FASID Seminar on Cooperation among NGOs / NPOs, Official Aid Agencies, and Private Corporations towards Poverty Reduction and Sustainable Development in Developing Countries
1. Date： September, 18th, 2008, 15:15-16:45 2. Venue：FASID Seminar Room #1 (5th Floor) 3. Presented by: Muhammad A. (Rumee) Ali (Managing Director, Brac Enterprises & Chairman, Brac Bank Limited) 4. Theme: NGO & Private Sector Partnership; BRAC’s experience in business, in partnerships & future opportunities and prospects 5. Brief content of Presentation
BRAC BRAC Bangladesh is one of the largest, diverse and most innovative NGOs in the world with operations in Bangladesh, Pakistan, Srilanka, Africa, Sudan, Uganda, Tanzania and Afghanistan. BRAC aims to empower the …show more content…
The surplus funds that all the enterprises under BRAC Enterprises provide fund many of BRAC’s non income earning activities, for instance, health and education programs. This has helped BRAC Bangladesh to be 80% donor independent. BRAC works to assist those with potential but do not have financial support or the confidence to succeed. BRAC Enterprises run with the vision of serving the society in a profitable, yet socially ethical manner and stand somewhere between a profit seeking and a non–profit social organization. The efforts of BRAC Enterprises are not driven towards maximizing profit and do not always operate on a purely commercial basis, but we work to benefit our stakeholders, i.e. the millions of deprived and disenfranchised poor of the country. BRAC works with people whose life is dominated by extreme poverty, illiteracy, disease and other handicaps, and BRAC strives to bring about positive changes in the quality of life through multifaceted development interventions. In this context, we think it very important to find the right balance between profit-seeking commercial activity and non-profit social activity. If the businesses aspect is to be emphasized in the context of sustainability, then exploitative business would thus be created. On the other hand, if idealism was to be emphasized on, then sustainability would be lost. We therefore seek to find a balance between a development and a commercial approach.
Issues and concerns
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In spite of all advantages mention earlier about ethically and socially responsible business practice, it also has disadvantages, limitation and challenges. The most common and obvious limitation would be the cost that comes together with every investment a business does in order to meet all publicity’s requirements, for instance setting up Ronald McDonald House Charities. Every business has a goal which is at the top of their goal list and it is to be profitable. What is more, it is challenging to maintain the publicity’s and stakeholders’ satisfaction when investing into the society, employees and the environment.
From a perilous beginning, Bangladesh has attained notable advancements in economic and social development in about four decades. Since it won its independent in 1971 following a bloody war, many, in the international community were doubtful about the country’s long-term economic sustainability. Some observers predicted a state of continuing aid dependency, while others believed if a country with such enormous and innumerable development problems as Bangladesh could make strides in development, then possibly other developing countries could as
The integrated network of BRAC Enterprises, Development Programs and Investments together beget a unique synergy and essentially create a 2+2=5 Effect. The surpluses generated by the social enterprises make BRAC more self-sustaining so that increasing numbers of poor people can become self-reliant.
The book, Microfinance and its Discontent: Women in Debt in Bangladesh written by Lamia Karim, gives us account on what causes a culture to be known as “economy of shame” status, such as in the case of Bangladesh. She writes on a subject that is a top list priority in the economical world these days, the corrupt ways NGO’s lenders do business not only in Bangladesh but across the world, however, she centralizes her views on Bangladesh and only a handful of NGO’s. Even though this was primarily a look at Bangladesh, it has resulted in capturing the attention of people across the globe not only with the NGO’s mention in the book but resulting in a closer look at all NGO’s and how they serve the people. Karim shares with the readers how the 1980’s nongovernmental organizations (NGOs) led in the way of microfinance institutions and claimed that they were providing women with an empowerment tool by issuing them loans. We find that over 80% of borrows are women and most are economically challenged already. With that being stated Karim also takes a look at how and why that is, she discusses the long term effects it is having on women and how it is furthering the exploitation of women in Bangladesh. She looked at how this type of exploitation has not only weakened further women’s economy in Bangladesh but has also strengthen the power NGO’s have over the people (mainly women) at the same time. It takes a look at this type of expansion and brands NGO’s use as a “shadow state
The author touches upon an important topic in regards to the section of different expectations of stakeholders in a for profit vs. a nonprofit organization. The author points out the differences in expectations, for profit is only concerned with wealth maximization while nonprofit is concerned with social impact, but the author also demonstrates the similarities of maximizing the returns of the investments within the organizations. Even though, nonprofit organizations are typically concerned with the idea of generating an everlasting social impact, there is still a requirement for investment of capital in order for the organization to operate. The multiple private donors, governmental agencies that offer grants, and other resources designated for donations
NGOs, or non governmental organizations are hurting the fight to end poverty because the free services and goods they provide destroy small business and give the people in said areas the wrong mindset.
