The tension between organizational values and the operation of aged care as a business is often characterized as the “mission versus margin” dilemma. It is common across the industry in both not-for-profit and for-profit organizations. However, in for-profit aged care facilities, there is no question about the intention to make a profit or the purpose of the profits. This is not so clear in not-for-profit aged care organizations. This article explores the tension through the examination (...) of a detailed case study of one of the larger not-for-profit social service organizations—All Saints Christian Care. It analyses the culture and managerial decisions though the lens of the political philosophy value pluralism. Finally, based on the value-plural theory, recommendations are made that would create greater operational transparency in not-for-profit aged care service. (shrink)

In the last decade, Australian federal and state governments’ commitment to the economic rationalist imperatives of performance measures, accountability for outcomes, and value-for-money has driven significant change in the Australian not-for-profit community services sector. In an environment shaped by neoliberal-inspired government policies and a renewed government commitment to austerity, Australian not-for-profit community service organizations are now, more than ever, actively engaged in a variety of income-generating strategies to achieve and/or maintain economic sustainability. Central to this process is meeting (...) the dual challenge of succeeding financially in a competitive environment and simultaneously serving mission. In this context, it is time to more closely examine the impact of these challenges, in particular the implications for the organizational values of not-for-profit community service providers themselves. This paper reports on a qualitative study of fourteen not-for-profit community service organizations, their core purposes, and their strategies for economic sustainability. In addition to the new data presented here, this paper contributes to the broader theoretical framework—the lens of value pluralism, which, we argue, provides a sharper focus on the relationship between mission and margin. (shrink)

This article develops contractarian business ethics by applying social contract arguments to a specific question: What are the pre-legal (or moral) rights and responsibilities of corporations? The argument uses a hypothetical social contract to show the existence of for-profit corporations in democratic capitalist societies is consistent with Rawls’s fundamental principles of justice. Corporations ought to have recognised their rights to be autonomous, to pursue private purposes, and to engage in economic activities. Corporations have a responsibility to respect the (...) freedom and human rights of all people, and not to interfere with government programs that ensure people have the education and training they need to find and keep corporate employment and that provide a safety-net that prevents destitution. If corporations have any other rights and responsibilities, those rights and responsibilities need to be established by actual social contracts, probably in the form of legitimate democratic processes. (shrink)

"--Peter Brooks, Princeton University "This is an important book and a superb piece of writing, combining passionate enthusiasm with calm arguments and informative examples.

It could become technologically possible to build artificial agents instantiating whatever properties are sufficient for personhood. It is also possible, if not likely, that such beings could be built for commercial purposes. This paper asks whether such commercialization can be handled in a way that is not morally reprehensible, and answers in the affirmative. There exists a morally acceptable institutional framework that could allow for building artificial persons for commercial gain. The paper first considers the minimal ethical requirements that (...) any system of commercial production of such artificial persons would have to meet. It then shows that it is possible for these requirements to be met, and that doing so will make the commercial production of artificial persons permissible. Lastly, it briefly presents one potential blueprint for how such a framework could look like—inspired by the real-world model of compensating the training of athletes—and then addresses some objections to the view. (shrink)

Wright, Ken Review of: Not for profit: Why democracy needs the humanities, by Martha C. Nussbaum, Princeton University Press, 2012, xv + 168 pp. $27.95.

Lucas, Brian Review of: Not-for-profit law: Theoretical and comparative perspectives, by ed. Matthew Harding, Ann O'Connell and Miranda Stewart, pp. 396, ebook $125.40, hardback $175.00.

The law and policy applicable to the not-for-profit sector is of growing importance around the world. In this book, legal experts address fundamental questions about not-for-profit law from a range of theoretical and comparative perspectives. The essays provide scholarly analysis of not-for-profit law, organised around four themes: Politics, in the broader sense of living as a community, and the narrower sense of political power; Charity, how it is defined and changes in its meaning over time; Taxation, including (...) the rationale for government support of the sector through the tax system; Regulation, which is of increasing significance as governments establish increasingly complex forms of regulation of not-for-profit activity. The fundamental aim of the book is to deepen our understanding of not-for-profit law and of the rationales and modes of government support for the not-for-profit sector. (shrink)

