2. Income “On a most basic level, business provides a means of income for a population. People need money to not only survive, but to enjoy their lives. In exchange for their labour, businesses give money to people which they can then use to purchase everything from food to vacations. This helps a population survive and thrive. Businesses also foster innovation and competition. By having multiple similar businesses in a market, healthy competition can create better goods and services. Consider a small town which has two quaint1 coffee shops. If one shop creates a new holiday brew, the other shop will likely follow with a similar new treat to avoid losing holiday customers. The two shops are also unlikely to significantly outprice each other so that customers in search of a cup of coffee will not be deterred2 by price. Both of these are healthy impacts of business. Businesses also impact the tax base. This isn’t the most glamorous aspect of business, but it certainly impacts economies. The presence of businesses can significantly affect things like educational opportunities within a given community. If a local community has no (or very few) businesses, it is also devoid of3 financial resources which are needed to provide services for its populace. The revenue generated from taxing businesses helps to repair roads, maintain schools, and improve public services.” 3. Connecting people “Businesses operate globally. This means they contribute to [a] nation’s economy by connecting with other companies in the global economy. Global economies lead to establishing relationships with foreign countries. The relationships companies establish internationally foster cooperation and understanding, which helps to underwrite world peace. A stable world economy depends on cooperation and global trade relations. […] [A] less tangible but equally important aspect of the contribution of business is to people’s psychological welfare. Companies provide jobs, taxes, and contributing to the economy by generating income and wealth. Businesses are often community hubs where people socialize and meet. Think of your local coffee shop or favourite restaurant. These are places you go to […] socialize. Every economist recognizes the value of positive social interaction in the economy.” The question whether companies should be concerned with sustainability and social welfare (“Corporate Social Responsibility”, or CSR) is discussed below (1 3.10) Businesses are often community hubs where people meet and socialise 1 quaint: reizend, entzückend; altmodisch 2 to deter: abhalten, abschrecken 3 devoid of: ohne Topic-related vocabulary: Companies & CSR Business organisation & administration legal entity Rechtsträger/in, juristische Person ownership Besitz, Eigentum, Eigentumsrecht sole proprietorship Einzelbesitz liability Haftung private limited company (BE) GmbH limited liability company (AE) GmbH public limited company AG (= Aktiengesellschaft) publicly traded company / public company / joint-stock company / joint-stock corporation (AE) AG (= Aktiengesellschaft) CEO (= chief executive officer) Generaldirektor/in, Geschäftsführer/in chairman/chairwoman/ chairperson of the board of directors Vorstandsvorsitzende/r director Vorstandsmitglied executive officer Führungskraft Vocabulary covers 3.1 and 3.10 5a69ad CFO (= chief financial officer) Finanzchef/in, Kaufmännische/r Leiter/in The CFO is responsible for managing the company’s financial operations and strategy. board Vorstand, Unternehmensführung overheads laufende Geschäftskosten Overheads, or ongoing business expenses, include rent, utilities and insurance. accounts department Buchhaltung, Rechnungswesen HR (= Human Resources) / personnel department / staff department Personalabteilung If you have a job interview, go to the personnel department on the third floor. purchasing department Einkaufsabteilung R & D (= research and development) department Forschungs- und Entwicklungsabteilung shipping department / dispatch department Versandabteilung organisation chart Organigramm stock Aktienkapital, Grundkapital Key aspects Strategies Sample task 3 Companies & CSR 27 Nur zu Prüfzwecken – Eigentum des Verlags öbv
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