Business Enterprises

Manila Bulletin, November 25, 2011 | Go to article overview

Business Enterprises


MANILA, Philippines - In addition to the family and the school, the business enterprise is a major driver of social change. It is in business enterprises where we build newer and wider relationships, forged with the end in view of tapping the productive potentials in the economy and society.

It is through these enterprises, primarily set up and operated as a business, that many different men and women get together and organize themselves in order to produce goods or render services that enable the economy and society to move forward, grow, and develop.

How they actually produce goods or render services is of critical importance. Technology matters; but of even greater significance is the efficiency of that technology and therefore of the business organization as a whole. Productivity is key; and it is essential for growth and development that such productivity should keep rising: It is only through rising technology that growth can be sustained over a long period of time, and development can be secured.

Of critical importance too is the rationale behind the business organization. It obviously has to make both ends meet; its revenues must cover expenses. Moreover, for sustainability of both growth and development, some reasonable level of profit must be made, and maintained on average, during the long life of the enterprise, after a short start-up period, when organizational and other related expenses may temporarily exceed revenues still in process of being built up.

All business organizations, however, recognize that it has functions other than to post significant profits: They also have to provide for the welfare of all those associated with them, and in particular of all those working in them; moreover, they also need to contribute to the improvement of social welfare in the economy and society as a whole.

It is in light of this broader social dimension that it is critical also for business organizations to pursue the overall quality of life of both the business itself and of the individuals working in it as well as of those other individuals closely associated with it. …

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