Report on a Non-Government Organization

Report on a Non-Government Organization

Association for India's Development

Noida Chapter

(AID - Noida)

Initial Report 1

Submitted to:

Prof . Debmallaya Chaterjee

Submitted by :

Nitya Agarwal

PGP1

12532

What is a NGO?

Nongovernmental organizations--or NGOs--are groups that are not directly affiliated with a government and which work for social or environmental purposes. NGOs are usually non-profit organizations, but there are as many different types of them as there are social causes. Some are academic and research-oriented, like the African Wildlife Foundation, whereas others focus more on direct service, like Save the Children, and still others devote their resources to advocacy work, like Greenpeace. Among the NGOs that have worked in partnership with companies are human rights and labour rights groups, environmental groups, religious organizations, women's organizations, community development associations, children's organizations, and sociological research institutes.

Wikipedia talks about NGO types and states "NGOs are difficult to define and classify, and the term 'NGO' is not used consistently. As a result, there are many different classifications in use. The most common use a framework that includes orientation and level of operation. An NGO's orientation refers to the type of activities it takes on. These activities might include human rights, environmental, or development work"

One of the earliest mentions of the acronym "NGO" was in 1945, when the UN was created. The UN, which is an inter-governmental organization, made it possible for certain approved specialized international non-state agencies - or non-governmental organisations - to be awarded observer status at its assemblies and some of its meetings. Later the term became used more widely. Today, according to the UN, any kind of private organization that is independent from government control can be termed an "NGO", provided it is not-profit, non-criminal and not simply an opposition political party.(http://en.wikipedia.org/wiki/Non-governmental_organization)

Professor Peter Willetts, from the University of London, argues the definition of NGOs can be interpreted differently by various organizations and depending on a situation's context. He defines an NGO as ""an independent voluntary association of people acting together on a continuous basis for some common purpose other than achieving government office, making money or illegal activities. "(Willetts, Peter.2012). In this view, two main types of NGOs are recognized according to the activities they pursue: operational NGOs that deliver services and campaigning NGOs. Although Willetts proposes the operational and campaigning NGOs as a tool to differentiate the main activities of these organizations, he also explains that a single NGO may often be engaged in both activities. Many NGOs also see them as mutually reinforcing. Professor Akira Iriye defines NGO as "a voluntary nonstate, nonprofit, nonreligious, and nonmilitary association. (Iriye, Akira .2004).

It is estimated that the number of NGOs around the world has increased tenfold in the past ten years. With this explosion in number of organizations has come increasing recognition by companies of the competencies and social stature that many of them possess, and of the powerful synergies that are possible when companies, NGOs, and often governments, work together. Concurrent with these developments, strategic business thinkers such as Peter Drucker, Michael Porter, and Peter Doyle began to examine the broader influences that shape a company's mission, goals, and performance and the constituencies to which they are accountable. In addition to the board, management, and shareholders, the scope was widened to include groups that exist throughout their supply chains and those bodies with which

they interact formally and informally.

How is a NGO different from for-profit organization?

NGOs are "private, voluntary, non-profit organizations whose members combine their skills, means and energies in the service of shared ideals and objectives" (Mawlawi, 1993), which typically concentrate on either on advocating a cause by explicitly seeking to influence public policy and private behaviour, or operational engagement that is providing physical relief to disadvantaged groups or communities.

The basic difference is NGO provide certain service or products to people which are otherwise unprofitable for a private /public firm. NGO engage in advocacy or operational implementation for welfare of society. There is a certain cause an NGO is associated with, certain change it wants to bring in current scenario for betterment of people, doing which usually does not generate any profit. NGO depend on external funds for their running while for profit organisation run on their operational income.

Unlike firms, NGOs cannot rely primarily on financial incentives to organize their activities, but must rely to a much greater extent than firms on voluntary contributions, both for funds, through a reliance on donations from governments, multilaterals, foundations, firms, or individuals, among others, and for labor and services, through a reliance on volunteers and sympathizers. Like other non-profits, they can take debt and add to their endowment, but they cannot raise equity (Steinberg, 2003). Likewise, we can expect NGOs to pay salaries significantly below private sector levels for similar jobs, as is true of non-profits in general This does not mean that NGOs rely exclusively on volunteerism, only that they do so to a significantly larger extent than firms.

Less reliance on monetary incentives and stronger reliance on voluntary action means, in turn, that NGO governance and decision-making depart significantly from that of private enterprise, resulting in weaker hierarchy relative to firms . NGOs must do with a more limited set of incentives and hence weaker managerial authority than firms. (Leete,2000). Relative to firms, lower levels of the organization are more involved in decision-making in NGOs--in other words,