Profit Maximization

Question 1

What is Profit Maximization?

Answer 1

Definition : the goal of maximizing financial returns for shareholders
Focus : Short-term gains and efficiency in operations
Purpose : Core principle of traditional business models

Question 2

Profit Maximization vs CSR

Answer 2

CSR : Balances profit with social and environmental responsibilities
Relation : CSR may involve costs of reduced profits in the short term to build long-term goodwill and sustainability

Question 3

Profit Maximization vs CSV

Answer 3

CSV : Generates profits by solving societal issues (e.g. health, environment)
Relation : Aligns profit maximization with creating shared value for society

Question 4

Profit Maximization vs Social Enterprise

Answer 4

Social Enterprise : Focuses on solving social problems while maintaining financial sustainability
Relation : Profit is means to achieve social impact rather than an end goal