I think if you focus on long term profits, you don't fall into this trap. The problem is short term thinking, not profits per se, or else what is a business even for? I can buy a house if I want a money pit.
To your question: "What is a business for", I like this answer:
#2: Set out to build a company and make a contribution, not an empire and a fortune.
Even the meanest Robber Barren on the Gilded Age got this, I think.
Focusing solely on profits (regardless of long/short term) and not putting the product first is what leads to bad decisions. It is the thinking behind why Jack Welch once said, "Strictly speaking, shareholder value is the dumbest idea in the world."
If your company only exists to make money, it will tend toward a state that doesn't create real value. It will be a company of charlatans.
The quote needs to be taken in context with the other quotes. The message is that companies need to aim for a higher purpose. This isn't just philanthropic white-washing, but this grounds the company and forces it to understand people and society. From that understanding the company can serve its customers better which is the true path to profitability.
That is a good question: when is a business/company no longer necessary? As short term thinking approaches zero, when does a business simply devolve into just a value transaction?
If investors or management want immediate revenue, they could liquidate the company's assets. If they want longer term profits, then they must define the expected duration for a return on investment. One quarter? One year? Or a sustainable, self-sufficient entity (cf. Built To Last: Successful Habits Of Visionary Companies)?