The Ethical Dilemma of Profit Over People: Is Maximizing Profit Really the Ultimate Goal of Business?

1. The Traditional View: Profit Is the Primary Goal

For decades, businesses have operated with the singular goal of increasing profits. This ideology stems from economist Milton Friedman’s famous statement: “The social responsibility of business is to increase its profits.” According to this view, shareholders and investors are the primary stakeholders, and any action that doesn’t increase profits is a failure.

For instance, look at companies like Amazon and Walmart—known for their relentless drive for profits. Their success stories are built on cutting costs, maintaining low wages, and optimizing supply chains, often at the expense of workers and communities. These companies are seen as profit-maximizing machines, and their stock prices reflect that.

The traditional business model also emphasizes efficiency, competition, and innovation—all geared towards one thing: profitability. This view holds that businesses are not charities, and their success is ultimately measured by their ability to generate wealth for their shareholders.

2. The Growing Call for Corporate Social Responsibility (CSR)

However, a growing number of companies are challenging this traditional view. In today’s world, consumers are more socially conscious than ever. They want businesses to do more than just provide a product—they want them to be good citizens. This has led to the rise of corporate social responsibility (CSR), where companies actively contribute to social, environmental, and economic causes.

Take Patagonia, for example. This outdoor apparel company has built its brand around environmental sustainability. They’re known for donating a percentage of their profits to environmental causes, using eco-friendly materials, and even encouraging customers to buy used products instead of new ones. Patagonia’s founder, Yvon Chouinard, has said that the company’s goal is to “build the best product, cause no unnecessary harm, use business to inspire and implement solutions to the environmental crisis.”

Does this approach come at a cost? According to some critics, the answer is yes. Businesses that invest heavily in CSR may see reduced profit margins or higher operational costs. For instance, companies that ensure fair wages or environmentally-friendly production practices may face higher costs, which could ultimately affect their bottom line.

But here’s the interesting part—Patagonia’s commitment to sustainability has not hindered its growth. In fact, its brand is one of the most loyal customer bases in the world. By aligning with a cause that resonates with its customers, Patagonia has turned ethical business practices into a competitive advantage, not a liability.

3. The Bottom Line: Can Profit and People Coexist?

This brings us to a central question: can a company truly prioritize both profit and people? Can businesses be successful without exploiting workers, polluting the environment, or cutting corners to increase margins? In my opinion, it’s possible—but it’s not easy.

Businesses that adopt a “people over profits” mentality often have to make difficult trade-offs. They may need to invest in more sustainable processes, pay workers fairly, or donate to social causes, all of which come at a cost. But the long-term rewards—brand loyalty, consumer trust, and employee satisfaction—may outweigh these costs.

Take Tesla, for example. Elon Musk’s electric car company is a perfect illustration of a business that seeks to disrupt traditional industries with a focus on sustainability and innovation. Tesla’s mission is to “accelerate the world’s transition to sustainable energy,” which includes producing electric vehicles and solar energy solutions. While Tesla is undeniably profit-driven, it’s also invested heavily in green technologies, renewable energy, and reducing the carbon footprint of its vehicles.

Moreover, companies like Ben & Jerry’s have proven that businesses can thrive while championing social justice issues. Ben & Jerry’s has been vocal about climate change, racial justice, and LGBTQ+ rights, all while maintaining a profitable and successful brand.

4. The Risk of Losing the Moral High Ground

That being said, there’s a fine line between pursuing ethical goals and turning them into marketing gimmicks. When companies emphasize their ethical practices but fail to deliver on them in any meaningful way, it becomes a case of "greenwashing"—a term used to describe when a company falsely claims to be environmentally friendly or socially responsible to attract customers.

One example of this is Coca-Cola, which has invested in extensive marketing around its “sustainability initiatives,” but has been criticized for its contribution to plastic pollution and its environmental impact. Consumers are quick to catch on when they feel a company’s ethical claims are just a marketing tactic. In fact, a 2019 study by the Harvard Business Review found that 66% of consumers said they would not buy from a company that was caught engaging in “purpose-washing” or failing to live up to its social claims.

For companies that do want to incorporate ethical practices into their business models, transparency is key. If they’re going to claim they’re environmentally responsible or socially conscious, they need to back it up with action—and results.

5. The Consumer’s Role in the Debate

As consumers, we’re also complicit in this ethical dilemma. Do we really want businesses to prioritize social issues, or do we just want the best product at the lowest price? In many cases, we complain about corporate greed but also rush to buy the latest iPhone, ignoring the labor conditions in factories or the environmental toll of mining materials for the product.

But the rise of socially-conscious consumers—often millennials and Gen Z—has forced companies to reassess their business models. A report from Nielsen in 2015 found that 66% of global consumers are willing to pay more for products from companies committed to social responsibility. This has prompted businesses to start integrating sustainability, fair labor practices, and ethical sourcing into their strategies.

The rise of platforms like Ethical Consumer or Fair Trade has empowered consumers to make more informed decisions about where they spend their money, but the question still remains—do we truly value ethics over profit?

My Take

The debate over whether businesses should prioritize profit over people is far from settled. On one hand, profit is the primary driver of any business, and maximizing it remains a key goal. On the other hand, there’s a growing recognition that ethical business practices, sustainability, and social responsibility are no longer just buzzwords—they’re essential to long-term success.

The key to reconciling profit and people lies in balancing the two. While it may not always be easy or straightforward, businesses can thrive while doing the right thing, as long as they remain authentic and committed to making a positive impact. Profit and people don’t have to be mutually exclusive; they can—and should—coexist.

The challenge for businesses today is finding that balance, and it’s a debate that will continue to shape the future of business. What do you think—should businesses prioritize profit above all else, or should they focus on making a positive difference in the world?