Nations welfare depends upon standard of living of all the people in the country. This in turn depends on how ethically a corporation behaves. According to me, corporation desires for maximizing their profit has both positive and negative effect. Healthy thinking by any organization in order to make profit is what is important for the welfare of any nation.
When a corporation desires to maximize its profit, it also gives rise to new ideas and development of new products which can create a better market and a nation to live in. For example when Bill Gates thought of expanding his business, he profited from his idea of bringing computer age and is now a billionaire. But his idea of development of computers have helped not only one nation but whole world, in their day to day affairs making their life much better.
Innovation gives birth to competition which also helps a corporation in maximizing profits. For example, consider SAP and Oracle corporation, when Oracle tries to develop new products or integrate their products with other third party products, Oracle extends the functionality of its product. This becomes beneficial for the old and new customers who will start thinking of buying new or enhanced oracle products. At this point of time, SAP, competitor of Oracle; will also start building or enhancing its products in order to not only retain all its customers but also attract others. This competition has not only helped the corporation but also has improved life of its employees in terms of job satisfaction because of promotions and hikes and customers in terms of enhanced functionality thus making quality of life better.
Mary Miller is the marketing manager for Paper Products Corporation and she has to decide whether she should allow her largest customer to buy some of Paper Products file folders and market them under their own name (Natcom Inc. ) rather than the FILE brand used by Paper Products. Mary is afraid that if she doesnt accept the offer, the customer will find another file folder producer. Mary really ...
But if a corporation desires to maximize profits in an unhealthy fashion then its desires are harmful for the welfare of a nation. For example, an organization will increase the prices of day to day commodities like baby products, vegetables, etc. People will have no alternative but to buy them even with such high cost. This will increase the pressure among poor people whose wages are not high enough to bear the burden. Thus the nation as a whole will suffer.
Another example can be if the corporation decreases the quality of the product or wages of employees so that it can increase its profit without making any changes in the cost price or the selling price of the product. This will to a greater extend affect life of people and hence hamper the progress of nation as rich people will continue to become richer and richer and poor people will become poorer and poorer thus affecting nation’s welfare as a whole.
Thus I would like to conclude that if a corporation looks upon its profit as a profit of nation that is it will try to develop healthy atmosphere then it will create lot of opportunities and nation will progress for sure. But if a corporation intends to maximize its profit in an unethical and unhealthy way, then it is a big concern for the welfare of a nation.