CH 1,2,3 Flashcards
Four ways an NGO is different than a business
- Mission, money and management are interdependent.
- NGO’s have different realtionship with stakeholders. Each stakeholders has different goal and management is more complex.
- Success is measured by a double bottom line: achieve mission and stay financially stable.
- The problems addressed by NGO’s are more difficult to solve.
2 schools of thought on social entrepreneurship
- Social enterprise school: market-based solutions to social problems. Applies to businesses and NGO’s
- Social innovation school: social entrepreneur is an innovator. Applies to government
Hybrid
NGO with characteristics of business, government agencies and NGO
Two perspectives on NGO’s
- NGOs are primarily social institutions: mainly look at the ethics instead of business.
- NGOs are social enterprises: encourage the use of business principles. Unsure if managers are equiped enough
Independent sector
Organisation that represents the interest of NGOs. Depend on money from government and private donors
Salamon’s anatomy
Divided into two broad categories:
- Member serving: secure the benefits for people who belong to them or who support them.
- Public serving: organisations like churches.
3 different kind of organisations
- Purely philanthropic: appeal to good will rather than self-interest. Goal is to create social value. (homeless shelter)
- Purely commercial: appeal to self-interest. Goal is to create economic value.
- Hybrid: has mixed motives. Equal attention to social and economic value.
3 types of legal forms
- Benefit cooperation: social responsibility is included in organisation’s charter.
- Flexible purpose corporation: board and management need to agree on social purposes.
- Low-profit, limited liability company (L3C): pursue social purposes but also accept investments as a financial return partially
Sociologists theories on NGO
Involvement in NGO is good for norms, values and development of social capital.
Political theories on NGO
look at NGO and their role in supporting democratic traditions.
4 functions of NGO in relation to governments
- Accommodate diversity: give voice to those with different values that don’t agree with government
- Undertake experimentation: sometimes governments take over successfull NGO
- Provide freedom from bureaucracy: NGO can respond quicker than governments (who need to go through whole procedure)
- Attention to minority needs: NGO take care of the minorities that have less political power.
Economist theories
NGO fill gap created by market and government failure. Find it interesting that people work without compensation
Interdisciplinary theories
Lohmann’s theory of the commoners: NGO produces common goods. sees common goods as a seperate category, not private or public goods.
Supply side theory
NGO is more than just a gap filler: its driven by vision and values
theories of altruisms
Wonder if people really make gifts based on selflessness or if they want to benefit from it as well