Friday, April 4, 2014

Why profit maximization is not always the aim of a business firm?

Why profit maximization is not always the aim of a business firm?
Profit maximization can often mean sacrificing other things to obtain it which isn't desirable in alot of cases. An example is the environment or abusing human rights. As society has evolved theres been an increased demand for Corporate Social Responsibility (CSR) and this has led to alot of companies not directly aiming for profit maximization.

Thats not to say that profit maximization and a CSR approach can't co-exist, companies such as general electric capitilize on this new demand for CSR to actually profit.

Look up corporate social responsibility for more info, its a huge topic these days

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