The profit-maximizing mantra

According to Kant's philosophy, the profit-maximizing mantra should not be at the centre of the current decision making philosophy facing business. The decision making process should include the various other factors which would be of much more importance as compared to the simple profit maximisation followed by the organisations (Baumal WJ and Batey Blackman SA. 1991). He argues that in the longer run, the ethical firms would flourish as they are aligned with the goals of the society rather than only profit maximisation. To Socrates the beginning of ethics was a simple a question of, "How should one live." This simple and very general question started ethical history for the west at a time when society was changing dramatically (Baron, M., 1995)

On the other hand, Friedman provided an counter argument suggesting that the capitalism would lead to competition which would promote the political freedom because its separates economic power from political power and in this way enables one to offset another (Freedman, B. & Shapiro, S.H., 1994). According to Friedman's philosophy, free market economies would encourage companies to be competitive and make them aware of the consumers' choices. Here the political fraternity can help the consumers make the right choices of selecting the companies which employ ethical policies (Freedman, B., 1981). In this process, the ethical companies would survive as they would be having the attention of the consumers by following the ethical policies. The author would like to suggest that the ethical policies followed by the companies can be judged by free and fair watchdogs and give them ratings based on their ethical work, including ethical HR policy decision making. This would lead to better image building of the really ethical companies and there would be a free and fair chance for every organisation to present their case to their customers. In the end, it would be the customers who would have the ultimate choice to make between choosing ethical company's products or other company products. Friedman believed as part of this, competitive capitalism "provides freedom directly". It needs to be noted that it is political power, and more specifically the "political mechanism," as opposed to the "market mechanism" that represents the danger of managers acting out of social responsibility (Friedman, 1970). If managers or the owners pursue goals that do not have profit maximization as the only end, the efficient outcome theorised as the outcome of profit maximizing behaviour of the owner/manager is not obtainable.

The organisations have to look into the details of the environment in which it is operating. Especially it has to take care of its image and perception of the organisation within people's mind. It is rare that any organisation which does not carry a positive image would succeed in longer run. The purpose of myth is essentially to establish a meaningful relationship to the world in which organisations work, rather than experiencing life as merely chaos. The myth of management should serve the human interests which are also to say why the organisations come into existence that is to serve the society in one way or the other. More particularly it is argued that organisations appear to exist for the purpose of generating a myth in terms of which self-confident action becomes possible for those persons who accept the myth. In other words, the organisational participants who accept the myth share in a meaning which can allow purpose and value in their organisational action. Others, who do not accept the myth per se, will mostly comply with the myth if only for self-interest and self-preservation. In terms of the ethical decision making in the HR policies, the organisations should see its employees as its assets which are to be looked after on a regular basis by solving their concerns and their problems in an ethical way.

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