Ethical Management Systems for Not-for-Profit Organizations

Zeitschrift für Wirtschafts- und UnternehmensethikBand 10 Nr. 1, Januar 2009

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Ethical Management Systems for Not-for-Profit Organizations

1. Introduction1

Non-governmental or 'third sector' organizations (NGOs) have grown rapidly in number, size and influence in recent decades. The third sector is made up of "not-forprofit organizations governed by private law and with independent legal status, pursuing programs of general interest for the improvement of society in the fields of social welfare and sustainability: community action, education, healthcare, environmental protection, development cooperation and sustainable development" (Aenor 2004: 1).

NGOs have proven to be excellent instruments for promoting a wide range of causes and contribute to the achievement of important objectives; they have shown themselves to be disinterested and effective; and their organizational flexibility has enabled them to address new tasks. As a result, they are generally held in high public esteem. But recently they have faced a number of challenges. Under the influence of globalization and technological change, the framework in which NGOs operate has changed. People have become more sensitive to the problems (hunger, disease, inequalities, etc.); they also realize that many of these problems could be overcome or alleviated, and their values have evolved. All this has given a new dimension to aid, which is the basis for both the demand and the supply of NGO services.

In response, the role, number and scale of NGOs have changed. Sometimes they take over the role of governments; other times they are subordinate or complementary to them. In some cases they have replaced or become a channel for individual charity; in others they obtain funds from government or from companies which, by becoming involved in the community have themselves become agent...

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