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What are the drawbacks in considering that the utmost goal of a business is to yield profit possible for the firm?
Wiki User
∙ 11y ago
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mika sika
Anonymous
One drawback is that it can motivate the business's leaders to prioritize profit over things like ethics, the well-being of their employees, and the well-being of their customers. For example, car companies will sometimes sell cars that they know have manufacturing errors that will result in deaths. They've calculated that the money lost from lawsuits related to dead customers is less than the money they would lose by recalling the cars, so selling the faulty cars is the profitable choice. If the company didn't have profit as their highest goal, they might recall the cars instead, which is the ethical choice.
Another drawback is that customers often prefer to buy from companies who do not have profit as their highest motive. One reason is because companies that openly prioritize ethics, honesty, and human well-being over profit will be less likely to sell products that harm their customers. Another reason is that people's personal values generally align more with a company that does not have profit as its first goal.
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