Term Paper: Cardsmax Non-Governmental Organizations (Ngos) Have Been Proposed

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Non-Governmental Organizations (NGOs) have been proposed to be an integral part of the present day organizational landscape. Jammulamadaka (2009), discusses that NGOs have become the method of choice in places like India to implement various social welfare programs. As the term NGO indicates, these are organizations that are outside of the government and are privately managed. The way in which The NGO is set up differs from the traditional forms seen from public bureaucracies and For Profit Businesses (FPBs) based on the two criteria of being non-governmental and non-profit based. NGOs are reported to offer certain advantages to include having the ability to attract altruistic resources, provide for unmet demand for public goods, & protect against contract failure. In addition, they have been seen as sites that facilitate socialization in democratic participation, social innovation, and responsiveness. Yet, because of the preferences of the institutionalized funders, & non-profit characteristics they continue to remain a defining feature of NGOs even though it may not be giving the organization a competitive advantage over public bureaucracies or FPBs.

Arenas, Lozano, & Albareda (2009), confirm in their research that new forms of business-NGO engagement emerged based on a combination of confrontation and collaboration strategies. Without abandoning advocacy and campaigning, today's NGOs also engage corporations and business associations to identify and disseminate corporate best practices. They form partnerships to promote social and environmental actions, provide technical assistance to corporations, elaborate commonly agreed certification schemes, promote and design corporate social responsibility (CSR) standards as well as management and reporting processes, and participate in CSR monitoring and auditing. These new forms of collaboration between business and NGOs reflect broader changes in the overall governance environment, while contributing to the reconstitution of the global public domain where firms carry out their activity

NGOs are more and more becoming mass producers of welfare goods. The focus on clear, well planned project proposals and documents and clearly specified procedures and budgets have reduced the elbowroom available to NGOs to innovate. This loss of relevance is primarily because the organic features of the organizational form which bestowed some of the advantages on NGOs are now being traded off in favor of a more standardized, formalized form (Jammulamadaka, p.9).

The advantages of NGOs as stated previously are the ability to meet the demand of public goods. Therefore NGOs emerge as their non-profit status enables them to meet this unmet demand i.e. development and social welfare goods. Researchers explain that government is constrained in providing the entire range of public goods because of factors like the free-rider problem and the criteria of universality and equality (Jammulamadaka, 2009). This necessitates the existence of non-profit NGOs that provide the goods not provided by the government. NGOs because of their non-profit constraint can solve the free-rider problem. Further, being private organizations they are not bound by universality or equality criteria and can provide variety in services. NGOs with their non-profitness guard against contract failure and create trust in the organization which privileges them over FPBs.

Arenas, Lozano, & Albareda (2009) go into detail explaining that there are in fact a large variety of organizations grouped under the term of NGOs; these include, nonprofit organizations, and civil society organizations. The research conducted in this article explains NGOs and the relationship to stakeholders and CSRs. Most studies in the CSR field are concerned with freestanding entities that sustain the collective action of the social movements from which they often emerged. They are referred to as social purpose NGOs, such as environmental groups, human rights organizations, organizations that fight against poverty and underdevelopment or provide medical assistance in emergencies. Their "clients" (beneficiaries) are different from the people who contribute time and resources; as such they are also called "non-membership organization's (p.179).

Jammulamadaka (2009) continues by stating that the non-profitness of the NGOs provide a scope for consumer control of the organization against FPB. Public bureaucracies provide for public control, but the electoral process may not be as quick or effective as the one provided by 'non-profitness'. It has also been suggested that non-profitness enables NGOs to better capitalize on the altruistic tendencies of people and mobilize better volunteer resources therefore making them more cost efficient in providing development goods. Because, these organizations are perceived as being engaged in their activity for charitable reasons and not with an intention to profit, they can mobilize volunteer labor and donations of cash and kind from the public at large. With these volunteer resources, their cost of provision goes down making them more efficient over public or market provision. Because these organizations are privately managed and are believed to be based on altruistic values, they are expected to follow democratic processes which enable people to participate and thereby become empowered influencing the larger political behavior in society (p.12).

Researchers have indicated that there are different ways to categorize NGOs. Arenas, Lozano, & Albareda (2009) categorize them by the type of good and service they provide; from goods and services that mainly affect individuals to those affecting the quality of life of entire communities; from goods and services concerned with preservation of the natural environment, the Role of NGOs in CSR: Mutual Perceptions Among Stakeholders cultural heritage or health to those that aim to promote social change. When it is stated that NGOs have emerged as important global actors over the last few years and that they have sought to engage with powerful Institutions, one refers mainly to social purpose NGOs concerned with the quality of life of entire communities aiming to promote social change. NGOs establish different types of relationships with firms: from collaborative to confrontational actions, such as protests, boycotts, and civil suits. Since ignoring or disparaging these actions can have consequences, there are strong incentives for firms to change their policies to meet the demands of this type of stakeholder (Arenas, Lozano, & Albareda 2009, p.180).

NGOs are usually recognized by other stakeholders as one of the main actors, perhaps the main actor, in the introduction and development of CSR in Spain and abroad. They "spearhead" CSR or are at the "forefront" of CSR. Some recognize that pressure from NGOs has led to the improvement of business behavior, and they are perceived by companies as one of their main stakeholders. For many professionals in corporate CSR departments, NGOs are their main audience: they are the ones who will read and evaluate communications, web pages, sustainability reports and other materials they produce (p.182).

The implications associated with NGOs encircle around their non-profit qualities. Jammulamadaka (2009) explains that Non-profitness also opens up NGOs to unnecessary and unwanted criticism by placing them on a supremely high moral ground. Many NGOs have been criticized for diverting funds from one project to another. Other NGOs have been criticized for using family and friends as workers and staff in the organization, or using the program vehicle for personal work, charging office rent when operating from home, etc.

NGOs, because of their non-profitness are open to criticism for these actions. Oftentimes, charging rent and salaries for family and friends from the program budget could be the organization's way of innovatively building a surplus for the organization. And using program vehicles and other facilities for personal work may be legitimized as a reasonable compensation for the unpaid volunteering effort undertaken by the NGO and its staff during the period it does not receive funds. Why then are NGOs criticized for doing what is just normal? Probably, because non-profitness puts them on an unreal moral high ground and makes them so much more susceptible (p.22).

Regardless of one's perception, it is easy to see the significance of NGOs as well as the maturation that has taken place over the past years. Playing an important role in how business is done, as well as the perception of the company and the… [END OF PREVIEW]

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