WorldVision International Aids Initiatives
WorldVision International Aids Initiatives
Non-profitvs. Multinational Organizations
Non-profit or humanitarian organizations are businesses that haveoperations geared toward towards the advancement of religious,charitable, scientific, literary, educational and public safetycauses (Anheier, 2014). The goal of their establishment is based onthe generation of public benefit emanating from their services. Theorganizations are exempted from payment of taxes. Multinationalorganizations on the hand are those that have been established withthe sole purpose of ensuring that profits are made for those engagingin the activities. The organizations are not exempted from taxrepayment because of the nature of business activities that they areinvolved in. Significant differences exist between the humanitarianand multinational organizations. The focus of the discussion is anevaluation of the differences that exist between the twoorganizations regarding the manner of operation and resources.
The first difference that exists between the two is in the way ofoperations. The humanitarian organizations have a purpose that theyare meant to achieve in the cause of their operations. For example,the World Vision International AID’s Initiative: Challenging &Global Partnership is engaged in matters of the prevention of theincrease in infection rates and any activity geared toward managementof spread. The humanitarian organizations have a mission that theyhave to uphold. The execution of their mandate is guided by the factthat they conduct activities in line with the existing mission. Theevaluation of their activities will be based on how the organizationwas able to uphold the mission objectives.
The multinational organizations equally have the mission that guidestheir operations. However, the difference is that directors of suchorganizations have the legal responsibility of ensuring that theymake profits for the shareholders. The focus is on the mobilizationof resources with the ultimate goal of attaining profits (Cullen, &Parboteeah, 2013). The resources mobilized in humanitarianorganizations operating on a global scale is to enhance the qualityof life of people. There are no direct benefits to the organizationexcept that the focus is on the public.
The leadership styles in humanitarian organizations differ betweenthe humanitarian and multinational organizations. For example, theoperation of multinational corporations is guided by the fact thatsome principals and ideas may not maximize profits but will enhancethe entire process. Because of the same, the director is protectedfrom being personally responsible to the shareholders for not makingprofits. The case is different with the humanitarian organizations. Adirector managing the humanitarian organizations has the mandate toensure that funds are used in a responsible and appropriate manner.However, the bottom line is the organization is operating for acharitable cause (Anheier, 2014). The operation, in particular, theleadership style by the directors differs significantly. For example,in the case for World Vision AIDS Initiative, the focus of thedirectors is to stay on the cause with the results being animprovement in the fight against HIV/AIDS across the globe. Thedirectors will work to ensure that the nonprofit cause is maintainedat all times.
Resource mobilization in humanitarian organizations differs from themultinationals. Non-governmental organizations that are classified asa charity have the option of receiving funds from different sources.For example, they can receive funds from public donations,fundraisings or government grants. However, such organizations mustregister with the state attorneys or responsible government officesas a way of ensuring that they can apply for funding. The WorldVision AIDS Initiative, for example, has access to a variety offinancial resources. Notably, they can access funds frominternational donors, philanthropists or fundraisings. However, thosedonating the funds should always believe in the cause for which theorganization is engaged.
Multinational organizations have a different method of accessingresources. Notably, they have the option of obtaining funds just likeany other corporation does. Mainly, such firms access funds throughthe mobilization of various business activities that they are engagedin. For example, financial resources can be accessed throughshareholder contribution that will, in turn, be returned in the formof dividends. Further, the multinational corporations can choose toexpand their investment activities as a way of improving theirfunding options (Cullen, & Parboteeah, 2013). The multinationalshave the choice of applying for business loans from various fundingagencies. Because it is a profit making entity, they will be expectedto return the funds with particular interest. The nonprofitorganizations such as the World Aids Initiative do not have themandate to return the various loans. Further, they cannot apply forloans because of the nature of activities that they are engaged.
The other difference in operation between the humanitarian andmultinational corporations is in the manner in which they areregulated. Humanitarian organizations have a strict policy regardingpaperwork. The degree in which they are regulated is high because ofthe sensitivity like their operations. The increase in paperwork andregulation has made them unattractive to the investors. The situationis different with the multinational organizations where there isminimal regulation. They operate in a simple manner and does notattract extreme scrutiny from various regulatory agencies because ofthe way of their operations.
Further, operations conducted by the humanitarian organizations areindependent of government influence compared to the situationdepicted in multinational corporations. The humanitarianorganizations have a framework that guides the manner in which theyexecute their activities. For example, they are independent when theyare designing the programs that govern their operations. Afterestablishing the cause for which they are meant, humanitarianorganizations are at liberty to execute their mandate as they wish.However, the activities they conduct must be in line with theexisting laws in the particular country that they are operating from.For example, the World Vision AIDS International Initiative has aprogram as to how they conduct their activities across the globe.Because the organization is dealing with AIDS, activities conductedmust be in line with the regulations that have been outlined by therespective health ministries in various countries of operations.However, the entire process of designing how the program will be runis independent of government influence.
