Year: 2020

Organizations which are independent of government involvement are known as non-governmental organizations or NGOs. or non-government organizations. NGOs are a subgroup of organizations founded by citizens, which include clubs and associations which provide services to its members and others. They are usually nonprofit organizations. Many NGOs are active in humanitarianism or the social sciences. Surveys indicate that NGOs have a high degree of public trust, which can make them a useful proxy for the concerns of society and stakeholders. However, NGOs can also be lobby groups for corporations, such as the World Economic Forum.  According to NGO.org (the non-governmental organizations associated with the United Nations), “[an NGO is] any non-profit, voluntary citizens’ group which is organized on a local, national or international level … Task-oriented and driven by people with a common interest, NGOs perform a variety of service and humanitarian functions, bring citizen concerns to Governments, advocate and monitor policies and encourage political participation through provision of information.”

Russia had about 277,000 NGOs in 2008. India is estimated to have had about two million NGOs in 2009 (approximately one per 600 Indians), many more than the number of the country’s primary schools and health centers. The term “NGO” is used inconsistently; it is sometimes a synonym for a civil society organization, any association founded by citizens. NGOs are known in some countries as nonprofit organizations, and political parties and trade unions are sometimes considered NGOs. NGOs are classified by orientation and level of operation; orientation refers to the type of activities an NGO undertakes. Activities may include human rights, environmentalism, health, or development. An NGO’s level of operation indicates the scale at which an organization works: local, regional, national, or international.

NGO may be defined as an association having a definite cultural, educational, religious or social program registered with the Central Government. The full form of NGO is Non Governmental Organization, NGO’s are also referred to as Non Profit Organisations (NPO’s) sometimes.

NGO in India

NGO’s are nor “owned” by anyone and cannot distribute profits through the form of dividends as such. Whatever profits they may earn from economic activities are reinvested or spent on appropriate non-profit activities.

The typical sources of revenue for non-governmental organizations are donations, funding grants from unilateral and multi-lateral agencies, membership fees, miscellaneous sources and interest and dividends on investments.

The Following Forms of Associations May Act as NGO

(i) A trust of two or more persons as Trustees therein. The Trust may be registered under the Indian Trusts Act, 1982.

(ii) A company registered u/s . 25 of Companies Act, 1956. Usually clubs, associations of professionals get registered under this provision of the Companies Act, 1956.

(iii) A society of persons registered under the provisions of the Societies Registration Act, 1860 with the Registrar of the Societies, with aims and objects and a structure as laid down in the said Act.

(iv) A statutory body consisting membership of persons constituted by or under a stature, having a structure as laid down in the statute by which it is constituted.

(v) A charitable trust constituted under the Charitable Endowments Act, 1920.

(vi) Any other organization akin to a society.

Thus an NGO in India can either be registered as a trust,society or as a company under sec 25.

Types of NGO

NGOs may be classified by their orientation and level of operation.

1. Orientation

• Charities: Often a top-down effort, with little participation or input from beneficiaries, they include NGOs directed at meeting the needs of disadvantaged people and groups.
• Service: Includes NGOs which provide healthcare (including family planning) and education.
• Participation: Self-help projects with local involvement in the form of money, tools, land, materials, or labor
• Empowerment: Aim to help poor people understand the social, political and economic factors affecting their lives, and to increase awareness of their power to control their lives. With maximum involvement by the beneficiaries, the NGOs are facilitators.

2. Level of operation

• Community-based organizations (CBOs) are popular initiatives which can raise the consciousness of the urban poor, helping them understand their right to services, and providing such services.
• City-wide organizations include chambers of commerce and industry, coalitions of business, ethnic or educational groups, and community organizations.
• State NGOs include state-level organizations, associations, and groups. Some state NGOs are guided by national and international NGOs.
• National NGOs include national organizations such as YMCAs and YWCAs, professional associations, and similar groups. Some have state or city branches, and assist local NGOs.
• International NGOs range from secular agencies, such as Save the Children, to religious groups. They may fund local NGOs, institutions and projects, and implement projects.

Activities of NGO

The World Bank classifies NGO activity as operational and advocacy. NGOs act as implementers, catalysts, and partners. They mobilize resources to provide goods and services to people who have been affected by a natural disaster; they drive change, and partner with other organizations to tackle problems and address human needs.

NGOs vary by method; some are primarily advocacy groups, and others conduct programs and activities. Oxfam, concerned with poverty alleviation, may provide needy people with the equipment and skills to obtain food and drinking water; the Forum for Fact-finding Documentation and Advocacy (FFDA) helps provide legal assistance to victims of human-rights abuses. The Afghanistan Information Management Services provide specialized technical products and services to support development activities implemented on the ground by other organizations. Management techniques are crucial to project success.

1. Operational

Operational NGOs seek to “achieve small-scale change directly through projects”, mobilizing financial resources, materials, and volunteers to create local programs. They hold large-scale fundraising events and may apply to governments and organizations for grants or contracts to raise money for projects. Operational NGOs often have a hierarchical structure; their headquarters are staffed by professionals who plan projects, create budgets, keep accounts, and report to and communicate with operational fieldworkers on projects. They are most often associated with the delivery of services or environmental issues, emergency relief, and public welfare. Operational NGOs may be subdivided into relief or development organizations, service-delivery or participatory, religious or secular, and public or private. Although operational NGOs may be community-based, many are national or international. The defining activity of an operational NGO is the implementation of projects.

2. Campaigning

Campaigning NGOs seek to “achieve large-scale change promoted indirectly through the influence of the political system.” They require an active, efficient group of professional members who can keep supporters informed and motivated. Campaigning NGOs must plan and host demonstrations and events which will attract media, their defining activity. Campaigning NGOs often deal with issues related to human rights, women’s rights, and children’s rights, and their primary purpose is to defend (or promote) a specific cause.

