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| Path: Main Street : NewsWeek : Op/Ed : Audience Opinions |
In both Canada and the United States, there is a growing push for the privatization of public social services. For some time, governments have been following the mantra that "it is not government's obligation to provide social services, but to see that they're provided." Traditionally, nonprofits have been given almost exclusive access to delivering social services. However, a growing number of private sector companies want access to these markets.What are the implications of competition for nonprofits? Should for-profits be allowed to bid on service contracts? How should nonprofits adapt to this increasingly competitive marketplace? Is it possible for nonprofits to adapt to this new market without compromising the qualities that distinguish them from for-profit companies?
I think that it's absurd to suggest that bottom line motivated corporations will be able to provide the social services that are needed. The providers of services like long term care and women's shelters should be motivated by community service, not by greed. And yes, corporate entities are motivated by greed - their function is to amass the largest possible profit, not to make the world a better place.Whenever someone fires off the line that "government should operate like business" I ask them which business: the Campeau Empire, or the Olympia and York Empire - both of which suffered massive bankruptcies.
There are an awful lot of poorly run businesses, none of which our government should emulate.
Why does no-one ask whether government should be providing Corporate welfare to companies like Bombardier?
-- Barry Rueger, CKCU Radio Carleton Inc.
Of course for-profit organizations should be able to bid on service contracts. Just as there is a growing number of for-profit companies wanting access to markets held by the nonprofit sector, so too are nonprofits moving into commercial ventures in the for-profit realm. In and of themselves these activities are neutral. My concern is that nonprofits and for-profits are organizations that are established for very different reasons - social welfare and profit making respectively.When profits are made at the expense of social welfare we have a problem. Likewise when social welfare is sacrificed by nonprofits seeking financial gain, we also have a problem. We must carefully attend to the means by which ends are reached.
-- Keith Seel, Principal, M4i Information Industries Inc.
I do not have any objections to for-profit businesses bidding on government contracts in traditionally non-profit areas. However, I am concerned about how these additional participants will impact how government contracts are allocated in the future.To date, primarily non-profits have been bidding for those social service contracts. However, as we know well, for-profit organizations judge business success on different criteria. Non-profits focus more on the impact of their charitable activities whereas for-profits will focus more on the bottom line.
In many instances, non-profits provide a valuable service but the profit margin is not enough to sustain the activity without tax-exemption from the IRS and state agencies. If the profit margin was great enough, for-profit organizations would have entered into the industry regardless of the tax-exempt status. My concern is that by allowing for-profit entities to bid for those same contracts, the focused will be shifted more to the cost-effectiveness of a given activity and not the societal need that will otherwise not be met. The end result could be ultimately that certain charitable activities for which there are real needs may be ignored because of the additional factor of the "bottom line".
Therefore, I do not believe that the problem lies with allowing for-profits to bid for those contracts, but more likely lies with how the government decides what criteria to use when determining what organization will receive the government contract.
-- Kati Coppler
I believe that the non-profit world has to go through a transformation. The voluntary sector must adapt to new conditions in the 21st century, just as government and the private sector have apparently "re-engineered".Privatization is a disturbing trend. I don't want to see the non-profit world pushed out. Yet, I hate to just assume "voluntary sector - good - private sector - bad".
We can't just assume that one will provide more value than the other. I just heard anecdotal evidence in New Brunswick that while the government's senior care homes don't meet standards, the private sector special care homes must and do.
Perhaps that is the answer. Standards must be set and adhered to, no matter what sector the service provider comes from. Perhaps if organizations from the government, private, and voluntary sector compete on a level playing field, the extra value that comes with voluntary organizations will be explicit.
Or, ...???
-- Mary Simpson, Community Health Promotion Network Atlantic
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