Tuesday, September 9, 2008

What happens when non-profits are worth $300 million?

Same things that happen with for-profits. The only difference is that the fights get much nastier because the property rights are not well defined. On the one wide is Nobel Laureate and Vandy alum Mohammed Yunnus vs. Norwegian shareholders who own part of his Grameen phone company.
Professor Yunus also highlighted a lapse in business ethics as a reason why Telenor should transfer management ownership to Grameen. Among other comments, he said that although both Telenor and Grameen Telecom were seeking growth in the phone company, Telenor's agenda to "maximize returns for the benefit of its owners" was in conflict with the "social and non-profit agenda of Grameen Telecom".

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