Primary purpose of any business is to make commitment to doing business in a way that is ethically, economically sound and socially responsive to the need and the wants of the company’s stakeholders. Stakeholders include customers, suppliers, employees, shareholders etc. And if any of these stakeholders cannot get what they need from the business will always get fail. Of course profit or bottom line is the part of the business which everyone has to think about that but purpose of any business should always be beyond the profits. Business should not only be responsible for stockholders but also for stakeholders. It requires acceptance and dedication to its value, understanding the problems or complexities of society and individuals and finding those solutions to solve the people problems.
Many businesses and people think that the primary responsibility of any business is to always think about the profit. So the businesses who think that they have to only concern for profit and nothing else. So my question is, any business should think profit at what cost. By following all unethical practices, greed’s etc. In past many businesses collapse because they always thought about the profit and due to this they followed all unethical approaches to gain lots of profits, which ultimately made them to go out of business. I don’t say business should not think about the bottom line, every business should think about the profit but profit is only for sort terms but in a long term or in a long run only those business survive who have a strong philanthropy or highly social responsible and have a good reputation in front of customers and in the market.
Even if business thinks that they have to make profit and they are in the business only for making profits. So in my opinion they are making profits not only by producing and selling their products and services but directly or indirectly stakeholders are helping businesses to make their profits. For example, customers are going to buy only those company products who had good image in the market and to whom they can trust, employees are going to work with those company’s only who respect them, suppliers can have partnership with those company only to whom they rely on. And also shareholders are not concern were their money are floating, they are more concern about the increase in the long term value of shareholders. Most of the people think that share price of any company increases because of the company profits. More will be the business profits, higher will be the price of shares. But the share price of any company’s rises not only by its profits but also due to its reputation, as people are going to buy those company shares only that they know what its market values. Therefore it’s very important for any business to not only think about profits as a primary purpose but they should also think about their stakeholders, society etc. And the businesses which are selfish in motivation, narrow in outlook and instrumental in behavior is rarely successful business.
