections
Support may include training and scholarships.
1.6.4 NATIONAL OBJECTIVES
National objectives focus on the development of the country.
(i) Creation of Employment
Business should generate job opportunities.
New and expanded businesses create employment.
(ii) Promotion of Social Justice
Equal opportunities should be given to all.
Special care should be taken of weaker sections.
(iii) Production According to National Priority
Business should produce essential goods.
Goods should be supplied at reasonable prices.
(iv) Contribution to National Revenue
Business should pay taxes honestly.
Tax revenue helps in national development.
(v) Self-sufficiency and Export Promotion
Reduce dependence on imports.
Increase exports to earn foreign exchange.vertisements
Honest business practices protect consumers and society.
(iii) Contribution to General Welfare of Society
Business should help society by:
Running schools and colleges
Opening hospitals
Providing training centres
Creating parks and sports facilities
1.6.3 HUMAN OBJECTIVES
Human objectives focus on the well-being of employees and disadvantaged people.
(i) Economic Well-being of Employees
Employees should receive:
Fair wages
Incentives
Medical facilities
Pension and housing benefits
(ii) Social and Psychological Satisfaction of Employees
Jobs should be interesting and suitable.
Employees’ grievances should be heard.
Suggestions of employees should be considered.
(iii) Development of Human Resources
Employees should be trained to improve skills.
Training and development help both employees and business.
(iv) Welfare of Socially and Economically Backward People
Business should help:
Disabled and handicapped people
Economically backward sections
Support may include training and scholarships.
1.6.4 NATIONAL OBJECTIVES
National objectives focus on the development of the country.
(i) Creation of Employment
Business should generate job opportunities.
New and expanded businesses create employment.
(ii) Promotion of Social Justice
Equal opportunities should be given to all.
Special care should be taken of weaker sections.
(iii) Production According to National Priority
Business should produce essential goods.
Goods should be supplied at reasonable prices.
(iv) Contribution to National Revenue
Business should pay taxes honestly.
Tax revenue helps in national development.
(v) Self-sufficiency and Export Promotion
Reduce dependence on imports.
Increase exports to earn foreign exchange.