Business is simply the commercial activity of producing goods and services for industrial and financial aspects. Business can also be defined as the firm that engages in the production of goods and services for commercial purposes. It, therefore, is important to understand that business as a firm cannot be separated from the act prospects of business as an activity. The role of a business in the economy depends on the type of business a firm is engaged in as well as the impact it has in various sectors of the economy. Banks are forms of business, as they are actively involved in the production of services like loaning, banking for individuals and organizations, and opening opportunities to investors by the sale of shares. As a result, the role of businesses like banks is to coordinate the operations of the economy, where customers can create liability with the bank in terms of loans they have to pay back after their loans interests regarded as credits for them.
The same case applies to organizations, which do not involve themselves with banking services, but rather produce goods to the available markets. Take Apple Inc., for example, it does nothing more than sell high-end computing devices, handheld devices, and online music; the company may seem to be generating a livelihood for its employees, while, at the same time, making a surplus out of the employees to make profits, which, in turn, help it to expand its operations. In theory, Apple Inc. does exactly as outlined above, while practically it helps the economy expand in terms of GDP as its profits are taxed and added as revenue to the budgetary process of the government. Considering this aspect, the role of a business in the economy is to create opportunities to stakeholders, upon which the GDP of a particular nation expands through taxing of individual employees and taxing of the profits, made within any given financial year (Wilson, 2001).
For-profit and non-profit organizations have almost the same impact on the economy but the approach to the matter is different. When dealing with the for-profit organization, policies, for taxable minimum wages for every individual, working in these organizations, are drafted, upon which the impact of the organization is to provide jobs and generate revenue for the government. On the other hand, a non-profit organization like Red Cross that operates on donor funds and sometimes utilizes the services of volunteers will be exempted from the taxes, imposed on for-profit organizations. By the look at the above statement, non-profit organization may seem to be of lesser importance to the economy of a nation. However, considering the work of the Red Cross organization of suppressing the cost of emergencies by provision of free medical assistance and contacting surveys on various health issues shows that Red Cross helps in cutting down the expenses that would normally be catered for from the revenue, generated by other organization. This helps a government to budget on other economy sectors like infrastructure and creation of a better environment for local and international businesses. In this case, it, therefore, means that the role of for-profit organization is to create revenue that, in turn, helps expand the GDP of a nation, while the role of non-profit organizations is to prevent excessive use of the created revenue in addressing emergencies or researching on affective courses (Trompenaars and Woolliams, 2001).
Currently, the U.S. fiscal and monetary policy is aimed at curbing inflation and addressing the problem of unemployment. The problem, posed by inflation, is that members of the public who make up the customer base for organizations and business acquire shopping trends, regarding the state of economy. With inflation rising, a customer, used to do shopping of $3000 a month, would hesitate in doing so, expecting that prices of the goods and services would go down. The longer the inflation prevails, the more customers would be reducing their margin of shopping. In this case, a company like Apple Inc. that produces an approximate of 12 million units of its phone brand, iPhone, would cut the margin of production to accommodate the low demand for its products. In cases like this, where the economy seems to sink further, the government through the monetary policy would reduce inflation by reducing the amount of import duty tax or buy a total cut on it. With such an approach, organizations like Apple Inc. that would require importing materials and investors of similar organization would be encouraged to operate in a more open market, therefore, creating a drop of inflation.
Unemployment is simply the lack of legal activities that can generate sufficient salary. The creation of jobs through the current fiscal and monetary policy will not depend on how much investors and organizations are willing to hire, but rather the mechanisms that will enable organizations to hire people. A Business environment, where a business firm is free to venture into business without the requirement to pay heavy license fees and being taxed heavily, would encourage local and international investments. The more the investments created the higher the number of businesses with the need to hire, therefore, increasing job opportunities and reducing unemployment. The impact of the current fiscal and monetary policy is to create a larger margin of revenue generation opportunities, while, at the same time, reducing the number of people, requiring government support to deal with health, homelessness, and inability to contribute in the generation of the GDP (Solomons, 1986).
The access of global markets by a new product comes with the price of delivery, customer response, and ability to deal with competition from organization, producing the same service or product. Assume the iPhone by Apple Inc. was launching today, which no one in the market has ever had before. Assume that competitive organizations like Samsung have equally powerful devices like the Galaxy S II and Galaxy Note, circulating in the market already. With the two assumptions, it means that customers would be eager to test the iPhone but, at the same time, afraid to purchase it, considering it a new product going against products, made by leading players in the market. A strategy to sail the iPhone to the global market would require Apple Inc. to investigate the target group of the Galaxy S II and Galaxy Note and estimate the percentage of the market that is not targeted by the Samsung products. Target groups are chosen in terms of how capable they are at affording the gadgets. If Samsung products are selling in the global market at upfront purchase terms, Apple Inc. with its high-end devices, priced at almost the same price as those of Samsung, can get a good percentage of the customers. Customers, barred from buying Samsung Galaxy S II by high prices, can be able to obtain iPhone in contract basis, regarding the economic status of their respective countries.
“A stakeholder is any party that can be affected by the operations of a business in terms of corporate associations” (Solomons, 1986). Given the numerous number of parties that can be affected by a single business corporate, at this point the paper will discuss the social responsibility of the Apple Inc. to its developers. Social responsibility in the corporate settings is called corporate social responsibility that can be defined a self-regulatory policy of an organization in terms of law, ethics, and fair practice. Apple Inc. is advocate for social responsibility of it developers, most of whom operate on freelance basis, but they provide fair conditions in terms of selling their applications, software, and designs. As a global organization, Apple Inc. is obligated to provide leveled and equal opportunities to its developers in terms of promoting their work and safeguarding copyright and trademark rights. Through fair salaries and chances of promotion without discrimination in any social terms, Apple Inc. with holds its social responsibilities for its worldwide group of developers.