3. Combined

NGOs may conduct both activities. Operational NGOs will use campaigning techniques if they face issues in the field which could be remedied by policy change, and campaigning NGOs (such as human-rights organizations) often have programs which assist individual victims for whom they are trying to advocacate.

4. Public relations

Non-governmental organizations need healthy public relations to meet their goals, and use sophisticated public-relations campaigns to raise funds and deal with governments. Interest groups may be politically important, influencing social and political outcomes. A code of ethics was established in 2002 by the World Association of Non-Governmental Organizations.

Structure of NGO

1. Staffing

Some NGOs rely on paid staff; others are based on volunteers. Although many NGOs use international staff in developing countries, others rely on local employees or volunteers. Foreign staff may satisfy a donor who wants to see the supported project managed by a person from an industrialized country. The expertise of these employees (or volunteers) may be counterbalanced by several factors: the cost of foreigners is typically higher, they have no grassroots connections in the country, and local expertise may be undervalued. By the end of 1995, Concern Worldwide (an international anti-poverty NGO) employed 174 foreigners and just over 5,000 local staff in Haiti and ten developing countries in Africa and Asia.

2. Funding

NGOs are usually funded by donations, but some avoid formal funding and are run by volunteers. NGOs may have charitable status, or may be tax-exempt in recognition of their social purposes. Others may be fronts for political, religious, or other interests. Since the end of World War II, NGOs have had an increased role in international development, particularly in the fields of humanitarian assistance and poverty alleviation.

Funding sources include membership dues, the sale of goods and services, grants from international institutions or national governments, and private donations. Although the term “non-governmental organization” implies independence from governments, many NGOs depend on government funding; one-fourth of Oxfam’s US$162 million 1998 income was donated by the British government and the EU, and World Vision United States collected $55 million worth of goods in 1998 from the American government. Several EU grants provide funds accessible to NGOs.

Government funding of NGOs is controversial, since “the whole point of humanitarian intervention was precise that NGOs and civil society had both a right and an obligation to respond with acts of aid and solidarity to people in need or being subjected to repression or want by the forces that controlled them, whatever the governments concerned might think about the matter.” Some NGOs, such as Greenpeace, do not accept funding from governments or intergovernmental organizations. The 1999 budget of the American Association of Retired Persons (AARP) was over $540 million.

3. Overhead

Overhead is the amount of money spent on running an NGO, rather than on projects. It includes office expenses, salaries, and banking and bookkeeping costs. An NGO’s percentage of its overall budget spent on overhead is often used to judge it; less than four percent is considered good. According to the World Association of Non-Governmental Organizations, more than 86 percent should be spent on programs (less than 20 percent on overhead). The Global Fund to Fight AIDS, Tuberculosis and Malaria has guidelines of five to seven percent overhead to receive funding; the World Bank typically allows 37 percent. A high percentage of overhead relative to total expenditures can make it more difficult to generate funds. High overhead costs may generate public criticism.

A sole focus on overhead, however, can be counterproductive. Research published by the Urban Institute and Stanford University’s Center for Social Innovation have shown that rating agencies create incentives for NGOs to lower (and hide) overhead costs, which may reduce organizational effectiveness by starving organizations of infrastructure to deliver services. An alternative rating system would provide, in addition to financial data, a qualitative evaluation of an organization’s transparency and governance:

• An assessment of program effectiveness
• Evaluation of feedback mechanisms for donors and beneficiaries
• Allowing a rated organization to respond to an evaluation by a rating agency

4. Monitoring and control

In a March 2000 report on United Nations reform priorities, former UN Secretary-General Kofi Annan favored international humanitarian intervention as the “right to protect” citizens from ethnic cleansing, genocide, and crimes against humanity. After that report, the Canadian government launched its Responsibility to Protect (R2P) project outlining the issue of humanitarian intervention. The R2P project has wide applications, and among its more controversial has been the Canadian government’s use of R2P to justify its intervention in the coup in Haiti.

Large corporations have increased their corporate social responsibility departments to preempt NGO campaigns against corporate practices. Collaboration between corporations and NGOs risks co-option of the weaker partner, typically the NGO.

In December 2007, Assistant Secretary of Defense for Health Affairs S. Ward Casscells established an International Health Division of Force Health Protection & Readiness. Part of International Health’s mission is to communicate with NGOs about areas of mutual interest. Department of Defense Directive 3000.05, in 2005, required the US Defense Department to regard stability-enhancing activities as equally important as combat. In compliance with international law, the department has developed a capacity to improve essential services in areas of conflict (such as Iraq) where customary lead agencies like the State Department and USAID have difficulty operating. International Health cultivates collaborative, arm’s-length relationships with NGOs, recognizing their independence, expertise, and honest-broker status.

Voluntary organization is a generic term used to refer to a specific type of organization, sometimes also referred to as nonprofit organizations, NGOs (non-government organizations), third sector organizations, and civil society organizations. Each of these terms reflects a slightly different emphasis. For example, the common definition of a nonprofit is ”an organization whose goal is something other than earning a profit for its owners. Usually its goal is to provide services” (Anthony & Young 1990). The definition emphasizes the nonprofit aspect of voluntary organizations but does not distinguish between other organizations that might not be profit seeking, such as state run or government organizations. Similarly, NGOs can technically refer to private for profit organizations as well as voluntary organizations, although the term is usually reserved for large international nonprofit organizations (which nonetheless may earn a profit from some aspects of their operations, such as, for example, the Bangladesh NGO BRAC).