Reforms in the German health care system in the attempt to bring more competition into health care have increased the sovereignty of the insured or patients, who have finally been allowed to make choices. “The start of a reorientation of the statutory health insurance system and hospital care are to be welcomed as first steps towards a supply of health services that reflects individual preferences.” The authors can be contacted care of Prof. Dr. Oberender at Rechts‐ und Wirtschafswissenschaftliche Fakulät, Universität (...) Bayreuth, 95440 Bayreuth, Germany, where Dr Oberender is Professor in the Faculty of Law and Economics, and Ansgar Hebborn is his Assistant. The authors wish to record their gratitude to Jan Hacker for translating this article. (shrink)

Reforms in the German health care system in the attempt to bring more competition into health care have increased the sovereignty of the insured or patients, who have finally been allowed to make choices. “The start of a reorientation of the statutory health insurance system and hospital care are to be welcomed as first steps towards a supply of health services that reflects individual preferences.” The authors can be contacted care of Prof. Dr. Oberender at Rechts‐ und Wirtschafswissenschaftliche Fakulät, Universität (...) Bayreuth, 95440 Bayreuth, Germany, where Dr Oberender is Professor in the Faculty of Law and Economics, and Ansgar Hebborn is his Assistant. The authors wish to record their gratitude to Jan Hacker for translating this article. (shrink)

Princeton, NJ: Princeton University Press, 2010. Pp. 178.Hb. £15.95.

Performance measurement has far-reaching implications for not-for-profit organizations because it serves to legitimize, attract resources, and preserve expectations of stakeholders. However, the existing theory and practice of not-for-profit performance measurement have fallen short, due in part, to an overuse of profit-oriented philosophies. Therefore, we examine not-for-profit performance measurement by utilizing Marques’ “five spiritual practices of Buddhism.” Marques’ spiritual practices—a pro-scientific philosophy, greater personal responsibility, healthy detachment, collaboration, and embracing a wholesome view—are the foundation of our research (...) design. Responses from senior not-for-profit practitioners support the linkages between spiritual practices and not-for-profit performance measurement. We identify three essential performance measurement principles and elaborate on their capacity to generate awareness, higher meaning, and connectedness within not-for-profits. (shrink)

In this essay, we highlight 7 distinctives of EoC businesses which set them apart even from other humanistic approaches to management. Not that EoC’s distinctives make them a non-humanistic form of management, but they distinguish it with a unique set of goals and aims. These are: 1. Social and Economic Transformation Towards Unity; 2. The existential Self giving aspect—Creating a Culture of Encounter; 3. Redistributing Wealth for the Common Good; 4. Concern to Alleviate Poverty in All of Its Forms, and (...) to Participate in Poverty; 5. EoC Entrepreneurs Participate in Poverty (The Wound and the Blessing); 6. Fraternity and the Market as a Place of Community-Building (Communion); and 7. Competitors as friends—Acting as “Starters of Cooperation.”. (shrink)

This article advocates for a hermeneutic model for children-AI interactions in which the desirable purpose of children’s interaction with artificial intelligence systems is children's growth. The article perceives AI systems with machine-learning components as having a recursive element when interacting with children. They can learn from an encounter with children and incorporate data from interaction, not only from prior programming. Given the purpose of growth and this recursive element of AI, the article argues for distinguishing the interpretation of bias within (...) the artificial intelligence ethics and responsible AI discourse. Interpreting bias as a preference and distinguishing between positive and negative bias is needed as this would serve children's healthy psychological and moral development. The human-centric AI discourse advocates for an alignment of capacities of humans and capabilities of machines by a focus both on the purpose of humans and on the purpose of machines for humans. The emphasis on mitigating negative biases through data protection, AI law, and certain value-sensitive design frameworks demonstrates that the purpose of the machine for humans is prioritized over the purpose of humans. These top–down frameworks often narrow down the purpose of machines to do-no-harm and they miss accounting for the bottom-up views and developmental needs of children. Therefore, applying a growth model for children-AI interactions that incorporates learning from negative AI-mediated biases and amplifying positive ones would positively benefit children’s development and children-centric AI innovation. Consequently, the article explores: What challenges arise from mitigating negative biases and amplifying positive biases in children-AI interactions and how can a growth model address these? To answer this, the article recommends applying a growth model in open AI co-creational spaces with and for children. In such spaces human–machine and human–human value alignment methods can be collectively applied in such a manner that children can become sensitized toward the effects of AI-mediated negative biases on themselves and others; enable children to appropriate and imbue top-down values of diversity, and non-discrimination with their meanings; enforce children’s right to identity and non-discrimination; guide children in developing an inclusive mindset; inform top-down normative AI frameworks by children’s bottom-up views; contribute to design criteria for children-centric AI. Applying such methods under a growth model in AI co-creational spaces with children could yield an inclusive co-evolution between responsible young humans in the loop and children-centric AI systems. (shrink)

