So a level playing field between for-profits and non-profits should make the 
corruption much more equitable. :-/

Sent from my iPhone

On Jul 23, 2012, at 20:19, "David R. Block" <[email protected]> wrote:

> I'm having a little bit of trouble with non-profits that Lobby and contribute 
> to campaigns. Once elected, those who were contributed to make sure that 
> those non-profits stay tax-exempt         as well. 
> 
> But that's not bribery or anything. Oh, no.... 
> 
> David
> 
> The democracy will cease to exist when you take away from those who are 
> willing to work and give to those who would not.—Thomas Jefferson
>  
> On 7/23/2012 12:32 PM, Dr. Ernie Prabhakar wrote:
>> I don't know if I buy their solution, but I agree we need better 
>> categories...
>>> The old for-vs.-non-profit distinction now becomes a relatively minor one – 
>>> instead of a major difference in both the fundamental intent and control of 
>>> the organization, it’s simply a question of whether the organization has 
>>> taken on an investment obligation to better pursue its purpose.
>>> 
>> E
>> 
>> http://holacracy.org/blog/integrating-and-non-profit
>> 
>> Integrating For- and Non-Profit
>> 
>> Humans have a wonderful tendency to make distinctions where underlying 
>> reality has no such boundaries.  Some of these distinctions prove useful for 
>> a time and become unquestioned givens – new definitions or categories that 
>> we believe are reflective of a fixed reality, rather than temporary 
>> constructs of human meaning-making.  Eventually though, all distinctions 
>> outlive their usefulness – and when that happens, evolution’s challenge is 
>> to draw new boundaries to collapse and integrate what we previously thought 
>> of as fixed opposites.  One such distinction I see as no longer useful is 
>> the divide between for-profit and non-profit organizations.
>> 
>> We’re used to thinking of for-profit companies as existing to generate 
>> profits for shareholders, while non-profits exist to serve some social good. 
>>  Our governmental and legal structures are all setup within this mindset.  
>> There are a few progressive movements today trying to add a third category 
>> of “for-benefit” companies, which exist for both purposes, yet that requires 
>> a more granular definition of what “social benefit” means – what to include 
>> and exclude.  And that’s when things get messy, at least if we pay 
>> attention.  When we follow this definition exercise to its             
>> logical conclusion, I think it reveals the limits of the entire distinction.
>> 
>> As I see it, the vast majority of organizations today are already doing the 
>> work of the world.  Virtually every one of them is already playing a role in 
>> unfolding evolution, advancing society, providing something the world needs 
>> – that’s already in their nature.  Cotton was once limited to the garments 
>> of kings, and now it’s providing more sanitary clothing in the poorest 
>> African countries – and I doubt the for-profit cotton farmers and 
>> loom-makers that contributed to this evolution really had a conscious focus 
>> on this level of greater good.  They just did the work reality called them 
>> to do – and that was of benefit.
>> 
>> So, aside from fringe cases (the Enron’s of the world), how can we possibly 
>> make a reasonable distinction around which organizations are “doing social 
>> good” and which are “just generating profits”?  What organization isn’t 
>> doing the work of the world in some way, to some degree?  And what 
>> organization can afford to ignore profit – that is, an overall economic 
>> indicator of whether it’s building more value than it is consuming in the 
>> world?  But instead of trying to define yet-another artificial category of 
>> the “for-benefit” company, perhaps we’d be better served by collapsing them 
>> all back into a single entity type that integrates all of these 
>> distinctions, and frees each organization to contribute to our shared 
>> journey to the best of its capacity.
>> 
>> Holacracy enables this collapse and integration with its shift to a 
>> transpersonal model of organization.  Whether or not there are investors 
>> involved, its organizing system aligns all activities around realizing the 
>> organization’s broader evolutionary purpose.  This can be legally-encoded in 
>> an organization’s bylaws or similar governing documents, which will also 
>> shift the board from entirely shareholder representatives to a 
>> multi-stakeholder board that stewards the organization towards its purpose.  
>> Its structure also honors the need to optimize profits (in balance with 
>> other considerations).  If investors are involved these profits provide them 
>> a needed return, and if no investors are involved then all profits can be 
>> reinvested in better pursuing the purpose.  The old for-vs.-non-profit 
>> distinction now becomes a relatively minor one – instead of a major 
>> difference in both the fundamental intent and control of the organization, 
>> it’s simply a question of whether the organization has taken on an 
>> investment obligation to better pursue its purpose.
>> 
>> With this shift in place, it is no longer relevant to talk about the 
>> “owners” of the organization, any more than it is relevant to discuss who 
>> owns you or me – we certainly do have economic responsibilities to the 
>> individuals and organizations that help fund our journey, but we are not 
>> owned by them, laboring simply to bolster their profits.  And nor would it 
>> make sense for us to be – history has shown that relying on slave labor 
>> isn’t as economically advantageous as a free workforce.  Holacracy offers 
>> this liberation to organizations doing the work of the world.  Its 
>> self-organizing structures and integrative decision-making effectively frees 
>> an organization to govern itself, to find its own unique purpose and follow 
>> its higher calling.  And, I believe, to generate better economic returns for 
>> those who provide needed resources along the way.
>> 
>> Looking at the bigger societal picture, what might it look like to legally 
>> integrate this distinction between “for-profits” and “non-profits”, while 
>> capturing the wisdom of each?  I think it looks like requiring corporations 
>> and other entities with limited liability protection (“personhood” status) 
>> to use a purpose-driven legal power structure, like Holacracy, in lieu of 
>> the current control paradigm as a condition of receiving personhood 
>> treatment.  And what then would happen to the many societal systems designed 
>> to rebalance the externalities and injustices created by organizations 
>> pursuing profits at the expense of other important considerations?  
>> Environmental laws, labor laws, unions – all have their roots in 
>> compensating for the             limits of the current paradigm, and a good 
>> percentage of lawsuits today are specifically to counteract for its unwanted 
>> side-effects.  Once we legally orient around organizations as purpose-driven 
>> entities doing the work of the world, what old systems are no longer 
>> necessary… and what new ones might emerge?  I’d sure like to find out…
>> 
>> 
>> -- 
>> Centroids: The Center of the Radical Centrist Community 
>> <[email protected]>
>> Google Group: http://groups.google.com/group/RadicalCentrism
>> Radical Centrism website and blog: http://RadicalCentrism.org
> 
> -- 
> Centroids: The Center of the Radical Centrist Community 
> <[email protected]>
> Google Group: http://groups.google.com/group/RadicalCentrism
> Radical Centrism website and blog: http://RadicalCentrism.org

-- 
Centroids: The Center of the Radical Centrist Community 
<[email protected]>
Google Group: http://groups.google.com/group/RadicalCentrism
Radical Centrism website and blog: http://RadicalCentrism.org

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