20 Analyse the difference in objectives between a social enterprise and a public limited company
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- Enterprise Emperor
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20 Analyse the difference in objectives between a social enterprise and a public limited company
20 Analyse the difference in objectives between a social enterprise and a public limited company [3]
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- Corporate Commander
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Re: 20 Analyse the difference in objectives between a social enterprise and a public limited company
{KN}Social enterprises aim to achieve social or environmental goals, whereas PLCs(public limited companys) focus on profit maximisation and shareholder returns
{APP}For example, Akhuwat Foundation in Pakistan is a social enterprise that provides interest-free microfinance loans to support low-income families. Its main objective is to reduce poverty and improve social welfare, rather than maximising profits.In contrast, a public limited company (PLC) like Nestlé Pakistan focuses on profit maximisation and increasing shareholder returns by selling products, expanding operations, and improving efficiency.
{AN}This shows that while both types of organisations generate revenue, their objectives determine how profits are used: a social enterprise reinvests earnings to achieve social impact, whereas a PLC distributes profits to shareholders and prioritises financial growth. This fundamental difference influences business strategies, decision-making, and long-term priorities.
{APP}For example, Akhuwat Foundation in Pakistan is a social enterprise that provides interest-free microfinance loans to support low-income families. Its main objective is to reduce poverty and improve social welfare, rather than maximising profits.In contrast, a public limited company (PLC) like Nestlé Pakistan focuses on profit maximisation and increasing shareholder returns by selling products, expanding operations, and improving efficiency.
{AN}This shows that while both types of organisations generate revenue, their objectives determine how profits are used: a social enterprise reinvests earnings to achieve social impact, whereas a PLC distributes profits to shareholders and prioritises financial growth. This fundamental difference influences business strategies, decision-making, and long-term priorities.
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- Enterprise Emperor
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Re: 20 Analyse the difference in objectives between a social enterprise and a public limited company
a social enterprise aims to achieve social goals while a public limited company (PLC) focuses on making profit
for example a social enterprise may fund community projects through sales whereas PLC like pepsi would aim to make profit
this shows that social enterprise strategies move around solving social or envirnmental problems whereas PLC focus on efficiency and sales to boost profits, when social enterprise builds cmmunity trust and provide long term social benefits PLC attracts investors and expand faster because of there focus on finance.
for example a social enterprise may fund community projects through sales whereas PLC like pepsi would aim to make profit
this shows that social enterprise strategies move around solving social or envirnmental problems whereas PLC focus on efficiency and sales to boost profits, when social enterprise builds cmmunity trust and provide long term social benefits PLC attracts investors and expand faster because of there focus on finance.
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- Corporate Commander
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Re: 20 Analyse the difference in objectives between a social enterprise and a public limited company
[kn] A social enterprise aims to make a positive social impact whereas a plc focuses on generating profit for its shareholders.
[app] for instance, toms Shoes, for every pair of shoes sold they donate a pair, on the other hand, unilever, producing goods to generate profit.
[an] toms shoes will lead to a positive impact, improve lives and customer loyalty whereas unilever will generate profit, grow the business and have competition.
[app] for instance, toms Shoes, for every pair of shoes sold they donate a pair, on the other hand, unilever, producing goods to generate profit.
[an] toms shoes will lead to a positive impact, improve lives and customer loyalty whereas unilever will generate profit, grow the business and have competition.
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- Trade Titan
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Re: 20 Analyse the difference in objectives between a social enterprise and a public limited company
[KN] Public limited company focuses on profit making/profit maximization while social enterprise aims to make a positive social impact.
[APP] For example, a local bakery that is a social enterprise gives extra food to people in need and uses any profit to help the community.
[AN] This shows that social enterprise helps people in need, it reinvests earning to achieve social impact, whereas a PLC distributes profits to shareholders
[APP] For example, a local bakery that is a social enterprise gives extra food to people in need and uses any profit to help the community.
[AN] This shows that social enterprise helps people in need, it reinvests earning to achieve social impact, whereas a PLC distributes profits to shareholders
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- Wealth Wizard
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Re: 20 Analyse the difference in objectives between a social enterprise and a public limited company
Social enterprise prioritize social or enviromental missions whereas plc aim to maximize shareholder returns .for eg a bakery that hires people from rural areas can reinvest its profits in donations to a local shelter.whereas a coffee shop chain listed on stock exchange will aim to boost its sales and pay back regular dividends .Hence a plc focuses on innovation and profit driven growth whereas a social enterprise focuses on expanding in such an area that has underserved workers nd can use those profits in funding additional community programs.
