-
cephaslr
- Junior | Next Rank: 30 Posts
- Posts: 11
- Joined: Thu Feb 05, 2009 6:21 am
- Location: Orlando, Fl
"The desire of corporations to maximize profits creates conflict with the general welfare of the nation at large."
Many people think that the need for corporations to maximize profits creates adverse effects the general welfare of a nation. Other people claim that a healthy business ecosystem built on the pursuit of profit is the best thing that can happen to a nation. The issue is a controversial one but a closer examination reveals corporations seeking profit is a huge benefit on society.
One reason is that profits provide an incentive for a business to find inefficiencies in a given market. When a business provides a consumer with a more efficient alternative the consumer saves money and the business gains profit as a result. For example, Walmart is badly maligned by some for destroying small businesses in rural America. However, many of these small businesses were hugely inefficient containing fragmented supply chains and disorganized management. Walmart is able to save rural Americans billions of dollars in consumer goods each year and make a hefty profit as well. Consequently, from an economic level, Walmart has benefited the nation in its constant pursuit of profitability.
Another reason is that a profitable corporation provides income in the form of jobs. Citizens take home salaries and are able to provide themselves with food, shelter, and a level of healthcare. For instance, one of the biggest drivers of poverty in Africa is the lack of native based multinational corporations when compared to other regions of the world. Areas of Africa contain unemployment rates upwards of %20, several times the rate of Japan or North America, both of which have a collection of strong multinational corporations and a much lower unemployment rate. As a result, citizens are better able to take care of their own basic needs when employed by profitable corporations.
In summary, while there are arguments to be made for both sides, it is clear that there are greater advantages to a nation that is home to a community of profitable corporations. Certainly, at times corporations may act against the general welfare of a host state but the need for efficiency and jobs outweighs the risks. Hence, a corporation seeking to maximize profits provides a strong benefit to the fortunes of society.
Many people think that the need for corporations to maximize profits creates adverse effects the general welfare of a nation. Other people claim that a healthy business ecosystem built on the pursuit of profit is the best thing that can happen to a nation. The issue is a controversial one but a closer examination reveals corporations seeking profit is a huge benefit on society.
One reason is that profits provide an incentive for a business to find inefficiencies in a given market. When a business provides a consumer with a more efficient alternative the consumer saves money and the business gains profit as a result. For example, Walmart is badly maligned by some for destroying small businesses in rural America. However, many of these small businesses were hugely inefficient containing fragmented supply chains and disorganized management. Walmart is able to save rural Americans billions of dollars in consumer goods each year and make a hefty profit as well. Consequently, from an economic level, Walmart has benefited the nation in its constant pursuit of profitability.
Another reason is that a profitable corporation provides income in the form of jobs. Citizens take home salaries and are able to provide themselves with food, shelter, and a level of healthcare. For instance, one of the biggest drivers of poverty in Africa is the lack of native based multinational corporations when compared to other regions of the world. Areas of Africa contain unemployment rates upwards of %20, several times the rate of Japan or North America, both of which have a collection of strong multinational corporations and a much lower unemployment rate. As a result, citizens are better able to take care of their own basic needs when employed by profitable corporations.
In summary, while there are arguments to be made for both sides, it is clear that there are greater advantages to a nation that is home to a community of profitable corporations. Certainly, at times corporations may act against the general welfare of a host state but the need for efficiency and jobs outweighs the risks. Hence, a corporation seeking to maximize profits provides a strong benefit to the fortunes of society.
