For-profit businesses are accountable to their customers. They usually only stay in business if customers are satisfied with the service they provide. Non-profits are accountable to their donors. The impressions of donors correlate imperfectly with the extent to which real needs are being served.
This is per definition false. For-profit businesses are accountable to their shareholders which can but does not have to mean that they want to act accountable towards their customers for strategic reasons. Strategic reasons can also lead to irresponsible behavior towards customers. You make a good example with facebook and google.
In a similar vein, non-profits are not accountable to their donors but to their charter and members. However, non-profits may want to act accountable towards donors for strategic reasons. For example, if a non-profit is not tax-exempt it can act just as regular company.
Moreover, there are organization types between simple for-profit and standard non-profits, e.g., public benefit corporations [1] or cooperatives [2].
Having said that, I have nothing against well-calibrated for-profit companies but I think my point still stands that anyone who may follow your proposal and has a vested interest in making the world a better place for everyone (from a tentatively impartial and welfarist perspective) should really think about the incentive structure they get themselves into. At least investigate a little bit beyond the standard playbook of neoliberal start up 101.
Thanks for your reply.
I disagree with your statement that
This is per definition false. For-profit businesses are accountable to their shareholders which can but does not have to mean that they want to act accountable towards their customers for strategic reasons. Strategic reasons can also lead to irresponsible behavior towards customers. You make a good example with facebook and google.
In a similar vein, non-profits are not accountable to their donors but to their charter and members. However, non-profits may want to act accountable towards donors for strategic reasons. For example, if a non-profit is not tax-exempt it can act just as regular company.
Moreover, there are organization types between simple for-profit and standard non-profits, e.g., public benefit corporations [1] or cooperatives [2].
Having said that, I have nothing against well-calibrated for-profit companies but I think my point still stands that anyone who may follow your proposal and has a vested interest in making the world a better place for everyone (from a tentatively impartial and welfarist perspective) should really think about the incentive structure they get themselves into. At least investigate a little bit beyond the standard playbook of neoliberal start up 101.
1:https://​​en.wikipedia.org/​​wiki/​​Public-benefit_corporation 2: https://​​en.wikipedia.org/​​wiki/​​Cooperative