The name of this type of essay is practically the structure and format of the essay itself. Prerequisite for accomplishing a credible similarities and differences essay is, naturally, having an adequate knowledge concerning the essay topic that you will be comparing.
Since some confusion persists as to the factors that distinguish for-profit and nonprofit boards, even by some people who have served on both types of boards, we decided to outline some of the similarities and differences between the two.
Similarities and Differences 1. Overarching Purpose While some people might incorrectly think that for-profit and nonprofit organizations and boards are different in their commitment to overarching purpose i. Governing Policies Every organization should have written articles of incorporation, bylaws, and a set of governing policies that outline the fiduciary duties and responsibilities of the board of directors.
These documents are generally similar in design and address the name of the organization, how it will be governed, and how the bylaws can be amended. Common elements of the bylaws include the roles and responsibilities of the board as a whole, board committees, and individual directors; the procedures pertaining to giving notice for and holding annual and special meetings; and the rules governing voting at those meetings e.
Fiduciary Duties All for-profit and nonprofit boards have two fundamental fiduciary duties; these are the duty of care and the duty of loyalty. A breach of either of these duties can lead to dismissal and potential personal liability for a board member. As an aside, this is the first question that would need to be addressed if a board member were charged with negligence.
Two other fiduciary duties—the duty of candor the timely disclosure of material facts and the duty of confidentiality not disclosing sensitive or confidential information —are either treated as a subset of the duties of care and loyalty or listed separately.
Nonprofit boards also have an additional fiduciary duty—the duty of obedience—that requires directors to remain faithful to and supportive of the mission and goals of the organization. While these fiduciary duties are generally part of the onboarding orientation for most for-profit directors, they are often less frequently and less explicitly stated on many nonprofit boards.
A related responsibility is to ensure that compensation programs for the CEO and other senior executives encourage and reward superior performance and foster the highest levels of ethical behavior.
Other points of commonality between nonprofit and for-profit boards include: All board members also have the obligation and honor of serving as ambassadors for their organization and, as skills and interests allow, opportunities to be a coach, subject-area expert, and confidant to the CEO.
Titles and Reporting Relationships A for-profit board is made up of directors that represent the interest of the shareholders i. A nonprofit institution does not have shareholders because it is not owned; however, it does have a board of trustees, directors, or governors these terms that are used interchangeably.
While not a significant factor in the governance of for-profit and nonprofit organizations, the title of the senior executive of a for-profit corporation is always the CEO. In the United States, CEOs of for-profit companies frequently carry the chairman of the board title, but not always—in Europe, however, the CEO and chairman positions are normally split.
If the CEO is not the chairman, then either another member of management e.
If the CEO is also the chairman, it is common practice in publicly traded companies for a lead director to be named. Some large privately held companies combine the CEO and chairman title, but do not have a lead director e. In some law firms, investment firms, private equity firms, and venture capital firms, the most senior executive may carry the CEO title e.
In nonprofit organizations, the senior member of management may hold the CEO title e. In either case, there is almost always a non-management, independent board chair of a nonprofit organization.
Financial Focus and Terminology Even though for-profit and nonprofit boards are ultimately responsible for the oversight of the financial wellbeing of the organizations they represent, for-profit management teams have an obligation to deliver a financial return to shareholders.
As a result, for-profit boards are focused on net earnings, the stock price, and the dividend rate. Terms that are commonly bandied about in the boardrooms of publicly traded companies would never be heard during a nonprofit board meeting e. In addition, there is unique consideration given to certain external regulations during for-profit board committee meetings e.
In contrast, many nonprofit organizations rely heavily on fundraising and use a slightly different accounting methodology, especially for valuing pledges and donations. Correspondingly, there are phrases used and topics discussed in a number of nonprofit boardrooms that would never be heard in a for-profit boardroom e.
While some governance experts have suggested that nonprofit boards are much more focused on long-term versus short-term performance as compared to for-profit boards, we believe that any responsible board should be interested in both.
Remuneration and Financial Obligations of Directors For-profit directors are compensated in cash, company stock, stock options, or a combination thereof, while nonprofit directors receive no financial remuneration for their service.
In fact, nonprofit directors are generally expected to invest in make donations to the institutions they govern e.
Furthermore, all board-related expenses are reimbursed to for-profit directors, while nonprofit directors generally underwrite their own travel and lodging. These differing financial practices underpin a number of other more obvious or nuanced differences between for-profit and nonprofit boards that will be discussed subsequently.
Board Committees Much of the work that falls under the purview of any board of directors is delegated to board committees. Additional standing board committees will generally depend on the specific industry or focus of the organization—e.Getting Started / Ways to Walk / What Does It Mean?
Emotion Walk This is probably the least self-contained lesson on this site. Sometimes I do this whole lesson at once with a group--particularly an older group--but often I salt the various elements of it into a few different lessons, changing the pace and doing different games in between.
Arthur D. Collins, Jr. & Sophia Shaw Managing Partners, Acorn Advisors LLC. During a recent conversation with a friend who has served on the boards of numerous corporations, cultural institutions, and civic organizations, one of us half-jokingly remarked, “When you’ve seen one board of directors, you’ve seen ONE board of directors.”.
Instruction on a compare and contrast essay outline writing for students, timberdesignmag.com How to Do a Compare and Contrast Essay Outline Click to see example The content of a compare and contrast essay is about two different, yet relatively related entities which are critically analyzed on the basis of their similarities or differences.
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Explain similarities and differences between books (and possibly between audiences) Present summaries of each book first. Proceed to focus on similarities, followed by a focus on major differences.
Incorporate differences in reader audience, if possible. What is an Osteoclast. An osteoclast refers to a type of bone cell responsible for the bone resorption. Since bone is a dynamic tissue, the continuous formation and breakdown occur in it.