Public sector business organizations have very different business objectives from those businesses in the private sector.
This article looks at how state-owned business organizations decide on their business objectives. The most common business objectives for businesses in the public sector are concerned with delivering accessible, affordable and open to all services that benefit all people in the society.
The public services and facilities that state-owned businesses provide must be:
Accessible. Public services can be used by everyone in the country regardless of their location, e.g. gas and water pipes providing gas and electricity for households and companies, or public transportation such as Hong Kong Mass Transit Railway (MTR). Also, civil status records such as birth certificates or marriage certificates are accessible around the country at the general registrar offices.
Affordable. Public services must be cheaper than the services provided by the private sector. The service, such as a bus ride for the elderly people or very young children, may even be free at the point of use.
Open to all. Public services must be available to everyone regardless of their income, age, class, ethnicity, culture, religion, etc. For instance, anyone is allowed to use public subway as a mean of transportation within a city.
Delivering quality services is required from state-owned businesses. Government-owned businesses do not have profit as a main objective, but maintaining a ‘good’ standard of public services while at least breaking even, so the government does not need to add more capital from TAXes to ensure their sustainable operations in the long term.