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- Enterprise Emperor
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Re: 20 Analyse the difference in objectives between a social enterprise and a public limited company
Knowledge Point:
A social enterprise is focused on creating social value and solving issues like poverty or inequality, while still earning revenue to sustain its work. In contrast, a public limited company (PLC) mainly aims to maximise profits and increase returns for its shareholders.
Application:
For example, a social enterprise such as The Citizens Foundation College in Pakistan provides affordable education for underprivileged students, whereas a PLC like BPP University in the UK focuses on attracting more fee paying students to increase its profits.
Analysis:
The social enterprise reinvests its income to help more students and expand educational access. This builds long-term social benefit rather than personal gain. On the other hand, the PLC uses its profits to pay shareholders and fund expansion. So, while both work in education, their main purpose differs one aims to serve society, while the other aims to grow financially.
A social enterprise is focused on creating social value and solving issues like poverty or inequality, while still earning revenue to sustain its work. In contrast, a public limited company (PLC) mainly aims to maximise profits and increase returns for its shareholders.
Application:
For example, a social enterprise such as The Citizens Foundation College in Pakistan provides affordable education for underprivileged students, whereas a PLC like BPP University in the UK focuses on attracting more fee paying students to increase its profits.
Analysis:
The social enterprise reinvests its income to help more students and expand educational access. This builds long-term social benefit rather than personal gain. On the other hand, the PLC uses its profits to pay shareholders and fund expansion. So, while both work in education, their main purpose differs one aims to serve society, while the other aims to grow financially.
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- Wealth Wizard
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Re: 20 Analyse the difference in objectives between a social enterprise and a public limited company
[KN] a social enterprise focuses on achieving social aims, while a public limited PLC focuses one earing profit for its shareholders.
[APP]for instance, a social enterprise might use its revenue to help the poor or protect the environment, whereas a PLC like Apple aims to increase sales and dividends.
[AN]this means a social enterprise measures success through community impact, while a PLC measures it through financial performance, leading to different priorities when making decisions.
[APP]for instance, a social enterprise might use its revenue to help the poor or protect the environment, whereas a PLC like Apple aims to increase sales and dividends.
[AN]this means a social enterprise measures success through community impact, while a PLC measures it through financial performance, leading to different priorities when making decisions.
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- Trade Titan
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Re: 20 Analyse the difference in objectives between a social enterprise and a public limited company
KN:
A social enterprise aims to solve social or environmental problems while still earning enough revenue to stay sustainable, whereas a public limited company mainly aims to maximise profit for its shareholders.
AP:
For example, Akhuwat Foundation in Pakistan focuses on helping low-income families through interest free loans, while Nestle Pakistan aims to grow profits and increase shareholder value.
AN:
A social enterprise reinvests most of its profits to support its social mission. A public limited company distributes profits as dividends to shareholders. Their success is measured differently — one by social impact, the other by financial performance.
A social enterprise aims to solve social or environmental problems while still earning enough revenue to stay sustainable, whereas a public limited company mainly aims to maximise profit for its shareholders.
AP:
For example, Akhuwat Foundation in Pakistan focuses on helping low-income families through interest free loans, while Nestle Pakistan aims to grow profits and increase shareholder value.
AN:
A social enterprise reinvests most of its profits to support its social mission. A public limited company distributes profits as dividends to shareholders. Their success is measured differently — one by social impact, the other by financial performance.
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- Corporate Commander
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Re: 20 Analyse the difference in objectives between a social enterprise and a public limited company
(KN) The objectives of a social enterprise often have more to do with social or environmental problems whereas a public limited company's objectives involve maximizing profit for shareholders.
(APP) For example, a social college may provide education to poor people for free whereas a large public limited schools' group may focus more on maximizing profit by charging higher prices.
(AN) Charging higher prices leads to a higher profit for the public limited company, enabling it to pay higher dividends to shareholders. On the other hand, by charging little to no fees for the education of poorer people, the social enterprise is able to fulfill its objective of being useful to the country by providing them education for free, which would later on, lead to these people getting good and stable jobs and earning a stable income, leading to better lifestyles and eventually, a better economy.
(APP) For example, a social college may provide education to poor people for free whereas a large public limited schools' group may focus more on maximizing profit by charging higher prices.
(AN) Charging higher prices leads to a higher profit for the public limited company, enabling it to pay higher dividends to shareholders. On the other hand, by charging little to no fees for the education of poorer people, the social enterprise is able to fulfill its objective of being useful to the country by providing them education for free, which would later on, lead to these people getting good and stable jobs and earning a stable income, leading to better lifestyles and eventually, a better economy.