Business Relations

DEFINITION of 'Business Relations'

The connections that exit between entities involved in the business process. The term business relations refers to the connections formed between various stakeholders in the business environment, including relations between employers and employees, employers and business partners, and all the companies with which a company is associated.

For example, one company's business relations may include a long list of customers, vendors, sales leads, potential customers, banks, stockbrokers and any municipal, state and federal governmental agencies. Essentially, business relations are all of the entities with which a business is connected or expects to have a connection.

BREAKING DOWN 'Business Relations'

Businesses depend on the development and maintenance of vital relations with employees, business partners, suppliers, customers - any person or entity that is involved in the business process. Companies that intentionally cultivate and maintain connections may be more successful than those that ignore these connections. Strong business relations can promote customer loyalty, customer retention and collaboration between businesses in the supply chain.

From a financial standpoint, business relations can theoretically make or break a business. Strong relations can lead to better business processes, improved communications, better policies and procedures, and mutual cooperation, resulting in better products, services and revenues. Weak relations can lead to detrimental outcomes, including unhappy employees, dissatisfied customers, negative reputations and limited growth.

Many companies use a number of strategies to ensure strong business relations are fostered and appropriately maintained. Relations may be established through a number of means including social media, emails, phone calls, face-to-face meetings, etc. Relations can similarly be maintained through frequent contact (by phone, email, in person, social media, etc.).

Primary advantages of developing and maintaining business relations include customer and employee loyalty, building a positive company image and increased business performance, all of which can be important to the company's bottom line.

RELATED TERMS
  1. Sales Lead

    A prospective consumer of a product or service that is created ...
  2. Business-To-Business Advertising

    Marketing efforts directed toward other businesses rather to ...
  3. Business Model

    The plan implemented by a company to generate revenue and make ...
  4. Business To Business - B To B

    A type of commerce transaction that exists between businesses, ...
  5. Business To Consumer - B To C

    Business or transactions conducted directly between a company ...
  6. Share Repurchase

    A program by which a company buys back its own shares from the ...
Related Articles
  1. Professionals

    Keeping Clients Through Good And Bad Times

    If you work in the financial industry, the secret to keeping clients happy is to be consistent.
  2. Professionals

    How To Target Ideal Customers

    Expand your definition of a lucrative client and uncover a new realm of possibilities.
  3. Entrepreneurship

    10 Breakout Ideas For Small Businesses

    If your business has hit a wall, we've got the answer to break through and increase sales and earnings.
  4. Stock Analysis

    Tribune Media: An Activist Investment Analysis (TRCO)

    Learn more about the breakup of Tribune Company, once a powerful newspaper and broadcasting giant, and the role of activist investor Cliff Robbins.
  5. Stock Analysis

    PepsiCo: An Activist Investment Analysis (PEP)

    Read about the nearly two-year public feud between activist investor Nelson Peltz, head of Trian Fund Management, and iconic soft drink maker PepsiCo.
  6. Stock Analysis

    Hologic: An Activist Investment Analysis (HOLX)

    Read about a health care company that attracted activist investors Carl Icahn, Barry Rosenstein and Ralph Whitworth at the same time.
  7. Stock Analysis

    Air Products and Chemicals: An Activist Investment Analysis (APD)

    Learn about the productive, and uncommonly friendly, activist investment made by Bill Ackman into Air Products and Chemicals.
  8. Personal Finance

    Don't Sign That Non-Compete Without Reading This

    Non-compete contracts aren't just for high-level execs these days. How to protect yourself if your employer – or prospective employer – insists you sign one.
  9. Economics

    Why Enron Collapsed

    Enron’s collapse is a classic example of greed gone wrong.
  10. Stock Analysis

    Fortune Brands Home & Security: An Activist Investment Analysis (FBHS)

    Read about Bill Ackman's highly successful breakup of longtime holding company Fortune Brands in one of the most profitable examples of Wall Street activism.
RELATED FAQS
  1. Can LLCs have employees?

    A limited liability corporation (LLC) can have an unlimited number of employees. An employee is defined as any individual ... Read Full Answer >>
  2. Do flexible spending accounts (FSA) funds roll over?

    An individual can utilize an employer’s cafeteria plan of employee benefits to establish a flexible spending account (FSA). ... Read Full Answer >>
  3. How are joint ventures regulated in the United States?

    Joint ventures are a very specific type of business arrangement. They can be organized in several different legal structures, ... Read Full Answer >>
  4. How long does it take to execute an M&A deal?

    Even the simplest merger and acquisition (M&A) deals are challenging. It takes a lot for two previously independent enterprises ... Read Full Answer >>
  5. How do a corporation's shareholders influence its Board of Directors?

    The 21st century has seen a rapid increase in shareholder activism, such as the general awareness, involvement and influence ... Read Full Answer >>
  6. What protections are in place for a whistleblower?

    Whistleblowers can play a critical role in ensuring the compliance, safety, honesty and legal fairness of governments and ... Read Full Answer >>
Hot Definitions
  1. Super Bowl Indicator

    An indicator based on the belief that a Super Bowl win for a team from the old AFL (AFC division) foretells a decline in ...
  2. Flight To Quality

    The action of investors moving their capital away from riskier investments to the safest possible investment vehicles. This ...
  3. Discouraged Worker

    A person who is eligible for employment and is able to work, but is currently unemployed and has not attempted to find employment ...
  4. Ponzimonium

    After Bernard Madoff's $65 billion Ponzi scheme was revealed, many new (smaller-scale) Ponzi schemers became exposed. Ponzimonium ...
  5. Quarterly Earnings Report

    A quarterly filing made by public companies to report their performance. Included in earnings reports are items such as net ...
Trading Center