Business is no longer considered a mere occupation or a profit-making activity; it is essentially an economic institution. It has to reconcile its short-term and long-range economic interests with the demands of the society in which it functions. As an organ of society, business must justify its continuance by fulfilling its roles and responsibilities towards society.

Business enterprises have realized that social interest and business interest are not contradictory but complementary. The belief that business can grow only through exploitation has changed; now, the long-term benefit of business is seen as lying in serving society well. Thus, business is recognized as an essential element of a modern civilized society.

Furthermore, businesses are no longer viewed merely as money crazy entities allowed to mint money at any cost. New social standards consider economic activity legitimate only on the condition that enterprises also serve social needs. No business can be done in isolation; society permits business to exist and grow, and its functioning is ultimately judged by social standards.

Additionally, a society with fewer problems provides a better environment for a firm to conduct business. Since business enterprises are often responsible for creating or perpetuating social problems like environmental pollution and unsafe workplaces, it is their moral obligation to get involved in solving them. Unless business plays its legitimate role as an organ of society, it has little chance of success.