Key aspects: Companies Read the following text. Think and talk about how much companies shape our lives and how much we are aware of it. Study the translations of the words and phrases you don’t know. Then close the book and write down two or three facts or ideas mentioned in the text in your own words. 3.1 The role and function of companies What is a company? A company is a “legal entity formed from an association of people that engages in business. The members of a company share common goals and organise their skills and resources accordingly.” There are various types of companies in most countries. They differ from each other in a number of ways, e.g., regarding ownership (corporation, partnership, sole proprietorship), financial liability (limited/unlimited), target groups (B2B, B2C), etc. Simply put, society “does not exist without some form of an economy, and businesses are what make up the economic system of the world.” How and why does society benefit from companies? Why are they important? Here are three different answers: 1. Innovation “If companies did not exist and you wanted a means for delivering innovation, you would have to create them. In competitive markets, the ability to innovate – whether in technology, management, products or services – is central to the survival of the company. Innovation involves new sciences and technologies, access to raw materials and, in some cases, finite resources. It may involve new ways of working and patterns of organisation. These are often contentious areas that are within the law but breaking new ground. For the company to succeed in delivering innovation, the confidence and trust of society, in the principles and values guiding corporate leadership, is essential. This, then, is the role of business in society: to innovate and deliver products and services, to use resources efficiently so that value is created and to conduct operations so that they are performed profitably and accepted by society.” PLEASE NOTE For the sake of simplicity, the words “company” and “business” are used interchangeably here, although in fact they describe two different concepts. “Don’t sit down and wait for the opportunities to come. Get up and make them.” Madam C. J. Walker (1867-1919), first female self-made millionaire in America 26 3 Topic Companies & CSR Corporate Social Responsibility Nur zu Prüfzwecken – Eigentum des Verlags öbv
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