NONPROFIT COMPANY
    ~Business type adapted to the information society~

1. INTRODUCTION
In recent years, the spread and activity of nonprofit organization (NPO) are remarkable, and many expectations are given to the NPO accomplishing role. Nevertheless, after all, NPO has the limit that it can not help stopping within the scope of helping and relaxing, being not able to resolve fundamentally, the hardship especially the most harsh one brought by the social problems which are created by the capitalist economy and left publicly unsolved. It is certain that its activities are very meaningful, but still we can not abandon the sense of emptiness that it does not lead to a revolution in the problem creating structure.
The cause is that it is economically limited by the aspect of NPO's activities which are limited to solve and mitigate social issues and by the aspect of nonprofit in the sense that working funds have to be obtained through charity and donation. On the other hand, recently business type NPO that gained funds for their activities through their own business activities have appeared, but they are limited to solving the social problems that have arisen, so it can not be oriented to resolve the occurrence of social problems themselves, occupying the mainstream of the economy.
This paper proposes a nonprofit company as a nonprofit organization form that realizes the economy that does not cause social problems peculiar to the capitalist economy and will dominate the economy in the future.
2. WHAT IS A NONPROFIT COMPANY
First of all, it is briefly best to have the definition of nonprofit company in this paper to be understood easily and accurately. It can be defined that nonprofit company (NP company) is a limited liability company (LLC) that conducts business activities under non profit distribution (NP) , the appropriate notation is, for example, NP.LLC. Following is list of specific concrete characteristics of this NP company.
(1) NP company is limited liability company.
(2) Non profit distribution is an absolute requirement for the formation of NP company.
(3) NP company should not to be owned by outside persons (natural people and corporations).
(4) The incentive of NP company and its entrepreneur is to obtain high social evaluation of company and its activities. As a corporate philosophy, to contribute to society in a broad sense, that is to say not limited to solving social issues, but to contribute to society rather than pursue profits in businesses covering almost all business fields of private enterprises.
(5) The entrepreneurs of NP companies and fund providers at start-up are honored with respect to their social contribution for as long as the company survives.
(6) Earnings should be incorporated into internal holding assets, or use to repayment of initial provision funds, repayment of loans from the loan fund (see below) and further donation to the funds if preferable, or fund donation to other NP companies.
(7) The average of employees' wages is regulated to be less than three times of full time work wage by the minimum wage, and the wage disparity (maximum / minimum ratio) within the company is regulated to 3 times. These should be also formation conditions of NP company.
(8) At the time of corporate dissolution, repay or donate all existing assets to the fund or transfer them to other NP companies.
(9) Under the conditions that meet the conditions for forming NP companies, and subject to open account of revenue and expenditure, holding assets and wages, and accept public audits on them, it is able to acquire exclude (tax rate 0) or reduced tax rate.
(10) For those who improperly launched NP companies and gained unfair profits, they are subject to extremely heavy punishment separating from general economic crime as vice or rebellion against society.
In establishing such an NP company, entrepreneurs generally provide their own funds and will set up their own funds, but in order to promote the establishment with support to enable establishment even without funds, it is necessary to establish an appropriate NP corporate financing fund.
The fund consists of funds provided by government and local governments, corporate donation by corporate social responsibility (CSR), individual donation, fund return and donation of NP companies, and assets accepted at the time of dissolution of NP enterprises. Loan conditions for NP companies should be checked adequately so as not to break up after eating the financed business funds, subject to business continuity. In the management of this fund, the management method such as the administrative structure (independence from the public sector), audit and supervision is extremely important.
3. POSITION OF THE FORM OF ORGANIZATION CALLED NP COMPANY
Next, the position of NP company relative to other nonprofit organizations will be explained with historical circumstances. The most primitive form of nonprofit organization (NPO) is the organization of volunteers for solution of social problems, which is a typical form. In such NPO, most of the activities funds are obtained through donation, and the funds obtained through donation are appropriated in principle only for various expenses, personnel expenses are zero, literally volunteers do not wage. In a sense, by assuming that principle it is possible to collect donations.