The term voluntary, as the name implies, emphasizes the fact that citizens freely form these organizations, and thus they are autonomous, independent of both government and the market. The term is often taken to refer to the presence of volunteers within nonprofit organizations, although many voluntary organizations are more dominated by professional staff than volunteers. Finally, these organizations are often identified as being independent of both the state and the market, belonging to a third sector or to civil society. As some scholars have argued, the formation of voluntary organizations may occur as a response to the failure either of the market (in providing a low cost service) or of the state (in providing a service for minority needs) (Hansmann 1987). Indeed, service oriented nonprofits can be found in fields as diverse as health, education, sport and recreation, social services, and religion.

More recent scholarship has focused on the positive attributes of nonprofits, for example that voluntary organizations provide a ”school for democracy,” or a form of community mutual support as an expression of social capital (Putnam 2000). Many, though by no means all, voluntary organizations are embedded in social movements that generate new collective social responses to social, economic, or environmental issues (Melucci 1988). International scholar ship has also emphasized the variable and complex nature of voluntary organizations, which makes it difficult to identify a set of characteristics that serve as essential criteria for all such organizations.

Voluntary organizations vary greatly in size. The great majority in all countries are small, relying entirely on the voluntary labor of their members. These are grassroots organizations, often with strong traditional roots, but without any formal legal structure, particularly in traditional village societies. Other voluntary organizations are very large indeed, with a national or international reach, with thousands of volunteers and several hundred paid employees (Salamon et al. 1999).

Voluntary Organizations: Important Objectives and Functions

In a democratic, socialistic and welfare society, voluntary organizations are indispensable and they perform a number of functions for the welfare of its members, the development of the country and integration and solidarity of the society and nation.

(i) Man is by nature gregarious. The urge to act in groups is fundamental in him. People therefore form groups and associations voluntary for their benefit as also of others with a view to lead a full and richer life as is reflected in voluntary associations formed for promotion of recreational and cultural activities, social services, professional interests etc.

(ii) A pluralistic society with a democratic system requires multitude of independent, voluntary non-government associations as buffer between the individual and the state preventing the government from developing monopoly in various fields. Voluntary organizations involve citizens in noble affairs and avoid concentration of powers in the hands of government and thus serve as power breakers. Sharing of power by voluntary group restrain government from developing monopolistic approach to organisation of services.

(iii) They enable the individuals to learn the fundamentals of groups and political action through participation in the governing of their private organizations.

(iv) Organized voluntary action helps groups and individuals with diverse political and other interests, contributes to strengthening of feeling of national solidarity and promotes participative character of democracy.

(v) The state does not have the requisite financial resources and manpower to meet all the needs of its citizens. It can therefore have the responsibility of providing them minimum needs. The voluntary organizations by raising additional resources locally can meet uncovered needs and enrich local life.

(vi) Voluntary organizations also help the state in the area which are its exclusive responsibility but for which it has limited sources and perform such functions in much better way as compared to the state organizations.

Education for example is the responsibility of the state but the educational institutions being run and managed by voluntary organizations far outnumber the government institutions and excel the latter in quality of service also in view of the flexibility, ability at experimentation, pioneering spirit and other virtues.

Same is the case in respect of the provision of health services which is again the responsibility of the state. But the hospitals sponsored by philanthropic and charitable institutions are well known for better care and concern comparison to government owned hospitals.

(vii) Voluntary organizations thus have not only a role to play ii the field of accepted state responsibilities but they can also venture into new needs, work in new areas, unveil social evils and give attention to hitherto unattended and unmet needs. They can act as sappers and miners of unfolding development revolution.

They can function as reconnaissance squads. They can be fore-runners of change and anticipate and take action to make it less painful. They can work for progress development and consequently in course of time they can help the state in extending its activities over wider areas, thus raising the national minimum.

(viii) They provide avenues for activities to those persons why do not relish participation in the activities of the state through politics and government, but organize into voluntary groups thus making their talent, experience and spirit of service available to society in bringing about changes in it with a view to meeting the needs and aspirations of the people concerned and enriching the lives.

(ix) They act as a stabilizing force by welding together people with such groups as are not politically motivated and are no concerned about the fortunes of one or the other political party i capturing government power but are above party politics and are interested in other areas of nation building and thus contribute t national integration and concentration on non- political issues.

(x) They also perform the functions of educating the members and the public at large about the policies and programmes of the government about their welfare, their right and obligations and also are in a position to offer constructive criticism in respect of wrong policies and activities of governor without any fear and with courage of conviction obliging the government to make necessary adjustments to accommodate the viewpoints of the public likely to be affected by such policies and actions as has been the experience in the case of programme concerning scheduled tribes and environment conservation and preservation.

(xi) The endeavour to meet the special requirements of specialized interests and special groups such as the aged, the handicapped, women, children, etc. which cannot be adequately met by the state for reasons of financial scarcity. Age-India and Help age are voluntary organizations engaged in the welfare programmes of the aged.

Indian Council of Child Welfare is engaged in the promotion of child welfare. The Indian Curricle for Women Welfare is working in the field of women welfare. All India Ex-servicemen Welfare Association is concerned with the welfare of the ex-servicemen. Similarly thousands of voluntary associations exist to look after the interests of the groups they represent.

(xii) They are in a better position to function to their own satisfaction as also at that of their clientele for the reason that they can identify the needs of individuals, groups and community being close to them and formulate appropriate programmes to meet them, make necessary changes and modification in the light of the experiences gained in their implementation processes, involve people’s participation, raise necessary funds and win public confidence and cooperation by human touch, human warmth and sympathy which the bureaucrats in governmental organization are not capable of.

In sum, voluntary organizations main functions comprise giving concrete expression to the fundamental right of freedom of association, identifying the needs of individuals, groups and communities and initiating projects and programmes to meet them on their own or with the grant-in-aid of the government, sharing the responsibility of the state in providing minimum needs of the citizens, covering the areas of uncovered and unmet needs, preventing the monopolistic tendencies of the government, providing opportunities to people imbued with the spirit of service and dedication to organise themselves to promote public welfare, educating citizens about their rights and obligations and informing them about the policies and programmes of the government contemplated and initiated for their welfare, mobilising public support through publicity campaigns, raising functional resources through contributions and donations and finally organising activities of non-partisan and non-political nature for wellbeing of the society, enriching the lives of citizens and progress of the nation.

