Is profit the sole criteria of a successful business?


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In business should you think about yourself first or your team members? Is bottom-line important or staff welfare? 

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I feel that Profit is the sole criteria for a successful business. That in my mind is Dharma of running a business. A business has multiple stakeholders where employees / staff are just one of the stakeholders - I don't think we can objectively look at your question keeping only one stakeholder's interest up front. Profit on the other hand helps all stakeholders including the staff.

How a business makes profit has changed over the years from labor / efficiency focus to knowledge focus. In today's world, everyone realizes that people are a very significant asset and for any company to make higher than industry average profits, they would need to leverage this asset. That would include, not only treating people well but also ensuring that an environment is created where employees can get challenged and have opportunities to excel.

The point, I am trying to make is that a focus on profit automatically aligns the internal forces including employee's interests which is why I initial said that profits is the dharma of a business.  

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Jai Shri Hari 

I think balance between the both. If there is tug of war then I give importance to my team members.

Regards,

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I had asked a similar question to swami ji and he said interest of the company is priority as on that interest of individuals r based..perform well or fire ... rest obviously things r case specific and sometimes staff's welfare is crucial too. 

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The Heart of Success by Swami has some very good instances and incidents that answer this question. My personal opinion is the primary purpose of a business is to generate value and then find a way to monetize it.

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No, Profit is not the sole criterion of a successful business.

  • Each business is different, and some businesses like Social Entrepreneurship companies may focus more on the impact made to people than profit.
  • For a for-profit business, the vision of the company may lay out its objective. While the founder is an important part of the company, the company itself is bigger than the founder.  In this regard, the survival of a company is most important dharma as shared by Pankaj. A founder then works for this goal.
  • While each decision is different  - the hierarchy for decision making would be 
    • What is good for Company?
    • What is good for Employees?
    • What is good for Me?

Hope this helps.

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Manish Bhai - been missing you and Jignes Bhai as no posts came up for a while. Trust all is well with you.

As it is, I'm sure you already know the answer to your question. Phir bhi - my 2 cents worth.

Business MUST be for profit. What the earner of the profit does with the profit is a different matter. It is personal choice.

A business serves society by creating wealth which in turn improves the material lives of those involved in the business. But how the business owner would like to create profit is again a matter of choice. I just published something a while back here. https://os.me/short-stories/servant-leadership/

Trust it vibes with you.

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