mutual-benefit non-profit corporation
(noun)
A type of nonprofit corporation chartered by a state government that exists to serve its members.
Examples of mutual-benefit non-profit corporation in the following topics:
-
Management in Different Types of Business: For-Profit, Non-Profit, and Mutual-Benefit
- A mutual-benefit non-profit corporation can be non-profit or for profit.
- However, mutual benefit corporations are usually formed for nonprofit purposes like managing a condo association, a downtown business district, or a homeowners association.
- The management of all three types of organizations (for-profit, non-profit, and mutual-benefit) may have similar responsibilities, such as drafting a budget and ensuring that the organization generates enough revenue to fulfill its operational needs.
- This strategy cannot work for a non-profit or mutual-benefit corporation.
- In those cases, management must either appeal to the employees' sense of duty to the mission of the non-profit or to the benefit they would receive from a well-run mutual-benefit corporation.
-
Types of Organizations
- There are a variety of types of organizations, including for-profits, non-profits, volunteer associations, and corporations.
- They can be either for-profit or non-profit.
- A non-government for-profit corporation is owned by its shareholders, who elect a board of directors to direct the corporation and hire its managerial staff.
- That is, the organization itself can make a profit, but the funds must not be used to benefit its owners.
- Associations may take the form of a non-profit organization or a not-for-profit corporation, so communication structures and strategies for small and large non-profit and for-profit organizations may apply.
-
Arguments for and against Corporate Social Responsibility
- Corporate social responsibility, also referred to as CSR, can be described as embracing responsibility for a company's actions and encouraging a positive impact through its activities on the environment, consumers, employees, communities, and other stakeholders.
- While some evidence links CSR practices to business performance, most organizations point to the non-financial benefits of their efforts.
- CSR proponents may also argue for the recognition of a "triple bottom line" performance that includes not only financial returns for owners but also social and environmental benefits for the greater society.
- Rather, CSR opponents believe that corporations benefit society best by distributing profits to owners, who can then make charitable donations or take other socially responsible actions as they see fit.
- Critics view these as misleading, even cynical, attempts to shape public perception about a company without its actually having to benefit the environment.
-
The Challenge of Ethics and Governance
- Furthermore, ethics often contrasts with the basic premise of capitalism and the demands of shareholders: profitability.
- Therefore, the most difficult decisions in corporate governance—those at the ethical level—must be made through the more complex assessment of societal, corporate, and personal values.
- In the United States, workers are imbued with very specific rights regarding the risks they take, the hours they work, the breaks they deserve, and the benefits they are provided.
- At their core, these regulations approach the fundamental dissonance alluded to above: profit-maximizing behavior as it contrasts with non-economic concerns.
- Leading up to the mortgage-backed security fallout of 2008, banks and investors began to prioritize profitability over ethics.