The aim of business is to earn profit . This is true to a large extent. But it has been found that a truly successful business cannot afford to keep profits as its sole objective. As Urwick puts it “Earning of profits cannot be the objective of a business any more than eating is the objective of living”
Like Henry Ford declared that mere money chasing is not business but the business also should have an objective of service to the community i.e the objective of business is to supply useful and quality goods and services to consumers. He built his business on the basis of service and set out to manufacture cars which would be written the means of low income groups and which would serve the general mass of people.
Profit is a measuring rod of business performance and the test of efficient business operations. It profits of a firm show an upward trend even in normal times, it indicates that the community appreciates the services rendered by them. A business firm has to avoid losses if it wants to continue for long.
As Peter F.Drucker puts it ‘the problem of any business is not the maximization of profit but the achievement of sufficient profit to cover the risks of economic activity and to avoid loss”. Thus a minimum profit is necessary for the survival of business.
Another purpose is to create a customer. According to Drucker, the customer is the foundation of a business and keeps it in existence.
Besides these, the business house has an important human obligation is it must fulfill his duty towards its employees. There is a need for providing letter working conditions and higher wages. It must safeguard the interest of those persons with whom it has dealings.