Types of Voluntary Organization

If you want to take on the role of owning, running and managing a local playing field, recreation ground, sports club or similar facility, it is important that you consider all the organizational options available, consider the different opportunities, risks and liabilities, and where appropriate take independent advice.

When setting up a community organization there are several possible legal structures. Deciding which type of organization is most appropriate is essential as each structure has its own advantages and disadvantages and will influence how far the asset can be used, developed and protected in the future.

The different types of organizations that can be used are grouped as follows: an Unincorporated Association, a Trust, a Limited Company, a Community Interest Company (a company for social enterprise) and an Industrial and Provident Society (a co-operative for social enterprise)

1. An Unincorporated Association

This approach may have been the initial structure for campaigning to protect a facility or a space in the first instance. It tends to involve a small group of members with short-term goals and is appropriate where there is no intention to employ staff or acquire property. An Unincorporated Association is relatively quick and cheap to set up. Unless an organization is applying for charitable status or registration as a Community Amateur Sports Club (CASC), no other agency need be involved. There are no fees to pay unless legal advice is sought on drawing up a constitution.

However, an unincorporated association has no separate legal existence and remains for most purposes a collection of individuals. Any property or contracts would have to be held by individuals on behalf of the group, and any legal proceedings taken against the group would, in reality, be against the individuals themselves, making them personally liable. The issues surrounding liability can be quite complex and you will need to be very clear about the risks involved.

2. A Trust

A Trust can be set up to manage land and property and to receive money for a particular purpose for the benefit of a wider community. They establish a formal relationship between the donors of money or property, the Trustees (normally three) who become the nominal owners of the trust property and the beneficiaries – the people who will benefit from the trust. Trusts can be set up quickly and cheaply. Trusts are non-democratic organisations as they do not tend to have a membership structure although trustees can agree to report regularly and consult with a wider group of people. Trustees can be personally liable for contracts entered into on behalf of the trust and are not protected from personal liability. You can, however, take out insurance to provide some financial protection.

3. A Limited Company

A company structure is an increasingly popular choice for voluntary and community organizations.

It is very appropriate if you intend to be managing staff, land, contracts and/or significant amounts of funding. A company limited by guarantee is an incorporated organization. This means that it has a separate legal identity distinct from that of its members. This legal structure limits the liability faced by Directors in the case of insolvency, except in cases of negligence or recklessness. This is the most flexible legal arrangement but the main constraint is that shares cannot be issued.

You will need to register the company with Companies House and company law must be abided by.

4. Community Interest Company (CIC)

A Community Interest Company is limited by guarantee or share issue with several added features such as a community interest test, an asset lock and a cap on dividends. The legal form gives greater flexibility than charitable status but emphasises public benefit over private profit.

Each CIC must specify the community that is intended to benefit from any profits made by the company (this could be as wide as all the residents of a defined geographical area) and the CIC regulator must approve this. The asset lock enables capital gains to be directed to the specified community and the dividends cap limits the amount of profit private investors can take out of the business.

5. Industrial and Provident Society (IPS)

An IPS is a trading organization that operates as a co-operative either for the benefit of its members or the wider community. An IPS is usually funded by share capital, but this takes a different form to limited companies. The value of the shares is fixed and does not go up and down with the value of the organization.  An IPS is the only vehicle that can issue shares on a low-cost basis. Buying a share confirms membership and decisions are taken on a one-member-one-vote basis (regardless of number of shares owned) and there is an upper limit on the cash value of shares that can be held by one individual. IPSs are regulated by the Financial Services Authority (FSA).

Third sector organizations’ is a term used to describe the range of organizations that are neither public sector nor private sector. It includes voluntary and community organizations (both registered charities and other organizations such as associations, self-help groups and community groups), social enterprises, mutuals and co-operatives.

Third sector organizations (TSOs) generally:

• Are independent of government. This is also an important part of the history and culture of the sector;
• Are ‘value-driven’. This means they are motivated by the desire to achieve social goals (for example, improving public welfare, the environment or economic well-being) rather than the desire to distribute profit; and
• Reinvest any surpluses generated in the pursuit of their goals. For this reason TSOs are sometimes called ‘not-for-profit organizations’. A better term is ‘not-for-personal-profit’. In many cases, TSOs need to make surpluses (or ‘profits’) to be financially sustainable.

TSOs can take a number of legal forms. Many are simple associations of people with shared values and objectives. Many have company status but with a not-for-personal-profit approach. Very many have charitable status or are community interest companies, industrial and provident societies or co-operatives.

In October 2010, the Government published its strategy to support charities, voluntary groups and social enterprise. It is committed to ensuring that charities, social enterprises and cooperatives have a much greater role in the runninng of public services.

Benefits that third sector organizations can give commissioners

Public services can gain a lot from working with third sector organizations. The benefits vary across policy and geographical areas. But some of the common themes are TSOs’:

• Understanding of the needs of service users and communities that the public sector needs to address;
• Closeness to the people that the public sector wants to reach;
• Ability to deliver outcomes that the public sector finds it hard to deliver on its own;
• Innovation in developing solutions; and
• Performance in delivering services.

TSOs also speak out for people and their needs to the public sector and to wider society. Such activity may be based on a local, drop-in advice service for people with unmanageable debt, right through to a charity’s national communications campaign (on child cruelty, for example).  Such work dovetails with TSOs’ services to the public.

