Question

in capitalism, most businesses have a profit motive. describe at least one reason that businesses with a profit motive may be helpful for society and at least one reason that they may be harmful for society. then explain whether you think profit motive is a good thing or a bad thing for society ?

Answer 1

Managers leading firm with their total focus on Increasing Profit ... May cause Societal Cost which is a cost that every Bad firm makes like Tobacc Manufacturing Co. - Health cost .... Societal Cost can't be charged back 2 firm as Economic Cost ...

For the Second part of ur question... I think Profit making objective is good as it forces Firm to utilize Scarce resources efficiently ..... still it needs to be more refine like Firm's decision making process should be carried out to Increase Firm Value but not at the Societal Cost.

Answer 2

Profit making businesses help create jobs, innovation and social wellbeing.
They might be harmful if they only seek profits, without any environmental or societal concerns.

Answer 3

Long term sustainability in non-profit making social enterprises can be maintained through a profit motive. However, sole emphasis on the profit motive invariably has associated social costs (e.g. environmental pollution).