Schools, universities, and hospitals are considered as NPO corporations, their role is to serve public more than earning money profit and the increasing of shares, because the profit earned is in order to reinvest it of the affluence of their stakeholders. They have the same responsibilities as any other business corporation.
Their policy and decisions are made by majority (voting system) they have a financial capital to achieve their objectives in order to settle the benefit of their stakeholders.
Corporate governance principles are a must and it’s implemented in NPO’S as in the other business firms. These principles are:
- Fairness
- Transparency
- Responsiveness
- Accountability
- Resilience
- Communication
Corporate governance depends on the culture and the mission of the organization and how it is designed to protect its stakeholders and reputation.