Yes.
Of course the core activity of any company is increasing profit. Profits can be reinvested within the company to improve products and services and to match the (unknown) needs of clients. And profits can be seen as a reward for success as well. In that case, profits can be invested in the needs of employees besides the company (aka a nice holiday in Spain).
In a way increasing your profits is what you do in your personal life as well. Assuming we all strive for a certain 'happiness', we constantly make choices that benefit us. We feed and shelter ourselves and we try to develop ourselves on a professional and personal level. We go to exhibitions, we meet friends, we read books; but in a way we only do it to make ourselves feel better.
No.
As a biologist, I tend to project an evolutionary framework on pretty much everything I see around, but I think in this case it makes perfect sense. The business of business is to keep existing. A company should seek ways to sustain itself, rather than always aiming at profit.
If you try to sustain yourself, your actions will automatically focus on the long term as well. To use an enormous oversimplification: if you use all resources in year 1, you can close down your business in year 2. Therefor you need to take responsibility for the long-term effects of your business.
I understand that this is easier said than done - if my competitor keeps his focus on the short term, why shouldn't I - but exactly this problem (aka the tragedy of the commons) is what put us in our current situation where we are using more resources than we should, causing major environmental problems.
This entire discussion might just be a matter of definition. If you see profit not just as short-term money, but as long-term benefits for all stakeholders, I can fully agree with the stand that the business of business is to increase its profits.
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