Assume that a not-for-profit receives a sizable donation and names a building after the donor. What should the not-for-profit do, when, at a later date, the donorbecomes tainted because of a scandal? This paper outlines a typology of donors and donations, and using stakeholder theory and resource dependency identifies three external factors (cognitive dissonance, multiple stakeholders, and recency) and three organizational factors (economic need, funding guidelines, and commitment) that would entice a NFP to adopt any one of three (...) strategies: return the money and delete the donor’s name; keep the money but delete the donor’s name; or keep the money and the donor’s name on the building. (shrink)

Nussbaum's analysis of our predicament turns on a contrast between two rival models of education. The "old model," concerned with education for profit and economic growth, places heavy emphasis on the skills associated with science and technology. From this perspective, the study of literature, history, philosophy, languages and the arts make no real or significant contribution to our basic economic needs and concerns - they may even be obstacles. In contrast, Nussbaum defends "the human development mode," which regards the (...) humanities as having a crucial role in our commitment to a democratic community and social equality. This alternative approach is perhaps better described as the "ethical model," since in respect of both its method and content it aims to produce humane, sympathetic and creative "global citizens." -/- ... This book will certainly add weight to Nussbaum's considerable reputation and influence as a major public intellectual. Her core diagnosis is both accurate and compelling. There are, nevertheless, features of this book that may be questioned.... Some may argue, for example, that Nussbaum's defence of the humanities leans too heavily on the political value we attach to these studies and, more particularly, on the specific ideological goals that they are supposed to secure. The general objection here is that it is a mistake simply to assume that the humanities' primary role is to serve as a vehicle for those progressive social forces concerned with issues of race, gender and sexuality. Although the contemporary humanities program has veered heavily in this particular direction, it is a matter of intense debate, within the humanities, to what extent this has been healthy and constructive. Clearly there are more traditional or conservative forces who take the view that this way of politicizing the humanities, of imposing a particular ideological agenda on its content and concerns, has not only narrowed and impoverished our understanding of humanities education, it has left the humanities vulnerable to hostile and reactionary forces only too willing to scrap them altogether.... -/- . (shrink)

The theorisation of fraud has largely been developed in the for-profit sector, and the paper extends this to the not-for-profit sector. Motivated by social control theory, we adopt a qualitative approach to assess the views of key charity stakeholders (social control agents) of charities registered with the Charity Commission for England and Wales about fraud. We find that stakeholders, especially donors and beneficiaries, are often reluctant to label ‘fraud’ as a threat to the sector. This reflects ‘trusting indifference’, (...) a value embedded in the sector that brings more harm than good to the sector in terms of wrongdoing, by hampering effective social control. Adapting existing theories of fraud to charities, we propose a ‘fraud tower’ with three layers: the social layer (trusting indifference), organisational layer (opportunity), and individual layer (fraudsters-opportunity seekers). (shrink)

Princeton, NJ: Princeton University Press, 2010. Pp. 178.Hb. £15.95.

