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Private vs public vs non-profit

stock ticker times square financial markets

Behind every high-rise building or corporate campus lies a company or business, and not all businesses are the same. 

On the surface, this statement seems simple. Of course not every business is the same. They deal in different areas such as banking and finance, law, energy, etc.

But there is a distinction between private companies, public companies and non-profit organizations. 

The best way to describe the difference between these three types of corporations is to talk about it in stock terms. Private companies do not have to report their results to Wall Street and, as such, are not subject to constant rumors about financial transactions, quarterly statements and employee layoffs and hires. 

Public companies report results in each quarter, often in terms of cents per share, and their stock prices often earn scrutiny with every financial transaction. If a company won't meet its expectations for the quarter, or same-store sales slip from the year before, it can be a danger signal to the financial markets. 

Non-profit organizations can lose or gain revenue without financial-stock penalties, and any money gained in a quarter must be invested back into the company and not distributed in terms of stock dividends or bonuses. 

You may not recognize it, but these three types of organisation work together on a daily basis. An example of this can be found in an article by the Local Initiatives Support Corporation about companies in Connecticut coming together on a project. 

You may not recognize it, but these three types of organisation work together on a daily basis

Affordable housing in Connecticut is not the easiest to find, especially in the more affluent areas by the Atlantic Ocean and Eastern Seaboard, so the Fairfield County Collaborative Fund for Affordable Housing teamed up with RBS (Royal Bank of Scotland) and Citizens Bank to provide $180,000 for completion of 50 townhouses at Marshall Commons in Stanford.

The state of Connecticut will provide $130m in funding over the next decade for affordable housing in the next 10 years. 

This is an example of companies from all three sectors working together to provide for the greater good of the state of Connecticut. What happens when companies want to work individually? 

The Center for Nonprofit Management cited recent history where companies like Maximus and Lockheed Martin got involved with welfare reform. The Marriott Hotels Corporation has increased its share of funding for meals for the poor.

These companies are able to do that by raising money through stock sales or sales of debt and equity to finance their charitable work. It is an example of how these companies are already utilizing reputation management without needing it.

A company in need of this may turn to services like the private communications company, which provides its services to those individuals and corporations that need it. 

Did you ever see the day where companies would work together for the greater good or compete for the greater good? It happens all the time, especially as companies realize the rewards are greater than the risk. 

The next time you read about companies getting together, don't be surprised if they come from all three fields. 

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