Are Profits the only Profits of Business

Profits are the only business of business. Critics against businesses working only for profit argue that these businesses are not socially responsible. According to Milton Friedman,” There is one and only one social responsibility of business – to use its resources and engage in activities designed to increase its profits so long as it stays within the rules of the game.” (Nishanov, 2016, p.2). Market forces push businesses to be socially responsible, which in turn create profits. Profitable businesses create strong positive influences in the communities that they operate in. Businesses not only create products and services to meet the needs of the community, they also create jobs, pay taxes, and generate social benefits through charitable giving.

Large businesses help generate wealth for the economy they operate in. For example, Unilever Indonesia generated over $633 million dollars in wealth, but most of it went to local farmers, suppliers, distributors, retailers, and the Indonesian government (Steiner, 2008, p.132). They estimated that “the entire value chain created 300,764 full-time jobs” (Steiner, 2008, p.132). Unilever created a strong positive social impact for the Indonesian economy, yet their interest was to make profits. This suggests that despite acting in their best interests, businesses seeking profits are making strong social impacts.

Aside from creating jobs, it pays for businesses to be generous to their employees. John Waggoner found that businesses that are good to their employees are most profitable. “Consider Google, nearly universally acclaimed as a great place to work. Its stock has soared 674% since its inception in August 2004” (Waggoner, 2013). This shows that in order to be profitable, businesses need to create sociable actions, which includes treating their employees well.

Businesses should act in the best interest of their shareholders, and that is to generate the most profit so that shareholders can decide how they want to spend their money. If being socially responsible is what they strive for, then the shareholders can do so with their earnings from the company. For example, Bill Gates and Warren Buffet, two of the world’s richest people, donated most of their wealth to charity (Steiner, 2008, p.159). This shows that profitable companies do not have any social responsibility other than to make profits for their shareholders. With the profit, shareholders like Bill Gates and Warren Buffet can make social impacts through charitable donations.

Charitable giving can also be profitable for businesses as well. For example, DreamWorks SKG “created a program to train low-income students in Los Angeles in skills needed to work in the entertainment industry” (Porter, 2002).