The Role of Profit: Is It the Only Purpose of Business?

This essay critically examines the fundamental question of whether profit should be the sole purpose of a business. It begins by establishing the importance of profit in securing financial stability and enabling business operations, including investment and expansion. However, it then delves into the broader considerations of corporate social responsibility (CSR), stakeholder satisfaction (including customers and employees), and the long-term sustainability of the business. The essay argues that while profit is essential for survival and growth, a narrow focus on profit maximization, especially short-term, can lead to the neglect of customer needs, employee well-being, and ethical practices. It emphasizes the importance of balancing profit with other objectives, such as market growth, customer satisfaction, and employee development, to achieve comprehensive and sustainable business success. The essay concludes that while profit is a necessity, it should not be the only driving force, and a holistic approach that considers multiple stakeholders and social responsibilities is more likely to ensure long-term value and resilience.

SHOULD PROFIT BE THE ONLY
PURPOSE OF A BUSINESS?

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY ..................................................................................................................................3
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................8

INTRODUCTION
Business is the human institution which is run by individual or group of individuals with the
purpose of making money and serving society by managing innovation. It is necessary for the
organisations to focus on profit making because it is the return which helps the firm outlining
success business projects. The aim of essay is on deriving that profit is the only reason business
which is attained by sustainability of business. The essay develops an understanding on what
basis a business’s only aim should be to earn profitability. Along with it, it explains the core
needs a business needs to develop before evaluating its efficiency in profit maximization.
MAIN BODY
Earning profit is an important aspect of business which helps the firm in managing secure
financial position regardless of any risk. It is the return generated by organisation from expenses
and efforts made in business activities. Maximizing return is essential for the companies because
it helps the business in managing successful management of operations with changing market
trends because it enhances ability to invest (Bernasconi, 2015). According to Wilburn and
Wilburn, 2014, beyond profit it is necessary for the business to focus on improving and
managing goodwill in order to maintain corporate reputation and to ensure customer satisfaction.
Benefiting society is another aspect which needs to be a focus because it denotes positive
relationship of firm with its key stakeholders that is customers. On the other hand, return is
critical concert because it denotes ability of organisation to operate effectively in changing
business environment.
Employee satisfaction is another aspect of business which needs to focused because it
ensures systematic flow of organisational activities which is important for managing success.
Deer and Zarestky, 2017, articulates that management firm need to focus on employee
satisfaction by ensure proper job role and design. Further, it comprises challenging roles to
employees and effective employee engagement programmes within firm. However, to manage
satisfaction at all business level profit play crucial role because for investing in certain plan,
policy or programme revenue of entity is basic need. Satisfaction of stakeholders of business is
based on return of company which surrounds on innovation, implication of new technology,
organising of management development programme, etc.
Profit making is essential for business because it aim at creating value for the shareholders
that is investors of business. These are the individuals who shares keen interest in business san

business activities. Value for shareholders is important because making money for investors
denotes success of business to individuals which encourages them to stay loyal partners with
business. Support form investors is a backbone of business which denotes successful
management of business operations. According to Means, 2017, making money out of business
is purpose with respect to passion that is physicians make money but the mission of individual is
to heal. On the other hand, tutors make money but their desire is to educate whereas architects
make profits but the individuals yearn to build.
Profits or generating revenue is necessity for business because it is root for survival of
organisation. Money is the aspect which is required in day to day business activities therefore
earning act as support system for managing systematic flow in business operations. Schwartz and
Saiia, 2012, articulated that firms should go beyond profits for managing value of business
among stakeholders. The authors basically focused on implication socially responsible practices.
Focusing of corporate social responsibility helps business organisation in managing goodwill and
maintaining sustainability in business operations. In accordance with this concept it can be said
that CSR practices are the way of managing successful business operations but for that too it is
important for the firm to have secure amount to invest initiatives and responsible plans.
However, it is argued that sole purpose of many people is making money out of business which
is wrong because the individuals overemphasize profit especially short-term profit because of
which customers’ expectations gets ignored (Why Profit Should Not Be the Primary Purpose of
Business, 2012).
As per the views of Tata and et.al., 2013, the success of the business totally depends on the
ability to earn the nominal amount of profit. Earning profit is one of the most important aspect in
business as only it defines whether an organization would be able to have financial help from
bank. A business which is constantly earning profit is able to attract investor which can funds its
operations and grow its business. Making a profit is essential for a business that desires to
expand its operations. Earning a profit allows organizations to expand their business, merge with
another company, target other market segments and expand the business in global market. The
purpose of business expansion is to further increase the profits of the organizations. Business
who is earning profit and whose only objectives is to earn profit, can hire effective and talented
staff in the organization.

On the other hand, Vischer, 2013, says that profit is not the only objective of business as the
business must look after the economic and social well-being of its employees as they are the
pillars of growth of any form of business. The business must make the job interesting as well as
challenging for the employees which would lead to development of human resources, they must
put the right person in the right job. They must engage in Providing opportunities for promotion
and advancement in career. The grievances of employees must be given prompt attention and
their suggestions.
It is important for the businesses to focus on other objectives as well instead of earning
profits. These objectives includes achievement of financial goals. It has been seen that when a
business grows its size, its objective often changes from just earning of profits to increasing its
size of the market and making sales greater of its produced unites. Instead of just being focused
on the profits when businesses focus on meeting their financial goals as well it helps them to
achieve growth and development whereas only being focused on the profits tends to narrow its
scope of development.
Sleeman 2018, states that when a business is only focused on profits, it tend to lose its
capability of rising from one place to another. Its scope become narrow and the objectives on
which it is stand on does not provides it growth and development. It is important be focused on
other areas as well instead of just being desired of earning profits. When businesses focus
themselves on areas including market growth, fulfilling the customer needs and requirements and
seeking development. It tends to grow and expand themselves completely, but not just on small
scale. Although, profits are the major requirements of business to be focused on these objectives
as well but it helps the business to reach new market segments and develop itself completely.
As per the study of Didier 2019, when a business is only focused on profits it tends to
lose its other responsibilities. Responsibilities such as gaining value is and making its customers
feel valuable is lost by the businesses when they seek profits. It is important for a business to
develop their values in order to gain maximum value within the customers. This allows the
businesses to not only reach and develop themselves to new potential, but to reach a place where
the business is valued within its stakeholders.