Multinational organizations operate under strict guidelines that havebeen established by the government. Organizations must adhere to theguidelines that have been stipulated by individual governments asregards to various issues. For example, when dealing with the hiringof staff, certain states have rules regarding the number of employeesthat must be hired by a given organization. Multinationals such asCoca-Cola have the mandate to ensure that they stick to theidentified guidelines for them to even access permits allowing themto operate in individual countries. The degree of scrutiny leveledagainst operations conducted by the multinationals is high comparedto the situation with the humanitarian organizations.
The difference between the humanitarian and multinationalcorporations also emanates from the human capital perspective. Thehumanitarian organizations have the option of selecting hiring humancapital based on the established standards that are in line withtheir operation. For example, upon hiring, the personnel will beremunerated in line with the established framework that is consistentwith the international standards. Wages earned by such individualsare tax-free. The situation is different with the multinationalorganizations. For example, companies such as Coca-Cola have branchesin various parts of the world. Employees hired at such institutionsare subject to the conditions stipulated by the individual firms aspertains to tax payment. Further, there is the aspect ofremuneration. The multinational corporations pay their employees bythe pay structures that have been stipulated by the country.Employees are subject to guidelines provided by the labor industriesin the individual countries. The situation differs from that ofhumanitarian organizations.
Overall, significant differences exist between the humanitarianorganizations such as the World Vision Aids Initiative andmultinationals such as Coca-Cola. The operations differ from thehuman capital perspective to the manner in which they get resourcesto run their day to day activities. The bottom line is thatmultinationals are focused on making profits and engaging inactivities that will advance efforts toward profit making. Decisionsmade by such organizations will affect the overall aspect of profitmaking. The case is different with the humanitarian organizationswhich conduct activities without focusing on the aspect of profitmaking. However, it is vital to acknowledge that the organizationsall engage in activities aimed at bringing good to the people but indifferent capacities.
Prosand Cons Perceived
The manner of operations of both the humanitarian and multinationalorganizations forms the basis for determination of the benefits andcons that are determined. The first advantage with the humanitarianorganizations arises from the manner in which they operate. Forexample, the organizations do not have strict regulations that theyhave to adhere to. Unlike the multinational corporations, thehumanitarian organizations do not have a deal with the issue offollowing strict government policies. For example, it is evident thatthey are independent when it comes to program design and the mannerin which they will be conducting their activities. The minimalinterference from individual governments is an opportunity for thehumanitarian organizations to advance their cause. For example, theWorld Vision is in a better position to execute its mandate becausethey do not have to operate within a strict policy.
Multinational corporations, however, have to deal with theadministrative bottlenecks that are inexistent when dealing with thegovernment. For example, firms such as Coca-Cola have to ensure thatthey align their operations with the existing government laws andregulations. Further, the need to strictly adhere to the existingregulations and laws significantly affects the ability of themultinational organizations to achieve their mandate. The high degreeof scrutiny is a major impediment to their progress. Because of thesame, it is a challenge to the multinationals.
However, the failure to impose strict regulations against thehumanitarian organization is a recipe for no-performance and possibleengagement in activities that may not benefit the public after all. For example, some of the non-governmental organizations have beenaccused of funding terrorist groups to help in advancing their cause.The inability to monitor such organizations provides loopholes thatallow for engagements that would otherwise not be beneficial fororganizations. Because of the same, it could be a disadvantageespecially to the individual countries that would be hosting suchnon-governmental organizations.
The other disadvantage that arises with operations in humanitarianinstitutions is the lack of individual sources of funding to enhancetheir activities. The humanitarian organizations have to rely onexternal sources of funds. Because of the same, there is a highchance that the donors will monitor their activities. Further, thereis the aspect of the influence of donors on their operations. Forexample, if it is determined that the humanitarian organization willbe engaged in providing services to the public in a particular area,the chances are that they could be influenced to provide serviceselsewhere because of the demands of donors. The dependence on othersources of funds is a significant challenge to such institutions inparticular considering decisions that have to be made. However, forthe multinational corporations, there is no risk of it gettinginfluenced by external bodies. The multinationals engage inactivities that enable it to source funds from particular sectors.Decisions made are inherent to the organization and can only beinfluenced by the shareholders who have a stake in the corporation.Because of the same, it would be difficult to influence them on thegrounds of funding. The discussion held is an illustration of thevariations that exist between the two firms regarding operations.
