'Profit maximization is not the sole objective of a business'. Discuss

While the importance of profits cannot be ignored, earning profit cannot be the only objective of the business; it has to achieve other economic and social objectives too. The sole aim of earning profit has the following effects on a business :

  1. Ignores the interest of workers : Labour is one of
    the most important factors of production. Profit maximization by-passes the interest of workers in the way that they do not get fair remuneration and hence are not motivated. In the absence of motivation, they will not work upto their full potential. Resultantly, quality and standards of the products and services will deteriorate and will ultimately lead to losses.
  2. Ignores the interest of customers : Customers are
    very important for every business in the sense that without their existence, even thinking about business is merely a dream. Profit maximization by-passes their interest because goods/services are over priced which ultimately leads to reduction in this number of customers, reduction in quantity of sales and thereby reduction in profits.
  3. Ignores the interest of society: Profit maximization
    overlooks the interest of the society in which it works. It may propel a businessman to indulge in unfair trade practices like hoarding, black marketing, etc.
  4. Ignores long-term interest of the business itself : Profit maximization may be the objective for the : short-term, but in the long-term it may lead the business to a dangerous position where it could become very difficult for the business to even survive.