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Maximizing Profit

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I argue that a business has a responsibility to maximize its profits and that for a business to maximize profits for its shareholders it must at least adopt a pseudo-stakeholder theory of operation representing social responsibility although it has no moral responsibility to be socially responsible. To facilitate this argument, I will use the definitions of those terms as presented by the authors in the book. The stockholders invested their money for the purpose of earning a return on that investment in the form of more money, not in the form of social and moral gratitude from every stakeholder involved with the corporation. Management must take that intention and do their best to see that it is realized. To do so they have to be concerned with the opinions and feelings of all of the stakeholders associated with their companies. If a management team operates a corporation in a way that they show the stakeholders that they are only concerned with the bottom line, then those same stakeholders, and more specifically the consumers, will react to that in negative ways. Theyll look for substitutes to the corporations products or determine that they can live without the products and thereby lower the corporations revenues. If the corporation is not run environmentally efficiently then the towns and cities that are home to the corporations factories and offices will no longer welcome them and may take measures to force the corporation out of their towns. If the corporation habitually takes advantage of its suppliers, theyll look for new customers and stop doing business with the corporation in question. This would force the corporation to expend resources and assets to find new suppliers or to fill the gap that the lost supplier once filled. These are merely three examples of why a corporation should be socially responsible when it conducts business, but by no means do they

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