The general assumption is that as far as an organization is able to turn in a huge profit at the end of its monthly cycle and all the stakeholders involved are richly rewarded with bonuses worth their due, then making more money is a good thing.
With financial strength often used as a yardstick for measuring corporate health, it’s not unusual to find management breathing down the necks of their staff for fiscal turnover.
However, new research shows that the growing trend for companies to put the state of their bank accounts at the top of the priority list may have positive and negative repercussions.
While some insist that the perks of financial gain far outweigh any untoward effects that could arise in the course of generating profit, others state that considering the downsides creates a sense of balance in the pursuit of corporate success.
Dr. Josephat Mojekwu, the Head of Department of Insurance at the University of Lagos shares knowledge on some of the low notes of corporate wealth chasing: “On a normal day making money for the business is not bad but everything is entirely dependent on the character and principles of the person involved.
“We have seen cases where people start to engage in all manner of sharp practices because they want to make quick returns on investments. They start cutting corners, especially in the manufacturing industry where instead of producing a drug with maybe 50grams of the chemical, they put in 20 grams and fill the rest with chalk. This is not fair but it is happening because people want to make gain quickly.
“In another situation, if care is not taken, when a businessman starts making plenty money he might start living large at the detriment of his company because he is predisposed to a flashy lifestyle. As he is trying to keep up with his public image, he will keep dipping his hands into the company purse and pushing his employees to make more so that he can maintain that lifestyle which can run down the business,” he expressed.
Other points he brought to focus are the psychological damage constantly being at work (a habit of many money-chasers) can have on the family who almost never see or feel affection from the erring party as a result of misplaced priorities.
As divergent views are tabled with both parties holding fast to the riens of their arguments, some business owners to whom breaking monetary returns has become a habit vouch by the modus that commerce was created essentially for profit-making.
Bayo Anifowose who is the current Chief Executive Officer of Maxim Integrated Services – a haulage firm, states that over and above all other motives yielding returns on investments should be the main reason why an industrialist takes the dive into the murky waters of corporate enterprise.
In his words, “Why else would anyone start a business if its not to make some money while at it? It’s not as if its a [non-governmental organisation] that is being set up. Anybody who is going into business is doing so to generate income which he can in turn use to add value to other core areas of interest, whether it is charity based or otherwise.”
Highlightening some of the benefits of running a revenue-oriented establishment, Anifowose further stated; “With the income that your company makes over time, you are able to improve the lives of the people who work for you. For example, if at the end of a quarter you turn in N5 million more than you used to, not only are you able to buy more equipment to make the job easier for the staff but there is a high chance that their salaries will go up especially if the increase in the money coming in is sustained.
“Also it give the top management a leverage during negotiations. When they are to with the government or banks, for instance, their word carries more power because they have the financial base to back up most of their claims and even if they fail in any venture, the fact that they are thinking about the financial implications keeps them on their toes.”
As an aside, however, he gave a cautinary note saying, “All of these things are just a few of the great things working towards getting more money can do but it is only when the key parties involved get greedy and loose sight of the value they can add both to themselves and to others at large that problems can arise.”
Rita Ohai
