Company
Making a Profit
T
he first goal of any commercial business is to make a profit for itself and its shareholders. If it does not, it will soon cease to exist. However, this does not mean that a business should do anything it can to make a profit. On the contrary, business leaders must keep their long-term goals in mind and occasionally this will mean turning down the most profitable course of action.- First, a business must. of course, not do anything illegal, even if by doing so it can earn a large profit. illegal business activities are not only morally wrong, but will eventually hurt the business when the law catches up with it.
- Second, some business activities are profitable in the short-term, but will lead to loss in the long run. For example. a logging company will make a great deal of money by simply cutting down all the trees it can, but if it does not preserve the land aFnd plan for the future, the business will fail in the end.
- Third and last, a business should sometimes forego profitable business opportunities if they will lead to public condemnation. Public relations and customer goodwill are very important to the long-term health of a business.
To be brief, a business should not always do anything it can to make a profit. Rather, it should consider the future and make the best decisions for the long-term success of the firm. This may mean it has to make decisions that are unprofitable in the short-term, but bring greater benefits in the future.
