Ofcourse profits are necessary. If you had no potential for profit, who would invest in the entity to begin with. You could not get any capital formation. Without it nothing would be formed. Therefore nothing would ever be created or invented, and nobody would be employed. If you cap profits as some have suggested, the moment my company hit the cap, I would send everybody home for the rest of the year on a layoff until january or the start of my fiscal year. I am certainly not going to work for free. Profit growth is not only necessary...It is a good thing. There is nothing evil about success or profits as long as it is done within the confines of the law.
Henry Ford's model T was quite profitable. So is the Apple Ipad. Failing business don't create new technologies that better our lives. Successful ones do.