For-Profit Organization Is Dead Wrong Analysis

Jim Collins (2005) tells his readers that the notion that nonprofits should behave like a for-profit organization is “dead wrong” (p.1). I agree with this statement, however, one must be careful to understand the context of the authors point. Collins (2005) is mindful to emphasize the distinction between what makes organizations good versus great; and asserts that the competencies that make for-profit organizations truly great are not proprietary. The focus then should not be on whether an organization is a for-profit or nonprofit entity, but rather on whether the organization “delivers superior performance and makes a distinctive impact over a period of time” (Collins, 2005, p.5). In my own organization, we measure ourselves against other food production companies on a weekly, monthly and yearly basis. While these measures usually include production and fiscal measures of performance, we also regularly benchmark key …show more content…
While the organizational enterprise is focused initially on the maximization of shareholder value, it cannot come at the expense of society at large. In fact, creation of social responsive organizations is becoming a strategic advantage for many markets. Investors, employees, and consumers alike are “starting to show more interest” (Just Good Business, 2008, para.10 One example of how an organization may engage in scial responsiveness is found in Survey Monkey. “SurveyMonkey donates 50 cents per survey completion to the taker's charity of choice. In 2013, the company donated more than $1 million to organizations such as the Humane Society, Boys & Girls Club of America, and Teach for America” (Taylor-Fallon, 2015, para.24). ). Some may argue however, that the social responsibility culture engendered by many organizations is focused on accomplishing a broader marketing objective, rather than being done out of more philanthropic