BUSINESS AND MANAGEMENT MODULE 1 BUSINESS ORGANIZATIONS & ENVIRONMENT

Non-Profit & Non-Governmental Organizations  NPO’s operate in a business-like manner but without the profit being the major objective  Sometimes referred to as Merit Goods  They aim to provide a service or to promote special causes –Libraries; museums, hospitals, charities etc

Merit Goods  These are services which people thing should be provided in greater quantities  If the individual is left to decide whether or not to pay for these goods, some may choose not to, or may not be able to.

NGO’s  Operates in the private sector, ie it is not controlled by the government  They do not aim primarily to make a profit  Are set up and operate for the benefit of others in society –Also known as Private Voluntary Organizations –Amnesty International, Unicef etc

Types of NGO’s  Operational NGO’s –Established from a given objective or purpose –Tend to be involved in relief-based and community projects  OxFam and Unicef  Advocacy NGO’s –Take a more aggressive approach to promote and defend a cause –Direct action and lobbying  GreenPeace and Amnesty International

Charities  A registered NPO with the key function of collecting donations from individuals and businesses in order to support a cause that is beneficial to society  Use a variety of marketing methods to attract donor attention –Oxfam and World Wildlife Fund  Some charities have very complex structures and are run by a Board of Directors similar to a large corporation

Advantages of Charities  Provide financial support for the benefit of society  Exempt from paying taxes  Donors receive income tax benefit  Can protect employees with limited liability

Disadvantages of Charities  Lack of profit motive may cause problems with staff  Trustees, who control the purse strings of a charity, do so voluntarily  Finances must be carefully controlled  Survive solely on the donations – not allowed to sell anything –Difficult during hard economic times

Pressure Groups  Established by the members of an NPO to address a special interest –Not a union or environmental protection group  Win public and media support  Influence government policy

Formative Case Study Case: Network Rail On “S” drive Source: Jones, Hall, Raffo, Business Studies 3 rd Edition, Unit 6, page 60.