Profit is the only business of any company!

Profit is the only business of any company!

Profit is the main motive behind any organisation’s establishment. But while money matters, is profit the only motivation for any business? What about other aspects like corporate social responsibility and ethics? Just how important are these in any industry, company or business?

Does money work as a sole motivation for businessmen and entrepreneurs or is business something more than that? Let us examine both sides of the coin and see whether what counts most in any business is its profit and if a company’s sole aim is to maximise revenue and maximise profit if it means a compromise on ethics and honesty.

Yes

1. Rich get richer only because they pursue profits - Businessmen are getting richer nowadays and it is definitely not based on any contribution for social causes.

2. CSR is a mere formality - Social work carried out by corporates are minimal as against assets taken from society. CSR has been reduced to mere lip service and there are no formal obligations on the part of the enterprise to engage in social welfare activities.

3. Capitalisation is the only principle of business - Capitalisation is the basis on which businesses are conducted. The principle of capitalisation is based only on profit.

4. Environmental degradation is a reality - Nowadays, businesses do not care for ethical aspects such as responsibility to the environment or committing ecocide. Environmental degradation and pollution are a reality in today’s word where businesses are spreading different kinds of pollution within the environment.

5. Corruption is on the rise - More and more businesses are preferring to give bribes and get orders rather than refraining from such activities. Corruption is on an all time high and all sorts of scams from coal scam to 2G scam abound.

6. Ethics takes a backseat - Ethical principles have become a secondary consideration and profit has become the main motive of industries. Lobbying and giving bribes have become the order of the day.

No

1. Profits reach charity - Each well established corporate house is giving sizeable portion of profits to charity. From the TATA Group to Reliance, all the major corporate conglomerates have worked in key areas such as education and low cost housing. Poverty alleviation remains high on the agenda of several companies which are supporting NGOs and world bodies for doing away with economic inequalities. Most of the well known companies are involved in considerable amount of CSR initiatives.

2. Business helps in nation building - Industries and companies within different sectors are providing employment as well as taxes to society and this goes a long way towards nation building. Through generation of taxes, a lot of public activities are funded and infrastructure development is possible. Employment provides spending and purchasing power to employees who rely on companies for their survival.

3. Core Capitalisation is no longer a target - Organisations are now managed by groups of people rather than single individuals. The result of this is that profit does not remain the only motive. With the diversification of management and a company board to oversee affairs, capitalisation and solely profits are no longer forming the core of any business. Other factors like growth, expansion and stability are equally prized.

4. Workforce diversity has led to multiple goals - Enterprises now have ethnically and culturally diverse workforce. The upshot of this is that the contributions towards the field of social welfare have advanced beyond a mere periphery. This is because the more diverse a workforce, the more varied its social interests. This has directly influenced the variety of social causes that are being upheld by companies. Many company employees work hard to create positive conditions such as wealth and prosperity in their native place using the resources of the company via CSR initiatives. This has changed the way companies look at profit and social welfare in a fundamental way.

5. Young entrepreneurs are attracted more towards the success and reach of product – The young entrepreneurs these days do not run just after the money. They quit the high paying jobs to work 24 X 7 on their startups. What motivates them is the change they can bring, the success of their product and the satisfaction they derive out of all this. Profits eventually fall in line with the hard work.

Conclusion

Any industry’s only business cannot remain profit, if it intends to be truly enriching for society. The paradox lies in the fact that those pursuing only wealth and neglecting social welfare will never expand to the point where they can capitalise on the business. Pursuing CSR initiatives offers more than just tax benefits for companies. It also gives them positive publicity and creates a good image. Apart from this, it also contributes to social welfare and progress. Therefore, profit cannot remain the sole motive of any business which wants to grow and expand. As the community thrives, the business grows. Looking at one aspect without considering another is hollow and erroneous. Profit is just one of the many aims that a healthy business should have, alongside aspects like growth, stability, corporate social responsibility, social welfare initiatives and ethical codes of conduct, for it to truly prosper.