A profit is the net value given to society minus the cost taken from society. Example: you take floor worth 1 from society, make a cake and sell it for 3. You gave 3 and took 1, enriching society by 2.
It means that you reduced the poverty of other people by 2. Somebody who could not afford a cake before, now can.
This is why making a profit is philanthropy, and for the same reason, losing money impoverishes the rest of society. If you lose money, you impoverished other people. If the state loses money, it impoverishes society, but is the poorest people who gets the worst of it.
It means that you reduced the poverty of other people by 2. Somebody who could not afford a cake before, now can.
This is why making a profit is philanthropy, and for the same reason, losing money impoverishes the rest of society. If you lose money, you impoverished other people. If the state loses money, it impoverishes society, but is the poorest people who gets the worst of it.