Question

Explain how an organization affects the prosperity of a local community or its host community

Answer 1

Organizations significantly impact the communities and societies within which they operate. Some of the effects are:

• Economic Impact: Organisations create ouput which results in development of the economy. This leads to prosperity and growth in the standard of living.
• Creation of jobs: For manufacturing or proving service output at these organisations, manpower is needed which leads to creation of jobs in the local community
• Development of local suppliers: Further ancillary units or raw material suppliers are developed in the vicinity of an organisation which has a trickle down effect on the economy of the region.
• Development of transportation and communication network: For ensuring availability of inputs timely and sales of output, there has to be a robust transport and communication network.
• Community development: Involvement of local community leads to better education for local people, development of schools, markets, hospitals etc which contributes to overall prosperity of the region.