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FINANCIAL INCENTIVE STRUCTURES AND PERFORMANCE OUTCOMES: A COMPARATIVE ANALYSIS OF PRIVATE AND PUBLIC ENTERPRISES

Author Information
Name: Advit Sethi
Country: India
Publication Details
Year: 2025
Volume: Volume-12, Issue-2 (July-December)
Page Number: 177-181
DOI: https://doi.org/10.5281/zenodo.17452578
Abstract
ABSTRACT
The pursuit of profit is one of the biggest forces behind business activity in capitalist
economies. It shapes how resources get distributed, pushes companies to innovate, and
affects how businesses behave. But while making a profit sits at the heart of most modern
economies, how it influences behavior is pretty complex - it can create both positive and
negative results. On the good side, you might see things like better efficiency and economic
growth, but on the downside, it can lead to inequality and when markets don't work properly.
Meanwhile, government agencies and nonprofits work differently - they focus more on things
like long-term stability, fairness, and helping society rather than just making money. This
research looks at how these different motivating factors shape how organizations act and
weighs up the pros and cons of both approaches - whether you're focused on a mission or on
profits. The argument here is that while profit-driven systems do spark innovation and keep
things dynamic, they often end up hurting sustainability and fairness unless there are proper
rules in place. Government organizations, though, are really good at addressing what society
needs, but they sometimes struggle with being efficient and staying accountable. What the
research found is that mixing both approaches - combining social goals with financial
incentives - might be the best way forward for getting businesses to work toward bigger
social goals.
Keywords: Profit motive; public enterprises; organizational behavior; incentives; hybrid
models
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