MGMT 1040 Chapter Notes - Chapter 1: Capitalism, Profit Motive, Limited Government
22 Sep 2016
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Arrangement using land, labour and capital to produce, distribute and exchange goods/service to meet needs/wants of people in society. Main objective: use resources to meet needs. Allows for private ownership of the means of production. Assumes that economic decision making is in the hands of those who make decision to generate profit. Ownership of private property by individuals and enterprises. Minimal government control in the area of business. Free enterprise, but you must be accountable. Have to balance interests of shareholders with those of the stakeholders; this creates greater stakeholder responsibility. Economic system that incorporates social, economic, ecological costs into marketplace activities and prices we pay. Business must respond to the demand of people from other places. Business must supply good/services wanted by society: must respond to the changing values of society. Social licence: doing what is acceptable for stakeholders.