The fact cannot be disagreed that the without profits a business cannot perform any of its
activities and cannot even operate. When a business’s other activities such as growth and
development, maximization of the products and services and consumer increase are adjoined
with the goal of profitability. In such manner, a business increases profitability and achieves set
growth as well. It has been an important aspect for the business to achieve required growth and
development because just being focused on the profitability makes the business face risks of
market failure, risks of customer dissatisfaction, etc. In order to ensure that these risks do not
occur, it is important that a business is focused on its other responsibilities as well.
Customer service is another essential and important aspect of a business. It is important
that a business provides its customers with required satisfaction. In order to provide them with
the required satisfaction the organization has to evaluate their needs and have to make use of
other necessary aspects as well (Sleeman, 2016). It cannot be done and ensured when the
business is only focused on earning profits. When customers are satisfied the business gradually
develops its profits as well, but being focused on profits not the customer creates dissatisfaction
for the customers and the business faces issues of profitability, of growth etc.
Although, without profits it is impossible to make the organization reach to wider
audience and achieve set growth and development. Profits are the only reason which makes a
business achieve set growth and development, without profits a business cannot perform and
operate. It is important for a business to have profits, no matter how small or large they are in
order to achieve required growth and development and keep the business functioning. Without
having the right set of profits, an organization cannot provide its employees with the required
salaries or cannot motivate them to work harder. It is important for the organization to ensure
that its needs are being fulfilled and having the right set of profits is the only thing which can
help the organization to ensure all of these requirements.
As per the understanding of Bocken 2015, the organization or a business needs to focus
on its profits only to sustain itself. If the needs of profits reaches further from sustaining itself,
then other aspects needs to be identified as well. These aspects include having an understanding
of the customer market because if the business is not having a right grip on its customer market
while looking forward in terms of growth and development can face troubles. The other aspect

which the organization needs to focus on while looking forward for profitability includes its
employee’s satisfaction. Employee satisfaction tends to make the organization achieve its goals,
whether it be of earning profits. If a business or an organization faces difficulty in any of its
operations, its employees are the only assets which can bring the organization back on its tracks.
Only when its employees are satisfied a business needs to look forward for achieving new
growth and development. Along with it, it is important that other aspects such as business needs
and requirements, growth standards etc. needs to be evaluated before looking forward to the
profit earning scenario.
In the era of globalization, profits has not remained the sole objectives for the businesses
across the world. They tend to focus on maximizing their efficiency, providing their customer
with products of quality, satisfying them and fulfilling their needs and above all ensuring
sustainability (Bocken, Rana, and Short, 2015). A business when is only focused on profits tends
to face difficulties in achieving these objectives and is often not respected in the market. It is
important for the business to understand each and everything that is needed to achieve the set
goals and objectives. This can ensure the success and growth of the business and the profits will
be earned even if they are not the sole objective of the business. It can be evaluated that the
business when focused on not only the profits but provision of services, maximizing the
efficiency and ensuring customer satisfaction can maintain a better place in the market. It can
help the organization to reach new developments and gain new position in the market and most
importantly make it earn required profits as well.
CONCLUSION
The essay summarized perspective of different scholar over why should business focus
on profit making. It is the critical aspect which is responsible for managing smooth flow of
business activities. The essay outlined that profit-making need to be a crucial focus of
organisation which helps business in creating value for stakeholders. Thus, it can be concluded
that profit is the only reason business which is attained by sustainability of business.

REFERENCES
Books and Journals
Bernasconi, A., 2015. The for-profit motive. International Higher Education. (71). pp.8-10.
Bocken, N. M. P., Rana, P. and Short, S. W., 2015. Value mapping for sustainable business
thinking. Journal of Industrial and Production Engineering. 32(1). pp.67-81.
Deer, S. and Zarestky, J., 2017. Balancing profit and people: Corporate social responsibility in
business education. Journal of Management Education. 41(5). pp.727-749.
Didier, C., 2019. Engineering and Business Ethics: Revisiting the Higher Aims of
Professionalism. In The Engineering-Business Nexus (pp. 103-123). Springer, Cham.
Means, G., 2017. The modern corporation and private property. Routledge.
Schwartz, M. S. and Saiia, D., 2012. Should Firms Go “Beyond Profits”? Milton Friedman
versus Broad CSR 1. Business and Society Review.117(1). pp.1-31.
Sleeman, J. F., 2018. The welfare state: Its aims, benefits and costs. Routledge.
Tata, R., and et.al., 2013. Why making money is not enough. MIT Sloan Management Review.
54(4). p.95.
Vischer, R. K., 2013. Do For-Profit Business Have Free Exercise Rights. J. Contemp. Legal
Issues. 21. p.369.
Wilburn, K. and Wilburn, R., 2014. The double bottom line: Profit and social benefit. Business
Horizons. 57(1). pp.11-20.
Online
Why Profit Should Not Be the Primary Purpose of Business. 2012. [Online]. Available through:
< https://www.huffpost.com/entry/why-profit-should-not-be_b_1382102 >.