The essence of business can not be determined or explained in terms of profit. Concept of revenue maximization is meaningless. Profit is not a goal, but restrictive factor for profitable organization. Profit is not the substantiation or cause of business decisions. Guru of management Piter Druker has rightly pointed, that the goal of business should lie beyond the business itself. In fact it should be located in the public sphere.
Specialist on organizational development Peter Senge points the false view point on organization as a machine of profit: organization should be considered as the living organism.
Arie de Geus thinks that as all the organisms, the company’s goal is life and perfection – to realize its potential and gain maximum results.
In fact profit is a remarkable goal, if it is fair. If company takes damage, it dies the same as the human, left without food. But it doesn’t sense, that the goal of life is food eating.
I’d prefer that companies determined their role as “creation and satisfying customers”, and of course it means gaining the reasonable profit. In fact, the problem is not in profits or revenues, but in their distribution.
