The same model needs to be applied to the banking industry as well. Creating an alliance strategy that will attract banking partners to Kava to create micro-lending programs and open branches will in turn create jobs for the Kava Educational Network. It will also serve as a source of funding to pay for vocational school tuitions as well. Throughout the strategic planning process, the potential to both enrich the island from a socio-economic basis through CSR programs (Estes, 2008) while also building out key industries to ensure their profitable growth (Rehme, 2007) is key. The strategic plan will need to balance the defining of the educational business as the foundation and the definition of healthcare and banking as the immediate industries of interest.
Evaluating the Ethical Considerations
As this business model concentrates on CSR-based programs including the development of public television courseware to enrich all Kava residents, and seeks to fund trade schools in addition to these activities, it is critical Nik and his teams have a Governance, Risk & Compliance (GRC) board of directors created. In addition to the board of directors, Nik and his team will need to have a fiscal oversight, human resources, banking and industry marketing oversight directors whose job it will be is to evaluate how the funding received is spent. These directors will concentrate on auditing how the public funding is spent. It is also a good idea to have a member of the Kava government on these...
For this entire business model to work in fact there must be a very high level of accountability and transparency of how the public funds are being dispersed, what the Rate of Return (ROR) is on the funds, and how effective they are being in promote public television. Likewise, the alliances with key partners for healthcare and banking will also need to be audited and have clear oversight so that Nik and his team will retain their credibility in the nation. There must be an overcompensating of accountability, compliance and reporting with regard to the use of funds to ensure the organization can grow unencumbered by outside control of either the government or an audit agency. If Nik and his team can create this board of directors and also concentrate on creating oversight committees, they will have transformed this risk into an asset, as they will be seen as trusted advisors for kava in education, healthcare and banking.
References
Estes, P. (2008, September). Value Add for the Community. Mergers and Acquisitions, 43(9), 77.
David Cruise Malloy, James Agarwal. (2003). Factors influencing ethical climate in a nonprofit organisation: An empirical investigation. International Journal of Nonprofit and Voluntary Sector Marketing, 8(3), 224-250.
Gunther Rehme (2007). Education, Economic Growth and Measured Income Inequality. Economica, 74(295),…
