Bad Corporate Governance

What happens when Corporate Governance is not enhanced on a governmental level?

The case of Bangladesh

In 2013 the global journal chose BRAC as the Top NGO in the world because of its impact, innovation and sustainability. This NGO, which affects the lives of 126 million people, has a strict accountability and transparency policy, all the information about board of directors, trustees, internal and external audit and financials is available for every individual who has interest on it on its webpage www.brac.net.

However, this is not the situation of many other Bangladesh local NGOs. In the research: Problems of Governance in the NGO Sector: The Way Out, done by Transparency International Bangadesh in 2007 , it was found that many NGOS had governance issues.

* Executive Commitee

One of the reasons for the HKBU efficiency was that the executive Committee (Board of Directors) met around 8 times a year, in long meetings where they dealt with all the operation teams work and the executive committees work. In contrast, in Bangladesh, in 95% of the national and local NGOs a regular meeting of the governing body does not exist.

There are different types of boards, which seek to adjust to each organization needs, some involve into the operational activities whereas others play a role of custiodians. The HKBU board, as an executive committee not only monitors and set standards for the operation, but also gets involved at the operational level. Whereas in Bangladesh most boards of director’s role is to monitor and give support to assure that the organization achieve its goal. Nevertheless, in 90% of the NGOs studied in Bangladesh, the members of the governing body were not even informed about the programs of the NGO.

Moreover, in 75% of the NGOs, the general staff had not opportunity to express their opinions or providing feedback.

* Accountability

100% of the NGOs were not accountable to service recipients. This is the major difference with the HKBU, since as they...