A Note on Profit, Loss, and Social Responsibility
New Perspectives on Political Economy, Forthcoming
10 Pages Posted: 24 Apr 2009
Date Written: April 20, 2009
This short note discusses the role of profits and losses in organizing information. I explore the ethical status of a firm earning losses and argue that to earn a loss reveals important information about the production plans that are likely to be successful. I further argue that the information revealed in a profit-and-loss economy is socially beneficial.
Keywords: profit, loss, social responsibility
JEL Classification: B53, D63, L21, L26, P11, P12, P14, P17
Suggested Citation: Suggested Citation