Question

The pursuit of profit goals ultimately blurs profitability and long-term success. True or False?

Answer 1

The statement is true; here is the explanation why this statement is true.

Profit goal achievement does not necessitates the success of the organization, in short term profit goals are achieved but on what cost, is it on the cost of sustainability of organization in long term, is it that the profit goals is profitable too for the business considering all the other opportunity cost, we must be able to answer these questions before we being our pursuit of profit goals.

Making the profit as key goal may not be the best way to increase the profitability, and a survey shows that the management making the pursuit of profit goals in short terms creates a dis engaged employee as employee feel that management is compromising on future of organization on the cost of immediate profitable year.

Hence in order to improve the profitability and long-term success it is always better to look for interest of all the stakeholders, society, environment and local law and governance, this will make sure there is no negligence being considered on interest of all the stakeholders. And the organizations which have kept stakeholders’ interest on top priority has achieved the success and are able to survive for really long tenure.