Waysin Which My MBA Informs My Understanding of the Case
My MBA studies have been instrumental in helping me understand thecase under study. First, there is the aspect of the course componentscovered by the MBA. The course covered various aspects as pertains tothe issue of corporations and how they execute their activities. Thecourse looked at issues such as the different corporations thatoperate in the world and the manner in which they are run. Theunderstanding of operations executed by individual organizationsinformed my decision in getting to learn more about the case. Forexample, there is the aspect of strategic decision-making thataffects organizations. The opportunity to study the course has beenhelpful in understanding the case study in detail. For example, inthe case, there is the issue of strategic decisions made all with theultimate goal of achieving particular goals. The MBA has beeninstrumental in providing the information needed to understand theaspects of strategic decision-making as pertains to a partnershipwith various stakeholders. Through the course, it has been possibleto learn various core issues as relates to the operational activitiesof such organizations. Insights presented in the course havesignificantly assisted the comprehension of the working mechanisms ofsuch institutions. For example, the World Vision Aids Initiative thatis engaged in efforts aimed at reducing the overall impact of thedisease across the globe has complex structures in its system. Theknowledge gained from coursework is essential in understanding theoperations and how activities are conducted as relates to thepresented case study. Of vital importance is the issue of insightsprovided by the MBA course.
The second way through which course work in MBA has helped inunderstanding the case study relates to the core units that have beencovered. For example, in studying MBA, aspects such as accountabilityhave been looked at in detail. In relating the same point to the casestudy, the World Vision Aids Initiative is one of those organizationsthat is required to conduct its activities in a transparent andaccountable manner. The organization has put in place measures aimedat ensuring that operations are executed by the systems that are inplace to ensure funds are used for the purpose for which they aremeant. The opportunity to learn MBA served as an eye-opener inunderstanding various aspects of accountability and how they affectthe organization. The knowledge gained through the coursework hashelped in ensuring that it becomes easier to comprehend how the WorldVision has been able to execute its mandate especially as pertains tothe aspect of accountability. Also, the case study has issues such asleadership in organizations emanating. The coursework covered in MBAcovered aspects such as leadership. For example, in management,leadership is a contemporary issue and plays a vital role in thesuccessful running of organizations. The ideas learned in the courseabout leadership have been helpful in ensuring that the case study iscomprehended as needed. Through the knowledge gained from courseworkin MBA, it has been possible to understand the leadership structuresthat have been applied in the organization. Overall, the chance tostudy MBA has played a pivotal role in ensuring that there is ease ofunderstanding of the case study.
The Christian Worldview acknowledges the significance of acting inways that depicted the Biblical principles that one observes. TheChristian Worldview insists on ensuring that activities are executedin a manner that is Godly and describes what is expected (Pearcey,2016). The not-for-profit organizations are one of those doing workthat has a positive impact on the society.
“Feedthe hungry, and help those in trouble. Thenyour light will shine out from the darkness, and the darkness aroundyou will be as bright as noon”. (Isaiah 58:10)
In any activity one is engaged, it is essential that focus is onensuring that it is for a good cause. For example, the decision toparticipate in activities that will not necessarily bring profits isa confirmation of the kind deeds depicted by the humanitarianorganizations. It is evident that the people across the world haveHIV/AIDS. It takes a charitable institution to engage in activitiesaimed at helping those affected without waiting to be rewarded. TheChristian Worldview challenges the people to take part inhumanitarian activities that will be instrumental in transforming theworld without expecting returns (Pearcey, 2016).
Further, the Christian worldview calls upon those who are capable ofsupporting such humanitarian efforts. Because of the same, it isessential that organizations across the globe come together to helpaddress issues that are affecting the world. For example, theHIV/AIDS is a pandemic that continues to have an impact on asignificant number of people. Because of the same, it is essentialthat all those who are capable come together to help a cause thatwill transform the world. Through the application of the rightleadership, it would be possible to attain the objectives identifiedby various humanitarian organizations. The focus of organizations isto ensure that they work for a cause that will help people while notexpecting returns.
Anheier, H. K. (2014). Nonprofit organizations: Theory,management, policy. Routledge.
Cullen, J. B., & Parboteeah, K. P. (2013). Multinationalmanagement. Cengage Learning.
Pearcey, N. (2016). Leading from a Christian Worldview |Christianity 9 to 5. Christianity9to5.org. Retrieved 21December 2016, fromhttp://www.christianity9to5.org/leading-from-a-christian-worldview/
The Bible (Isaiah 58:10)