Advice on my essay: The desire of corporations to maximize profits...

**hascheidl** · 12-27-2008, 11:10 AM

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.

It's a rule from capitalism that when a certain amount is invested, it corresponds to an abstention from current spending in order to receive a greater value in the future. So, a lot of pressure is put in all levels of management to maximize profits, in response to the eagerness of those who directly benefit from good financial performance of the company - its investors. This attitude leads to significant contradictions to the general welfare of the nation, mainly because of two reasons: first, it's a vicious cycle, which allows little space for redistribution; and second, resources are limited, meaning that it is impossible to provide the same life standard of the richest people to every citizen in a country.

Provided that a few portion of the nation has the required capital in excess to start up a business, these profits will benefit only a small fraction of a given population. In the long term, it will be easier for groups of people with previous experience in successful enterprises to enroll in new ventures. This way, the economic benefits will be even more concentrated. So, it is a vicious cycle that leads to increasing social inequities.

Another consequence of trying to achieve the highest profit is that a company will never contribute to the general welfare of the nation, because resources are essentially limited. The richest have access to better hospitals, their children receive the best education, and they also have better leisure opportunities. The money spent to satisfy the needs of elite can be used to benefit a greater amount of people. In addition, if companies have a reasonably and fair profit sharing policy, that takes all employees into account, there would be a more general contribution to the nation welfare.

Given the aforementioned reasons, it is clear that the continuously desire of executives to maximize profits is not sustainable and is incoherent with a general welfare policy. I think that the society must discuss and devise limits to corporations, in order to guarantee a fair country.

**joy_mookerji** · 12-28-2008, 12:13 AM

Great essay,liked it very much. Your articulation is nice.
One thing I noticed:
"Given the aforementioned reasons, it is clear that the continuously desire of executives to maximize profits" -

This should be "it is clear that the continuous desire".

I am 100% sure its a typo , just wanted to make your aware of it

Have a nice day my friend......

Joy

**hascheidl** · 12-28-2008, 11:29 AM

Thanks for your feedback Mookerji!

In fact it's not a typo =)
I think the I was looking for some verb that would convey the same meaning, and I could not find it, so I pick 'desire' and forgot to change 'continuously' to 'continuous'. Does it make sense?