From non-profit to capped-profit: governance, trust and purpose in organisational transition

Purpose This study aims to examine how a mission-driven organisation navigates ethical commitments, stakeholder trust and governance challenges during a transition from non-profit to capped-profit status. This study addresses how such transitions reshape organisational purpose, legitimacy and stakeholder expectations. Design/methodology/approach This study adopts a qualitative, single-case design, analysing publicly available organisational communications, media coverage, policy documents and stakeholder commentary related to OpenAI’s structural transformation. Data were examined using an inductive approach informed by the Gioia methodology, moving from first-order concepts to second-order themes and aggregate dimensions. Findings The findings of this study suggest that transitions from non-profit to profit-oriented structures are associated with shifts in how governance, trust and organisational purpose are interpreted. Financial and strategic pressures appear to influence how priorities are balanced, while stakeholder trust is shaped by perceived alignment between stated commitments and observable practices. The analysis highlights recurring tensions between growth, transparency and accountability and indicates that legitimacy is continuously negotiated rather than fixed. Originality/value This study extends research on hybrid organisations by shifting attention from initial hybrid formation to organisational transformation. This study contributes to business ethics and stakeholder theory by demonstrating that ethical commitments and legitimacy are dynamically reconstructed through governance practices and stakeholder interpretation during periods of institutional change.