The Nkf Scandal
Oct
‘10
Nanyang Technological University[Type the company address]
Yi Theng Lim
Organization Behavior & Design Case Ethical Analysis
NKF Singapore: Anatomy of a Crisis
08
Fall
Introduction
In July 2005, Singapore was shaken by a scandal involving the National Kidney Foundation (NKF), the nation’s largest charity. The scandal had surfaced many ethically controversial practices by NKF. In this paper, I will be focusing on the dilemmas surrounding NKF’S operations structure and evaluate them from various theoretical perspectives to present a more holistic view of the issue.
Unlike most charities in Singapore, NKF operated as a professionally run, non-profit organization (NPO), where professional fund-raisers were hired and aggressive campaigning was done to acquire the charity dollar. This is quite a contrast to what most of its donors and society expect of a voluntary welfare organization (VWO), where there still exists an expectation that NPOs should be run solely based on the good will of volunteers. Here, NKF’s operation model comes in conflict with societal norms, although it cannot be denied that this model has been a tremendous success in raising funds for its cause.
The lack of transparency of NKF added further fuel to the fire. Although it is desirable to society for NKF to practice total transparency, the impact of such a practice on the donations and privacy rights of NKF’s employees may not be desirable as we will see further in the discussion.
Stakeholders
As Singapore’s largest charity, it is firstly accountable to its shareholders, the donors, who are concerned with how their donations are being spent. Secondly, the beneficiaries of NKF, who wish to know that the best is being done to provide them with uninterrupted, affordable treatment for their disease. This scandal however would have undermined their trust in NKF.
NKF is also linked to other charities. By raising such a large number of funds, it would crowd
‘10
Nanyang Technological University[Type the company address]
Yi Theng Lim
Organization Behavior & Design Case Ethical Analysis
NKF Singapore: Anatomy of a Crisis
08
Fall
Introduction
In July 2005, Singapore was shaken by a scandal involving the National Kidney Foundation (NKF), the nation’s largest charity. The scandal had surfaced many ethically controversial practices by NKF. In this paper, I will be focusing on the dilemmas surrounding NKF’S operations structure and evaluate them from various theoretical perspectives to present a more holistic view of the issue.
Unlike most charities in Singapore, NKF operated as a professionally run, non-profit organization (NPO), where professional fund-raisers were hired and aggressive campaigning was done to acquire the charity dollar. This is quite a contrast to what most of its donors and society expect of a voluntary welfare organization (VWO), where there still exists an expectation that NPOs should be run solely based on the good will of volunteers. Here, NKF’s operation model comes in conflict with societal norms, although it cannot be denied that this model has been a tremendous success in raising funds for its cause.
The lack of transparency of NKF added further fuel to the fire. Although it is desirable to society for NKF to practice total transparency, the impact of such a practice on the donations and privacy rights of NKF’s employees may not be desirable as we will see further in the discussion.
Stakeholders
As Singapore’s largest charity, it is firstly accountable to its shareholders, the donors, who are concerned with how their donations are being spent. Secondly, the beneficiaries of NKF, who wish to know that the best is being done to provide them with uninterrupted, affordable treatment for their disease. This scandal however would have undermined their trust in NKF.
NKF is also linked to other charities. By raising such a large number of funds, it would crowd
Bibliography: Agence France Presse. (2005, December 22). Charity scandal hurts Singapore 's clean image: analysts. Agence France Presse . Burton, J. (2005, July 14). Public anger over charity chief 's salary. Financial Times Cheng, W McShane, S. L. (2010). Organizational Behavior: Emerging Knowledge & Practice for the Real World. McGraw-Hill. Ministry of Health Singapore. (2007). Ministerial Statement on the National Kidney Foundation. Retrieved October 6, 2010, from http://www.moh.gov.sg/mohcorp/speeches.aspx?id=1982 National Council of Social Service The Straits Times. (2004, April 10). Big NKF reserves OK, says minister. The Straits Times . The Straits Times. (2005, July 22). I 'm considering donating to NKF now. The Straits Times . The Straits Times. (2005, July 22). Let us build on NKF 's strengths and correct the flaws. The Straits Times . The Straits Times. (2004, April 20). Minister backs NKF "sound recrod: in using funds. The Straits Times . The Straits Times. (2005, July 22). Pay system based on performance a must for NKF. The Straits Times . The Straits Times. (2004, April 19). NKF: Controversially ahead of its time? The Straits Times .