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Ngos Ethics Case Study

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Business Ethics in NGOs Why Ethics is so important for NGOs Shishir Kumar shishirkx2017@email.iimcal.ac.in Nov 2016 Table of Contents Executive Summary 3 Objective 3 Methodology 3 Analysis / Study 3 Introduction 3 History of NGOs in India 4 NGOs in India 4 Governance of NGOs 4 The NGO Workforce 4 NGO Landscape in India 4 The changing condition 6 Fund raising in NGOs 6 Ethics in Non Governmental Organization 7 NGOs – Why conduct is so important? 7 Conclusion 7 Bibliography 7 Executive Summary For a social company there is no levy on ethical behavior of Objective The objective of the project is to understand ethical challenges that NGOs face and to understand why ethical practices are even …show more content…

Post independence, social development was planned by decentralizing the power from centre to villages by Gram Panchayats. Even with a decentralized system, Government is still not able to address a host of social issues of a developing country with a billion population. NGOs in India The state, public policies and governed institutions are not able to address all of the civic issues in such a huge country with 1.2 billion populations and hence an alternate, supposedly more efficient, deep rooted development paradigm took place in India. NGO were thought to be community oriented, self motivated and more penetrated organization, which can be more efficient in low cost. Governance of NGOs NGOs are not mandatorily required to register with government. However, by registering with government, NGOs are considered for government’s grant in aid schemes, can receive foreign funds & submit their expenses for tax exemptions. Registered NGOs can issue fund raising receipts to donor so that donors can claim tax exemption on their donations. It helps NGOs for easily raising the fund. Foreign contribution to NGOs is regulated by Foreign Contribution Regulation …show more content…

Traditional ways by which an NGO raises their funds are: • Donation boxes • Organizing fund raising events • Community fund raising drives by volunteers & • Corporate fund raising request Other than corporate fund raising requests, all other means has a big question mark on accountability. Accountability is even more questionable when an unregistered NGO is involved in fund raising activity. Ethics in Non Governmental Organization So far NGOs has been proven as far more efficient tool in society development compared to governmental organizations. Government came up with many initiatives but many of them didn’t result in any substantial improvements in the quality of the life in society at grass root level. Government found that NGOs are a good instrument to work specially among bottom of the pyramid. In budget of 2016-17, Indian government budget allocation for Agricultural welfare was ~ Rs 360 billion and similarly rural sector allocation was Rs 877 billion. Such huge budget is mobilized with the help of mid level government organizations and grass level NGOs. NGOs – Why conduct is so important? Third sector organizations or NGOs have grown so rapidly

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