However, with such limited NPO, even if it is able to act with active temporarily by collected donation, it is difficult to continue to act for a long period of time, excepting NPO which obtain donation and support money from companies and public organizations on an ongoing basis. Because, in order to continue the project, it is essential for the Board of Directors to decide the basic policy of activities and the administrative office to conduct general administration in full charge, so continuous donation money and support money are essential to pay the living wages of its directors and full-time staff. For this reason, as for continuous NPO, there are many NPO that receive public funds as service consignment by acting on behalf of a welfare service that public institutions should do but in reality are not going around. However, there is a problem that when public funds are entered, the activities of NPO themselves are required to enter the control of the administration, so that NPO are bound on the activities and regulated the original activities of NPO, which means that they will fall subcontractors of the administration.
In addition, Mr. Masataka UO proposed a view that NPO becomes a socially and economically influential entity and can reform the society by enlarging and steading donations by means of (1) creating planned donation system (Planned Giving), (2) aiming to encourage affluent people's donation (create taxation system to promote the formation of individual foundations and family foundation), (3) creating a philanthropist by philanthropy education, (4) making rules of the donation market (establishment of rules and regulations of pipeline between society and NPO) ("Fundraising changes the society", San-ichi Shobo, 2009). It is important and very preferable to activate NPO activities by achieving these tasks, but as long as NPO that mainly relies on volunteers and donations, it seems to be eventually difficult to become a major socio-economic entity.
Meanwhile, apart from this kind of NPO, as a wide-ranging nonprofit organization that has been interpreted as a literal meaning, there are common-benefit type nonprofit organizations and public-benefit type nonprofit organizations from the past.
The common-benefit type nonprofit organization is not a business organization for profit, such as various cooperatives or mutual aid associations, but a business organization for mutual benefit of the partners. In common-benefit type nonprofit organizations, dividends are to be issued to union members in the event that profits arise, and there is a aspect that it is necessary to pay a certain amount of dividends, although it is not like converting to capital aimed at profits. And, it is expected that since unions organized on a large scale are also emerging there is a possibility to have influence for economical structure by promoting economic, social and political functions in civil society as assumed by "the theory of regulation", however it is still based on the principle that it is a common benefit organization of partners, so it is inevitable that it is in principle impossible to become main stream for the market economy.
Public-benefit type nonprofit organization is an organization given a legal personality such as public benefit corporations, social welfare corporations, school corporations, religious corporations and the like that is established based on the system that provide various public assistance and preferential treatment on the condition that it takes non-profit-oriented projects which are regarded as specific public interests. This public-benefit type nonprofit organization has greatly contributed to solving social problems in each specific business field. However, public-profit type non-profit organizations can not only have the direction to resolve the occurrence itself of social issues themselves, but also the current situation is that some organizations are enlarged and effectively ruled by the upper levels, and its public interest is only face-up and become profiteers.
By the way, since the 1970s, it became difficult to achieve a balance between capitalist economy and welfare society by the Keynes-Ford system presupposing economic growth and unilateral economy due to restrictions on resources and the global environment and progress of informatization and globalization, and it fell into an economic and financial deadlock. In response to the situation of blockage, policies were developed to promote economic revitalization by free competition, deregulation and "small government" by advocating neo-liberalism. As a result, there are aspects that economically prosperous superficially will be brought about by the global financial capital, while the "small government" reduces the welfare system to mitigate social issues, as a result social issues spurt out. The denial of the "big government" has forced the government to abandon its responsibility to solve social problems.
Then, a social enterprise that carries out commercial activities as a mission to compensate for deficiencies in public utility services that occurred under the "small government" and to mitigate social problems was created as a third sector located between the government and private companies. In the UK, consignment to private was promoted in the "small government" to improve the efficiency of the public sector, but this brings about labor deterioration, low wages, and disparity fixation effect, and social problems are spurred out became. So, in the Blair era ('97 ~ '07), a social enterprise unit (social enterprise department) was established as a government agency, social enterprises aiming to solve social problems were approved and boosted by the government, as a results establishments of social enterprise were promoted greatly.
In the continental side in Europe, especially in France, common-profit type nonprofit organizations and public-profit type non-profit organizations originally had a strong social base, so it is taking a direction by the "theory of regulation", not to form social enterprise like the UK, to realize a new social structure that can solve social problems by further developing of common-profit type non-profit organizations and public-profit type non-profit organizations into those that is based on "social ownership / management" as a fundamental requirement. In the United States, the activities by NPO are vigorous, and because of being the multilayered organization system of NPO, business type NPO that procure their funds by business activities of itself without relying solely on donation is mainstreamed.
