With the phases of time, the role of business changed gradually. The viewpoints of the business people, as well as their customer, are not the same now. The changes are discussed below;
Traditional roles of Business
(a) Economic Role and Productivity: Business was exclusively engaged in profit maximization by negating all other activities. Productivity was a concern to maximize output.
(b) Operate under Social Permission: Business traditionally what with the consent of society and prevented them from doing unethical acts. They were a concern for strict adherence to the law.
(c) Institutional serve social purposes: All institutions are tools of society. They are established by society and in the long run, they continue to exist with the consent of society. Each institution is viewed as a social asset for performing some purposeful, constructive role. These facts do not prevent unethical behavior, poor quality, or staying from goals, nevertheless, the social role remains to guide the institution’s actions.
(d) The traditional focus on economic productivity and profit: The traditional focus of business has been almost exclusively economic. All other activities were strictly sidelines to be dabbled with when they become urgent through indirect effects on profit. This role has been strongly supported, by the doctrines of classical economics, thus, it is appropriate to refer to balanced profit content, a socially profitable business, or a socially beneficial business.
All of these phrases mean that a business is providing both social and economic outputs greater than inputs in a manner which reasonably serves the expectations of claimants on business.
