For-Profit Subsidiaries of Nonprofit Universities: A Challenge to Governance and Culture?

Abstract

This article aims to add data to the controversy over the creation of for-profit subsidiaries in nonprofit universities by considering the culture and governance of two of these companies in light of the academy's traditions and values. Contrary to accepted wisdom, the author recommends that for-profit subsidiaries of nonprofit universities be integrated into the governance and culture of their parent institutions, rather than insulated from them.