THE ONLY BUSINESS OF BUSINESS IS PROFIT
To borrow a famous line from the movie world and adapt it my way- there are only two kinds of organizations in today’s world-those that have ethics, and those that don’t.
Words that are synonymous with business are buying, selling, money, commerce, trade, and yes, profit. After all, what is a business that does not make a profit? Traditionally, businessmen in India formed a clear stereotype, their only concern was making money, and shrewdness ran in their blood. They knew the rules of the game well, and also how to bend and weave around them.
Now over to the theme. A business is set up to fulfill some primary objectives of the people setting it up. For obvious reasons, food comes first, and then ethics. So profit is definitely one of the larger goals in the minds of the businessman. And everyone knows that an ailing business finds no takers.
But all said and done is profit the only business of business? In this highly competitive scenario that is today’s world, customers are well aware of the policies adopted by different companies, thanks to an active media and interest on the part of the people. Customers now want to know what goes into the food they eat, the fairness cream they use, or the drinks they consume. And companies can no longer be complacent with the quality of their products, because the Indian consumer has certainly developed a discerning taste. Eg. After the recent case of pesticides being found in Coca-Cola and Pepsi drinks, the companies will find the going very tough if they keep flouting standards. With the opening of the Indian markets, the customers are really spoilt for choice, and brand loyalty doesn’t go too far in today’s world. So the customers can definitely not be taken for granted.
It is this factor that has changed the way businesses are run today. Companies today are no longer just profit-making machines, they also have a social responsibility to consider, and it is the humanitarian causes that some companies promote that remain etched in the minds of the people for a long time to come. Bill Gates called it “ giving back to the people what you have earned from them “.
Humanitarian issues apart, it is also the service offered to the customers by a company that can build or tarnish its image. Since products from different companies are nowadays becoming convergent, with very little to differentiate between them, factors like customer-relationship management have begun to play an important role in formulating public opinion. And it is a well proven fact that the Indian consumer is once bitten, twice shy. If a company doesn’t maintain a good relation with its employees and customers, it doesn’t really last long in the rat race.
To conclude, profit has definitely ceased to be the only business of business.
June 12, 2009 at 1:28 am
i’m not convinced at all…. u say profit has ceased but i dont think it has ceased.. take the recent case of the satyam fiasco..just in a hurry to earn a few thousand crores, Mr. Raju fudged accounts and in-turn hurt the feelings and nearly ruined the lives of 53 odd employees.. and comin to the aspect of corporate social responsibility, the media only traces the people who make noise about adopting villages and the adopted villages are usually the ones with many amenities.. but what about the villages without even basic amenities.. why doesnt anyone even care for them?? the word CSR has become very common but all the MNC’s only donate a small amount to it in order to have the benefit of tax exemptions…