Abstract

Abstract. The paper1 aims at emphasizing the importance of a proper recognition and disclosure of human capital in non-governmental organizations (NGOs) on the example of Poland. Although NGOs do significantly contribute to social well-being, the economic focus paid to commercial businesses and public institutions causes that a scope of civil initiatives is not recognised to a sufficient extent. It is, therefore, a role of the Third Sector to promote its activities and to inform extensively on the effects generated. The issue which requires particular attention in this respect is the human capital which propels all benevolent activities.The author analyses, firstly, the historic, economic, and legal circumstances that shaped the modern Third Sector in Poland. Subsequently, an analysis of human resources available to Polish NGOs in comparison to the situation of their German and British counterparts is conducted. The results of a study on the attractiveness of the non-governmental sector as an employer are discussed next. The paper is concluded with a presentation of methods which enable to quantify and valuate human capital in a non-commercial environment, including the ratios used to monitor the development of that capital.The results presented in the paper clearly demonstrate that it was possible due to involvement of socially sensitive people to rebuild social activities in Poland after the long period of the state’s exclusivity in defining and addressing social issues. Those people made the initial human resources of Polish NGOs as their members, governors or volunteers. Nonetheless, the development of a comprehensive legal framework stimulating co-operation between the state and NGOs, and an extensive use of European funds helped to extend the labour force of the sector by 120 000 employees. A priority for now proves to be sustaining that growth by attracting young people. The results of the author’s study on the perception of the Third Sector by students show that most of them still know NGOs from mass media only, and one third of them would not consider working for an NGO in future. On the other hand, opinions of those who already work in a non-commercial environment prove to be positive, what entitles to formulate the conclusion that a better knowledge of the ways NGOs work is vital to build their human capital. If social managers develop proper systems of measuring and reporting human capital, such as the one presented in the paper, they will gain a tool to demonstrate that human capital of their organisations is used to make social initiatives as effective and efficient as possible.Key words: non-governmental organisation (NGO), the Third Sector, human resources, human capital

Highlights

  • The end of the 20th century, which was characterized by a rising consciousness of the social situation in all corners of the world as well as by the feeling that both states and market powers did not properly address the existing problems and emerging challenges, witnessed an increase in the number and scope of non-governmental initiatives

  • Profiles, and functions of non-governmental organizations (NGOs) in 35 countries, the research team concluded that the discussed group generated 5.1% of the gross global product, and in the European Union alone it had at its disposal human resources equal to 11 million full-time equivalent workplaces – which was more than the whole population of Belgium

  • Respecting the aforementioned statements, this study aims at identifying the economic factors that either stimulate or stifle the development of human capital of Polish non-governmental organisations, as well as at indicating potential benefits of a proper recognition of this capital by particular organisations

Read more

Summary

Introduction

The project aimed at formulating the methodology of assessing the economic situation in a non-profit environment It was developed with a support of 58 Polish and 67 German and British NGOs which were recognized as public benefit organizations according to local regulations. The data pool referred to in this paper included information on the profiles of organizations (social areas where they operated, their beneficiaries and forms of offering support to people in need), available resources (the number of people engaged, annual budgets, sources of financing and information technologies applied in an organization), and the managerial practices used in the non-governmental sector (strategic objectives, planning methods, management accounting methods, and reporting practices). The project aims at examining the effects generated by Polish non-governmental organizations offering various types of social services and at analysing the perception of the Polish Third Sector by the general public, and in particular by people of the young generation

Macroeconomic background to the contemporary modern third sector in Poland
Prohibition on profit distribution
Considerable number of volunteers
Professional experience level
Reflection in reporting systems
Implemented innovations
Findings
Conclusions

Talk to us

Join us for a 30 min session where you can share your feedback and ask us any queries you have

Schedule a call

Disclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.