Realizing that the major function of profit is to allocate resources according to consumer preferences, why are some groups in the U. S. extremely critical of corporations that earn growing profits? Is this criticism a function of large CEO salaries or is something else driving these attacks?
Profits and the Corporation:
A profit is a financial gain that is obtained due a monetary advantage made by the organization. The goal of every organization in the business market is to attain exceeding profits that will boost the operations of the company. Effective techniques have to be employed by the company for the high profits to be attained. Contrary to this, some organization have the negative habit of focusing their attention on the making of organizational profits that they end up neglecting the employees, shareholders and even the important needs of the esteemed clients (The profit, 2011).
Reasons for Criticism:
Organizations that earn a lot of profits are mostly under great scrutiny by some groups in the United States. This is based on the fact that most of those organizations create a lot of environmental damage in their quest to make ...
Profits and the corporation are analyzed in this tutorial.