Purpose: Performance measurement systems (PMS) in Nonprofit Organizations (NPOs) are more complex than in for-profit organizations. NPOs have an orientation towards social mission and values, and they consider not only organizational efficiency and viability, but also the social impact of the organization. This research provides a comprehensive synthesis of PMSs in NPOs. Design/methodology/approach: Using a literature review, supported by bibliometric and network analyses. A paper set of 240 articles related to this research field is examined. Topics that are the (...) most prevalent in this research area and their interrelationships are identified, presenting an outline of current efforts. Findings: Despite the descriptive analyses for the paper set, a framework is proposed for organizing the design-implementation factors of PMSs in nonprofit organizations, identifying the main requirements for their successful development. Originality/value: Investigation on performance measurement in nonprofit organizations is still in its early stages of development with many opportunities to further develop the field. Conceptual frameworks and models, as well as specific theories, are being generated for this field of research, and the process of adapting models from the general field of performance measurement is taking place. The meta-framework that organizes the main research topics of PMS in nonprofit organizations and the framework that consolidates factors that influence the design-implementation of PMSs in nonprofit organizations developed represents this paper contribution. (shrink)

Corporate social responsibility (CSR) is increasingly important in the global environment. Businesses that want to be socially responsible, but do not have the resources of multinational corporations, can partner with non-governmental (NGO), not-for-profit (NFP), and religious organizations to access information about the culture, customs, and needs of the people in areas where they wish to do business. Without such information, CSR projects can have unintended consequences that are not beneficial for the community. Suggesting that local farmers sell corn to (...) ethanol producers may increase the farmers' income but also increase the cost of a food staple to the community. Providing food aid may result in local farmers being unable to sell their crops for enough money to buy seed for the next harvest. Donating cheaper cinder blocks instead of adobe bricks may result in more available housing, but the housing may be unlivable in the summer heat. This paper presents a three-part model for businesses to follow to develop socially responsible projects. The first strategy is to use electronic sources of information about a country and area for background information. The second strategy is to gather on-the-ground information about important issues from the people who are already operating in a community as part of NGO, NFP and missionary initiatives. The third strategy is to develop scenarios that will help identify possible negative consequences of socially responsible projects so that the project implementation can be monitored for such consequences and interventions designed to decrease or counter the impact of negative consequences. (shrink)

We attempt to identify and evaluate the association between key characteristics of not-for-profit hospitals and market concentration, as measured by the Herfindahl–Hirschman Index, using data available from the American Hospital Association, the Centers for Medicare and Medicaid Services, and the Internal Revenue Service Form 990. Our goal is to provide decision support to policy makers on factors that contribute to market competitiveness, which has been linked to improvements in efficiency, costs, and access to health care. We find that contributions (...) are positively associated with market concentration. This could indicate that well-run NP hospitals are rewarded both financially as well as with increased market share. We also find that a higher percentage of Medicare patients is positively correlated with market concentration. This could be explained by the fact that Medicare reimbursement rates are generally lower than those paid by private insurers ; thus, hospitals might not necessarily choose to operate in areas with high Medicare populations. Further, median income is negatively associated with market concentration. One explanation for this effect could be the fact that a population with a higher median income is in a better position to pay for services, making them attractive to hospitals as a potential market. Finally, we find that the presence of managers with voting rights on the boards of directors has no significant impact. (shrink)

In the last two centuries, our world would have been a safer place if philosophers such as Rousseau, Marx, and Nietzsche had not given intellectual encouragement to the radical ideologies of Jacobins, Stalinists, and fascists. Maybe the world would have been better off, from the standpoint of sound practice, if philosophers had engaged in only modest, decent theory, as did John Stuart Mill. Yet, as Ronald Beiner contends, the point of theory is not to think safe thoughts; the point is (...) to open intellectual horizons. In Philosophy in a Time of Lost Spirit, Beiner reflects on the dualism of theory and practice. The purpose of the theorist is not to offer sensible guidance on the conduct of social life but to test the boundaries of our vision of social order. Whereas the liberal citizen should embody the practical virtues of prudence and moderation, the theorist should be radical, probing, and immoderate. Looking back at the liberal-communitarian debate of the 1980s, Beiner recognizes that the antidote to our spiritless times lies neither in the embrace of community over individualism nor of individualism over community: both individual and community need to be submitted to radical questioning. It is by exposing ourselves to the challenge of fearless thinking encountered at the philosophical extremities that we are most likely to understand our own world at a deeper level. In this collection of essays and reviews, Ronald Beiner helps us to think critically about the thought-worlds of our foremost contemporary thinkers, including Hannah Arendt, Allan Bloom, Michel Foucault, Hans-Georg Gadamer, J¦rgen Habermas, Will Kymlicka, Christopher Lasch, Richard Rorty, Judith Shklar, Leo Strauss, Charles Taylor, and Michael Walzer. (shrink)

