The Formation And Risk Management Of The Enterprise-nonprofit Organization Alliance

According to the Stakeholder Theory,enterprises should not only create wealth for the shareholders,but fulfill their responsibilities for other stakeholders,such as product liability,employee rights and interests,creditor protection,supplier responsibility,environmental protection and public welfare etc.With the popularization of the theory,enterprises have paid more and more attention to their social contribution,and have performed remarkably in charity work.In addition to cooperation with nonprofit organization,they implement public welfare activities independently as well.However,compared to enterprises' activity in the public interest,there is a mass of problems in non-profit organizations' development.Because of imperfections in the management and lack of risk awareness,nonprofit organizations still need to improve their operational efficiency,service effect,social image and brand building.Additionally,non-profit organizations cannot make scientific decisions or take effective measures to control risks when faced with cooperation intentions from corporations.In order to promote self-development and collaboration with companies.non-profit organizations must learn about partners'main purpose,make decisions in accordance to the cost-benefit model and build risk management system.The paper uses game theory and case study method to analyze the formation process and decision mechanism of the coalition.What's more,the paper tries to explore valid risk management tools.On these grounds,the paper consists of six parts:PART 1:Introduction.The introduction poses the question,dells on the research background,the worth of the topic and the frame of the treatise.PART 2:Research summary.This part provides a review of foreign and domestic literature on the alliances between enterprises&non-profit organizations and points out the defects.PART 3:Research framework and model construction.This part defines relevant concepts and builds a dynamic game model to describe the formation of the alliance.Under this model,factors influencing the decision-making of corporations and the decision model of non-profit organizations are discussed.All of these make up the structure of the whole paper.PART 4:Analysis on the influencing factors of corporate decision-making in philanthropy.This is the central section of the thesis.Firstly,analyzes critical factors of corporate philanthropic decision-making,including capacity,cost input and external environment.Then,chooses 100 out of the world's best 500 companies as samples and creates the case database.Finally,verifies the theoretical analysis through case analysis and arrives at some conclusions.PART 5:Cooperative decision-making and risk management of non-profit organizations.This part talks about the decision process of non-profit organizations and risks in different cooperative situations.Accordingly,brings forth risk control measures from both self-development and risk management aspects.PART 6:Conclusion.This part concludes the results of the thesis,point out the limitations and make suggestions for further research.Through theoretical analysis and case study,the influence of capacity,external environment and cost input on enterprise public welfare behavior is verified.At the same time,this paper sums up ways of resource combination and three gravity factors of nonprofit organization,including expertise,net work and authority.On this basis,the paper explores the ways of alliance risk control from the perspective of risk management and self construction,putting forward proposals of formal governance,informal governance and self construction for nonprofit organizations.