The African Entrepreneur Collective is a 501(c)(3) company that has a commendable and admirable social mission. Essentially their goal is to create jobs in Rwanda, Africa. They believe that the best method to accomplish this is to help the entrepreneurs who are already creating jobs, create more of them. They primarily receive their funding from government grants and private foundations, but they also accept personal donations. Their reliance on these grants and foundations makes the people in charge of retaining and finding new sponsorships extremely vital to the company, and therefore they wield substantially
The nonprofit sector is gaining popularity around the world and for a very good reason. It employs nearly 2 million people and there are roughly 162,000 nonprofit organizations. There are many categories of the nonprofit sector, but during this paper, we are going to concentrate on the social enterprise aspect. Social enterprises can take form of 4 different structures. Social enterprises can take the form of a registered charity, A NPO, A for profit organization, or a hybrid organization. Throughout this paper, we will discuss and inform the reader on : what a social enterprise is, an example of a social enterprise, what are the advantages
Abstract: In the absence of specific accounting and financial reporting standards and diverse interpretation of certain terms under the laws of the land, it has become a very difficult task to follow a standardized procedure in generation and presentation of accounting and financial information of NGOs. The practices followed by NGOs in Bangladesh are varied and diverse and there by preparation of financial statements are incomparable and difficult for uses to understand. The paper tries to demonstrate financial reporting and accounting system of a BRAC’s
In contrast to international organizations and NGOs commitment and cooperation to confront poverty in developing nations, much fewer initiatives are aimed at poverty in developed countries. One may argue that nations such as the US and Europe are expected to address these issues themselves. One may even contend that they should be able to handle them, after all
With the goal of “not just to be the best in the world, but to be the best for the world,” Benefit Corporations or B Corporations, want to be the change in the world by using business to combat social and environmental problems (B Lab, 2014. “Why B Corps Matter.”) . Designed for profit companies that want to consider their impact on society in addition to making a profit, B Corporations aim to “redefine success in business” (B Lab, 2014. “Why B Corps Matter.”). Whereas a traditional corporation has a goal to generate as much revenue and profit as possible, Benefit Corporations also work to create general public benefit and thus make it their responsibility to satisfy all stakeholders, not just shareholders. Because of their desire to benefit all their stakeholders, B Corporations work to create higher quality jobs and improve life in communities by becoming an agent for of change in passing legislation and investing capital to make a difference in the world. Besides being accountable to all stakeholders, B Corporations are more transparent than that of traditional corporations as they are required to annually issue a report to the public, assessing their overall financial and environmental performance against a quoted threshold known as the B Impact Assessment. In acting socially responsible as a mission rather than an option for businesses, Benefit Corporations are working to transform revolutionize the way business is conducted.
One specific case of this is in Guatemala, where poverty rates and malnutrition numbers are high. Here, the United States Agency for International Development (USAID), Mercy Corps, Green Mountain Coffee Roasters, Inc., and Hanns R. Neumann Stiftung (HRNS), are joining forces together to improve the lives of small-scale farmers and their families. This alliance, also called, Inclusive Market Alliance for Rural Entrepreneurs (IMARE), is in favor of the “Zero Hunger Pact”, which is to lower the high rates of poverty and malnutrition. The alliance not only supports the small-scale farmers, but advocates on their behalf. IMARE believes they should receive better chances in the market-economy. There have been changes made because of this demand and an increase in the farmers’ household food security has come forth. This shows that this is the right route and that Mercy Corps wants to continue being a part of this alliance and support the farmers in Guatemala. With that being said, there is still a lot to be done in the health area. However, without the public health help given by Mercy Corps, there may be no people to offer aid to. (Regional Business News, audio, 2012)
Bangladesh, officially known as the ‘People's Republic of Bangladesh’ worldwide, is a country in South Asia. It shares land borders with India and Myanmar. Bangladesh is the world's eighth most populous country with a population of 163 million (as of the year 2016) in a total area of 147, 570 square kilometers. Dhaka has been the capital city of Bangladesh since the country achieved independence in the year 1971. Bangladesh has a market-based mixed economy, is one of the Next Eleven emerging markets. Its per-capita income was US$ 1,190 in the year 2014, with a GDP of $209 billion (bdnews24.com, 21 May 2014). Bangladesh has the third-largest South Asian economy (after India and Pakistan) and the second-highest foreign-exchange reserves (after India). The Bangladeshi diaspora contributed $15.31 billion in remittances in the year 2015 (The Daily Star, 3 July 2015).
After reading the first two chapters of Building Social Business, I was moved. I was inspired. Yunus opened my eyes to another side of business which in his words was selfless. And indeed it was selfless. Social business is truly selfless because it focuses on helping others and earning profit comes second. By reading this book and reflecting, I realized it is better to be part of the solution than be part of the problem. By looking at my community, at my environment, and at my experiences in life, there are problems that will need solutions and I firmly believe that having a social business is the solution. By my observation, slow public utilities, expensive medicine, and empowering marginalized sectors are problems that can be solved by putting up social businesses. By combining entrepreneurial mindset and experience, social awareness, and creativity, the ideal social business can be done. But what makes a social business truly a social business is the
For more than five years I had been participating in many social works, focusing on helping people start their own business and become entrepreneurs by giving them tools in how to start and manage their business. Through that time, I didn’t see this type of approach was effective, as many NGO’s and Government were doing similar activities in helping them. Many NGO’s mostly depend on donors and foundation for charity-like of approach which is hard to be sustained.