Question

Based on our class discussions and readings of Chapter 3 - The prioritization of stakeholders can affect whether the organization sees profit as a means or an ends. What do you think profit is eventual purpose of profit oriented organizations or it is only a means to other ends that themselves establish real purpose of the organization? Please discuss with your own mind and thoughts.

Answer 1

In my opinion, talking specifically of profit oriented organisations I believe their ultimate and eventual objective is to earn profits, inorder to maximize the earnings or to get returns from business. I presume it to be the ultimate goal of starting a profit based business. So profit oriented business generally and mostly undertake profit earning as an end rather than means. It is the eventual objective which is attained through various means which become short term objectives of organization such as brand image, good will, stakeholder interests, customer centric approach etc. These all encompass the activities including environmental concerns, CSR etc. to increase operations of business to maximize sales which in turn maximises profits or earnings.

However I can also not deny that there have been many cases where a profit oriented business which originated with profit motive shifted its focus and purpose towards philanthropy or whose outcome is directed towards environmental wellbeing, empowerment, social evils etc. So it is not appropriate to say that there are no exceptions to this general rule or opinion.

Profit oriented organization may thus use the profit motive of organisation for accomplishing the real purpose of the organization.

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Thanks dear student..my own words used..Hope this will help...good luck.. Rate if satisfied..