Objectives of Business
You have learnt that the primary objectives of business is to earn profit. Although profit plays an important role as a criterion of success, business may not exist for long with the sole objective of earning profit. As stated by Henry Ford, “business is not mere money chasing ‘ but it also should aim at serving the community”. According to Urwick, “profit can no more be the objective of a business than eating is the objective of living”. Thus, serving the communi~y is regarded as another important objective of business. In fact, some authors regard ‘service to community’ as the major objective of business and state that this provides the main justification for the existence of business as an important human activily.
Therefore, while profit is necessary for the businessman to stay in business, he ought to aim at something more for its survival and growth.
‘The objective of business could be listed under three broad headings:
(1) economic objective,
(2) social objective, and
(3) human objective.