Abstract
Non-profit organisations (NPOs) are meant to serve the public rather than to earn a profit for its members.Charities are also NPOs and have philanthropic goals as well as social well-being. It is imperative that theseorganisations to observe good corporate governance to safeguard the interest of the public and donors. Corporategovernance consists of a number of good elements such as trusts, clear vision, mission, direction, transparency,internal control, sustainability and corporate social responsibility. There were a number of charities andnon-profit organisations in Singapore which has flaunted the regulations and lost the trust of the public.Singapore has implemented various measures and regulations to govern these charities and NPOs. Itcontinuously upgrades the code of governance and educates the charity and NPO sector on the need for goodgovernance. However, irregularities seemed persistent. Donors, who are the main contributors to the existence ofthese charities and NPOs, had to have a say in the regulation of such charities and NPOs. Donors’ perception andexpectation have to be addressed so as to achieve an effective set of governance principles which do not overregulatethe charities and NPOs. Based on the findings of extant literatures and surveys, it was found that donors’perception on corporate governance has not been evaluated sufficiently. Singapore is improving the awareness ofgood governance among its charities and NPOs but has not looked at governance in donors’ point of view. Thispaper stresses the importance of donors’ perception in view of existing regulations and code of governance inSingapore charities and NPOs.
Highlights
The result of the immense growth of global business, and the importance of the proper management of modern corporations has brought about management theories regarding strategies on how to place good governance processes in a way that to ensure the best interest of all the stakeholders (Becht et al, 2005).Corporate governance is a practice which concerns involvement of one or more parties with organizational decision-making where they may not behave in the best interest of the organization and related stakeholders. Berle and Means (1932), the pioneer in the contemporary thinking about corporate governance, has identified concepts which were developed from the growing separation of power between the executive management of the major public companies and their shareholders
Singapore has implemented various measures and regulations to govern these charities and Non-profit organisations (NPOs). It continuously upgrades the code of governance and educates the charity and NPO sector on the need for good governance
Singapore is improving the awareness of good governance among its charities and NPOs but has not looked at governance in donors’ point of view
Summary
The result of the immense growth of global business, and the importance of the proper management of modern corporations has brought about management theories regarding strategies on how to place good governance processes in a way that to ensure the best interest of all the stakeholders (Becht et al, 2005). John Carver (1990) notes that from a governance perspective the relevant factor that differentiate most NPOs apart from for-profit organizations is the lack of a behavioural process to evaluate their product and cost and cannot assess their good performance. Their governance process differs in terms of several respects. This includes stakeholder groups, ownership conditions, purpose, legal form, civil relations, control and supervision, remuneration of management bodies (may have an honorary Status), transparency regulations, performance measurability and public perception, Thomas Sprecher (2010). To enforce governance in NPOs and charities seemed difficult but it is pertinent as the funds are raised from the public
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