How so?
Initially a firm serves customers, and in doing so makes profit.
The pursuit of profit reverses the situation, where profit becomes the goal, and serving customers becomes the way in which it is done.
The focus is all wrong.
I thought you said you understand business.
The initial goal in starting a company is to make a profit by serving a need. If your focus is on serving your customer regardless of profit, you will not survive. Now, if you don’t serve your customer well, take care of your employees, etcetera, you won’t make the profit for very long; so the two are very intertwined. However, profit should never cease being the focus of a company.
The focus on profit becomes immoral only when it is made the end-all-be all. This quote from the Catechism is in regards to economic systems, but I believe it applies. As long as the business owner balances his need for profit with his Catholic duties as a businessman toward his employees, community, customers, etc. and his love for God, then he has not replaced God with “mammon.”
**2424 **A theory that makes profit the exclusive norm and ultimate end of economic activity is morally unacceptable. The disordered desire for money cannot but produce perverse effects. It is one of the causes of the many conflicts which disturb the social order.
A system that “subordinates the basic rights of individuals and of groups to the collective organization of production” is contrary to human dignity. Every practice that reduces persons to nothing more than a means of profit enslaves man, leads to idolizing money, and contributes to the spread of atheism. “You cannot serve God and mammon.”
I have just accepted a job with a manufacturers’ rep, which is very profitable. I know the owners, and while they don’t hold my religious conviction, they are very ethical in their approach to business. They also treat their employees well. After 5 years (more in the case of one), they are giving the two existing employees 5% ownership each in the company. They have offered the same to me after I complete 5 years with them. They are giving up part of their ownership because they recognize that having a stake in the company brings a different level of dedication and commitment. They also have a profit sharing plan that adds significantly to the retirement plan for everyone.
Now, I am being brought in to increase their territory and increase sales…and profit. If I am successful, I am compensated accordingly. If I am not successful, I won’t last long with the company. That’s the way it works. They know that I am a committed Catholic and fully accept that I will deal with principals and customers in a different manner because of my faith.
BTW…if I am successful, I will also make a lot of money. How I deal with that and my attitude towards that accumulation of wealth are what is at issue from a personal morality perspective.