Undermining of The Profit Ethic

Undermining of The Profit Ethic

Undermining of the Profit Ethic

The five economic revolutions have led to a business and economic system in which the profit ethic is not operational for the large corporation. An operational business ethic, to be effective, must be based on a realistic appraisal of the social and political environment in which big business functions. If they are to develop an ethic upon which to base day-to-day decisions, managers must see things as they are, not as they would like to see them. and things as they are are not compatible with the single-minded pursuit of profit. Cooperation is gaining relative to competition in the organizational society; and politics, compared to economics, is making progress as a way of getting things done. The big-business company is becoming the key social institution in UK society. There are so many purposes and facets to its activities that a simple goal of profit maximization is not practical. Managers now recognize that their social role is more complicated than that of the nineteenth-century captain of industry. They are expected to guide the company in fulfilling its manifold social obligations, not just to make as much money as possible for themselves or the stockholders. They are responsible to society at large in the employee-oriented society created by the property revolution. Managers and government officials, influenced strongly by customers and voters, are the ones who make big-business capitalism work, not natural laws of the universe.


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