• Topic Statement: whether or not profit is the only business of business
Introduction
In this essay, I discuss whether or not “profit is the only business of business”.
I submit that though profit is the main goals of most firms’ ongoing operations, there are
some types of firms and organizations, with different objectives.
Publicly traded goods require decent and steady earnings in order to compensate for their
shareholders via dividend returns. Others use some of it to invest in plants and capital
goods. Yet in this work I will discuss in my individual analyze two groups of businesses
that may invest and even be publicly traded, or operational stages, and in the literature
review section I will be giving three references that support the sentence “profit is the only
business of business” and three references that argue with this sentence. The purpose of
this analyses review is to state clearly in what cases profit is not the only business of
business.
Literature Review
3 references when profit is not the only business of business
– In the Marketing Crossing website, Anique Gonzalez explains Peter Drucker’s statement
when he said that the principal of a business is not making money to its investors. “Many
would argue that the principal role of a business is to make money for those who have
invested in it, and as a result, many corporate decisions are often made with the sole goal
of increasing profits. However, according to the late Peter F. Drucker, the forefather of
modern management, this view is erroneous.” Drucker elaborated, “Because the purpose of
business is to create a customer, the business enterprise has two—and only two—basic
functions: marketing and innovation. Marketing and innovation produce results; all the rest
are costs. Marketing is the distinguishing, unique function of the business.”
Ultimately, Drucker’s message was simple: if marketers do their jobs correctly, meaning
that they focus on their consumer and incessantly innovate, then all other aspects of the
business should fall conveniently into place. Drucker explained, “The aim of marketing is
to make selling superfluous. [It] … is to know and understand the customer so well that the
product or service fits him and sells itself. Ideally, marketing should result in a customer
who is ready to buy.”
– According to Lisa Earle McLeod in her blog at the Huff Post Business, many people
believe that the sole purpose of business is to make money. They’re wrong. When you
overemphasize profit – particularly short-term profit – you wind up creating a culture that
