Business Principles

Since its establishment more than 225 years ago, the United States has become the world’s leading economic, technical, and political power. The country has the world’s largest economy and relies on highly sophisticated and modern means of production, transportation, and communication. Americans enjoy a very
high standard of living. All these achievements can be attributed to the enormous resources that the country possesses: the ingenuity of its people, a democratic form of government, a social system that rewards individual initiative, and public policies that encourage innovation.

Despite the many successes, problems persist with regard to discrimination, crime and violence, environmental protection, ethical conduct, and social responsibility. Because businesses are a part of the total society in which they operate, social changes affect how they operate. Similarly, businesses affect society in different ways, as Tyler Eastman will soon discover. Thus, one cannot study business principles and management without also having an understanding of the social forces that shape business.

People are a firm’s most important resource. A recent study of top managers found that finding and retaining qualified workers was more important than finance, technology, product innovation, or international business. The workers help businesses achieve their organizational goals. The challenges faced by businesses are closely interwoven with those experienced by the workers.

In particular, such issues as those caused by changes in population and lifestyles have a direct bearing on business operations and on the well-being of the nation.