India is the first country in the world to make corporate social responsibility (CSR) mandatory, following an amendment to The Company Act, 2013 in April 2014. Businesses can invest their profits in areas such as education, poverty, gender equality, and hunger. Company having:

• Minimum net worth of rupees 500 Crore.
• Turnover up to “1000 Crore”
• Having a net profit of at least ‘5crore’

During any financial year, are covered by this provision.

The Company should constitute a Corporate Social Responsibility Committee as follows:

• The Committee shall consist of minimum 3 including 1 Independent Director, however in case of Private Company or the Company, which is not required to appoint Independent Director on board, or Foreign Company committee can be formulated with 2 directors.
• The CSR Policy shall be formulated in accordance with Schedule VII and the CSR Committee will be responsible for framing the policy, finalizing the amount to be spent on CSR, monitoring & implementation of the Scheme.
• If Company ceases to fulfill the eligibility criteria for three consecutive years, then the company is not required to comply until the company will meet the eligibility criteria once again.

Current CSR Practices of the Firms in India

Brief on CSR Activities as prescribed under Schedule VII of Companies Act, 2013

• Objective to efface the daily life segments including poverty, malnutrition and hunger while enhancing the standard of living and promoting the facets of better health care and sanitation.
• Introducing varied projects for Rural Development.
• Initiative to promote the different segments of education including special education and programs to enhance the vocation skills for all ages like children, women, elderly and conducting other livelihood enhancement projects.
• Aim to bring the uniformity in respect of different sections of the society to promote gender equality and other facilities for senior citizens and developing hostels for women and orphans and taking initiative for empowering women and lowering inequalities faced by socially and economically backward groups.
• Elevate the segment of flora and fauna to bring the ecological balance and environmental sustainability in respect of animal welfare, conservation of natural resources and ago forestry while maintaining the quality of air, water and soil.
• Enhancement of Craftsmanship while protecting art and culture and measures to restore sites of historical importance and national heritage and promoting the works of art and setting up of public libraries.
• Steps to bring worthy to the part of war windows, armed force veterans and their departments.
• Sports programs and training sessions to enhance the level of rural sports, nationally recognized sports, Paralympic sports and Olympics sports.
• Favoring to Prime Minister’s National Relief Fund and contribution to other fund set up by the central government to promote socio-economic development and welfare of the schedule castes and Schedule Tribes and for supporting backward classes, minorities and women.
• To uplift the technology of incubator that’s comes under academic institutions and which are approved by the Central Government.

Example

1. Tata Group

The Tata Group conglomerate in India carries out various CSR projects, most of which are community improvement and poverty alleviation programs. Through self-help groups, it is engaged in women empowerment activities, income generation, rural community development, and other social welfare programs. In the field of education, the Tata Group provides scholarships and endowments for numerous institutions.

2. Ultratech Cement

Ultratech Cement, India’s biggest cement company is involved in social work across 407 villages in the country aiming to create sustainability and self-reliance. Its CSR activities focus on healthcare and family welfare programs, education, infrastructure, environment, social welfare, and sustainable livelihood. The company has organized medical camps, immunization programs, sanitization programs, school enrollment, plantation drives, water conservation programs, industrial training, and organic farming programs.

3. Mahindra & Mahindra

Indian automobile manufacturer Mahindra & Mahindra (M&M) established the K. C. Mahindra Education Trust in 1954, followed by Mahindra Foundation in 1969 with the purpose of promoting education. The company primarily focuses on education programs to assist economically and socially disadvantaged communities. CSR programs invest in scholarships and grants, livelihood training, healthcare for remote areas, water conservation, and disaster relief programs. M&M runs programs such as Nanhi Kali focusing on girl education, Mahindra Pride Schools for industrial training, and Lifeline Express for healthcare services in remote areas.

With Corporate Social Responsibility (CSR) Rules moving into their third year of operation, the outlook of companies towards social problems is seeing a change.

In the first and second year of the rules taking effect, most companies were focused on compliance rather than on the impact of their initiatives. Now, it is mostly about course correction and expansion.

Many companies are conducting impact assessment studies of their CSR activities to ensure long-lasting impact and optimal use of funds.

The CSR Rules 2014 state that companies with a net worth of ₹ 500 crore, a revenue of ₹ 1,000 crore or a net profit of ₹ 5 crore are required to spend 2% of their average profit in the last three years on social development-related activities such as education, healthcare and sanitation.

According to Ramraj Pai, president of Crisil Foundation, the philanthropic arm of financial analytics firm Crisil Ltd, “Resolving social problems requires the same rigour and discipline as business operations and firms are realizing that.”

The ratings firm started its CSR activities on scale only after the 2014 rules and spent over ₹ 4 crore (1.42% of its net profit) in FY15 on increasing the financial capabilities of rural women and environmental conservation.

Pai believes the baseline assessment conducted by a third party at Crisil Foundation’s behest, helped it approach financial inclusion in a holistic manner. “Impact assessment is essential and needs to be a continuum, not just a survey at the completion of activities. You can only know the impact if you can compare the before and after of an initiative with specific metrics,” he explained.

A key point to remember is that impact assessment cannot be an end in itself. It needs to be built into the design of the project starting with baseline evaluation, mid-term review and then final assessment. Citing Crisil Foundation’s work on financial inclusion in Assam, Pai said that while the project was aimed at creating financial literacy, the baseline survey helped the company understand that to make a real difference, it would need to work on building trust.

“Even before we could start working with women to teach them how to open an account, use an ATM, etc., we learnt that we needed to build a relationship with the community elders, who in turn, could influence and assure the women to work with us,” Pai added.

The firm conducted the baseline survey in 2014 and is looking to conduct a mid-term review in early 2017.

Social development issues show wide variations based on region and community. This also makes a strong case for impact assessment as each geography and community has specific needs, limitations, etc., and cannot be addressed in a one-size-fits-all approach.

