A recent issue of Business Week reports that several companies have been cutting jobs recently because, years ago, they relied on short-term forecasts that called for them to hire too many employees too quickly. The article underscores how business leaders can sometimes make bad decisions, just like other fallen people. The impulse to target the short term in response to both gainful and disappointing events in the market can cause headaches for managers in the long run. Expediency is not always the best policy.
Profit serves as an indicator that a business is functioning well.
Profit is the first moral obligation of a company in providing jobs and opportunities for individuals, thereby allowing employees and customers to meet their own responsibilities to their families. A company that makes a profit contributes to the vibrancy of civil society by affording individuals opportunities to contribute to the wealth of their families and communities. It is a moral goal for CEOs, then, to try to maximize their firms' profits. But other considerations are important, too. None of this is to say that such considerations are simple matters.