Profit Is Not The Purpose Of Enterprise

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Profit is not the purpose of enterprise Introduction Many people mistakenly think that the purpose of the company is simply to make money. In fact, profit is actually just an important result of the existence of a company. The real reason for company existence has to be further studied. Companies need profits, but more importantly they must have the social responsibility. Companies have a great responsibility to their employees, customers, suppliers and the general welfare of society, as well as the ecological environment. It inevitably comes to a conclusion that the existence of the company is to be able to complete a work which cannot be done by one person. It actually is a kind of contribution to society. But now, it can be seen that…show more content…
For one hundred percent of the profits, all human laws will be trampled by these capitals. If there are three hundred percent of the profits, any crime will be committed, even with the risk of strangulation (Marx, Engels, & Levitsky, 1996). For example, before Enron declared bankruptcy in 2001, it had about 21,000 employees and was one of the world 's largest electricity, gas and telecommunication companies. The company had been named as "America 's most innovative company" by Fortune for six consecutive years. But the real cause of Enron famous in the world was financial fraud scandal which made this company with hundreds of billions of assets in bankruptcy within a few weeks (Cahan & Zhang, 2005). Therefore, it can be seen that the pursuit of profit as the purpose of the enterprise inevitably causes the emergence of various cases of unsustainable development, thereby harming the enterprise, society, the community, the environment and the staffs. The purpose of business is to provide goods and services, thus contributing to society. Despite obtaining profit is not a fundamental purpose of business, profit and purpose are not in confrontation. There are correlations between profit and purpose. First, profits are the result of corporate contribution to society. If the business provides the community with the necessary products and services in an efficient way, then the business will earn profits. Therefore, profit is
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