“Impact assessment helps in course correction and gives direction to a company to scale up/replicate its successful initiatives and at the same time, remodel or shut down the initiatives which have not been able to create impact,” said Adarsh Kataruka, director at CSR consultancy firm SoulAce Ltd, which works with more than 60 CSR clients across 250-plus locations.

Fast-moving consumer goods company ITC Ltd started six impact assessment studies in 2015-16 across its CSR initiatives, which are currently being implemented in 17 states.

The company has been involved in community-based initiatives in sectors such as sustainable agricultural practices, social forestry, etc., long before the CSR Rules came into force.

1. Sivakumar, group head of agriculture and information technology businesses at ITC, said such appraisals have helped the company take stock of projects on the ground and tweak them. “Besides, the studies also present recommendations and highlight areas of improvement which enable us to take appropriate action in the project. The studies are also be used to substantiate and validate a point of view for advocacy purposes,” he added.

The Piramal Group has been implementing CSR initiatives through its philanthropic arm Piramal Foundation since 2008. The foundation also periodically conducts impact assessments.

Paresh Parasnis, CEO of Piramal Foundation, cited the example of the foundation’s work in education, where it conducts assessments at the beginning as well at the end of the academic year in 1,200 government schools in Rajasthan, Gujarat and Maharashtra in order to gauge how much the students have actually learnt. The group spent a total of ₹ 56.65 crore in FY15-16 on CSR initiatives across sectors like education, healthcare and drinking water.

“We have realized unless we start with assessing needs of the community, designing projects that address these needs and then measure whether those needs have been sufficiently addressed, we will end up only spending money without positive outcomes or making a difference to people’s lives,” said Parasnis.

He added that social return on investment is best measured by independent assessors.

However, these assessments across firms are largely used for internal purposes and are not in the public domain. For instance, car maker Maruti Suzuki Ltd conducted one such survey for internal use in 2016 as, according to Ranjit Singh, its CSR head, there is merit in conducting an assessment.

Perhaps one reason why firms do not want such information out in the public domain is because they believe that declaring such findings in the public domain could foster a negative perception, especially if the evaluation of a project leans in favour of course correction.

Urging firms to plan and execute proper impact assessment studies as well as share the information, Sidharth Dutta, senior manager of development advisory services at EY India, emphasizes that this information “can help in improving the overall effectiveness of a social initiatives. It contributes towards knowledge development beca-use it helps in establishing good practices for achieving higher success in projects and reduces individual procedural burden.”

Also, firms and the public must bear in mind that shortcomings may not entirely be the fault of the companies as many have only started CSR initiatives after the rules came into force.

Dutta of EY explained, “For proper impact assessment to understand what change has taken place on the ground—a substantial number of years of the project being in operation are needed.” He said that a proper impact assessment is possible only after two-four years of a project being implemented.

Again, an impact assessment for the sake of conducting one is not the answer. “Many companies do not measure the real impact of their CSR spend. They do it in terms of how many children were given school uniforms or how many mothers were given protein powder, etc. Very few of them have set up mechanisms to measure the real, long-term impact on the community,” said Sunil Chavan, honorary director at Dr. M.L. Dhawle Trust, a philanthropic organization working on issues of health, livelihood and sustainable agriculture.

According to him, the focus of the impact assessment should be on the change in beneficiaries’ socio-economic situation (or any specific component for which the initiative was planned) rather than the number of people impacted.

Citing the example of numerous firms undertaking sanitation CSR projects, following Prime Minister Narendra Modi’s call for a Clean India by 2019, Dutta highlighted that currently, assessments generally focus only on outputs like the number of toilets built. “But to understand the actual impact on the ground, firms need to move from external factors of only counting the number of toilets to analysing qualitative variables in the lives of beneficiaries such as actual usage figures, evaluating status of health indicators along with extent of improvement in sociocultural variables of community life,” he said.

Most commonly, people tend to connect the idea of governance with for-profit corporations. Governance has existed for decades, although there wasn’t much focus on it until the financial crisis hit in 2008. The reality is that practicing good governance principles is as important for nonprofit corporations as it is for for-profit corporations.

The financial debacles on Wall Street brought governance issues to the forefront. Much of the discussions centered around holding boards of directors more accountable for their actions, decision-making and oversight. While nonprofit boards hadn’t been considered in the same regard, the seriousness of the financial troubles in the corporate world cast a new light on the responsibilities of nonprofit boards as well.

Poor corporate governance results in wastefulness, poor management and corruption. These issues are no less tolerated in nonprofit governance than they are in governance for corporate businesses. Good governance places emphasis on the quality of policies and processes that help organizations to achieve their goals and to serve the best interests of their stakeholders.

Good corporate governance helps corporations succeed and ultimately sustains and strengthens democracies.

Benefits of Good Governance

Organizations and corporations that practice good principles of corporate governance get rewarded with a payoff in many areas of their business. Good governance forces organizations to develop sound organizational plans and strategies. In addition, good governance requires organizations to review their operations and delivery processes for effectiveness and efficiency. Stakeholders of nonprofit organizations have appreciated the effect of increased regulatory measures on for-profit corporations because they’re placing emphasis on ethics and accountability for nonprofit organizations as well.

The focus on governance provides nonprofit organizations with new opportunities to enhance engagement and communication with their stakeholders.

A Nonprofit’s Purpose Plays a Role in Good Governance

Nonprofits serve their members and the community. In general, nonprofits put a lot of time and thought into forming meaningful and long-lasting statements for their mission, vision and values. Board members of nonprofits may also have a vision for the culture of the organization. Culture plays out over time as board directors and other leaders communicate the tone of the culture from the top.

A nonprofit’s purpose plays a role in good governance, as it holds nonprofits accountable for honesty and ethical dealings. Good governance entails communicating the organization’s mission, vision, values and culture to their stakeholders, so the stakeholders can hold them accountable.

