Why Assume That Firms Maximize Profit, When It Is Easy

question 8

Essay

Why assume that firms maximize profit, when it is easy to find companies that pursue other goals such as saving rain forests (Ben and Jerry's) and sponsoring Mister Rogers (Sears)?

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Definitions:

Downward Communication

The flow of information and messages from higher levels of an organization's hierarchy to the lower levels.

Employer Branding

The process of promoting a company or organization as an employer of choice to a desired target group, to attract, recruit, and retain employees.

Distinctive Features

Characteristics that differentiate an object, concept, or phenomenon from others, making it uniquely identifiable.

Branding

The process of creating a unique image, name, and identity for a product or service in the consumer's mind.