strategy
Making profit
Claim:
The Church acknowledges the legitimate role of profit as an indication that a business is functioning well. When a firm makes a profit, this means that productive factors have been properly employed and corresponding human needs have been duly satisfied. But profitability is not the only indicator of a firm's condition. It is possible for the financial accounts to be in order, and yet for the people - who make up the firm's most valuable asset - to be humiliated and their dignity offended. Besides being morally inadmissible, this will eventually have negative repercussions on the firm's economic efficiency. In fact, the purpose of a business firm is not simply to make a profit, but is to be found in its very existence as a community of persons who in various ways are endeavouring to satisfy their basic needs, and who form a particular group at the service of the whole of society. Profit is a regulator of the life of a business, but it is not the only one; other human and moral factors must also be considered which, in the long term, are at least equally important for the life of a business. (Papal Encyclical, Centesimus Annus, 1 May 1991). Problems:
Accountability based solely on profitCultural traditions blocking business profit
Unethical profit-making
Profit-motivated utilization of construction technology
Profit-oriented interest payments
Short-term profit maximization
Underground economy
Values:
Profiteering References:
Papal Encyclical: Centesimus Annus Subjects:
Commerce → FinanceType Classification:
E: Emanations of other strategies