Submitted by- Puneet Nagpal

PRESENTATION ON THE TOPIC

OF

“ UNDERSTANDING NGO INDUSTRY ”

Under the guidance of Ms. Poonam Sharma

(Faculty Amity University, Gurgaon)

Service Marketing

KEY ISSUES • NGO – An overview • Types• Objectives• History • Governments and NGO• NGOs Today• Why should NGOs get involved in markets• NGOs problems• Marketing strategies • NGO’s role in the business environment• NGO’s role in facilitating business services• NGO strategies at the interface with public and profit• Role of NGO with business• Advantage and disadvantage of NGO involvement in market

NGO - A Basic Overview

* NGO means Non-government organisation* Any organisation who is doing non profit activity is called NGO* The aim to make NGO is to do social activities* These organisations do not involve in commercial activities* NGO collects fund through donation* The source of fund may be private or govt* NGO are also known as “Private Voluntary Organisation”

It is estimated that 40000 NGO are working internationally and more than 1.5 million NGO are only in India. Primary purpose of an operational NGO is the design and implementation of development-related projects

Types of NGO INGO means international non govt. organization e.g :- UNO and ILO

BINGO means business oriented international NGO e.g :- CARE, REDCross & Green peace

ENGO means environmental NGO e.g :-Global 2000

DONGO means Donor Organized NGO

GONGO means govt. operated NGO

QUANGO means quasi autonomous NGO e.g :- ISO

CSO means civil society organisation

TANGO means Technical assistance NGO

Objectives of NGOs

Improving the welfare of the disadvantagedSupport to poor childrenOld-age HomeTo Provide Medical ServicesTo Reduce poverty Increase employment Animal CareEncouraging the observance of human rightsOther social welfare activitiesImproving the state of the natural environment

History of NGO Activity in India

• Concepts of daana (giving) and seva (service). • During the second half of the 19th century

Friend-in-Need Society (1858), Prathana Samaj (1864), Satya Shodhan Samaj

(1873), Arya Samaj (1875), the National Council for Women in India (1875), and the Indian National Conference (1887)

Government

• The Societies Registration Act (SRA) was approved in 1860 to confirm the legal status of the growing body of non-government organizations (NGOs)

• The first Five-Year Plan stated, “Any plan for social and economic regeneration should take into account the services rendered by these agencies and the state should give them maximum cooperation in strengthening their efforts.”

• The Central Social Welfare Board was established in 1953 to promote social welfare activities and support people’s participation programs through NGOs

The establishment of the National Community Development Program and the National Extension Service were early steps in this direction in 1950 A.D.

International NGOs entered India in significant numbers to provide drought relief during two consecutive agricultural seasons, 1965–1966 and 1966–1967.

CAPART was formed by mandate of the 7th Five-Year Plan in 1986 as a nodal agency for catalyzing and coordinating the emerging partnership between voluntary organizations and the government for sustainable development of rural areas.

In May 2007, the cabinet of ministers of the Government of India approved the National Policy on the Voluntary Sector12 as the first step in a process to evolve a new working relationship between the government and volunteer organizations.

Methods in which NGO operates

a) Lobbying

b) Other Social welfare projects like project for providing food, drinking water, and poverty alleviation.

Role of NGO in Consumer awareness

NGO plays a very important role in the consumer awareness. NGO are created for providing awareness to consumer with the help of print media , seminars & work shops. These NGO are also helpful to give remedies to helpless consumers. Large no. of advocates and legal experts work voluntarily in NGO

NGOs Today

Today, about 1.5 million NGOs work in India According to a survey conducted by Society for Participatory

Research in Asia (PRIA), 73.4% of NGOs have one or no paid staff More than 19 million persons work as volunteers or paid staff with

NGOs. 26.5% of NGOs are engaged in religious activities. While 21.3% work in the area of community and/or social service. About one in five NGOs works in education. While 17.9% are active in the fields of sports and culture. Only 6.6% work in the health sector.

why should NGOs get involved in markets

• Firstly, there is increasing recognition (although not universal acceptance) that improving access to markets for small producers in low-income countries is a route to poverty reduction

• It is argued that NGOs have a better understanding of and ability to represent the needs of the poor (Farrington and Lewis 1993)

• Because they are driven by their mission rather than profit or vote-seeking, they should be able to command more trust from the potential beneficiaries of their actions.

NGO ACTIVITIES

• Its activities can be summarised as: • Trade • Support • Influence

NGOs Problems

Inadequate market information, Limited bargaining power, Lack of access to credit, High transaction costs

NGOs marketing strategies:- • innovation—identifying new approaches and models for

specific development activities and drawing upon their close knowledge of local communities;

• accountability—helping ensure that project components are implemented as envisaged and planned;

• responsiveness—encouraging the implementation of projects to respond to local needs;

• participation—serving as bridges between project authorities and affected communities, and providing structures for citizen participation; and

• sustainability—nurturing continuity in project work, especially when the implementing agencies lack capacity or when staffing changes.

NGO’s role in the business environment

• International arena – campaigning around international trade rules, ethical initiatives, corporate social responsibility etc.

• National arena – advocacy for policies and regulations that support poor producers, create a better investment climate, development and capacity building of appropriate institutions, representative organisations etc.

• Local arena – interventions to influence official attitudes and practices, demonstration projects aimed at changing cultural assumptions (e.g. gender-based constraints)

NGO’s role in facilitating business services

• Producer extension services – support or facilitation of input and service providers serving small-scale producers / farmers.

• Value-chain services – support or facilitation of service providers serving buyers, traders and other intermediary actors in the value-chain

NGO strategies at the interface with public and profit

Role of NGO • The following ten NGO roles can be distinguished at the market-civil

society interface 1. BONGOS (Business Oriented NGOs). 2. PONGOS (Partnership Oriented NGOs) 3. BINGOS (Business Interested NGOs e.g :- CARE, RED Cross & Green peace

4. SHANGOS (Shareholding NGOs). 5. STRONGOS (Strategic Stakeholder Oriented NGOs). 6. BRONGOS (Broker Oriented NGOs). 7. SUNGOS (Supervisory NGOs). 8. DONGOS (Discussion and Dialogue Oriented NGOs). 9. WONGOS (Watchdog Oriented NGOs 10. DANGOS (Direct Action oriented NGOs

Advantages and disadvantages of NGO involvement in markets

Advantages• Fair trade is a niche market but is expanding rapidly• Independent assessments have shown evidence of benefits

to producers for example to coffee growers in Bolivia, Brazil, Costa Rica and Mexico (CI/IIED 2006).

• The provision of credit through microfinance is another area of success

• NGOs have raised the• profile of small producers in international advocacy while at

a more practical• level have helped to fill gaps in support

• NGOs can be cost-effective because the altruism of NGO staff, motivated by the organisation’s mission rather than financial gain, could imply lower labour costs or higher quality, than for a comparable private firm (Scott and Hopkins 1999).

• NGOs have greater potential for innovation and flexible responses to changing external pressures

Disadvantages• lack of financial sustainability• institutional sustainability• potential conflict between the business goal

and the social development goals