"The desire of corporations to maximize profits creates conflict with the general welfare of the nation at large."
Discuss the extent to which you agree or disagree with the opinion stated above. Support your views with reasons and/or examples from your own experience, observations or reading.
Answer:
Many people believe that the desire of corporations to maximize profits creates conflict with the general welfare of the nation at large. On the contrary, I believe corporations desire to maximize the profits is conducive to the welfare and enrichment of the nation as a whole.
Firstly, In today's competitive market only way to generate profits and gain market share is to provide the customer with better and innovative product. This is one of the chief reasons corporations heavily invest in research to improve their products, which leads to better and cheaper products. Toyota invested heavily in research of fuel efficient automobiles. Although Toyota generated large amount of profit form the sale of these cars , the consumer benefited form these automobiles in the days of gas crisis.
Secondly, Desire to improve profits increases efficiency and optimizes use of natural resources. Wal-Mart introduced highly efficient supply chain system to manage and transport consumer products across the country. This innovation generated huge profits for Wal-Mart , but at the same time a wide variety of products were easily available to the consumer at a cheap price.
Thirdly, Profits generated by the corporations are shared with employees of the corporations in the form of incentives , salary increments , performance bonus and market based profit sharing. People who buy shares of these profit making corporations are also rewarded by increase in the share price and also in the form of dividends.Thus many people benefit form the profit made by the corporations.
"Profit is an incentive to growth" is a fundamental principle of capitalism. So a desire of corporations to maximize profit surely benefits the nation at large.
Discuss the extent to which you agree or disagree with the opinion stated above. Support your views with reasons and/or examples from your own experience, observations or reading.
Answer:
Many people believe that the desire of corporations to maximize profits creates conflict with the general welfare of the nation at large. On the contrary, I believe corporations desire to maximize the profits is conducive to the welfare and enrichment of the nation as a whole.
Firstly, In today's competitive market only way to generate profits and gain market share is to provide the customer with better and innovative product. This is one of the chief reasons corporations heavily invest in research to improve their products, which leads to better and cheaper products. Toyota invested heavily in research of fuel efficient automobiles. Although Toyota generated large amount of profit form the sale of these cars , the consumer benefited form these automobiles in the days of gas crisis.
Secondly, Desire to improve profits increases efficiency and optimizes use of natural resources. Wal-Mart introduced highly efficient supply chain system to manage and transport consumer products across the country. This innovation generated huge profits for Wal-Mart , but at the same time a wide variety of products were easily available to the consumer at a cheap price.
Thirdly, Profits generated by the corporations are shared with employees of the corporations in the form of incentives , salary increments , performance bonus and market based profit sharing. People who buy shares of these profit making corporations are also rewarded by increase in the share price and also in the form of dividends.Thus many people benefit form the profit made by the corporations.
"Profit is an incentive to growth" is a fundamental principle of capitalism. So a desire of corporations to maximize profit surely benefits the nation at large.