AbstractDeveloped from meaningful work and business ethics, we investigate the motivational effect of meaningful work on paid staff (not volunteers) with a “shortage” of ethical employment practices situated in the Not-for-Profit sector. We tested the traditional notion of meaningful work by nature and by line manager support (under its business-like practices) to compensate for the “sacrifice” (low pay and job stress caused by poor employment terms) of front line staff working alongside professional managers paid the market rate. Using a (...) mixed-method case study, we employed SEM modelling to analyse a staff survey of 125 valid responses and administrative records of staff resignation, alongside interviews. The results show that meaningful work by nature and by line manager support are positively and significantly associated with job satisfaction but neither has a significant effect on staff resignation action. There is no empirical evidence to support the compensating effect of meaningful work by nature; meaningful work by line manager support has a stronger effect only through reduced job stress, rather than compensating for the low pay, in preventing resignation. The qualitative analysis reveals that continued low pay and using precarious employment contracts have evoked the questioning of ethics of employment practices in this sector. We discuss the implications and suggest further areas of research. (shrink)

This teaching case focuses on Diversity, Equity, and Inclusion (DEI) at a museum. At the beginning of 2021, the organization found itself in a crisis when more than 2,000 community members and 85 anonymous employees demanded the resignation of the museum’s President due to the language he defended in a job posting advocating for a job applicant to diversify audiences while “maintaining the traditional white core audience of the museum” (Salaz 2021). Students take on the role of an external consultant (...) to assess DEI maturity at the museum. The case challenges students to propose implementation and impact metrics for a DEI action plan. The case facts provide a timely and relevant setting to discuss DEI challenges in not-for-profit organizations. (shrink)

(2013). Enrollment of Education Majors at Public, Not-For-Profit, and For-Profit Postsecondary Institutions: An Empirical Analysis. Educational Studies: Vol. 49, No. 6, pp. 522-539.

Knowing the factors that executives deem critical to governance change can improve our understanding of how such changes come about and can help us evaluate those changes. Interviews with business and finance executives at 11 colleges reveal the importance to governance change of chief executive and board member leadership and interactions, as well as executive communication style. Costs are clear constraints to action, particularly since benefits are not quantified and are difficult to describe. Efforts to discuss governance with internal stakeholders (...) require persistence to overcome narrow, individualized concerns. Communication about governance to external stakeholders is rare and represents a missed opportunity for stakeholder feedback and the development of trust. Executives appear willing to adopt governance forms without considering the idiosyncrasies of their institutional field, limiting the working definition of governance and its potential. For corporations and not‐for‐profit enterprises these findings hold implications for the context in which leadership is exercised and the shape of governance structures. They also pose a fundamental ethical dilemma for leaders to address. (shrink)

With an eye ultimately to answering the question of how business can alleviate poverty completely, the paper examines existing arguments about the approach of business to poverty reduction with the case of people with disabilities living in poverty in Vietnam. The paper suggests that business should take the knowledge and potential of poor people into consideration in its interfaces with different types of poor people: consumers, workers, property owners, etc. Furthermore, investigating how business can help reduce poverty while still earning (...) a profit and ensuring customer satisfaction limits research on business approach to poverty, since it assumes that business will have some “not-for-profit” purposes. The findings point out that businesses with “not-for-profit” purposes serve as a promising area for further exploration and research of business approach to poverty alleviation. (shrink)

This paper is an attempt to address the limited amount of research in the realm of organizational ethical climate in the not-for-profit sector. The paper draws from Victor and Cullen's (1988) theoretical framework which, combines the constructs of cognitive moral development, ethical theory, and locus of analysis. However, as a point of departure from Victor and Cullen's work, the authors propose an alternative methodology to extract ethical climate dimensions based on theoretical considerations. Using the Ethical Climate Questionnaire (ECQ), an (...) exploratory factor analysis is conducted followed by a confirmatory factor analysis using LISREL. The resulting five dimensions are labelled as: individual caring, machiavellianism, independence, social caring, and law and code. Findings provide a somewhat disparate perspective of the ethical climates in a not-for-profit context. First, there is a more discriminating perception of benevolent climate than its for-profit counterpart. Second, the dimensions are polarized between the individual and the cosmopolitan loci of analysis. These findings are then discussed with implications and direction for future research. (shrink)

