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Ngos: a Primer on the Evolution of the Organizations That Are Setting the Next Generation of "Regulations"

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Ngos: a Primer on the Evolution of the Organizations That Are Setting the Next Generation of NGOs: A Primer on the Evolution of the Organizations That Are Setting the Next Generation of “Regulations” Nongovernmental responsibility organizations Nongovernmental organizations (EHS&SR) profes- (NGOs) have been sionals who are around for more exercise a growing influence spending more and than 150 years. Over more of their time the last decade, over business on “nonregula- however, there has tory” issues driven been a subtle but by NGOs. steady shift in the nature of their influence over business. Background: NGOs as De Facto Rulemakers In essence, NGOs are beginning to act increas- The current dynamics between NGOs and the ingly like governmental regulatory agencies, issu- business world have been described in an article ing a new generation of de facto “regulations” in that we published in Corporate Environmental the form of standards, guidelines, and certifica- Strategy.1 In summary, that article presented the tions. Once gadflies and outsiders, NGOs increas- case that, until recently, it has been governments ingly are shifting to market-based approaches in that have defined corporate responsibility; com- order to effect change and gain a prominent place panies have tracked the environmental, health, at the table in stakeholder negotiations. safety, and social responsibility metrics dictated What are NGOs, and how did these organiza- by those government-defined laws and regula- tions evolve? What types of NGOs exist, and how tions. Not surprisingly, business executives have are they classified? How do they operate and wield responded to EHS&SR issues narrowly, viewing their power? And what are the critical issues they face if they want to expand their influence? This article offers a literature review of pub- Brijesh Nalinakumari lished information on NGOs. It is a primer for environmental, health, safety, and social and Richard MacLean © 2005 Wiley Periodicals, Inc. Published online in Wiley InterScience (www.interscience.wiley.com). DOI: 10.1002/tqem.20054 Environmental Quality Management / Summer 2005 / 1 them as government-regulatory or public rela- NGO Basics tions problems, respectively. In the future, however, NGOs increasingly Definitions and Acronyms will define a new generation of metrics, certify “NGO” is a broad term encompassing a the results, rank relative performance, and set the wide array of diverse organizations. NGOs can minimum thresholds that stakeholders will see as be private agencies that support international representing responsible corporate behavior. This development, or indigenous or religious groups will be a world where corporations can have ei- organized nationally or regionally. They can be ther limited or significant influence, depending citizen groups that raise awareness among the on their business strategies. public and influence government policy. Vari- ous charitable and religious associations that About This Article mobilize private funds and use them for the de- In this article, we provide a detailed analysis velopment of society also are considered of NGOs themselves. The article is heavily anno- NGOs. tated since the mate- According to the World Bank, the diversity of rial also is intended to NGOs “strains any simple definition.”2 We have Accountability is the issue that will serve as a reference listed a number of the more common definitions define the influence of NGOs in the source for a wide spec- in Exhibit 1. future, and it is a concern that cuts trum of supporting lit- At the United Nations, private bodies that do both ways. erature on NGOs. not have any of the following fundamental fea- The article begins tures are recognized as NGOs:3 with a primer on the basics of NGOs—what • commercial organizations; they are, how they evolved, and so on. We then • organizations that engage in violence or ad- describe the growing influence of NGOs on busi- vocate violence as a political tactic; ness, government (illustrated by their involve- • organizations that have the stated goal of re- ment in the United Nations), and the financial placing existing governments; and community (illustrated by their involvement • organizations that are under the direct con- with the World Bank). trol of any government. Finally, the article considers the key issue of accountability. We examine the various princi- There are acronyms for several types of NGOs, ples of accountability as applied to NGOs, exam- based mainly on their organizational and opera- ples of NGOs’ accountability failures, and ongo- tional frameworks. These acronyms are listed in ing efforts to make NGOs more accountable. Exhibit 2. There are also a number of “NGO pre- Accountability is the