How Scandals Can Adversely Affect NGO Operations

¶ … Public Scandals: Nongovernmental Organizations in Trouble by Margaret Gibelman and Sheldon R. Gelman Nongovernmental organizations (NGOs) occupy a special place in society, and have during the last quarter of the 20th century, became increasingly important providers of a wide range of services that are intended to promote the public good. Because of the enormous trust and taxpayer resources that are invested in NGOs, instances of malfeasance and wrongdoing are viewed as being exceptionally egregious. In their study, "Very Public Scandals: Nongovernmental Organizations in Trouble," Margaret Gibelman and Sheldon R.

Gelman provide an analysis of various scandals affecting NGOs involved in the financing or delivery of health and human services in the United States during the 1990s compared to similar global instances during the period 1998 to 2000. Because NGOs depend on public support, the implications of these scandals are typically severe and long-lasting. Although circumstances varied, many of the NGO scandals involved inappropriate or insufficient management and financial controls and failures to implement long-term oversight measures.

Indeed, many of the instances of wrongdoing by NGO officials took place over the course of many years (25 years in one high-profile case) and the amounts of money that were involved were significant. The authors conclude their study by identifying the underlying problems that allowed these scandals to occur in the first place and how these high-profile scandals adversely affected NGO credibility and public trust. The authors also provide recommended strategic alternatives for improving NGO accountability.

What is the main point of the reading? The main point made by the authors is that even though NGOs in the United States are better regulated and overseen than their global counterparts, wrongdoings by paid and volunteer staff are always possible and because of the high profile nature of the organizations that are involved, their impact can be devastating for the entire third sector as a result of negative public reactions that can persist for a long time.

Although scandals are often shocking, many people are not surprised by them when they occur in business and even government organizations; however, the third sector is held to higher standards of accountability and public indignation in response to these scandals can affect public support for the entire third sector. How does it relate to the issues/themes of the course? Not-for-profit organizations have played an increasingly important role in the provision of public good services in developed.