Profit Maximization from the Perspective of Ethics Cover Image

Die Gewinnmaximierung aus der Sicht der Ethik
Profit Maximization from the Perspective of Ethics

Author(s): Hermann Witte
Subject(s): Economy, Business Ethics
Published by: Wydawnictwo Naukowe Uniwersytetu Szczecińskiego
Keywords: profit maximization; ethic; economic equilibrium; economic sustainability; competition;

Summary/Abstract: Pure competition profit maximization is a good and necessary strategy to run an enterprise without loss, and to keep it in the market. Incomplete competition or workable competition profit maximization is not an acceptable strategy. Increasing and constant prices profit maximizations is never-ending. Only decreasing prices profit maximizations lead analogously in pure competition to the ‘break-even-point’. At this point, an enterprise covers the cost. An enterprise has no loss and no profit. Now, it is clear why enterprises in practice have such a great interest in advancing prices and decreasing wages. In the minimum enterprises, wages increase less than prices. These measures are optimal in combination with maximizing profits. The consequences of profit maximization are not only increasing prices and not proportional increasing (real decreasing) wages, but also closed down enterprises, people losing their jobs, capital concentration, increasing private and national debt, people becoming poor, etc. An economic situation beneath human dignity is growing up. The human dignity is irreproachable, as well as freedom and security are fixed as human rights in a great number of constitutions. But it is impossible to secure these rights for all people under the rule of profit maximization. The human rights, which are established for ethical reasons, are reproachable. The actual policy tries to solve this situation by requiring saving. But it is impossible. The only successful way is to secure economic equilibriums and economic sustainability. It is the aim which a great number of states imposed on themselves by signing the Agenda 21 a long time ago.

  • Issue Year: 2016
  • Issue No: 12
  • Page Range: 135-152
  • Page Count: 18
  • Language: German
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