Utilizing Rest's moral development and Victor and Cullen's ethical climate surveys, we examine differences in moral reasoning and ethical climate between board members in the for-profit and not-for-profit sectors. Six for-profit corporations and seven not-for-profit corporations, all with base operations in a major midwestern state, participated in the study. We find that profit and not-for-profit boards may not differ in moral reasoning, but do exhibit different types of ethical climates. We also find that for- (...) class='Hi'>profit board members may utilize higher stages of reasoning a greater percentage of the time than not-for-profit directors. In contrast, the ethical climates of the two types of organizations are significantly different. For-profit companies had climates higher in egoism than did not-for-profit companies. In addition, not-for-profit firms reflected higher benevolence factors than for-profit firms. Not-forprofit organizations also had somewhat higher, but not significantly different, mean scores on the principle factor compared to the for-profit organizations. (shrink)

This chapter looks at the impact of recent societal approaches of knowledge and science from the perspectives of two rather distant educational domains, mathematics and music. Science’s attempt at ‘self-understanding’ has led to a set of control mechanisms, either generating ‘closure’—the scientists’ non-involvement in society—or ‘economisation’, producing patents and other lucrative benefits. While scientometrics became the tool and the rule for measuring the economic impact of science, counter movements, like the slow science movement, citizen science, empowering music-art initiatives and other (...) critical approaches focus on intrinsic and ethical questions of education and knowledge. Thinking about knowledge and research in terms of quantifiable products impacts heavily upon the domains of science and arts, while the complexity of knowledge acquisition forces society to consider also other parameters like equality, personal development and participatory processes. (shrink)

Martha C. Nussbaum, Not For Profit: Why Democracy Needs the Humanities, 2012, Princeton and Oxford, MA: Princeton University Press, pp. 184, $15, ISBN: 978-0-691-15448-0.

“What purpose does your knowledge serve?” In her book, Not for Profit: Why Democracy Needs the Humanities, Martha Nussbaum states the difference between a democratic education for citizenship and an education for profit, and draws attention to the current education crisis caused by an overvaluation of the latter over the former. An education for democratic citizenship aims to develop three key abilities: critical thinking, the capacity to understand and to transcend parochial attachments, and empathy. An education for (...) class='Hi'>profit, however, requires the training of specific skills in order to produce the economic growth of a certain group, company or country. While the first, in accordance to a Socratic education, focuses on the foundation of perennial structures of thought related to human dignity, the latter, following the sophistic model, simplifies these structures according to economic priorities. In this paper, I critically explore Nussbaum’s manifesto by reformulating two key arguments to show that: education must always aim at creating knowledge, and education must always be focused on the development of humanism as the greater goal, regardless of the emphasis on arts and humanities or on exact science. (shrink)

Business ethics scholars have proposed strategies for mitigating the ill effects brought on by a wealth maximization business strategy by urging managers to either embrace corporate social responsibility (CSR) or to manage according to stakeholder theory. In this article I argue that these strategies are often ineffective in bringing about the behavior they promote because it is antithetical to the nature and logic of capitalism. I examine the organizing principles of capitalism and the role it assigns to capitalists, and juxtapose (...) these with the behavior prescribed by three normative frameworks: strategic management theory (SMT), the CSR initiative, and stakeholder theory. Unlike the behaviors prescribed by the CSR initiative and stakeholder management theory, the behavior prescribed by SMT is consistent with the role of capitalists as defined by the organizing principles of capitalism, and SMT's “rules” have instilled habits that have, in turn, been able to mold managers’ aspirations and purposes. CSR and stakeholder theory must not only combat the habits instilled by the entrenched SMT, they must also find some way of instilling habits that run contrary to those defined by the nature and logic of capitalism itself. (shrink)