The responsibility of a business is to increase profits…but is that all?
December 14th, 2010 | 
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I understand that businesses open and are created to make money…but is that still the ONLY reason today?
Does a business not also have the responsibility to create value in its society? Such as employee value, customer value, supplier value, environmental value…?
You might say that by creating this value, they are just trying to make everyone happy, which then leads to increased profits…but can’t it be that they are trying to make everyone happy so that they don’t LOSE profits, rather than increase it?
Am I thinking of this the right way?
Just because a business’s primary goal is to make a profit, doesn’t mean the business is doing anything wrong. Aside from a few greedy jerks, most businesses owners have boundaries and morals that they operate within. Having a primary goal doesn’t mean you’re willing to do anything to achieve that goal, it means you have that goal in the back of your mind when you make decisions.
One of the great things about free-market capitalism is that it naturally forces businesses to add value to society. If businesses don’t offer a good product at a fair price, they’ll go out of business. If they don’t pay their employees a fair wage, they’ll lose their employees. Businesses that don’t provide value to society will naturally disappear.
You might think that big corporations oppress their workers by paying low wages and giving out huge bonuses to executives, but nobody is forcing the low wage employees to stay. They have every right to go find a new job. If they choose to stay, then its either because they aren’t looking or because they can’t find anything better. If you can’t find a job that will pay you what you think you’re worth, then its because you’re over estimating your value, not because every business is oppressive.
Posted in Creating Customer Value
I just want to point out that many businesses are NOT in it for the money. Ever heard of an NPO… not for profit organization?
http://en.wikipedia.org/wiki/Non-profit_organization
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its not all about the money. Business’s do need good profits but customer satisfaction, employee value, tidyness, and what the business does. Chic fil ay is a great fast food restuarnt that does all. I am a chic fil ay manager and we (all employees) are required to make eye contact with the customer and ask hwo the he/she is doing and such. Chic Fil ays are one of the most cleaned restaurnts i have ever seen. Customers dont want to sit down at a dirty table and you reach over the table and clean it. We make sure that we have someone cleaning the dining room, kitchen, bathrooms, counters, and over the counter from 6:30a.m til 11:00 at night. Being fast on getting food out is also a very valuable thing. If someone is in the drive through the window should be open at all times until the customer leaves and if he is there for more than 2 min or over the operator of the store will want to know whats up and why he is sitting thier waiting. So being fast is a good thing also. Employee Value is also a good thing, We get bonus’s randomly. Holidays, Birthdays, or just being apart of the chic fil ay team. I hope you can interprett what im saying and i hope i answered your question. We also give away a lot of food and do a whole lot of fundraisers.
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Just because a business’s primary goal is to make a profit, doesn’t mean the business is doing anything wrong. Aside from a few greedy jerks, most businesses owners have boundaries and morals that they operate within. Having a primary goal doesn’t mean you’re willing to do anything to achieve that goal, it means you have that goal in the back of your mind when you make decisions.
One of the great things about free-market capitalism is that it naturally forces businesses to add value to society. If businesses don’t offer a good product at a fair price, they’ll go out of business. If they don’t pay their employees a fair wage, they’ll lose their employees. Businesses that don’t provide value to society will naturally disappear.
You might think that big corporations oppress their workers by paying low wages and giving out huge bonuses to executives, but nobody is forcing the low wage employees to stay. They have every right to go find a new job. If they choose to stay, then its either because they aren’t looking or because they can’t find anything better. If you can’t find a job that will pay you what you think you’re worth, then its because you’re over estimating your value, not because every business is oppressive.
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