Different Types of Organisation you Should Know for Governance Exams

There are three main types of organisation you’ll come across when studying Governance, Risk and Ethics. Each of these have different aims and motives, so may deal with similar issues each in a different way. Let’s take a look at them:

Private Sector Organisations

Private sector organisations are motivated to earn a profit for their shareholders. Examples include:

  • Limited companies
  • Public companies
  • Partnerships
  • Sole traders

Public Sector Organisations (Government Organisations)

Public sector organisations exist to serve some public need (society need) and are usually not motivated to earn a profit. Many of these are run by the government. Examples include:

  • Public healthcare
  • Roads and transport
  • Police force
  • Army

Not For Profit Organisations (Non-Govermental Organisations)

Not For Profit organisations exist to serve a society issue, such as helping the poor or protecting the environment. They are different to Public Sector organisations as they are not controlled by the government.  Examples include:

  • Healthcare trusts
  • Human rights organisations (e.g. Amnesty International)
  • Environmental protection (e.g. Greenpeace)