The difference between public institutions and non-public institutions

There are significant differences in target orientation, profit nature, operation management, responsibility commitment, organizational structure and decision-making mechanism.

First, goal orientation and profitability.

The core goal of the business department is to make a profit. They earn income by selling goods and providing services, so as to maximize economic profits. These units usually need to seek survival and development in market competition, so their management pays more attention to economic benefits.

In contrast, non-operating units do not take profit as their main goal. They pay more attention to the development of social welfare, scientific research, culture and education, aiming at providing more services and support for the society. These units are usually established and managed by the government, charities and social organizations. The main sources of funds are government grants and social donations.

Second, the operation management and responsibility

Business units need to abide by market rules and accept the test of market competition in the course of business operation. They need to formulate effective business strategies to improve production efficiency and service quality in order to win market share and customer trust. At the same time, business units also need to bear business risks and be responsible for their own business behavior.

Non-operating units pay more attention to the realization of social benefits and the commitment of public responsibilities. In the course of business operation, they need to abide by relevant laws, regulations and social ethics to ensure the legality and fairness of their activities. At the same time, non-operating units also need to actively fulfill their social responsibilities and make positive contributions to society.

Third, organizational structure and decision-making mechanism.

Business departments usually adopt a more flexible organizational structure to adapt to market competition and changes in customer needs. In the decision-making mechanism, business departments pay more attention to market orientation and economic benefit evaluation to ensure the scientific and effective decision-making.

Non-operating units can adopt a more stable organizational structure to ensure the continuity and stability of their activities. In the decision-making mechanism, non-operating units usually need to pay more attention to the evaluation of social benefits and the balance of public interests to ensure the rationality and fairness of decision-making.

To sum up:

There are significant differences between operating units and non-operating units in goal orientation, profit nature, operation management, responsibility commitment, organizational structure and decision-making mechanism. These differences make them have different characteristics and advantages in operation mode, activity field and social function.

Legal basis:

Company Law of the People's Republic of China

Article 12 stipulates:

The business scope of the company is stipulated in the articles of association and registered according to law. A company may amend its articles of association and change its business scope, but it shall register the change.

Projects that are required to be approved by laws and administrative regulations in the company's business scope shall be approved according to law.

People's Republic of China (PRC) Civil Code

Article 87 provides that:

Non-profit legal persons include institutions, social organizations, foundations and social service institutions. A non-profit legal person shall not distribute profits to its investors, founders or members. However, unless otherwise provided by law.