This preview shows page 1. Sign up to view the full content.
Unformatted text preview: rn, usually translates into higher productivity. On the other hand, taking the most ethical course of action may in many cases reduce profits, in the short run and beyond. Consider the details of a merger in which both firms hope to profit from a synergy gained thereby. If the details of the merger hinge on the ethical conviction that as few employees as possible should lose their jobs, the key executives may lose sight of the fact that a leaner, less laborintensive organization might be necessary for long term survival. Thus, undue concern with ethics in this case would results in lower profits and perhaps ultimate business failure. This merger scenario points out a larger argument that the speaker misses entirelythat profit maximization is per se the highest ethical objective in private business. Why? By maximizing profits, businesses bestow a variety of important benefits on their community and on society: they employ more people, stimulate the economy, and enhance healthy competition. In short, the profit motive is the key to ensuring that the members of a free market society survive and thrive. While this argum...
View Full Document
This note was uploaded on 05/05/2009 for the course ECAS asdfasdf taught by Professor Asdfaf during the Spring '09 term at Academy of Art University.
- Spring '09