Question

Examine the main different types of values that a company could seek to maximize. Give your opinion as to whether or not a company should maximize its profits or social good, when these two (2) are in conflict. Provide a rationale and / or a real-world example to support your response.

Answer 1

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Organizational values describe the essential ethics or principles that the business will adhere to. Organizational values are abstract ideas that guide organizational thinking and action. Organizational values represent the basis on which business is formed. Determining the unique values of an organization is the first and most critical step in its formation and development.

Here are five types of the most important value.

1. Integrity:-Integrity is not a simple matter. It is especially easy for business people to lie.

2. Responsibility: -The value of responsibility is the willingness to take responsibility for your actions.

3. Diligence:-There are many individuals who compare the equivalent treatment to diligence.

4. Encouragement:- employees require faith, and some businesses can put nothing on trust and determination.

5. Discipline: -We know about the discipline of modern business, Because of our passion for making things simpler, we try to deceive them and make them easier.

The company maximizes profits by working where marginal income equals marginal cost. Changes to fixed costs do not affect maximum production or price increases. The company only handles fixed costs in the short term as the costs are fixed and continue as before. The goal of maximizing profit is to reduce risk and uncertainty in business decision making and operations. The company must maximize profits with social benefits. To maximize profits to minimize losses, businesses must produce the amount of marginal income equal to marginal cost. This rule applies to all market structures.

Example: A small farmer who produces raspberries and sells for $ 5 per frozen. If you sell a raspberry package, you get $ 5, 2 packs for 10 dollars, 3 packs for 15 dollars, and more. For example, if the price of frozen raspberries doubles to $ 10 per pack, raspberry packet sales are $ 10, $ 20 for two packages, $ 30 for three packages, and so on.