Everyone in the company must be focused on making profits the right way. In other words, while the focus must be on profitability, the way profits are generated is important. Nevertheless, your culture should encourage and insist upon profitability that meets acceptable expectations.
Some people simply have a difficult time telling others no.
When an employee requests to purchase something or otherwise spend money in some way, base your decision on objective criteria and not emotion. It's also important to be able to say no to suppliers. Not every deal they bring to you is worthy of consideration. Your ability to say no to things that don't benefit the business is a critical attribute. Obviously, some people say no too often and they alienate employees in the process.