Governance Is for the Sake of All

Principles of good corporate governance follow the rule of law, which means that the law rules over all groups and individual actors, even those with great power. The rule of law requires organizations to observe basic human rights in the course of their operations. The rule of law requires nonprofits to manage their affairs justly and to offer equal treatment for all groups and individuals in our society.

Good Governance Applies to Nonprofit Leaders

Good governance principles apply to board directors, officers, managers, employees, volunteers and anyone else who works with or for nonprofits. Nonprofits must balance the needs of everyone that works for and with them. It’s not an easy task because it requires everyone involved to be conscious about making sound judgments and being on their best behavior.

When everyone practices principles of good governance, it creates an honest and open environment that holds everyone accountable and keeps them all on track.

Board Composition Greatly Influences Good Governance

While public companies must obey certain regulations regarding board composition, it’s one area in which nonprofits have some flexibility. At the same time, nonprofit boards have recently been influenced by many of the same principles behind what makes for a well-qualified and well-composed board. Recent governance standards require almost the same degree of accountability for nonprofit boards as businesses, so it makes sense for nonprofit boards to be diverse and to take their responsibilities just as seriously. It’s vitally important for all nonprofit board directors to be fully committed and to actively engage in board discussions.

All boards have much leverage in choosing members for their boards. Good governance requires boards to have as much diversity as possible. Nonprofit boards usually try to form diverse boards by taking into consideration age, gender, race, ethnicity, religion, background, skills and experience, just as corporate boards do.

Nonprofit boards can support good governance by adding clear descriptions and expectations for board directors, officers, managers and their standing committees to their bylaws. Not all corporate boards participate in succession planning, but they should, and so should nonprofits.

Public boards must evaluate themselves. Some public boards take it a step further and evaluate individual board directors’ performances either regularly or periodically to ensure that they’re performing as well as they can. This is another area in which nonprofit boards can mirror their counterparts and shine in the area of governance.

Board Management Software as a Tool to Ensure Excellence in Nonprofit Governance

Good governance isn’t something that nonprofit boards can take for granted. Nonprofit boards are more likely than corporate boards to have board directors who have less experience, and they must discharge their duties and responsibilities with equal diligence.

Board management software is an instrumental tool for nonprofit boards to help ensure good corporate governance. It’s ultra-important for nonprofit boards to operate as efficiently and as effectively as possible. A board portal is an essential tool to help the board fulfill its duties responsibly.

A board portal offers strong security for developing the board’s agenda and recording board meeting minutes. The portal affords boards the ability to communicate and collaborate on their board business during meetings as well as using mobile devices. Using BoardEffect board management software, nonprofit boards can do their annual self-evaluations right online and get the results quickly. Board portal software assists nonprofit boards in their development cycle, so they can continually build a qualified, competent board of directors from recruitment through succession planning. Board portal software also helps boards stay current with all of their compliance and regulatory requirements and track cycles for donations and events.

Governance encompasses the various rights and responsibilities of people, processes and structures to make the best decisions for tending to nonprofit duties responsibly. A board portal is a centralized platform that brings all components of governance under one electronic roof to manage every aspect of nonprofit board business for every size nonprofit board.

Business ethics are essential component of any business strategy. Particularly, if we discuss the outbound communications like marketing and PR; ethics stand as even more vital element to be taken care of. The modern corporate code of conduct is depiction of professional ethics that an organization promises to follow and expects its staffers to abide by. Any violation of those promised values is considered an unacceptable professional behavior and might lead to server corporate ramifications for individuals as well as organization.

Intimate Data

Let’s start by looking at the nature of the data that we use to select our target market. One of the reasons that social media marketing has become so effective is that brands now have access to specific, intimate data about consumers. Based on data gathered largely on social networking sites, marketers and brands can know nearly everything there is to know about a person – they can know things like relationship status, dining habits, likes, political opinions, religious beliefs, hobbies, and shopping history.

While many people feel conflicted about the collection of this data, using specific, personal parameters for marketing isn’t inherently negative. Some might say that it’s positive overall that brands are able to find and interact with people who actually want to see their ads and engage with their brand. You can find people who are looking for your product, thus increasing customers.

Obtaining the Data

Most social media sites have parameters built in that you can select when placing an ad. Placing an ad on Facebook or Instagram, for example, asks you to select an audience based on the information they already have about their users. They’re helping guide you to your target audience based on their user information.

However, sometimes businesses may want to increase their email list to do direct inbox marketing. There are some companies that sell lists of email addresses of potential customers to brands and businesses. Purchasing email lists may seem like a good idea and a good way to get your name directly in front of more people, but it treads into some murky ethical waters. The problem with this practice is that by purchasing email lists, you’re contacting someone without consent. They didn’t agree to interact with you. While it is technically legal to directly contact someone without their consent one time, it’s generally frowned upon and most consumers find uninvited emails invasive. And while purchasing emails will inflate your email list temporarily, it’s unlikely that that growth is sustainable. It’s better to grow your email list organically from customers who want to hear from you. Not only is this more ethical, but it’s also better for your bottom line.

Addictive Behaviors

Another aspect of social media to ethically examine is how the consumer is interacting with the platform itself – and to see if psychological marketing techniques affect a person’s social media use. If it does, who is responsible – the consumer, the marketers, or the platforms themselves? Perhaps the answer is a little bit of all three.

There is much debate over addiction to technology, particularly in regard to social media. The American Marketing Association’s website has a fantastic article that examines the intersection of technology, addiction, and habit – and how social media marketing plays into that. It seems that the current consensus is that a little bit of responsibility lies in the consumer, the marketers, and the platforms themselves. While people are responsible for their own individual actions, brands and companies need to make sure they are considering the well-being of the consumer. As social media marketers, we can get into the habit of asking ourselves what impact our ad has on our customers.

