Business Beyond Profit Motivation

Business Beyond Profit Motivation

• Establishing and sustaining a business enterprise is important as a source of job opportunities and financial freedom.
• Employees should play active roles as decision makers in the business enterprise.
• Developing new products and introducing innovative ways of doing business is crucial.

Social Responsibility

• Social responsibility is the obligation of an organization's management to make decisions and take actions that enhance the welfare and interest of society as a whole.
• Managers must be responsive to a broad spectrum of societal groups, and society plays an integral role in the success of their business.
• A responsible business enterprise (RBE) should improve its business performance, return a profit to its owners and investors, and increase the prosperity of its community by meeting the reasonable expectations of its stakeholders.

Reasons to Do Business Beyond Profit

• Profit is an output, not a purpose, and a business must have a reason to exist beyond making money and maximizing shareholder value.
• Profit cannot be the goal, vision, or purpose of an organization.
• Profit is too temporary to guide a business by, and if a business' main purpose is to make a profit, this will lead to a lack of strategic direction and reduced staff motivation.

Companies with a Purpose Beyond Profit

• Companies with a purpose beyond profit tend to make more money.
• Purpose dictates appropriate measures, and measures give manageability, the capacity to learn and improve.
• There is a systematic relationship between purpose, measures, and method.

Sustainability

• Many corporate and business strategies now include sustainability.
• Businesses need a purpose beyond profit to make it through.