VISION

To guide donors to support an Integrated Social Development Programme compiled after a proper needs analysis has been conducted. To encourage Non-profit Organisations (NPOs) to do the right things right so that donors, confident that their funds are being put to optimal use, will unreservedly grant their financial & non-monetary support to allow target communities to be impacted with visible, meaningful and sustainable benefits directly accredited to a specific donor.

MISSION

To implement an NPO Enhancement Programme that will establish a results-producing partnership between the NPO (that is now accountable, transparent, and committed to restitution when necessary) and donors in pursuit of benefiting from effective social responsibility programmes. To assist donors (both corporations and governments) to engage NPOs worthy of their support and able to extend their vision to communities at the grassroots level.  

PREVAILING SITUATION 

There seem to be two scenarios – the one at one extreme and the other at another extreme – both poles are far apart from the other – both scenarios are detrimental to all parties (civil society, NPO and donors).  

The first scenario stems from the low entry barriers for forming an NPO. People are able to choose a “bandwagon”, and after forming an NPO approach donors for funding. Civil society has no say and has no insight into how donations are being spent but must be the grateful recipient of whatever benefits they receive. Donors are inundated with applications, often ill-prepared, and spend valuable resources in trying to exercise good stewardship – a daunting task as NPOs are often more skilled in social matters than in best management practices. Donors do not communicate with each other, NPOs do not communicate with each other and civil society does not have a voice. These uncoordinated efforts are ineffective and an unnecessary waste of scarce resources.

The second scenario is one of the powerful NPOs with such great influence in civil society that it could threaten the profitability, even the sustainability of the big business.  This antagonism was again demonstrated during the World Summit on Sustainable Development in Johannesburg perpetuating the animosity between a civil society mobilized against globalism and even capitalism. 

COMPELLING ARGUMENTS FOR A THIRD SCENARIO

A third scenario strives to humanise capitalism and government by creating exciting opportunities for NPO-donor collaboration. This collaboration for mutual benefit is not only possible, but it is also essential in light of the statement by professor Richard Welford, University of Huddersfield U.K., that global business and civil society are the superpowers of the 21st century. 

It is imperative for businesses to move beyond public relations rhetoric and for politicians to supersede oratory with attainable promises. They then would have the credibility to really engage stakeholders in a joint effort to create a more just and ecologically sustainable world. Maria Sillanpää, the director for the KMPG Sustainability Advisory Services, correctly states that managing relations with stakeholders is an essential aspect of modern business. Teresa Fabian of PricewaterhouseCoopers echoes this sentiment by stating that for business, partnering with stakeholders is a responsible business practice that can ensure a sustainable future for all.

There seems to be a link between profits and accountability to stakeholders. Lem Bendell is the Contributing Editor of a book titled “Terms for Endearment” (published by Greenleaf Publishing 2000 in association with the New Academy of Business). In his introduction dealing with stakeholder pressure for sustainable development, he states that a Eurobarometer poll concurred with market research by BP that people (consumers) believe NPO campaigns more than spokespeople in industry or governments. It is in line with academic findings that in marketing communication, word-of-mouth and publicity (mass communication not paid for) are much more credible (effective) than advertising (mass communication paid for). 

For businesses and governments to be sustainable they must be credible. Since credibility is a function of reputation it is essential to quantify this intangible asset that could be called “reputational capital”.

Columbia University demonstrates the value of reputational capital by their findings that about one-third of shareholder value in many industries is accounted for by corporate reputation. Ernest & Young estimated that intangible assets (comprising skills, knowledge, relationships and reputation) average two-thirds of the total market value for companies focussed on knowledge creation and/or market poisoning. These intangible assets could be related to reputational capital.

Justifiably, Bendell finds an explanation of why the Domini Social Index (developed by investment research firm Kinder Lydenberg Domini tracking companies with high social and environmental standards) has consistently outperformed the Standard & Poor 500 Index. His concluding statement is powerful:  “Corporate reputation is valuable in real terms and corporate reputation is affected by civil society in real terms”. 

With the above in mind, we can only agree with Anita Roddick (founder and co-chair of The Body Shop International and founder of the New Academy of Business - UK) that today, business is the dominant socio-political force on the planet and that the bottom line is not the only thing that matters.  She says: “we can’t afford for business to so limit its ambition when it is faster, wealthier and more creative than governments”.

The first scenario depicts a scenario of ineffectiveness and waste of scarce tangible resources. The second is a scenario of ineffectiveness and waste of scarce intangible resources. The arguments above necessitate a third scenario – a fresh approach that creates a win-win situation for all.

THE THIRD SCENARIO

The details of this third scenario have been explained in documents and PowerPoint presentations dealing with the Institute for Non-Profit Organisations. 

More details are available on request.  

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