Comments on: The “Humanity” Sector? http://www.thesocialleader.com/2009/12/humanity-sector/ Empowering Ordinary Citizens to Achieve Extraordinary Greatness Fri, 03 Feb 2012 05:45:39 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: David Richins http://www.thesocialleader.com/2009/12/humanity-sector/comment-page-1/#comment-3315 David Richins Thu, 24 Dec 2009 14:06:36 +0000 http://www.thesocialleader.com/?p=1569#comment-3315 There are some in the libertarian camp who would argue that only a purely capitalist system can allocate resources properly. They would say that nonprofits just suck up valuable resources. It appears to me that most nonprofits are liberal in orientation, and that seems to be a disturbing trend. I do believe, though, that there is a place in society for nonprofits and other organizations with higher purpose. I recall reading about a debate between Milton Friedman and John Mackey of Whole Foods: http://reason.com/archives/2005/10/01/rethinking-the-social-responsi Mackey argued that businesses can and should be involved in social causes. Friedman, the hardline capitalist, in the end said that their viewpoints are not that different. What's the difference between a nonprofit and a for-profit? Only that nonprofits don't answer to shareholders. Nonprofits can be involved in revenue generating activities. Many people have argued that the corporate structure is detrimental to society. They say that because corporations have the same legal protections as human beings, responsibility is diffused. I think those arguments may be valid. I am curious about hybrid organizations. I think that whether nonprofit or for profit, we need to be creating organizations that create value for all stakeholders, which would include shareholders but perhaps also employees, parters, suppliers, local communities, environment, etc. There are some in the libertarian camp who would argue that only a purely capitalist system can allocate resources properly. They would say that nonprofits just suck up valuable resources.

It appears to me that most nonprofits are liberal in orientation, and that seems to be a disturbing trend. I do believe, though, that there is a place in society for nonprofits and other organizations with higher purpose.

I recall reading about a debate between Milton Friedman and John Mackey of Whole Foods:
http://reason.com/archives/2005/10/01/rethinking-the-social-responsi

Mackey argued that businesses can and should be involved in social causes. Friedman, the hardline capitalist, in the end said that their viewpoints are not that different.

What’s the difference between a nonprofit and a for-profit? Only that nonprofits don’t answer to shareholders. Nonprofits can be involved in revenue generating activities.

Many people have argued that the corporate structure is detrimental to society. They say that because corporations have the same legal protections as human beings, responsibility is diffused. I think those arguments may be valid.

I am curious about hybrid organizations. I think that whether nonprofit or for profit, we need to be creating organizations that create value for all stakeholders, which would include shareholders but perhaps also employees, parters, suppliers, local communities, environment, etc.

]]>