Companies are not the most important organizations in the world today. However, it should be noted that business firms have a large influence on social, political and economic systems in many countries. There are other organizations which play crucial roles in many modern societies. Government agencies, religious groups, political associations, non-governmental organizations, advocacy groups and professional bodies help different societies achieve communal goals effectively. These organizations influence various issues and practices in various societies across the world (Barry & Shaw, 2013, p. 46). Therefore, these organizations have a lot of significance in such societies. They influence laws and policies adopted in different countries, which help people participate in social, economic and political activities. Business firms need to understand environments they are operating in to help them establish positive relationships with people from nearby local communities. Companies have an important role to play in advancing social and economic prosperity in a given area. Therefore, they need to establish strong links with people and other government agencies to ensure their operations conform to all regulations observed in a particular country. A company which does not take time to understand the interests of people in the community it operates runs the risk of performing poorly in the market. A company needs to ensure its business practices are sustainable and serve interests of people living in a particular area more effectively. Business firms have come under intense pressure to ensure their practices do not violate human rights (Barry & Shaw, 2013, p. 49). Adherence to labor laws, environmental laws and internal quality checks are the new benchmarks through which effective organizations are measured. Business firms have a social responsibility to ensure their practices are sustainable and do not violate regulations they are supposed to observe. Business corporations need to donate some of their proceeds to charitable causes in areas they operate to ensure they improve the welfare of people living there. They have a moral responsibility to initiate Corporate Social Responsibility programs that improve the welfare of people living in communities close to where they operate. However, these programs need to be well structured to reduce any wastage and misuse of funds (Barry & Shaw, 2013, p. 56). There should be a clear plan on how such projects are going to be maintained and the needs they will be serving in communities where they are initiated. Corporate social responsibility programs help a firm to improve its image in the market. Business firms also need to ensure that they treat their employees well to earn their loyalty. Labor is a crucial function of any production process. Therefore, business firms need to develop effective human resource programs that motivate workers to perform well. They need to build positive relationships with their workers to make them more dedicated and diligent at work. Business firms also need to ensure that their operations do not violate tax laws and other business regulations they are required to observe in a particular country. They need to comply with all health and