Business types: A third option?
Posted: Wed Oct 08, 2008 7:40 am
While working today i was letting my mind wonder as per usual. So i got thinking about the way non profit organizations are run. We have a basic two model business system: business which exist for the purpose of maximizing profits for share holders and non-profit organizations which exist for a purpose or aim, sending aid or money to a certain group of people for example. So why not introduce a third legalized option, a hybrid of the both?
A business which acts like a normal business in terms of producing profits for share holders while still having to legally spend "xx" % of profits towards the kind of aims a charity might operate under. It would give charities the ability to raise their own capital to distribute to their cause as opposed to relying upon donations from the public. I also believe many investors would invest in companies like this knowing that they will still get a decent return while helping the less fortunate ( we all know this kind of idea works, just take eco friendly business for example ). Also governments could introduce incentives to give back to companies who run this model such as tax incentives or business recognition.
Anyone have any ideas of thoughts and ideas? Any faults im over looking?
A business which acts like a normal business in terms of producing profits for share holders while still having to legally spend "xx" % of profits towards the kind of aims a charity might operate under. It would give charities the ability to raise their own capital to distribute to their cause as opposed to relying upon donations from the public. I also believe many investors would invest in companies like this knowing that they will still get a decent return while helping the less fortunate ( we all know this kind of idea works, just take eco friendly business for example ). Also governments could introduce incentives to give back to companies who run this model such as tax incentives or business recognition.
Anyone have any ideas of thoughts and ideas? Any faults im over looking?