How Scandals Can Adversely Affect NGO Operations Essay

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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.

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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.

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