An ethical justification of profit maximization

Carsten Allan Koch

    Research output: Contribution to journalJournal articleResearchpeer-review

    Abstract

    In much of the literature on business ethics and corporate social responsibility, it is more or less taken for granted that attempts to maximize profits are inherently unethical. The purpose of this paper is to investigate whether an ethical argument can be given in support of profit maximizing behaviour. It is argued that some form of consequential ethics must be applied, and that both profit seeking and profit maximization can be defended from a rule-consequential point of view. It is noted, however, that the result does not apply unconditionally, but requires that certain form of profit (and utility) maximizing actions are ruled out, e.g., by behavioural norms or formal institutions.
    Original languageEnglish
    JournalSociety and Business Review
    Volume5
    Issue number3
    Pages (from-to)270-280
    Number of pages11
    ISSN1746-5680
    Publication statusPublished - 2010

    Keywords

    • Business ethics
    • Corporate social responsibility
    • Ethics
    • Friedman, Milton
    • Institutional analysis
    • Profit maximization

    Cite this