Profit, Purpose, and Behaviour: How the Hope of Profit Shapes Organisational Decision-Making Through an Economic and Behavioural Lens

Abstract

Economic theory mentions that a profit motive often drives efficiency, an increase in innovation, and optimal resource allocation, while it is often seen absent in mission-driven non-profit organisations. Substantive research delves into the economic understanding of the expected actions by organisations working towards the hope of profit and otherwise. However, when it comes to real-world dynamics, human behaviours are likely to cause deviations from economic theory. These deviations are dependent on a set of circumstances and external factors. This paper aims to investigate organisational actions through a combination of economics and behavioural economics lens, which further enables higher awareness of organisational decision-making and biases held. This paper utilises primary research, including a focus group discussion, to do so. This paper utilises both quantitative and qualitative methodology. A scenario-based survey was conducted with 37 total respondents, of which 10 also participated in a live focus group discussion. The respondents were primarily private sector employees aged 25 to 44. Participants answered the same set of questions using two different motivational frames: one framed around profit maximisation and one without. Results demonstrated that while the hope of profit leads to loss aversion, opportunistic pricing, and quality signalling, it does not undermine labour ethics, creativity, or environmental values as economic theory suggests. On the contrary, the lack of a profit motive drives creative risk-taking and upholds labour and environmental standards. However, it does not significantly strengthen commitments to sustainability, which remains steady across both frames. These findings indicate that organisational behaviour is influenced by a variety of factors, including economic incentives and personal values, which challenge purely rational models of decision making.