CSR in NGO’s and

Non-Profit
Organizations
 • 01 Describe the distinguishing
features of the sector.
• 02 Explain what is meant by
Learnin NGO.
• 03 Discuss the particular CSR
g aspects of such organizations.

Objectiv • 04 Distinguish the various types

and scale of operation of such
es organizations.
• 05 Explain the benefits of a
relationship between an NGO and
a commercial organization.
 Not for profit describes
a type
of organization that
does not earn profits for
its owners. All of the

NPO money earned by or

donated to a not-for-
profit organization is
used in pursuing
the organization's object
ives and keeping it
running
 • a nonprofit organization that
operates independently of any
government, typically one
whose purpose is to address a

NGO social or political issue and

also a not for profit
organization is one whose
objective is to support or
engage in activities of public
or private interest without any
commercial or monetary profit.
 community health
promotion & education
 managing emerging health
crises
 environmental issues i.e.
Featur sustainable water & energy
es of resources
 economic empowerment
NGO
i.e. micro loans, skills
training, financial education
 development projects i.e.
school and infrastructure
construction
 women & children’s’ rights
 Postulates that a company with a
good image can more easily
attract audiences including
Chajet investors ,partners , employees
(1989) and customers which will influence
the success of the organizations.

Wall Those corporations with the best

reputation in the USA- the world’s
Street major market-also perform
significantly better than others in
Journal, terms of market share and share
1999 value.
Corporate Social
Responsibility (CSR) is the funding
and grants process under which
Non-Profit Organizations (NGOs)
can get financial and other support
from the corporate sector. Under
the Companies Act, 2013 it is a
mandatory provision to provide a
contribution of 2 percent of the
average net profits of companies.
 Types of NGO’s
Stands for
INGO International
NGO
Short for
business-
BINGO oriented
International
NGO
Short for
ENGO environmental
NGO
Quasi-
autonomous
QANGO non-
governmental
organizations
 Primary purpose is the design
Operational and implementation of
NGO’s development-related projects

Primary purpose is to defend or

Advocacy NGO’s promote a specific cause and seek
to influence policies and practices
 CSR issues
in NGO

Motivation for Access to available

starting an NGO resources

Implications for
managers Accounting issues
 Medecins
Sans
Frontieres

Medecisns Sans Frontieres (MSF) – which

translates as Doctors without Borders is a
deliberately secular NGO formed to provide
humanitarian aid to those in need regardless of
race or religion or nationality. It is best known
for its projects in war-torn regions and in
developing countries facing endemic diseases.
 Greenpeac
e
Greenpeace International is an NGO with
member organization- each one country has
its own Greenpeace affiliated to Greenpeace
International – which has offices in over 42
countries. It has an international
coordinating body in Amsterdam.
Greenpeace states its goal to ensure the
ability of the Earth to nurture life in all its
diversity.
 Weaknes
ses of
NGO’s
 Limited financial and
management expertise
 Limited institutional capacity
 Lower lever of self-
sustainability
 Isolation/lack of inter-
organizational communication
and/or coordination
 Small-scale interventions
 Lack of understanding of the
broader social or economic
context
Strengths
of NGO’s
 Strong grassroots links
 Field-based development
expertise
 The ability to innovate and adapt
 Process-oriented approach to
development
 Participatory methodologies and
tools
 Long-term commitment and
emphasis on sustainability
 Cost-effectiveness
 Summary
of key
points.
 Uncertain resource
The environment in which
availability and its effect on long
not for profit organization
operate is somewhat
–term planning.
different but there are still
CSR implications that are  Stakeholder power and
mostly concerned with involvement.
sustainability and with
accountability. Particular  Conflicting priorities.
Features of this
environment are :  Legal environment.

 Managing ambiguity.
 Aras, G and Crowther ,
D(2008). “Governance and
Reference: social responsibility : CSR
in NGO’s and Non-Profit
Organizations . page 234-
251