Under the definitions provided in the chapter, it seems that Rivertown Trading was the social enterprise arm of MPR. The first definition suggests that a social enterprise seeks to solve a social problem (which in this case would be publicly broadcasted radio) through a market-driven approach. Since the majority of the revenues for the parent company stemmed from the sales conducted by Rivertown Trading rather than any grants, then it meets the definition. Similarly, with the definition of a nonprofit attempting to generate earned income, the Rivertown Trading enterprise was established for the sole purpose of generating earned income for the nonprofit branch. The fact that the income-driven activity is established in a separate business is even more supported than it is a social enterprise (insert citation).
Several issues are raised in the chapter that can also apply to this case. For example, the need to balance the interest of the mission with the nonprofit’s need for revenues as well as how can a nonprofit organization engage in a contractual relationship but meet the responsibilities for transparency and disclosure. There is also the issue of nonprofit values and concerns, particularly if the organization receives government funds, should it engage in questionable partnerships or business dealings. Potentially another issue is the need for better evaluation of benefits to nonprofits from partnerships, with the need to have more equitable relationships with corporate partners (insert citation).
Since MPR was a radio network, its mission and values are not as clear and cut as most nonprofits which are focused on a highly specific factor or issue in the world. The mission of MPR as it currently stands is “to enrich the mind and nourish the spirit, thereby enhancing the lives and expanding the perspectives of our audiences and assisting them in strengthening their communities” (Minnesota Public Radio, n.d.). In other words, it is a public radio network that aims to provide entertainment or some other form of audio programming. That was inherently their social mission. However, public radio is not lucrative as they have much fewer advertisement and other streams of revenue compared to commercial stations. Meanwhile, radio programming does cost money, necessary for studios, equipment, and paid staff/appearances.
It can be argued that the commercial activities were not inconsistent with MPR’s mission as it was making money off the merchandise based on its shows and the revenue was then used to further fund the radio station and its programming – its main mission. Therefore, the commercial activities seem to be consistent with MPR’s mission because of the type of organization that it was and its inherent purpose. The commercial aspect truly seems like a perfect example of a social enterprise because the sales were directly related and associated with the MPR programming and revenues massively went to fund the expansion and function of the network.
It is important to consider the stakeholders of MPR. There are millions of listeners, thousands of employees in its tens of locations around the country, it is the management and the owners of the station. There are also stakeholders of the government, providing funds to support as well as any potential donors. All of these stakeholders value the continuation and independence of public radio broadcasting. According to Lewis (2007), massive nonprofit organizations are nothing new. Associated Press, NPR, PBS were at one-point small nonprofits, often in debt. Now they are massive broadcast networks with tens of millions of listeners/readers, thousands of employees, and hundreds of millions in revenue. All of these organizations aggressively seek forms of revenue or contributions from public sources. There is a public need for such institutions and the stakeholders support their existence. The values of MPR stakeholders believe in producing the best, ‘enriching’ programming. When that vision is achieved in combination with substantial resources, even when stemming from commercial activities, it drives forward the mission of the independent radio network.
References
Lewis, C. (2007). The nonprofit road. Columbia Journalism Review. Web.
Minnesota Public Radio. (n.d.). About MPR. Web.