The primary purpose of business is to solve people’s problems. The primary responsibility of senior leaders is to create and maintain an environment of meaning and purpose so that the organization’s people can create value for a broad range of stakeholders.
I would agree with the statement that the primary purpose of business is to solve people’s problems. The primary responsibility of senior leaders is to create and maintain an environment of meaning and purpose so that the organization’s people can create value for a broad range of stakeholders. The business today emphasize on earning adequate profits and surviving the competition and establishing itself in the market by offering different products and services which fulfils the needs and requirements of its customers. They do aim in different social and environmental activities which helps in solving the people’s problem but it is not their primary obligation. I do agree that the main emphasis of the organization is to create the value for its stake holders. According to Bill George’s video on 21st century leadership, creating value for shareholders when we serve customers and employees first and how well we serve them (Bill George: 21st century leadership).
Though with the changing needs of the society, the business and the organizations have also changed their emphasis. They emphasize on running business so that they create a material positive impact on the society and environment. They have expanded their horizon towards the society in addition to the financial interests to the shareholders. The business emphasize on reporting on its overall social as well as environmental performance every year which reports its initiatives towards the different social and environmental causes. The organizations produces different products and offers different services which fulfils different needs and wants of the people. By the means of its offerings the businesses can be said to meet solve the problems of the people (Clark & Babson, n.d.).
Leaders are the people who guides the people and helps them in fulfilling different tasks and roles which is in the best interest of the organization. For this the leaders have a strong emphasis on the culture of the organization. The leaders develops the culture which is in the string favor of the organization and helps in fulfilling its goals and mission. This affects the people’s as well as organization’s performance. Some of the major tenets that should be adopted by the organization to build a strong culture include; Open communication, Innovation, Aggression which value competitiveness and outperforming competitors. Overall, building a strong culture is one of the ways which helps the leaders to provide meaning to the working of the organization. Transformational leader is one of the traits of a leader which helps in providing the meaning to the people. It has strong emphasis on vision, confidence, courage and a willingness to make sacrifices. This will help in making a strong organization culture and will help in attain competitive edge (Clark & Babson, n.d.).
The employees emphasize strongly on creating value for the stakeholders. The stakeholders represents the different group of people and includes the employees, shareholders, owners of the organization, community, customers, society, and investors (Clark & Babson, n.d.). All the businesses aim in creating the value for its stakeholders in some means or the others. The owners, shareholders and investors are primarily concerned towards the financial aspect of the organization and the return that they get from the organization which they consider to be the value. Customers have a string interest in fulfilling the needs and requirements of their needs and wants. They look for excellent product and service which is the value for them (Bill George: 21st century leadership).
HOW BENEFIT CORPORATIONS ARE REDEFINING THE PURPOSE OF BUSINESS CORPORATIONS William H. Clark, Jr. and Elizabeth K. Babson: Retrieve from
HSM Global/Wobi (Producer). (2013b). Bill George: 21st century leadership [Video file]. New York, NY:
Click following link to download this document
The primary purpose of business is to solve people's problems.docx