Are profits the only business of bussiness? Economics Research Paper

ARE PROFITS THE ONLY BUSINESS OF BUSINESS?
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Although the primary objective of any business is to make profits, it should not be the only goal that a firm should strive to achieve. As such, the main question that will be answered in this paper is whether making profits is the only business of business. In reality, no organization can survive without making profits. However, firms that prioritize maximizing profits usually fail to sustain their growth and development. For instance, such enterprises might exhaust their raw materials since they are more concerned about producing many products to increase their sales volume, hence maximizing their profits. Moreover, a firm whose primary goal is to make profits does not bother in conserving the environment. Such businesses are the ones that pollute the environment since their primary focus is on generating more revenues without considering how their outputs affect the well-being of individuals. For this reason, profits should not be the only business of firms since focusing on that objective alone cannot lead to sustainable development, environmental conservation, prevention of overexploitation of raw materials, and the protection of consumer feelings.
Environmental conservation creates value for a business in society, which makes the firm to benefit for an extended period. Currently, many organizations have realized that their business cannot be sustainable if they do not participate in protecting their surroundings. That is the reason why such firms are engaging in corporate social responsibility programs so that they can give back to the community (Camilleri, 2017). In particular, corporations have realized that the objective of making profits is short-lived on its own. Firms that want to continue generating more revenue must think about the future of their customers. In other words, one primary advantage of environmental conservation is sustainable development. However, if a company focuses on maximizing profits, it exploits raw materials, which means that it has no future. Moreover, it destroys the ecosystem, something that might have adverse effects on consumers’ well-being (Freeman, 2014). For example, when customers start getting sick due to the high rate of pollution, many of them might stop buying commodities. Specifically, when a firm focuses more on profit-making, it forgets or ignores crucial things that hinder it from optimizing productivity. Therefore, if making profits is the only business of organizations, then such firms have no future.
Consumer feelings toward a specific firm significantly affect sales volume and profits. An organization that focuses solely on making profits does not concern itself about how customers feel about its products and services. Indeed, its primary objective is to increase production and ensure that commodities are selling faster without listening to what consumers are saying about its good (Hanaysha, 2018). Such firms have a high likelihood of increasing the price of their commodities if the demand increases. For example, if companies like those are involved in the production of face masks during this coronavirus pandemic, they are likely to take advantage and increase the cost. I...