Depends on what is being dictated. There are certain rules that are the responsibility of the government to dictate to all . Just because it is a private organization doesn't mean their building doesn't have to meet fire code. What specifically are you referring to?
How about telling a business how much they're allowed to charge?
Are you talking about FEDERAL govt, State or City/County?
If the people of a district agree to certain contractual terms and agreements
within their community, that's the govt representing the people's agreement
democratically decided. That's not dictating if it represents the people affected and governed.
However if groups such as local civic or homeowner's groups take a locally decided ordinance,
but ABUSE their power to start policing or enforcing it OUTSIDE the consent of the community, that starts down the road of dictatorship.
The factor that makes the difference between dictatorship/abuse
and democratic lawful use of power is CONSENT OF THE GOVERNED.
So as long as you represent the CONSENT of the public and taxpayers affected
by a policy, this would be in keeping with government by for and of the PEOPLE.
In contrast, if you CIRCUMVENT consent of the people affected, that's abuse
no matter if it's a public or private organization doing it. The City of Houston is
a prime example of a private municipality, basically a collective corporation
with ability to TAX citizens under force of law, but without Constitutional
checks, limits or protections from abuse -- so it takes pushing and WINNING
lawsuits IN COURT before people there can protect their rights from abuse
of power "dictating" to them what the tax money and "public resources and
authority" are used for which are basically controlled by private corporate interests.
It's a huge lesson in WHY we would enforce Constitutional limits and checks
and balances on power instead of letting corporate entities do as they choose with
taxpayer resource and "public" authority.