Business maximizing profit and shareholder equity
Kelly Corey
Busi1200 601
When it comes to businesses they are often seen as entities that exist solely only to
maximize their profit and shareholder equity. This perspective would be rooted in the belief that
the primary goal is for any business to generate financial returns for its owners and investors.
While the focus on profitability is essential for the success and sustainability of a business, it
also raises important questions about the ethical considerations involved in profit maximization.
One of my key arguments in favor of businesses prioritizing profit is that it would allow
them to grow, innovate, and then create value for their stakeholders. More profitable
businesses can reinvest their earnings into the research and development, expansion, and
employee training that goes along with this. This would ultimately lead to increased productivity
and competitiveness. With this being said the profits can be distributed to the shareholders in
the form of dividends or used to attract new investors, which would ensure the continued
financial support for the business in need.
However, with that being said the pursuit of profit can sometimes come with a cost.
Ethical considerations may also be overlooked in favor of the short-term financial goals and not
the long-term goals. This could lead to decisions that would harm the employees, the
customers, and the society as a whole. This would raise questions that are important like the
responsibilities that the business has towards their employees and the society at large. By
looking at both the ethical implications and impact on employees and society of prioritizing
profit maximization, the business would be able to gain a better understanding of the complex
role that the business would play in the current economy.
Ethical considerations have been proven to play a very crucial role in any business's
process of profit gaining within the business. When any business prioritizes profit without
looking after the well-being of their employees this can very much lead to negative
consequences for that business. This can look at low wages, poor working conditions, and also a
lack of job security along the way. This would not only harm the people working for the business
but in the end harm the business and community as a whole.
Employees who are not treated the correct way will experience lower levels of job
satisfaction and much higher turnover rates within that business. It will also show a decrease in
the productivity among the business. This will create a cycle of instability within the workforce,
and affect the business as a whole. This will contribute to social inequality and perpetuate
systemic issues within the society of the business and the community.
