Question

When it comes to nonprofit organization, does the process of being business driven impede the social value to society? ...what occurs and how would you make the social value shine?

Answer 1

I think when a non-profit organization becomes too much businesses focused, it can create detrimental to the process of creating social value. The main goal of non-profit organizations is to maximize value for the society in the chosen domain. This is because after becoming business-focused, non-profit organizations might focus on only making profits and not maximizing value for the society.

When nonprofit organizations become business-driven, their main focus becomes to maximize profit through high sales. The profit motive might deviate the organization from its original goal of value creation. Profit is one way of meeting organizational goals. Nonprofit organizations do not wish to maximize profits, rather, these companies aim at maximizing value.

The social value can be made to shine by measuring the performance of the organization through the scale of value creation and not through the scale of profits. When value creation becomes the primary parameter of determining the success of the organization, it would put maximum focus on value creation.