Many people say that businesspeople do not do enough for society

It is an ongoing debate between proponents of profit-motivated businesses and supporters of nonprofit organizations regarding who is of more service to society. Nonprofit organizations claim they help society in a more concrete manner because they work toward purely philanthropic objectives. Businesses argue that, although they have profit-earning aims, they serve better than nonprofit organizations because they form the very backbone of the economy.

a. A middle ground can be found by identifying the symbiotic nature of the relationship between nonprofit and for-profit organizations. Indeed, one cannot serve to the best of its ability without the other. The following points explain this further.

i) Businesses build and strengthen economic structure, whereas nonprofit organizations build and strengthen the social structure of society. Employment opportunities, generation of income, and increased output occur mainly because of profit-based organizations. Societal conditions are strengthened through the efforts of nonprofit firms that engage in empowering underserved communities, promoting equality, etc. For a prosperous society, both elements are important.

ii) Business organizations also practice corporate social responsibility. They put their efforts into activities which are not profit-aimed but rather driven by societal benefits only. However business organizations alone cannot conduct and carry out such activities without involving nonprofit firms. If businesses provide resources free of charge, then the nonprofit organizations can provide proper distribution channels. For example, if a business wants to contribute to women's empowerment in a specific community, then it would surely need the nonprofit's help in order to identify the target recipients, ways of connecting with them, etc. Nonprofit organizations frequently form corporate partnerships and and apply for corporate grants in support of their philanthropic endeavors as well.

b. Adam Smith, the father of economics, has supported the role of non-capitalist organizations, mainly government entities, to be limited so that the invisible hand works to correct market disparities and achieve the most efficient and equitable result. The economist argued that government should play the role of guard, supervisor and regulator. It should enforce contracts grant patents, and uphold copyrights to encourage fair competition and innovation in the business world. At the same time, the nonprofit sector helps companies fulfill their responsibilities as solid corporate citizens.