These social enterprises in a broad sense is a company that achieves the social goal that protect the value and the right to be excluded or overlooked by private enterprises and governments at the fields influencing the lives of people such as welfare, education, housing, employment, the environment, the formation of new communities etc, and a company that conducts social innovation by commercial activities using business methods with talented people who are entrepreneurial spirit as the third sector located between the powerful sector of private enterprise and government, and also a company that have a variety of organizational forms subject to business reinvestment with Non profit or Not for profit with social purpose top priority. Against such common-profit type / public-profit type nonprofit organizations and social enterprises, the company advocated in this paper is a nonprofit company (NP company) that naturally solve social issues, not limited to it, while making absolute requirement for non-profit distribution, conducts business activity with all business that contributes to society in a broad sense as its business field.
4. NP COMPANIES AND MARKETS
Needless to say, each of the markets and private enterprises is established in a relationship strongly linked to each other. Without the market, private enterprises can not do anything at all, and at least when the market reaches the current state, that is, when it reaches the product production society, there is a market based on private enterprises, and if there is no private enterprise the market is practically absent. the market and private enterprise is a pair concept.
However, the market itself exists before ancient times. From the stage immediately before the establishment of the market where the exchange place is not set as it and the date and time are also indeterminate and goods is exchanged on a reciprocal basis, through first the stage where the exchange place (market) and the day when the market is opened are decided although there is no special facility and the goods is brought to the market and exchanged, next the stage where the market facilities and the market management organization exist regularly and the market is open steadily based on the goods production is generalized, and further the stage where not only the goods market but also the non-physical market such as the financial market such as the securities market and the exchange market appeared and its importance to the economy became high based on the development of the capitalist production system, the market has resulted in the stage where the financial markets such as securities and foreign exchange has led to dominate economic trends based on the global financial capitalism brought by the IT innovation.
In the current market, the markets relating to major and internationalized products such as finance, energy such as crude oil and gas, core agricultural products such as cereals, etc., due to the progress of information technology, function as a data center for collaborating data of products, and even for retail goods such as industrial products and food items targeted for consumers, a collection of product data determined by information gathering at large-scale retail stores and various chain stores is the market, and these are substantially virtual market, the market such as exchanges only has the function to show it to the last. Physical spatial markets are limited to fresh foods, flowers, Japanese beef and other special goods that do not know the quality unless observe the actual goods and do not significantly affect economically.
By the way, the function of the market in the economy that private enterprises are universal enterprise form is achievement of the efficiency of resource allocation by distributing all available resources so as each private company gains the greatest profit under free (price, transaction volume, entry freedom) competition market, and consequently for the entire economy resources are allocated one after another to sectors where there is a high possibility of obtaining the highest profit. However, it is merely an efficiency of resource allocation to profit. Market principle (marketism) is to make such function of the market the first requirement of the management of the enterprise and the whole economy. And, in a rustic industrial society, which mainly produces goods, profits can only be obtained by increase of materialized values, that is, expansion of goods production (economy / GNP), so it can be said that marketism has made expansion of production and a great contribution to the improvement of physical life.
However, pursuing efficiency in an informatization progressed economy means that in the virtual market established by the progress of informatization only the profit acquisition is motive, as a result it is brought repetition of bubbles and collapse and not contributing to the development of the society. That is, in the virtual market, the market price is formed regardless of the substance of the commodity, and the real exchange is carried out at that market price, furthermore profits are generated by fluctuation of the market price,therefore,when market transactions is performed with leverage is made in a coupled state that the profit supremacy and the virtual market, the gain is excessively raised in a simple control system called a market function, and the price control by the market diverges. Thus, the mistakes in the market fundamentalism (which absolutely regards the market as a god and worships market trends as gods' prophecies) were to be revealed by the Lehman shock and the subsequent world recession.
On the other hand, NP companies conduct required businesses to the market to execute the company's mission, and by making the obtained profit non-distributed, investment of the profit to price fluctuation due to speculation in the virtual market is prevented, the profit is accumulated only as social capital intact. As a result, the market will realize the function to realize proper allocation of resources and restore the market to the original market. Also, in the information society, information production is the main and the information itself is the value, and its value is embodied in the market as the price of information, so the market achieves its function to realize proper allocation of information resources by the distribution of information is made at the market price. And the value of information can not be materialized and accumulated, it is not compatible with capitalization based on accumulation of value of goods, and the relationship between NP companies that distribute non profits and the market fits intact to the market function in this information society.