The United Nations is one of the most well known and most respected organizations in the world. The aim of the UN to work towards global peace and security by improving cooperation between nations. The United Nations is not only world famous, but it is also one of the largest organizations in the world. However, the UN is highly misunderstood. A common question that is asked is whether the United Nations is actually a business? Well, is it? We’ll explain…
The United Nations is not a business. The UN does not make a profit and does not have shareholders like a business does. The UN also does not sell products or services as a company would. The United Nations is an international organisation, not a cooperation.
…but this is just an overview. In order to fully understand why the UN is not a business, we need to go into a bit more detail.
Why Is The United Nations Not A Business?
So, it’s clear that the United Nations is not a business, but is in fact an international organization. But what is the difference between an international organization and a company, and why exactly isn’t the UN a business? There are actually four main reasons:
- The UN does not sell products or services
- The UN does not make a profit
- The UN doesn’t have investors or shareholders
- The UN is not structured like a company
Now let’s take a look at each of these in-turn…
The UN Does Not Sell Products Or Services
A first reason why the United Nations is not a company is because it does not sell products or services.
A business operates by selling either physical items, or somebody’s services, in exchange for money. This money the business uses to cover the delivery of the product or service, and to cover the operating costs. Whatever is left is the company’s profits, which is then either taken by the owner or distributed between the shareholders.
The UN is an international organization made up of member states. Its objective is to improve security around the world, as well as alleviate human suffering through development projects and humanitarian relief. The UN does not sell anything. The assistance it provides is free. This makes the United Nations very different to a business.
The UN Does Not Make A Profit
A second reason why the UN is not a business is because it does not make a profit.
The aim of a business is to make money to its owners. This can be a single person, or a group of shareholders. Businesses sell products or services in order to make a profit.
The UN does not make money. It does raise funds from member states; however, it uses this money mostly on its programmes helping people in need around the world. It also uses some of these funds to cover its operating costs, such as staff, offices and vehicles. The fact that the United Nations doesn’t return a profit to anyone, is a clear indication that it is not a business.
The UN Doesn’t Have Investors Or Shareholders
Another reason why the UN is not a business is because it does not have investors or shareholders.
Businesses raise money by attracting investment. This is where people provide their money to a business, in exchange for a share of its profits. Many businesses also have shareholders, that buy a portion of the business in exchange for a percentage of the money the business makes.
The United Nations does not have investors or shareholders. It receives its funds through contributions by nation states. These countries are not investors or shareholders in the United Nations, but are members of the organisation. They do not get a share of the United Nations’ profits, partly because the UN doesn’t make a profit, but also because the UN doesn’t have shareholders or investors.
The UN Is Not Structured Like A Company
A final reason why the UN is not a company is because it is not structured like one.
The UN is made up of number of different bodies. These include the General Assembly, Social and Economic Council and the Security Council, as well as 15 specialised agencies and 15 more programmes and funds. The United Nations is overseen by the General Secretary, who is elected by the member states.
There is no set structure for a business or a company. However, the UN has a very unique structure, that is different to any business in the world.
Has The UN Ever Been A Corporation?
The United Nations has never been a cooperation. The UN was founded as an international organisation made up of member states. At no time in the UN’s history has it been a profit-making enterprise. The UN has never had shareholders or had the structure of a cooperation.
When the United Nations was founded in 1945, it was established by the signing of the UN Charter. This was an international treaty between the 51 original member states that laid the foundation for the creation of the United Nations. This treaty founded the United Nations as an international organization, not as a business entity or cooperation.
Since the founding of the UN there has been no change to status of the organization. The UN still remains an international organization made up of member states. This means the UN has never been a cooperation or business at any point during its nearly 80-year history.
What Type Of Business Is The United Nations?
The United Nations is an international organisation – this is the official designation of the type of organisation the UN is. The United Nations is not a business, and therefore is not any type of company, corporation or profit-making entity.
As we’ve said, the UN is not a business for many reasons. These include it not being a profit-making entity, not having shareholders or investors and the UN having a very different structure to that of a corporation or company.
…this means the United Nations is not any type of business. In fact, the UN is designated as an international organization, which is quite different to being a business or commercial enterprise.
Does The UN Run Any Companies?
The United Nations does not run any companies. There are no businesses that are operated by the United Nations. All parts of the UN are international bodies. No UN agency or entity is a profit-making enterprise.
As we’ve covered, the UN does not turn a profit. This is partly because there is no entity within the UN that is a business. The United Nations does operate a series of charities that are connected to some of its specialist agencies. These allow the general public to donate money to support these agency’s work. However, these charities are strictly non-profit organizations and are not businesses in any way.