Question: Should a company work for profit or for social interest?

Question: Should a company work for profit or for social interest?

On one of the first days and on one of the last days of MBA School we had a great debate: Should a company work for profit or work for social interest? At that time, I was animate that profit was king; since without profit they would not be able to help the greater good. Efforts to help the social interests require resources, hence my view. As I reflect on that time, I still believe that in order for a company to survive and grow they still must make money, but with a focus on society.

We are in a revolutionary age of marketing where businesses not only sell to customers, but they partner with customers to sell its goods and services. There is a relationship, and even connection, when developing, buying and using a product or service. Marketing has become personal. So now we are at a point where with every purchase you have to add the service of communication and customer integration to be successful.

Businesses need to make a profit, but to do so they must work with the community and for the community to create that profit. Relationships with customers are stronger when there is a deeper emotional attachment. This relationship is formed through the connections and initiatives in which a company partners with customers. This in turn helps sales through the personalization, reputation and image of the company. But sales are not the only thing impacted – stock price is also impacted greatly by the reputation and image of the company, leading to enhanced shareholder value. With the efforts made to the greater good, it sends a sign to shareholders about the company health and future profitability.

So, should companies work for profit or work for social interests? I believe that companies must still work for a profit, but for sustained growth and longevity – a company must partner with society. Do you agree?

-thePonderingNick