Lawyer Warns On ‘For-Profit’ Syndrome
Monday, 3rd September 2001 at 1:09 pm
“A dollar at any cost” is not worth it if you lose the “essence” of your organisation according to a Melbourne lawyer and expert in governance issues relating to the Not for Profit sector.
Damien Smith says the danger is that some organisations are getting too close to the ‘for profit’ arena resulting in a syndrome that sees an organisation losing sight of its core purpose.
Damien Smith runs Enterprise Care Not for Profit Services which provides remuneration services and training for CEOs and board members as well as job placement.
He says he is finding that many organisations are too often ‘bottom line’ driven, getting the fast dollar no matter where it comes from, generating funds for the short term instead of the long term, and forgetting their membership and their stakeholders.
He believes a number of large organisations have already stepped into the grey areas with an attack of the ‘for profit’ syndrome and while not naming names says it is appearing in areas of medical research, some industry groups and sporting bodies.
Smith says Not for Profits must reassess the passion they have for what they do and why they do it and he concludes that there is no use living the dream that is not held by the vast majority of your members.
One aspect that Damien Smith says needs urgent consideration by most Not for Profits is the role of its directors and their involvement with the general operations of the organisations.
He says most people wrongly assume that anybody can be a director.
The challenge he says is to find people who are passionate and independent and who can look outside the square.
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For more information about Enterprise Care Not for Profit Services go to www.enterprisecare.com.au.