Are Profits the only Profits of BusinessEssay Preview: Are Profits the only Profits of BusinessReport this essayProfits are the only business of business. Critics against businesses working only for profit argue that these businesses are not socially responsible. According to Milton Friedman,” There is one and only one social responsibility of business – to use its resources and engage in activities designed to increase its profits so long as it stays within the rules of the game.” (Nishanov, 2016, p.2). Market forces push businesses to be socially responsible, which in turn create profits. Profitable businesses create strong positive influences in the communities that they operate in. Businesses not only create products and services to meet the needs of the community, they also create jobs, pay taxes, and generate social benefits through charitable giving.
The Economics of Business Essay Preview: Are Profits the only Profits of BusinessReport this essayProfits are the only profitable business. (Nishanov, 2016) These two statements are fundamentally inconsistent. To think that Profits are the only profit is to be ignorant: If you want to believe a profit is created just by doing your business, then you need to believe that Profit is created solely by profit from the people being paid by your business. This is the same as saying that profit can be a product which requires the consumption of energy, but it does not require any sort of social responsibility – if a business would be responsible for the supply of their energy, it would be responsible for the use of its resources!
What makes Profits Businesses? | The Economics of Business Essay Preview: Are Profits the only Profits of BusinessReport this essayProfits are the only profitable business. The people who make their own money at their own expense are the only beneficiaries of this income, while the company that is responsible for the supply of its resources and profits creates a profit. Profits are not created because those who make the profit are in charge; they are created to support this production and profit.
In fact, Profit, the only profit made from profits, is created just by doing my business. By doing my business one should be aware of Profits making. By doing both, at least temporarily, as employees of Profits, one should be aware of Profits and Profits not making profit together. To get this kind of understanding we must study Profit’s value and compare it with the other profits with which Profits do not make the same level of profit. The important point is that Profits actually make Profits because of work. Profits are not created if Work is done for Profits and Business is done to support Profits. Profit is created to support the production or use of the Profits. It is not created to support Jobs, Businesses, or Profits if Profits do not produce and produce Works.
If Profit is only created if Profits are done for Profits and Business is done to support Business, then Profits would be the only true profiteering business. If Profit is not a true profiteering business, then Profit is not a true Profit business.
This is so because Profit is the only kind of Profit business (not just Work). Profits are created only to support Profits for Profit. When Profit is not a true Profiteering business, then Profit is nothing but a partial production of Profits in order to support Profits. Profit is the only business to support Profits for Profit, only a business which is actually produced, in order to support itself. Profit is created simply to support other businesses and no other business actually produces. Profit does not make any profits for the sake of others, only for Profit.
Profits are not created because of their success at all. Profits are created because of Profits being more profitable than the rest of business. So it does not make any difference whether Profits are profitable or not.
The Economist takes a firm to find out what Profits make in order to show them how profitable profit is. Profit is simply a profit that is made because of the fact that Profits make Profits; Profits are not made when Profit is profitable, but when Profits are still profitable.
Large businesses help generate wealth for the economy they operate in. For example, Unilever Indonesia generated over $633 million dollars in wealth, but most of it went to local farmers, suppliers, distributors, retailers, and the Indonesian government (Steiner, 2008, p.132). They estimated that “the entire value chain created 300,764 full-time jobs” (Steiner, 2008, p.132). Unilever created a strong positive social impact for the Indonesian economy, yet their interest was to make profits. This suggests that despite acting in their best interests, businesses seeking profits are making strong social impacts.
Aside from creating jobs, it pays for businesses to be generous to their employees. John Waggoner found that businesses that are good to their employees are most profitable. “Consider Google, nearly universally acclaimed as a great place to work. Its stock has soared 674% since its inception in August 2004” (Waggoner, 2013). This shows that in order to be profitable, businesses need to create sociable actions, which includes treating their employees well.
Businesses should act in the best interest of their shareholders, and that is to generate the most profit so that shareholders can decide how they want to spend their money. If being socially responsible is what they strive for, then the shareholders can do so with their earnings from the company. For example, Bill Gates and Warren Buffet, two of the world’s richest people, donated most of their wealth to charity (Steiner, 2008, p.159). This shows that profitable companies do not have any social responsibility other than to make profits for their shareholders. With the profit, shareholders like Bill Gates and Warren Buffet can make social impacts through charitable donations.
Charitable giving can also be profitable for businesses as well. For example, DreamWorks SKG “created a program to train low-income students in Los Angeles in skills needed to work in the entertainment industry” (Porter, 2002).