How the World Works, Institutionally

1. The Public Sector (The Government)

Accountable to: Taxpaying Voters
Gets funding from: Taxation, fees for service (transportation)
Motivation for excellence: Good will, reelection

2. Private Sector

Accountable to: Shareholders
Gets funding from: Consumers purchase product
Motivation for excellence: Profit

3. Nonprofit Sector

Accountable to: Grantors
Gets funding from: Grants, donations, fees for service
Motivation for excellence: Good will, continued grant support

 

4. Social-Conscious-Driven Private Sector

Accountable to: Shareholders
Gets funding from: Consumers purchase product
Motivation for excellence: Good will and profit

So what?

So looking at the world in this way reveals the motivations behind institutions as well as the foundations for the challenges they face.

• How can the public sector stay accountable to its citizens on a regular, large scale basis if the vote is the only institutionalized system of accountability? 
• How do we create sustainable funding streams for nonprofit organizations relying solely on foundation and individual support for projects that "do good"? 
• And lastly, how can the field of the social-conscious-driven private sector change it all?