profitcentrism

Profitcentrism is an orientation in which profit maximization is treated as the central objective of economic actors—firms, investors, and, in some theories, governments. It holds that financial profitability is the primary measure of value and should guide decisions about investment, pricing, and resource allocation.

The term draws on the traditional emphasis on shareholder value in capitalist thought. It is associated with ideas popularized by mid- to late-20th-century economics and business writing, notably the claim that corporate responsibility is to increase profits, within legal and ethical boundaries.

In practice, profitcentrism may manifest as short-term earnings focus, stock-based incentives, cost-cutting, offshoring, and debt-financed growth. It can influence public policy through lobbying for deregulation or privatization, and it can shape metrics and incentives in both business and finance that privilege profitability over other goals.

Critics argue that profitcentrism can exacerbate inequality, harm the environment, and erode long-run resilience by neglecting nonfinancial values such as employee welfare, customer trust, and social stability. Proponents say it creates efficiency, drives innovation, and allocates capital to productive uses, with broader societal benefits when profits fund investment.

Related terms include shareholder primacy, stakeholder theory, corporate social responsibility, and ESG.