The purpose of business is to generate maximum returns for its owners and shareholders. So therefore should the business pursue all activities that enhance profitability and increase the value of the business for the owners and / or shareholders?

I also believe that a business should behave ethically in achieving the above purpose. It is not right just to operate within the letter of the law. Businesses should also try and serve their local community and help its employees lead better lives. They should examine every decision they make based on profitability, long term business value and social responsibility.

By having real policies in place that take care of your employees and the local community it might be argued that long term this will enhance your business brand and over time lead to higher profitability.

By constantly training members of staff and wherever possible promoting from within the organisation will lead to employees that feel empowered to work harder and make better decisions. Having regards to the true well being of your employees will lead to a healthier and therefore happier workforce.

By reducing waste and promoting recycling at every opportunity, overheads will be reduced and in the longer term lead to better shareholder value. It is staggering how much resources including energy are wasted by larger companies. Having a regular energy audit and investing long term to reduce demand can only serve to make the business more efficient.

Many businesses try to serve their community by supporting local charities and sponsoring local people to better their lives. There are many ways to do this including education, sports and the environment. In the short term there will be very few perceivable benefits in terms of profitability but these actions will serve to enhance the business brand and increase profitability over the longer term.

Greed is no longer good and focusing purely on profits is unacceptable to your existing and potential customers. By embracing business ethics and social responsibility the business can benefit from increased goodwill.

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te difficult to define the knowledge management unless we don’t have a strong idea of what is the knowledge is. Before defining the knowledge management needs to effectively define the term knowledge first, that we will discuss later. But first we can define knowledge management as an activity which has two basic objectives in a business. The first objective is to collect the knowledge that is important for the business and has direct concerns with the business strategy, policy and practice of an organization at all levels. The second objective of the knowledge management s to map the intellectual assets of the organization, making these vast amounts of corporate information accessible and sharing the best practices through the technology that enables above function including intranet and groupware.

Role of knowledge management in the business

Knowledge management has an important role in maintaining a successful business process. If you study you will observe that there is a sound connection between management strategies, practices and business issues with the knowledge management. Knowledge management also affects the different areas of a business including; Change management, Best practices, Risk management, Benchmarking Most of the experts in business class and corporate level view knowledge management as business process reengineering. In the most of the researches in the recent past about business strategies has acknowledged that that information and knowledge are business assets, and that businesses need policies and tools to manage those assets.

Need for the Knowledge Management

There is a lot of debate on the issue that why an organization needs knowledge management. There are plenty of opinions about the methods, paths and objectives of knowledge management systems. Most of the time, need for knowledge management is focused on enhancing creativity and creating new knowledge value — while other programs emphasize leveraging existing knowledge.

There is an increasing understanding that intellectual capital is important for the growth of the organizations and discussion about intellectual capital has proliferated all over the world but few businesses has acted on this understanding. Where companies have take action — and a growing number are doing so — implementations of “knowledge management” may range from technology-driven methods of accessing, controlling, and delivering information to massive efforts to change corporate culture.

What is the real knowledge?

Most of the time the terms information and knowledge are often used interchangeably by business writers. Let’s choose a simple definition and get on with it: Knowledge has two basic definitions of interest. The first pertains to a defined body of information. Depending on the definition, the body of information might consist of facts, opinions, ideas, theories, principles, and models (or other frameworks). Clearly, other categories are possible, too. Subject matter (e.g., chemistry, mathematics, etc.) is just one possibility. Knowledge also refers to a person’s state of being with respect to some body of information. These states include ignorance, awareness, familiarity, understanding, facility, and so on. In traditional perceptions of the role of knowledge in business organizations, tacit knowledge is often viewed as the real key to getting things done and creating new value. Not explicit knowledge. Thus we often encounter an emphasis on the “learning organization” and other approaches that stress internalization of information (through experience and action) and generation of new knowledge through managed interaction.

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