Theories on the Rise of NGO Work - Management of NGOs (PAHS 305) - PDF
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Main Business School
2025
Dr. Nicholas Ayamga
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This lecture covers several theories on the rise of NGOs including the social origins theory, the ubiquity of the third sector theory, and market failure theory. The slides also explore ethical theories that guide NGOs in decision-making, such as utilitarianism and rights approaches. The lecture is part of a Management of NGOs course (PAHS 305).
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THEORIES ON THE RISE OF NGO WORK Dr. Nicholas Ayamga Prof. James K. Mensah Management of NGOs 1 02/17/2025 (PAHS 305) Activities: 1. Briefly explain the Social origins’ account of how NGOs were formed....
THEORIES ON THE RISE OF NGO WORK Dr. Nicholas Ayamga Prof. James K. Mensah Management of NGOs 1 02/17/2025 (PAHS 305) Activities: 1. Briefly explain the Social origins’ account of how NGOs were formed. 2. Name any NGO activities in your area/district/region that confirms that NGOs are everywhere. 2 02/17/2025 Management of NGOs (PAH S 305) Objectives: Explain what a theory is State the importance of theories Explain the theories on the rise of NGOs Explain how ethical theories guide in decision making 3 02/17/2025 Management of NGOs (PAH S 305) THEORIES IN NGOS MANAGEMENT DEFINITION OF THEORY - A theory is an explanation of a set of related observations or events based upon proven hypotheses and verified multiple times by detached groups of researchers. -thus, one researcher cannot create a theory; but only a hypothesis (Willets, 1997). -A theory can also be simply defined as an organized way of thinking about a subject. 4 02/17/2025 Management of NGOs (PAH S 305) IMPORTANCE OF THEORIES IN NGOs MANAGEMENT Theories are needed to: guide the study of NGOs facilitate communication in NGOs Provide guidance in ethically challenging circumstances To identify what government regime will be friendly/hostile suggest possible explanations for actions and activities of NGOs. 5 02/17/2025 Management of NGOs (PAH S 305) THE SOCIAL ORIGINS THEORY The central argument of this theory is that the NGO sector is deeply embedded in the social, economic, and political dynamics of different societies. As such, its evolution cannot be attributed to any single factor, such as unsatisfied demand for public goods or the supply of nonprofit entrepreneurs. 6 02/17/2025 Management of NGOs (PAH S 305) THE SOCIAL ORIGINS THEORY The emergence of NGOs is rooted in the broader structure of class and social groupings in a society. 7 02/17/2025 Management of NGOs (PAH S 305) THE SOCIAL ORIGINS THEORY This approach suggests four models of nonprofit activity, each characterized by a particular constellation of social forces: A statist model characterized by limited state activity and a weak nonprofit sector A liberal model characterized by limited state activity but a strong nonprofit sector 8 02/17/2025 Management of NGOs (PAH S 305) THE SOCIAL ORIGINS THEORY A social democratic model characterized by expanded state involvement in social welfare activity and limited nonprofit involvement A corporatist or partnership model in which both the state and the nonprofit sector are actively involved in societal problem-solving, often in cooperation with each other 9 02/17/2025 Management of NGOs (PAH S 305) SUMMARY OF THE SOCIAL ORIGINS THEORY The social origins theory explains that the emergence of NGOs is due to a combination of factors including: Social, Economic and Political dynamics of society. 10 02/17/2025 Management of NGOs (PAH S 305) UBIQUITY OF THE THIRD SECTOR THEORY The most basic idea about the ubiquity of the third sector theory is that NGOs are everywhere in nature. Their origin is rooted in the various societies of the world rather than from one origin, say America or Europe. 11 02/17/2025 Management of NGOs (PAH S 305) UBIQUITY OF THE THIRD SECTOR THEORY Non-profit-type institutions exist in widely divergent cultural and social settings in virtually every part of the world. They have deep indigenous histories and roots. 12 02/17/2025 Management of NGOs (PAH S 305) SUMMARY OF UBIQUITY OF THE THIRD SECTOR THEORY The ubiquity of the third sector theory explains that NGOs are everywhere and not restricted only to certain parts of the world. 