The Role of Commercial Non-profit Organizations in the Provision of Public Services

Corporate Social Responsibility and Managerial Bonus Systems

“…Goering (2007Goering ( , 2008 attributes this objective function also to the non-profit organizations (NPO) which compete in commercial markets, such as sectors like University bookstores (Schiff and Weisbrod 1991), water utility, rail track maintenance company, private air-traffic control organization (Bennett et al 2003) and even in the high-tech markets (Benz 2005). Thus, commercial NPOs selling their output and services, which provide them revenues, may be considered in the same manner as CSR firms.…”

Capital and Control: Consequences of Different Forms of Newspaper Ownership

“…Agency theory leads to expectations that such companies will be inefficient compared to other firms because they lack oversight from investors, funds from capital markets, and are less driven by pecuniary motives. It has been shown that not-for-profit firms providing public services face challenges in corporate governance, quality and cost control, and finance, and that these tend to limit risk taking (Bennett, Iossa & Legrenzi, 2003). Part of the problem is that the performance of such firms is not monitored by owners but less effectively by donors and those who benefit from their services (Fama & Jensen, 1983).…”

“…They face managerial incentive challenges not found in for-profit companies because typical payfor-performance incentives such as stock options are not available. They lack access to equity capital, limiting their financing options, and tend to be more risk aware and averse than for-profit firms (Bennett et al, 2003). Research has found, however, that when family trusts or foundations own for-profit companies, the profitability and growth of those firms are not necessarily worse than companies with dispersed ownership or family ownership and that there are some performance advantages related to family control and long-term business strategy (Thomsen, 1996(Thomsen, , 1999Thomsen & Caspar, 2004).…”

Profit raising entry effects in network industries with Corporate Social Responsibility

“…y = q, the expression of the consumer surplus collapses to CS = (1-n)(q 2 /2), both with the current and the standard definition (the value of the area delimited by the demand function and the price consumers pay). 8 Goering (2007Goering ( , 2008 attributes this objective function also to the Non-profit organizations (NPO) which compete in commercial markets, for instance in sectors including University bookstores (Schiff and Weisbrod, 1991), water utility, rail track maintenance company, private air-traffic control organization (Bennett et al, 2003) and even in the high-tech markets (Benz, 2005). Therefore, commercial NPOs selling their output and services, which provide them revenue, may be considered CSR firms.…”