Profit Maximization
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- Date Submitted: 09/16/2015 06:31 PM
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Profit maximization
Timo Pitter
Business Ethics
Running a business with regard to Business Ethics automatically brings up the question if the sole purpose of company is maximizing its profits. In this short paper I am going to argue in favor of Profit maximization.
First off all, I think if a business puts priorities on maximizing its profits, automatically acts within a social responsibility to a certain level. In other words, higher profits are proportional to an increase of the economic level of a certain country by which the society will benefit. Also if a business strives for higher profits it will pay more taxes to the government, which in fact can be invested in better infrastructure for the community. Businesses are not responsible for the welfare of the people within a society since free markets force them to play with certain competitive advantages.
Next, it is absolutely crucial that the executive level of a company recognizes its obligation to their stockholders. I mean think about it, they trusted the company with money and therefore it would actually be morally wrong to ‘’play’’ careless with this money since money is the greatest tangible good a human can have. So therefore I am convinced that as long a company is not risking the life of other humans, they should absolutely maximize a companies profit.
That brings me to my next point, which makes it clear that businesses have to act within a certain law in order to prevent hurting people for example by poisoning drinking water. But as long as a firm takes action within laws that are created by a democracy and therefore by the voice of a country, it leads me to the fact businesses are already acting social responsible in regard to fellow human beings. So the purpose of a company is to focus on profits.
Lastly, we cannot blame Executives for not solving social discrepancies. How can a management level know what’s best for the society. Managers know how to solve business issues but they...
Timo Pitter
Business Ethics
Running a business with regard to Business Ethics automatically brings up the question if the sole purpose of company is maximizing its profits. In this short paper I am going to argue in favor of Profit maximization.
First off all, I think if a business puts priorities on maximizing its profits, automatically acts within a social responsibility to a certain level. In other words, higher profits are proportional to an increase of the economic level of a certain country by which the society will benefit. Also if a business strives for higher profits it will pay more taxes to the government, which in fact can be invested in better infrastructure for the community. Businesses are not responsible for the welfare of the people within a society since free markets force them to play with certain competitive advantages.
Next, it is absolutely crucial that the executive level of a company recognizes its obligation to their stockholders. I mean think about it, they trusted the company with money and therefore it would actually be morally wrong to ‘’play’’ careless with this money since money is the greatest tangible good a human can have. So therefore I am convinced that as long a company is not risking the life of other humans, they should absolutely maximize a companies profit.
That brings me to my next point, which makes it clear that businesses have to act within a certain law in order to prevent hurting people for example by poisoning drinking water. But as long as a firm takes action within laws that are created by a democracy and therefore by the voice of a country, it leads me to the fact businesses are already acting social responsible in regard to fellow human beings. So the purpose of a company is to focus on profits.
Lastly, we cannot blame Executives for not solving social discrepancies. How can a management level know what’s best for the society. Managers know how to solve business issues but they...