Outsourcing Risk Management Program/Outsourcing Human Capital Consulting
Managing risk efficiently and effectively can be a determining factor in the overall success of any organization. Most of the companies try to develop a risk management plan on their own and some outsource this function. Outsourcing risk management function is not a new concept and is being widely used by many organizations nowadays. However, […]
The Process of Corporate Decision Making
Corporate decision making happens at various levels in organizations and can be top down or bottom up. The difference between these two styles of decision making is that the top down decision making is done at the higher levels of the hierarchy and the decisions are passed down the corporate ladder to be implemented. On […]
Organizational Diversity: Ideal vs Practice
The previous articles introduced the concept of organizational diversity and how the various supporting laws and regulations square up against organizational commitment. This article looks at how the ideals of organizational diversity measure up to the practice of diversity across the world. As with any idealistic notion, organizational diversity is usually done more in theory […]
Risk Management Policy
The policy of risk management is unique to every organization. Practices that may be considered acceptable in one organization may not be considered acceptable in another organization. Just like the vision and mission of any company, its risk management policy is also unique. This is a basic document, which is drawn up when the risk […]
Emotional Intelligence for High-Performance Teams
Years of research reveal that Emotional Intelligence is a critical component which distinguishes a high-performer from an average performer. Team members having high emotional intelligence contribute towards the development of high-performance organizations and successful systems. Research findings prove that emotional intelligence is twice as important as the IQ in predicting the performance outcomes and the […]
In previous articles, we discussed the proliferation of the NGOs or the Non Governmental Organizations in contemporary times and how not all of them are above board in their funding and internal processes. Of particular note are the fact that there is a lot of foreign money flowing into the NGO sector and hence, even those NGOs that profess strict and above board have to ensure that their internal processes are clean and their internal controls strict.
In the wake of the protests against the Kudankulam Nuclear Power Plant in India in 2012, there were allegations that the movement against the plant was being driven by vested interests with foreign donors contributing to the movement in order to stymie the power plant. This was the stand taken by the government of India when it said that dubious funding patterns were evident in the NGOs that were spearheading the movement. Without getting into the debate over whether this charge is true or whether the whole issue was warranted or not, it would suffice to state that it would be in the best interests of the NGOs concerned if they maintained regular audits and strict internal controls in order to be above board in their dealings.
Another example in the international arena is the case of the United Nations sponsored humanitarian efforts in Iraq and Africa coming under the scanner for dubious funding and for misappropriation. These examples prove the case for the NGOs concerned to have rigorous auditing and regular checks on their processes as well as to declare the sources of their funding in a transparent manner.
The point here is that in these cases, the NGO sector has to be cleaner than the others are as the sector professes humanitarian goals and purports to serve the common good. To uphold the highest traditions of public service and morality, the NGOs ought to have duly constituted boards with independent directors, institute periodic audits by reputed accountants, and ensure that they have internal vigilance so that any misappropriation would be dealt with accordingly.
Further, they must publish the charter of accounts every quarter or so to ensure transparency and due diligence to be carried out on their activities. The implications of failure are many and the ramifications huge as without a proper check on their activities, it would be nigh impossible for the NGOs to claim the moral high ground.
Finally, human nature is the same everywhere and where large amounts of money are concerned, it would be better if the NGOs maintained strict internal controls so as to be above board in their dealings.
The key aspect here is that the larger social cause would be served only when the NGOs concerned maintain their records properly and dismiss any staff found falsifying accounts and hiding funding sources in their annual reports.
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The Corporatization of the NGOs and How It Impacts Funders, Beneficiaries, and Others
February 12, 2025
