Overview of NGO Ethics
As institutions that do not place profit as their number one goal, NGOs also tend to be among the most trusted institutions in society. In the Fourth Edelman Survey on Trust and Credibility (2003), both US and European leaders indicated greater trust in NGOs to do what is right than they professed for business, government or media. In an earlier (June 2000) Edelman survey of 500 US elites and 100 European/Asian elites, the respondents demonstrated that for environmental, human rights and health issues, their trust in NGOs more than doubled their trust in government, corporations, or media.
While most NGOs strive ethically and responsibly to promote the public good, there are also many actors in the NGO community that do not follow acceptable standards of conduct, whether in fundraising, governance, or use of public funds. There are also many NGOs that have been set up for unethical ends, such as “Briefcase NGOs” who function mainly to try to attract grants or donations to enrich their owner. Unethical NGOs such as these exploit people’s giving nature and weaken the trust of the public and donors in the NGO sector. Ethical and responsible NGOs are tainted in the process.
Notably, in most cases, there is only minimal regulation of NGOs by state authorities – often only enough regulation to see that the NGO has been legally formed or meets its requirements for tax exemption or other concessions. Funding organizations and the public may have little understanding of which NGOs are reputable and which are fraudulent. Nor is it easy to ascertain which NGO are utilizing public money responsibly and efficiently to carry out their activities, and which are spending most of their resources on their staff and board. Compounding the problem is that less than desirable organizations may assume names that are quite similar to those of reputable organizations, or may assume “attractive sounding names” while carrying out little or no activities for the purposes claimed. Foundation grants tend to go to organizations with which the foundation is familiar, rather than risk giving to an NGO that may prove not to use the funds responsibly.
