Expectations of Stakeholder for a Nonprofit Organization Vs a For-profit Business

One of the key differences between non-profit organizations and for-profit businesses is that for-profit organizations use more factors for production labor to maximize profit. Such factors include capital, land, and technology intensive. Non-profit organizations totally depend on goodwill donations from public, private sectors, citizens, and government entities. Most for –profit financial activities are contingent upon marketing strategies and profit on the sale of goods and services (Daft, 2013). Other differences that one may anticipate in regards to stakeholders for nonprofit and for-profit organizations as opposed to for-profit organizations is as following; stakeholders in for-profit organizations are more engrossed on the level in which their products appeal to consumers and in what ways does it maximize profits.

Non-profit organizations focus their attention toward volunteering individuals and communities for donations. In addition, for-profit has great prospects on profit margin where they expect the business to have more profits than expenses, whereas non-profit organizations are more focused on how the organization can bring about change in the life of an individual or a community (Daft,2013). Though non-profit and for-profit organization stakeholders have different interest, they both have the responsibility to conduct their job to better the company and the stakeholder’s interest. Business managers represent the stakeholders and are entrusted to bring about profit and revenue toward the business, whereas non-profit managers rely on the stakeholders to raise funds in order to run the day-to-day operations of the organization, thus, I believe that non-profit managers have to pay more attention to stakeholders than business managers.


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