13 02/17/2025 Management of NGOs (PAH S 305) MARKET AND STATE FAILURE THEORY This theory ascribes the existence of nonprofit organizations to the presence of demands for public goods that are left unsatisfied in a market economy by either the market or the state (Weisbrod, 1988). It is also known as the demand side economic theory. 14 02/17/2025 Management of NGOs (PAH S 305) SUMMARY OF MARKET AND STATE FAILURE THEORY The Market/state failure theory argues that NGOs evolve to fill the gap created by the failure of the state and the market in providing public goods. 15 02/17/2025 Management of NGOs (PAH S 305) THE SUPPLY SIDE THEORY Supply side theories explain that the emergence of NGOs is not so much attributable to the demand for nonprofit services as on the supply of entrepreneurs with a commitment to establish NGOs to meet such demand. 16 02/17/2025 Management of NGOs (PAH S 305) THE SUPPLY SIDE THEORY According to these theories, one of the most likely sources of such supply is religious institutions, particularly in circumstances where religious competition exists (Fisher, 2001). 17 02/17/2025 Management of NGOs (PAH S 305) THE PARTNERSHIP THEORY This theory suggests that the state and the NGO sector grow in parallel, and even in cooperation with each other. 18 02/17/2025 Management of NGOs (PAH S 305) ETHICAL THEORIES THAT GUIDE NGO’s IN DECISION MAKING 19 02/17/2025 Management of NGOs (PAH S 305) THE UTILITARIAN APPROACH /THEORY According to this theory, ethical action is the one that provides the most good or does the least harm, or, to put it another way, produces the greatest balance of good over harm (Lyons, 1991). 20 02/17/2025 Management of NGOs (PAH S 305) THE UTILITARIAN APPROACH /THEORY The utilitarian approach therefore deals with consequences; it tries both to increase the good done and to reduce the harm done. 21 02/17/2025 Management of NGOs (PAH S 305) PROBLEM WITH UTILITARIANISM Utilitarianism fails to take into account considerations of justice. 22 02/17/2025 Management of NGOs (PAH S 305) SUMMARY OF UTILITARIAN THEORY/PRINCIPLE Utilitariansbelieve in taking the course of action that produces the greatest balance of benefits over harms for everyone affected. Decisions made through utilitarianism do not consider justice. 23 02/17/2025 Management of NGOs (PAH S 305) THE RIGHTS APPROACH A right is a justified claim on others. According to the rights approach, NGOs must respect the positive rights of beneficiaries and other stakeholders not only by protecting their liberty and freedom, but also honouring the duty imposed on them to help sustain the welfare of those who are in need of 24 help. 02/17/2025 Management of NGOs (PAH S 305) SUMMARY OF THE RIGHTS APPROACH An NGO’s action must be one that best protects and respects the moral rights of those affected by their activities. NGOs must treat humanity as an end, not merely as a means - to advance their own interest. NGOs must respect the negative as well as the positive rights of beneficiaries. 25 02/17/2025 Management of NGOs (PAH S 305) THE FAIRNESS OR JUSTICE APPROACH While justice usually has been used with reference to a standard of rightness, fairness often has been used with regard to an ability to judge without reference to one's feelings or interests; Fairness has also been used to refer to the ability to make judgments that are not overly general but that are concrete and specific to a 26 particular case. 02/17/2025 Management of NGOs (PAH S 305) THE PRINCIPLE OF JUSTICE The most fundamental principle of justice was defined by Aristotle: equals should be treated equally and unequals unequally. 27 02/17/2025 Management of NGOs (PAH S 305) THE PRINCIPLE OF JUSTICE In its contemporary form, this principle is sometimes expressed as follows: Individuals should be treated the same, unless they differ in ways that are relevant to the situation in which they are involved. 28 02/17/2025 Management of NGOs (PAH S 305) SUMMARY OF THE JUSTICE OR FAIRNESS APPROACH Justice means treating equals equally and if not, the basis of discrimination should be defensible. Treatments that differentiate two persons or groups of persons can be fair based upon a number of factors such as biological reasons and needs. There are three kinds of justice – distributive, retributive and compensatory justice. 29 02/17/2025 Management of NGOs (PAH S 305) Activities for next week: Why do we need board of directors for our NGO? Why will you like to have Mrs. Opera Winfrey and not Mrs. Obama/Rawlings as a member of your board? What key factors will you consider in designing an effective NGO? What factors affect effectiveness of BOD of NGOs? 30 02/17/2025 Management of NGOs (PAH S 305)