Case we are talking about the decision to transform the not-for-profit organization in a commercial company. STFC, which is part of a large nonprofit organization - Self-Employed Women Association (SEWA) - works to improve the living conditions of the very poor rural and urban women in India. She does this by transferring the skills of traditional Indian embroidery in modern clothing and home furnishings that STFC is helping to promote and sell around the world. Organized a cooperative of producers, STFC is owned by its artisan members. STFC is thinking about switching to non-profit status, because it will allow faster and more sustainable growth by providing access to external funds, and to allow the payment of dividends, which will further improve the living conditions of women. Legal and financial implications of such a step to the side, it is not clear that the STFC can withstand such changes, transformation would entail. Most importantly, the organization are used to making decisions solely on the basis of social criteria can adapt to benefit non-profit mentality? And, clients make changes? "Hide
by Mukti Khaire, Kathleen L. McGinn Source: Harvard Business School 18 pages. Publication Date: 01 February 2010. Prod. #: 810044-PDF-ENG
