The implicit justification for the statement “While we may regret the effect of our actions on the well-being of employees, or the effect on the environment, or the impact on our reputation, our obligation is to maximize returns to our shareholders” (Kay, 1998) is the economic theory of profit maximization. Economists such as Freidman argue that the only responsibility of corporations is to make as much money as possible for shareholders (Friedmen, 1970). He argues that any other goal is not only unwise, but may be similar to socialist actions and should have no place in the function of business (Friedmen, 1970). Recent banking collapses in the UK and US, as well as large-scale catastrophes such as the BP Deep Water Horizon oil spill on the Gulf Coast, have brought greater attention to the macroeconomic impact such failures have on stakeholders. This has led many to ask what the primary objective of businesses should be and what would provide the greatest benefit to both shareholders and stakeholders. This paper will demonstrate that companies that seek profit as their primary objective do not necessarily become profitable. Furthermore, shareholders will receive greater benefits from a company that chooses to focus on creating a valuable business by offering a more dynamic, robust and inclusive approach to establishing a competitive strategy. And finally, given that profit maximization does not prescribe a path to profits, companies might choose to adopt an approach aimed at an acceptable level of profits that could allow companies to objectively evaluate the trade-offs between multiple objectives.2 THE CONTEXT OF MARKET AND THE PARADOX OF PROFIT MAXIMIZATIONA notable argument against profit maximization as the primary objective of a... half of the paper...14. BP expects oil spill costs to rise as profits fall. [Online]Available at: http://www.marketwatch.com/story/bp-views-higher-oil-spill-costs-as-profit-declines-2013-07-30[Accessed 11 June 2014]. MECKLING, MCJ a. WH, 1976. THEORY OF THE FIRM: MANAGERIAL BEHAVIOURS, AGENCY COSTS AND OWNERSHIP STRUCTURES. Journal of Financial Economics 3, Volume 3, pp. 305-360. Shearn, I.T., 2014. ExxonMobil's New Guinea nightmare. [Online]Available at: http://www.thenation.com/article/179618/exxonmobils-new-guinea-nightmare?page=0,3[Accessed 9 June 2014].Vickers, J., 1985. Delegation and Theory of the Firm. The Economic Journal, pp. 138-147.WERDIGIER, CK a. J., 2012. New York Times: BP's Profits and Plans. [Online]Available at: http://www.nytimes.com/2012/02/08/business/global/bp-reports-stronger-q4-earnings-in-2011.html?pagewanted=all[Logged in on June 11th 2014].