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this post was submitted on 22 Mar 2024
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Am I wrong in saying the lack of shareholders makes it easier for non profits to make long term profitable business decisions, compared to companies with shareholders, who seem to often care about short term revenue above anything else?
For-profits don’t all have shareholders. Non-profits still have boards (and with non-profits it’s at times more difficult to rid your company of toxic board members). I’ve seen non-profits that move like snails and for-profits that move like cheetahs.
And I wouldn’t really say it’s easier, no. For two companies of the same size, I don’t think it would be any different just because you’re a public company. Plenty of them don’t mind posting a loss if they defend it with investments. Investors, especially institutional ones, don’t just look at revenue. Assets, liabilities, equity, it all frames investing decisions.
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