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21 

1.4.3 NPO’s corporate and their activities

Schools, universities, and hospitals are considered as NPO corporations, their role is to

serve public more than earning money profit and the increasing of shares, because the profit

earned is in order to reinvest it of the affluence of their stakeholders. They have the same

responsibilities as any other business corporation.

Their policy and decisions are made by majority (voting system) they have a financial capital

to achieve their objectives in order to settle the benefit of their stakeholders.

Corporate governance principles are a must and it's implemented in NPO'S as in the other

business firms. These principles are:

Fairness

Transparency

Responsiveness

Accountability

Resilience

Communication

Corporate governance depends on the culture and the mission of the organization and how it is

designed to protect its stakeholders and reputation.