Commercial Applications
Write notes on:
(a) Mutual benefit organisations
(b) Common weal organisations
Answer
(a) Mutual Benefit Organisations:
Mutual benefit organisations are non-profit organisations formed for the benefit of their members and the public. They operate on the principle of self-help through mutual cooperation, where members contribute to a common fund or pool that is used to provide services to themselves.
Key Features:
- Benefit to Members — The primary aim is to benefit the members of the organisation through cooperative effort.
- Member Contribution — Members contribute through membership fees, subscriptions, or shares to create a common fund.
- Democratic Management — Such organisations are managed democratically with elected office-bearers and committees.
- Service Motive — The motive is service to members, not profit.
- Self-Help Principle — Members help each other through pooled resources and collective action.
Examples:
- Clubs — like gymkhanas, sports clubs, and social clubs.
- Trade Unions — like the workers' unions in factories.
- Consumer Associations — that protect consumer interests.
- Chambers of Commerce — like FICCI and CII, which promote business interests.
- Cooperative Societies — like consumer cooperatives and credit cooperatives.
(b) Common Weal Organisations:
Common weal organisations are non-profit organisations formed for the benefit of the society as a whole. The term "common weal" means "common good" or "general welfare." These organisations focus on serving the entire community rather than just their members, with the goal of promoting public welfare.
Key Features:
- Service to Society — These organisations work for the welfare of the whole society, not just specific groups.
- Essential Services — They provide essential services that benefit the community broadly.
- Government or Public Funding — Often funded by the government or through public contributions.
- No Profit Motive — Their motive is service, not profit.
- Wide Reach — Their services are available to anyone in society.
Examples:
- Police Service — Provides law and order, security to all citizens.
- Fire Service — Fights fires and provides emergency services to the public.
- Defence Services — Protect the country from external threats and provide national security.
These services benefit the entire community by ensuring safety, security and welfare. While mutual benefit organisations serve their members, common weal organisations serve society at large.