issue that will define the tenders” that may even be registered legitimately influence of NGOs in the future, and it is a con- as NGOs, but that serve none of the intended cern that cuts both ways. NGOs have become purposes (see Exhibit 3). leading stewards in defining proper corporate Although many of the acronyms are amusing, and government behavior. Yet as their power and the fact remains that some NGO pretenders have influence grows, they too are being challenged on been created for questionable or illegal reasons their own practices. It is the classic question of (e.g., money laundering or tax evasion). Scrutiny “who checks the checkers?” of such organizations, at least in the United 2 / Summer 2005 / Environmental Quality Management Brijesh Nalinakumari and Richard MacLean Exhibit 1. Example Definitions of NGOs World Bank definition: Private organizations that pursue activities to relieve suffering, promote the interests of the poor, protect the environ- ment, provide basic social services, or undertake community services. World Bank. (1995). Working with NGOs: A Practical guide to operational collaboration between the World Bank and non-governmental organizations. Operations Policy Department, World Bank, pp 7–9. NGO Workshop definition: • A nonprofit-making, voluntary, service-oriented/development-oriented organization either for the benefit of its members or for other members of the population. • An organization composed of private individuals who believe in certain basic social principles and who structure their activities to bring about development to communities that they are servicing. • An independent, democratic, nonsectarian people’s organization working for the empowerment of economic and/or socially marginalized groups. • Organizations established by and for the community, with or without intervention from the government; they in- clude not only charity organizations, but those that work on socio-economic–cultural activities. Workshop Notes: NGO Workshop Organized at the Asian Institute of Technology, Bangkok, October 17–21, 1988, www.gdrc.org/ngo/wb-define.html. Vakil definition: A self-governing, private, not-for-profit organization geared toward improving the quality of life for disadvantaged people. Vakil, A. C. (1997). Confronting the classification problem: Toward a taxonomy of NGOs. World Development, 25(12), 2057–2070, at 2060. States, has increased dramatically since the ter- ous NGOs on an international level. After World rorist attacks of September 11, 2001. War I, the League of Nations was formed and the UIA was marginalized. Evolution and Growth of NGOs After formation of the League of Nations, in- The first structured NGO that we have found ternational NGOs began to organize themselves referenced in the literature was the British and by broad subject areas.8 For example, some 30 Foreign Anti-Slavery Society. Its formation in the peace and disarmament organizations formed an early 1800s led a movement in the nineteenth century to ban slavery in the British Empire.4 Exhibit 2. Acronyms for NGO Types* By 1849, four NGOs had been established.5 The BINGO Big international nongovernmental World Alliance of YMCAs, founded in 1855, was the organization first international NGO to appear on the scene.6 CBO Community-based organization CB-NGO Community-based, nongovernmental Other prominent nineteenth-century NGOs organization DO Development organization included the International Committee of the Red DONGO Donor nongovernmental organization Cross, formed in 1863 in Geneva; the U.S. Sierra GRO Grass-roots organization GRSO Grass-roots support organization Club, founded in 1892 to protest proposed reduc- IDCI International development cooperation institution tions in the boundaries of Yosemite National INGO International nongovernmental organization Park; and the Royal Society for the Protection of NGDO Nongovernmental development organization NNGO Northern nongovernmental organization Birds, founded in 1889 to campaign against the PO People’s organization PSC Public service contractor Victorian trade in wild bird plumage. SCO Social change organization In 1910, 132 international NGOs decided to SNGO Support nongovernmental organization WCO Welfare church organization cooperate with one another under the label of the * Vakil, A. C. (1997). Confronting the classification problem: Union of International Associations (UIA).7 This Toward a taxonomy of NGOs. World Development, 25(12), 2057–2070, at 2060. was the first instance of cooperation among vari- NGOs: Organizations That Are Setting the Next Generation of “Regulations” Environmental Quality Management / Summer 2005 / 3 Exhibit 3. Acronyms for NGO Pretenders* BRINGO Briefcase NGO An NGO that is just a briefcase carrying a well-written proposal ComeN’GO Come & Go NGO An NGO that appears spasmodically; only used by the owners when the NGO pasture looks greener CONGO
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