Is Profit Or Csr The Main Driver For A Profit Business

Is Profit or CSR the Main Driver for For-Profit Business? At the very heart of defining a business, the executive leadership must first understand what products and services will the business bring to its customers; understanding what the consumer values is a key component in product and services development. The executive team also must understand other stakeholders and shareholders, and how it will operate in order to create profit while also meeting the shareholder and stakeholder expectations. At the heart of the matter is how leadership views profit. Is the company in existence to make a profit or to maximize profit. According to Northrop, profit maximization directs all firm behaviors towards making as large a profit as†¦show more content†¦As part of product and service creation, successful companies spend significant energy understanding the end users value proposition to ensure the product will create value the consumer is willing to pay for (Expressive Produc t Design, n.d.). During this initial market and product research phase, the company and the consumer are working on the definition of shared value for the product. By adding sustainability as a core value as part of the product definition, the product can be created to meet the customer need in a way that is also valuable for the company to produce (Williams, 2014). Even Adam Smith acknowledged that human beings are self-interested, but also containing â€Å"sympathy, empathy, friendship, love, and the desire for social approval† (Williams, 2014, p. 11). Therefore both profit and social approval are intertwined when creating products consumers want. Embedding CSR in with how products are created ensures a scalable model for accommodating both profit and CSR. A company realizes profits from two activities, increased sales units with reduction of costs. The stakeholders that allow a company to do this are the internal employees to the company, and the businesses the compan y partners within their product supply chain. Lean development methodologies are common in manufacturing due to the relentless focus on continuous improvement, and efficient manufacturing practices while