Why Profit Maximization Is Not Consider The Ultimate Goal By Business?

Question

Why Profit Maximization Is Not Consider The Ultimate Goal By Business?

3 Answers

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Answer 1

Profit maximization is not considered to be the ultimate goal of business because corporate social responsibility of utmost importance. If a business does not treat the customer well or give back to their community they lose their customers. This can result in an ultimate loss of the business, or loss of profits if they are not socially responsible.

Answer 2

Thats not true, Profit maximization is indeed an ultimate goal of any business. Sometimes, business focus on value adding and improving their services or products, and increasing their scale and labor. For a short time period, they don't focus on profit maximization particularly, because businesses most of the resources goes to other factors. But, the long time ultimate goal for any business is "profit".

Answer 3

One can become very cynical about the motives of capitalism and companies. What's important to think about though is that the businesses are run by people, who have various motives. While these motives often show themselves in terms of people seeking financial reward, the true motives are usually about ego, meeting challenges and mental stimulation. Business leaders want to show that they are the best (ego), that they can beat the competition and sometimes internal rivals, and that they can solve problems that society doesn't have an answer to yet. The business is rewarded by making more money and ultimately the individuals rewarded financially. I think that the number of people simply motivated by money is relatively small, thank goodness. More on this topic at http://richardblundell.net