BMT550 Midterm Notes.docx

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Seneca College
Business Management Degree
Business Management Degree BMT550
Jane Haddad

BMT 550 Notes Management for Non-Profit and Social Enterprises Week 2 Scope of the NP (Non-Profit) sector in Ontario and Canada - Often called the third pillar (Public and Private Enterprise) - Type of organizations by purpose and source of funds 1) The non-profit organization  can be any organization that does not have any private profit making as its mission. (Private profit refers to profit generated to be disbursed to the owner(s) or stakeholders. o No single owners or shareholders to distribute o Has no private profit motive o Exists for public benefit  social mission o Funds are sourced through donations, gov funds, sponsors (corporate or other), grants, membership fees. o Goods and services can be sold. 2) Charities  Must be incorporated and registered to receive ‘tax exempt’ status.  Are NPOs  ‘Purely’ social mission – do not operate in the market selling goods and services  Limited ability to generate revenue  must be subordinated to the mission.  Heavily rely on unpaid labour  Funds are sourced from donations, sponsorships (corporate), and grants from foundations  Can own & operate social enterprises. 3) Social Enterprises –eg. Habitat for Humanity owns the “ReStore” o Have a both social mission and an economic impact o Revenues from selling and/ producing and selling goods and services in the market go toward the mission. o Since it competes within the market, it tries to gain competitive advantage. o Operate in the free market o Often hire and train the people they serve in their social mission o 4) Social Purpose Business o For profit businesses that have a social environmental mission o Concept of ‘Blended value.’ o Social return on Investment (SROI) AND Economic Return on Investment (EQOI) o 5) Community Organizations or ‘Civil Society’ organizations o NPO o Associations, Clubs, Sef-help groups, Community economic development organizations (CED) o Are fond in every sector of the economy. o Either serve their members or serve the larger community or subsection of the population  eg. Food bank, religious organizations o Generate revenue: membership fees or dues, donations, social events (fundraising), partial gov’t funding. 6) Co-operatives organizations o Can be non-profit or for profit organization, operate in the market. 7 Principles of Co-op - Voluntary and open membership - Democratic member control - Member economic participation - Autonomy and independence - Education, training and information - Co-operation among co-operatives - Concern for community  Three mains types 1) User or consumer co-ops  found in all sectors – housing, finance, agriculture a. Financial co-ops, credit unions e.g Van-City b. CAA c. MEC 2) Marketing Co-ops  members are engaged in similar production of goods who use the marketing to broker their products. Eg. Agriculture, dairy farmers, egg farmers. 3) Worker owned co-ops purpose/mission is to provide employment for its members Eg. Big Carrot Common (organic health food store) Differences between a Co-op and a for-profit publicly traded corporation. Co-op Business 1 member = 1 vote Number of shares = determines the value of your vote Egalitarian decision making No individual can assume control Week 3 “Creating Shared Value article” What is the vicious circle that business is caught in? How can “business” become legitimate again? How can “business” create shared value? 1) The more B engages in CSR the more it is blamed for societal problems. - The perception of value is limited to maximizing short term financial performance while ignoring long term sustainability - The depletion of resources w
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