As marketers using social media to promote a brand, we want to make our customers and communities happy. In general, marketing has become more interactive and personal than ever before. And, in general, consumers seem to be enjoying this trend towards the personal and connected. However, just as it’s important to respond to our audiences’ desire for more, it’s also important to critically examine our methods to ensure that our methods of communicating and interacting with our consumers are ethical.

Emotional Exploitation

It’s important to consumers that brands and companies are socially conscious. This sometimes means that you’ll have an idea for an ad that’s political and takes a stand on a particular side of an issue. This can be a great way to increase brand awareness and connect with your audience over current, relevant topics. However, make sure you’re taking a stand in a way that’s not rude or insensitive. If you’re taking a stand on a hot-button issue, make sure your ad doesn’t exploit the side you’re standing for. People who care about the issue may perceive your ad as hijacking their issue to sell a product and it may backfire.

When Pepsi used model and celebrity Kendall Jenner in an ad featuring street protesters, the ad received intense backlash on the Internet. Various young people among them is Jenner are shown leaving their lives to join the protests. The climax of the ad is Jenner handing a Pepsi to a police officer, who then drinks it.

The backlash on the Internet was swift. Many felt that the well-meaning ad failed to reflect the brevity of real protests that have been on the rise. In subsequent statements, Pepsi and Jenner expressed regret over the ad. The ad was pulled shortly after it aired.

While Pepsi intended to make an inspiring ad that used a current, relevant, and divisive issue, many believe that their decision to use a serious issue that has resulted in multiple deaths on both sides in order to sell their product was in poor taste. When deciding if and when to get political or choosing a stance to take, it’s important to do your research and ensure that this issue or stance is one that you want your brand to be aligned with .

You don’t want to create more enemies than you need to in controversial situations. If you want to run a marketing campaign that takes a stance, this would be a good time to put extra effort into your social listening strategy. If the issue centers around a particular group of oppressed people, make sure you’re consulting with members of the affected community to make sure your ad amplifies the cause and doesn’t exploit it. Get input on the ads before you place them from a diverse group of people. Make sure you and your team has a good grasp on the issue and know exactly what you want your ad to communicate.

Similarly, be wary of capitalizing on subjects that evoke strong feelings on a societal level especially if the subjects or events you’re referencing involves tragedy. While marketing is designed to evoke emotions from core audiences, it’s not ethical to use tragedies to sell your product. Even if your intent is good – say, to honor victims of a natural disaster – be careful in how you portray the event and the victims. You don’t want to exploit someone’s tragedy to push your business.

Health marketing is an approach to public health promotion that applies traditional marketing principles and theories alongside science-based strategies to protect and promote the health of diverse populations. It involves creating, communicating, and delivering messages for the public on prevention, health promotion and health protection. Health marketing is one of the ways advancements in medicine and in health-protecting services, such as insurance, are made widely known.

The marketing strategy would follow the traditional “4Ps” of marketing, namely:

• The “product” in question in this case the surgical procedure.
• The “place” which refers to the access to this procedure.
• “Promotion” refers to creating awareness and hence demand.
• “Price” refers to the cost of the procedure e.g. money, time, reputation etc.

“Health marketing” is a term rarely used in public healthcare and related disciplines. “Social marketing” or “integrated marketing communication” are more commonly used in public health and other disciplines to refer to marketing-based planning frameworks for public health communication.

Medical marketing in the private sector

Health marketing or Medical Marketing is a specialized branch of marketing. Medical marketing was born from the necessity for private health professionals to attract new patients, the characteristics of the health market makes it a unique kind of marketing. Medical marketing is usually a business to consumer (B2C) services. The primary customers for these medical marketing companies are Generation Z. About 85% of Gen Zers said they are open to alternative healthcare options like telemedicine, dispatch services and membership-based services. Marketers and medobal healthcare provides offline/online medical services for healthcare seekers. Healthcare professionals using this type of marketing usually offer beauty related services, such as aesthetic medicine, plastic surgery, dental surgery or dermatology and much more.

The Six Fundamental Elements of Marketing Health

1. Professional Referral Marketing

A reliable and continuing stream of inbound patient referrals from other medical, dental or other professional sources is the lifeblood of many specialty providers. And whether it’s a primary or secondary channel, professional referral sources can’t be taken for granted. Doctor referrals do not happen by magic or simply because you are a good provider. Success requires a written plan and an unfailing system to preserve and grow the flow of professional referrals.

2. Internet Marketing

From websites and social media tools, to patient portals and mobile apps, online marketing is a mainstream channel for marketing, advertising and public relations. Exactly how you use the muscle of the digital freeway can be highly effective and profitable, or a huge waste of time and money.

3. Branding

This is all about standing out from the crowd in a positive way, and it includes virtually everything you do. A powerful, differentiating brand for your healthcare business is part of your reputation. Meaningful and effective branding does not occur without a deliberate effort to shape and express the right message at the right time.

4. Internal Marketing

This heading includes all the ways and means that you communicate with people who already know you, primarily present and previous patients. Depending on the nature of your practice or situation, this influential audience can be a rich resource for referrals, additional services, testimonials and/or word-of-mouth advertising.

5. External Marketing

These are the media that reach prospective patients that don’t know you. Advertising in newspapers, radio, television, billboards and the like target an audience that needs to know that you provide an answer for their healthcare need. There’s little margin for error in an external media budget that is expected to produce a measurable return-on-investment.

6. Public Relations

This heading includes, among other things, planning and generating healthcare publicity and free press exposure, such as newspaper articles or broadcast interviews. The end results look easy, and it can be a positive and powerful influence. But “free press” typically results from careful planning, good timing, a clear message and a deliberate effort.