The social and legal aspects of a business are critical to its success and they are one of the

essential building blocks of an organization. Since society is a grouping of human beings, a

business should have a value system that promotes harmony, creativity, integrity and
excellence in society. These aspects also focus on convenience, climate, terrain, economic
or political circumstances, religious beliefs and occupation, therefore, it is important for any
potential business person to study the location and situation of his or her business and
should command the following:
1. Self-Confidence: This is believing in oneself by being sure of one’s capabilities such as
Self-efficacy which reflects confidence in the ability to exert control over one's own
motivation, behavior, and social environment. To develop self-confidence, you have to
learn in action. Try to undertake new ventures and when you “fall”, “stand up” and join
the race again. Do not fear taking certain decisions. You also need to build good
communication skills, negotiation skills, leadership skills and conflict management skills.
To become self-confident you need to improve your posture, know how to shake hands
properly, learn good manners and do not fidget by controlling your nerves in meetings.
Whatever you do, try to do it to the best of your ability.
2. Positive Personal Impact: Personal impact is about other things apart from your looks.
We impact on others through our opinions, the amount we contribute, the tone of our
voice, the effect of our silence and the expressions we use. For example, when you leave
a meeting or end a conversation, what impression do you leave behind? What picture do
other people have of you? How do you think they perceive you?
3. Communication skills: Communication means the ability to relate to people in written
as well as verbal communication. Communication can occur in a one-on-one or a group
setting. This means being able to handle different people in different situations, and
making people feel at ease. Good communication has two basic components:
I. Listen to and acknowledge other people's views and feelings rather than showing
that you only care about broadcasting your feelings and insisting that others should
agree with you. Therefore, encourage others to express what they are thinking and
feeling.
II. Express your own thoughts and feelings openly and directly otherwise, if you only
listen to what other people are thinking or feeling, you might end up a “yes person”.
4. Interpersonal Skills: These are skills we use every day when we communicate and
interact with other people, both individually and in groups. Interpersonally competent
people are self-aware. They use this awareness to better understand others and to adapt
their behavior accordingly. Interpersonal skills include empathy, active listening and
emotional intelligence. Interpersonal skills include the following:
 A set of behaviors which allows you to communicate effectively and unambiguously in a
face-to-face setting
 Thoughts which assist to progress towards achieving an objective
 Relating in positive ways with family members, colleagues and others. This may mean
being able to make and keep friendly relationships as well as being able to end
relationships constructively
There are six interpersonal skills which form a process that is applicable to all situations:
I. Analyzing the situation
II. Establishing a realistic objective
III. Selecting appropriate ways of behaving
IV. Controlling your behavior
V. Shaping other people's behavior
VI. Monitoring our own and others‘ behavior
The above can be achieved through TACTFUL Conversations
T = Think before you speak
A = Apologize quickly when you blunder
C = Converse, don’t compete
T = Time your comments
F = Focus on behavior – not personality
U= Uncover hidden feelings
L = Listen to feedback
5. Conflict Resolution: Conflict resolution involves identifying areas of agreement and
areas of compromise so that a solution to the disagreement or conflict may be amicably
identified.
Resolving conflict is an art of communication done diligently. Use of interpersonal
communication skills helps to achieve this objective
Tips for resolving conflicts
 Make sure that you remain calm at all times during interaction.
 Speak with a non-provoking tone of voice; quietly, slowly, and calmly.
 Listen to the other parties carefully without interrupting them.
 Respect the other party when voicing your own opinion or point of view.
 Let the other party know that you understand them fully by asking questions pertaining
to his or her understanding and repeating what the person is saying.
 Use humor if possible.
 Try placing yourself in the other party's shoes.
 Try not to be judgmental. Do not do anything to embarrass the other party.
 Do not accuse the other party of anything.
 Do not stand close to one another. Stand a few feet away from each other.
 Make sure that your posture and body language is non-threatening.
 Do not talk with the other party in front of a group of people. Go into an office or some
other place to discuss the situation. (Caution: Do not go into a place that will prevent
you from or both of you from freely interacting)
Building Relationship
 Become genuinely interested in other people
 Call people by their names
 Talk in terms of the other person's interest
 Smile
 Listen
Business Ethics and Social Responsibility
The word ‘ethics’ is derived from the Greek word ‘ethos’ (character) and Latin word ‘moras’
(customs). Taken together these two words define how individuals choose to interact with
one another. Thus, ethics is about choices. Ethics at work and in business are both reflected
and influenced by ethical aspects of life. There is no absolute rule of what is ethical and
what is not. The short answer is that there isn't an answer of what is ethical or not. A
simpler broad definition of the word ethical is 'fair'. And 'fair' depends on people, especially
those affected by the situation.
It signifies how people act in order to make the ‘right’ choice and produce ‘good’ behaviour.
It encompasses the examination of principles, values and norms, the consideration of
available choices to make the right decision and the strength of character to act in
accordance with the decision. Hence, ethics, as a practical discipline, demands the
acquisition of moral knowledge and the skills to properly apply such knowledge to the
problems of daily life.
Social responsibility is an ethical theory, in which individuals are accountable for fulfilling
their public duty of which the actions of an individual must benefit the whole of society. In
this way, there must be a balance between economic growth and the welfare of society and
the environment. If this equilibrium is maintained, then social responsibility is accomplished.
Legal aspect in Business
Licensing: A license is a conditional permit or authority granted by government agency for
purposes of allowing a particular person to carry out an activity which would be illegal
without that permit.
There are two categories of license:
1. General license: This opens a whole field of activity to an individual. It is usually
granted to business people and professionals.
2. Specific license: This is granted to a person to carry out a specific action and it expires
when such action has been accomplished. E.g. a license to kill an elephant or to import
particular goods and it expires as soon as the elephant has been killed or the goods are
imported respectively.
Purpose of Licensing
1. Prevention of harm to the public. This is particularly so in the case of occupation
licenses before one can be allowed to practice e.g. Medicine, one must first get a license.
The government must first be satisfied with that person’s qualifications and reliability to
carry out such work.
2. Human safety. These areissues relating factories, blasting, mines etc. The licensing
authority satisfies that there are no risk to human beings when such activitiesare being
carried out.
3. To ensure efficient services to the public. This is the case in transport licensing. The
transport licensing board is required to satisfy itself, e.g. a bus operator will provide
efficient services to the public at reasonable prices.
4. To maintain a monopoly. A natural monopoly can be defined as a service that can be
efficiently provided by one operator, i.e. National Water and Sewage Corporation, NSSF
and others.
5. Conservation of natural resources. Access to natural resources is restricted to
license holders only. E.g. hunting of animals, timber exploitation, wet lands minerals and
more others
6. Controlling the manufacture, storage and consumption of alcoholic beverages.
E.g. the Liquor Act cap. 3 forbid any person from manufacturing or selling alcoholic
beverages without holding a valid license.
7. Government gets revenue.
8. Control of socially undesirable activities e.g. gambling.
9. Reduction of congestion on streets/ dealing away with hawkers.
10.Control of potentially offensive activities e.g. Sale of firearms.
11.Aimed at controlling development and town planning.
12.Promoting of certain government policies e.g. Trade licensing Act of 1969 Barres
non-citizens from obtaining trade licenses for trade activities in rural areas.
13.To promote investment e.g. the Investment Code Act. Licensing is used to ensure that
only people with a certain amount of capital can come and establish certain investments.
14.Used as a tool of conservation of resources e.g. the mining Act. A person cannot
carry out mining activities without a license.