3. The Future of the Voluntary Sector
• Commercialization
– Particularly important for nonprofit agencies
desiring to enhance their incomes
– Unfair competition issue
4. The Future of the Voluntary Sector
Faith-Based Social Services
– Conservative think tanks have sought an
alternative to federal social programs
– Captured the imagination of international
development advocates
5. The Future of the Voluntary Sector
• Social Entrepreneurship
- Proposes social capital as a vehicle for
revitalization
- Pursues innovations through capital and
technology
- Uses capitalism and business principles as
a means of measuring effectiveness
6. Social entrepreneurship is the attempt to draw
upon business techniques to find solutions to
social problems. This concept may be applied to
a variety of organizations with different sizes,
aims, and beliefs.
11. Group Discussion
• Choose a social issue as a group.
– First consider how you would create a nonprofit to
address the issue.
• Would your organization provide direct service or social
advocacy?
• Who would you recruit to be on your board?
• Where would you solicit resources?
- Second consider how you would apply a business
ethic to the same social issue.
• How does this change what your organization provides?
• Who would you recruit to be a partner?
• How would you solicit resources differently?
13. Privatization Issues
• Commercialization
• Preferential Selection
• Cost-Effectiveness
• Standardization
• Oligopolization
– The control of a market by few providers
• As organizations seek to reduce competition by
buying their competitors
14. The Challenge of Privatization
• For many health and human service
professionals:
– Privatization is contrary to social welfare
• Privatization reinforces a tendency in
market economies to evolve:
– Dual structures of benefits, services, and
opportunities
15. Unions and the Private Sector
• Unions of health and welfare professionals
are one response to privatization
• Collective bargaining
• Privatization and government cuts in
funding make the issue ever more urgent
16. Welfare Capitalism
• Benefit packages for employees
• Corporate sponsorship of social welfare
initiatives activities
• Commonweal
17. Corporate Social Responsibility
• The corporation is being attacked and
criticized on various fronts
• Corporate social responsibility
• Corporate practices have also been
applied directly to social problems
18. Corporate Influence on Social
Welfare Policy
• AEI and the Heritage Foundation
• Corporate influence in social welfare is
dynamic
• Health care organizations unleashed a
legion of lobbyists on lawmakers
– In anticipation of the Obama administration’s
health reform initiative
19. The Future of Corporate
Involvement in Social Welfare
• “Decency Principles” proposed by Nancy
Amidei
– Equitable wages
– Employee rights
– Housing
– Environmental responsibility
20. Human Service Corporations
• Continued demand for human services
– Drawn the corporate sector directly into social
welfare in the United States
• Public policy decisions
– Encouraged proprietary firms to provide
health and human services
21.
22. Consolidation and Growth in New
Human Service Markets
• Human service corporations have become
prominent, if not dominant
• Nursing Homes
• 2003 Medicare Reforms
• Hospital Management
23. Consolidation and Growth in New
Human Service Markets
• Health Maintenance Organizations
– Was slow to attract the interest of the
corporate sector
• Child Care
• Home Health Care
• Corrections
• Public Welfare
24. Conclusion
• Health and human service professionals
– Slow to adopt the corporate sector as a
setting for practice
• The corporate sector
– Can offers more opportunities for program
innovation than possible under other auspices
25. Midterm Exam Quiz
• Slides on Compass 2g to review
• Tuesday March 3, 2014
• Compass 2g
• Available all day
• Timed (should give yourself 1h15m)
• Office Hours Thursday or email
26. Extra Credit:
5 points for attending all day event
and submitting 3 page paper
1 additional point for attending the pre-advocacy day event
Illinois NASW Advocacy Day
Tuesday, April 14th in Springfield, IL
• The day will encompass a half day of educational seminars on lobbying in Illinois followed by advocating at
the Capitol.
• The cost of attending the event is $13 if you register prior to February 28th. After February 28th, the cost
goes up to $18.
You need to register individually, online at:
https://naswil.wufoo.com/forms/advocacy-day-041415/
• The School of Social Work will be arranging for transportation for all students to Springfield and back on
Advocacy Day. The event begins in Springfield at 8:15am and will wrap up at 3:30pm. Please plan to be at
the School of Social Work to leave for Springfield at 6:15am. The bus will be leaving promptly at 6:30am,
so please keep in mind if you are late, you will need to arrange for your own transportation to Springfield.
• Once you register, please also send an email to ksharmon@illinois.edu to let me know you are registered
so I can keep a head count of how many people are attending.
• More information about Advocacy Day can be found at http://www.naswil.org/advocacy/advocacy-day/.
27. Next Class
• Karger and Stoesz, Chapter 8
• Social Policy Forum.
• 1st Exam is March 3. It will be administered on
COMPASS.
