If one takes a look at the organization chart of the Hong Kong Blind Union ("HKBU"), one will easily see the concept of "execution" sits conspicuously in the centre of the organization. The titles reveal the orientation of this governing body of the small self help nongovernmental organization ("NGO").This practice stands in marked comparison to the kind of NGO corporate governance that's prescribed by the Hong Kong authorities ("HKG"). Since the HKG launched its subvention approach to NGOs in Hong Kong in 2002, it has tried to set a code of practices for corporate governance in NGOs that are under its subvention. The code of practices advocates that NGO boards of directors should focus on areas that will ensure NGOs' legal and regulatory compliance, performance monitoring, sensible financial management, and transparency. In addition, the best practice of getting a diverse group of independent board members with professionalism and different qualifications is encouraged. As one of the HKG's subvented NGOs, HKBU received 55% of its cost from the HKG subvention and grants in 2011-2012. As an organization that receives grants and government funds, that is, a subvented organization, HKBU is subject to framework and the audit and governance strategy inflicted by the government.
To most extent, framework and this audit and government strategy is extracted from the business sector's corporate governance initiatives. Besides this, as a self help organization for people who have visual impairment, HKBU presents a persuasive case for these control and observation roles and practices of NGO boards should not necessarily be universally relevant to all subvented organizations in Hong Kong. Regardless of the HKG's guidance on the compliance and monitoring function of NGO corporate governance, HKBU views its board, that is, the executive committee, and also the Union's business staff work closely as a unified team to achieve the NGO's assignments and to facilitate fundraising. In opposition to the backdrop of the HKG's governing advocacy, what roles and obligations do its particular members and HKBU's EC fulfill? What are the results? And most importantly, why were such practices adopted by HKBU?
PUBLICATION DATE: January 08, 2014 PRODUCT #: HK1031-PDF-ENG
This is just an excerpt. This case is about LEADERSHIP & MANAGING PEOPLE
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