Profit Motive
Profit motive refers to the aim to accomplish a financial gain or material bid. It may as well be described as the fundamental reason as to why people or organizations take part in any activity. In economics, the profit motive is the incentive of companies which function for profits to be maximized. Conventional microeconomics theory postulates that the objective of a firm is to produce cash (Sauer, 2018).
Businesses are there to turn a profit. The profit motive is a crucial principle of the philosophy that economic agents are inclined to practice and pursue things and activities that are in their best interest. Consequently, companies look to serve themselves and their shareholders through capitalizing on profits.
The Role of Profit Motive
Nevertheless, beyond economics, the profit motive has stood as an issue of a lot of argument. Ideally, when an economy is entirely competitive, the profit motive makes certain that resources are assigned proficiently. It is true that profits allow firms to find out if a product is worth creating. Ideally in free and competitive markets, if a company makes maximum profits, it makes sure that resources are not squandered. Nevertheless, the market itself needs to minimize profits. This is because it is the cost to the value chain. Competition is the primary instrument by which demands overwhelm the distinct company's profit intensification motivation. The profit motive is a product of significance to the economy. It is required to deliver motivation to produce efficacy and innovation. Nevertheless, over-recompense of the profit motive generates profit inadequacy. Profits must not surpass the requirements and needs of persons. The profit motive is also under attack since it breeds greediness and selfishness (Sauer, 2018).
Replacing Profit as a Motive
Another goal I would choose to replace profit as a motive is passion and honor. When people engage in activities as a result of love for the actions they do, monetary gain only becomes a bonus. The world would hence be a better safer place. Doctors and nurses in the health industry, for example, would focus on serving those in need rather than whether they can afford the medical attention (Walsh, 2012).
References
Sauer, C. (2018). Profit Motive: What Drives the Things We Do. SelectBooks, Inc.
Walsh, L. S. (2012). Motives of Honor, Pleasure, and Profit: Plantation Management in the Colonial Chesapeake, 1607-1763. UNC Press Books.
