RSM100Y1 Lecture Notes - Lecture 4: Business Ethics, Liquor Control Board Of Ontario, Prime Rate
Document Summary
1: back to diamond, a short history of money. Business and society are interdependent (outcome of one depend on the input of the other and vice versa. Society contributes to business: environments regulatory environments/political/economic/social, resources (human resources, natural resources -> public goods, Business contributes to society: wealth creation (producing, planning, coming up with better goods and, training -> business investing in people in hr and those people services) contribute back to business. Wealth: the annual produce of the land and labour of society (adam smith) Wealth creation: combining materials, ideas, labour, and technology so that the output can be sold for more than costs. This profit brings wealth to the people and society involved in production. Wealth creation requires: combination of inputs raw materials, supportive environment, means of production - machines, someone who will pay more than costs. Social good (education, health care, etc) -> through our taxes. Asset utilization build the thing and we should use it.
