Jurnal manajemen bisnis dan kewirausahaan

Answer:

Introduction

But there are many arguments that have been stated against this idea of profit maximization, like social activist Naomi Klein's book The Shock Doctrine, in which it states that this action by the companies or increase the wealth of the shareholders leave negative impact on the society and they must suffer because of that (Klein, 2007). There are also chances that they do not get the desired returns that they want and the actions of the company such as indulging in frauds so that their overall profit is high is very negative and can affect the society very badly (Cundill, et al., 2017). Another argument that can be stated in this behalf is that many companies indulge in such activities that have negative impact on the environment and thus it is important that they take necessary steps that can help them reduce this but that often can lead them reduction in the overall profit that they make, so for the investors it is a negative thing but when it comes to long term success being responsible towards the society is important and especially to the environment to which the company operates as the business is getting its raw material from such sources only, hence the aim is to make as much profit as possible but providing to the society also. The investors have also started looking at other aspects to decide which business they want to invest in and profit is not only the one criteria that they look for. The business should aim for long term success that is supported through actions which are feasible for all the stakeholders that includes the investors, the government, the customer, the society etc. all that is dependent on the company in some way or the other. In case the business fails, the company shall not be able to support their needs and thus there should not be too much focus on earning profit and corporate social responsibility should be recognized and practiced (Sinclair, et al., 2007).

Many researches have stated this fact that there has been this discussion that has been going on from ages on what drives the business and what is the end aim of any business, and most of the arguments have been in favor of the concept of profit maximization and shareholder wealth maximization, but now what we see is that this approach as changed and authorities have understood how important it is to protect the environment and the companies are thus aiming for sustainable development that would help in global development and success both for the present and the future. Investors and shareholders are the backbone of any company, but the fuel to drive the same should not be to increase the profit only, but the overall responsibility towards the society should also be addressed.

Boghossian, P., 2017. The Socratic method, defeasibility, and doxastic responsibility. Educational Philosophy and Theory, 50(3), pp. 244-253.

Cayon, E., Thorp, S. & Wu, E., 2017. Immunity and infection: Emerging and developed market sovereign spreads over the Global Financial Crisis. Emerging Markets Review.

Johan, S., 2018. The Relationship Between Economic Value Added, Market Value Added And Return On Cost Of Capital In Measuring Corporate Performance. Jurnal Manajemen Bisnis dan Kewirausahaan, 3(1).

Kang, D., Yu, G. & Lee, S., 2016. Disentangling the effect of the employee benefits on the employee productivity. The Journal of Applied Business Research, 32(5), pp. 1447-1458.