Womens World Banking Goals - Case Study Example

Organization Analysis of the of the No Contents 1 Contents 2 Introduction to WWB 3 WWB Goals 3 WWB History 4 Paradigm of WWB 6 Governance Structure of WWB 9 Conflict and Resolution Governance 12 Conclusion 14 References 16 Introduction to WWB In the contemporary world, the scale and scope of operations of nearly all business organizations have become highly complex in nature. With increasing complexities in business, nature of corporate governance in both profit and non-profit making organizations has also turned out to be highly intricate. Governance patterns of companies in modern days can be analyzed through neoclassical, radical or mixed paradigms. This research paper will shed light on organizational structure and corporate governance pattern of a well-known non-profit multinational organization, Women’s World Banking (WWB). It is a famous non-profit institution that is based in United States. The headquarters of the company is in New York. The organization provides technical, strategic and information support to 40 independent microfinance institutions (MFIs) (Women’s World Banking, 2014). The company also provides similar supports to several banks in the developing nations, doling out finances and credit to the small entrepreneurs in such nations (giving greater facilities to female borrowers). It would be highly interesting to note that WWB through its networking operations have provided services to 24 million micro-level entrepreneurs, across 28 nations; among which 80% are women (Women’s World Banking, 2014). The company focuses on providing greater economic support and empowerment to poor women across the world (Forbes, 2014). WWB Goals The company primarily aims to improve the status of women all over the world and strictly discourages gender related discriminations. The mission statement of the company is “to expand the economic assets, participation and power of low-income women and their households by helping them access financial services, knowledge and markets” (Women’s World Banking, 2014). The goals of the company are: To provide financial assistance to women across nations who act as clients, leaders or innovations in their workplaces. To increase aggregate number of economically empowered women across the world, who would be able to take care of their families and themselves. To provide lucrative financial products to individuals worldwide through several savings and insurance schemes. To increase the total number of efficient MFIs all over world and help to accomplish goals of the same. To reduce incidence of poverty across nations. Aims to attain gender equality. To assist the accomplishment of Millennium Development Goals (WWBG, 2014). The President and CEO of the company, Mary Ellen, claimed that the organization has aimed to enhance the factor (women employment) that is difficult to estimate in numerical terms; but, every bit of progress helps in generating significant growth to an economic system. WWB History The non-profit organization of WWB was founded long back in 1976. The inception of the company took place after the first United Nations Conference of Women in 1975. The period from 1976 to 1985 was considered to be the “UN Decade for Women” (WWBG, 2014). The first UN Conference that was held in Mexico aimed to formulate several strategies and tasks through which opportunities provided to women in a society could be increased. It was also analyzed that economic independence endowed on women could remarkably help in vesting greater freedom in them, by virtue of which women could make their own preferable choices for opportunities, education and well-being. It was also understood that sufficient economic power allotted to women could act as a strong weapon for reducing the level of poverty on the global forum. Thus, considering all such factors, in 1976, it became indispensable to introduce an organization, like, WWB, that would help to enhance the condition of women in a global context (WWBG, 2014). In 1976, the organization was formed by women owners from different cultural backgrounds (WWBG, 2014). In the initial phase, the Founding Committee of the company included Michaela Walsh, Ela Bhatt and Esther Ocloo (WWBG, 2014). Michaela Walsh, before joining WWB, was the first female manager or president of Merrill Lynch International. Ela Bhatt was the president of the first and largest labor union for women workers known as Self Employed Women’s Association (SEWA). Esther Ocloo was a prominent entrepreneur of Ghana as well as an efficient advocate who elaborated on the role of women in economic development of a nation (WWBG, 2014). She was the first chairperson of the Board of Directors of WWB, since its inception in 1976. In 1979, the organization was registered in Netherlands as Stitching Foundation. The aim of the registration was to make WWB a global non-profit organization that would help in augmenting economic support for women. Michaela Walsh was the first president of the organization, who was succeeded by Nancy Barry in 1991. Under the control of Nancy Barry, WWB expanded its networking operations in the banking sectors of several nations. However, it should be noted that under her governance, the organization was slightly biased in offering greater financial and capital assistance to women from poor developing nations. Following Nancy Barry, the present president of the organization, as of 2014, is Mary Ellen Iskenderian. Mary Ellen had taken over her responsibilities as the president from 2006 onwards. At present, headquarters of the company is located in New York City. The governing and operating body of the organization comprises 40 experts in microfinance, who represents more than 15 nationalities. The company is governed by an efficient Board of Trustees that is chaired by professionals, belonging from banking, business, finance, law and community organizing sectors. Currently, the registered name of the company is “Friends of WWB/USA, Inc” (FWWB, 2014). Taxes are not imposed on the organization as it is nonprofit making in nature. The funds for the company is raised in form of donations, that are accumulated from U.S. Foundations, common individuals (who support and believe in aims, goals and objectives of the company) and interested companies. In 2009, President Barack Obama claimed that his mother is also a worker in WWB. She used to formulate the policies of WWB during 1990s. Paradigm of WWB Neoclassical Analysis Under this concept, it is claimed that the society of an economy is in the best state when consumers are free to maximize their utility levels and business firms enjoy the power to maximize their economic surplus. Under the regime of this analysis, Board of Directors in an organization should aim to maximize the profit of the concern as well as try to satisfy requisites and utilities of all its business stakeholders in the most efficient pattern. Nonetheless, it should be noted that under neoclassical or liberal perspectives, private interests are given more value than public benefits (Anheier & Ben-Ner, 2003). Since the organization of WWB is a non-profit organization, it can be mentioned that the governance pattern does not abide by the norms of neoclassical paradigm. The professionals of the organization do not aim for profit maximization. The concern tries to maximize welfare of women across all nations of the world (Hansmann, 1987). However, if operations of WWB are studied in terms of global economy, then the organization would be a pure reflection of liberal paradigm. This is because the organization through its services enables several small entrepreneurs to generate profits, which ultimately help in enhancing the overall level of national incomes of nations, where these entrepreneurs live. At the same time, WWB helps to render women self-sufficient at workplaces and hence, does not treat individuals as a burden for the society (Anheier & Ben-Ner, 2003). Radical Analysis The radical paradigm of an organization is based on the principles of Karl Marx that strongly opposes the norms of a capitalistic society. This is the reason for which the Radical paradigm rules strongly contradict that of neoclassical paradigm. Social welfare or well-being maximization is given greater value in radical paradigm than private interests. Therefore, if a company follows radical paradigm, then its Board of Directors would allot greater value to social interests compared to simple private profit earning motivations. These are organizations, which operate on the basis of the 3BL perceptive. “People, planet and profit” are the three factors valued as business pillars under this regime (Anheier & Ben-Ner, 2003). Since WWB is a social welfare maximizing organization, it strictly follows the norms of radical paradigm. The company incurs little cost in operations as funds are raised in the form of donations. At the same time, since it is a non-profit company, taxes are not imposed on the donation earnings of the firm. Similar to a typical radical organization, WWB desires to achieve democratic outcomes by providing greater political and economic empowerment facilities to poor women worldwide (Anheier & Ben-Ner, 2003). Mixed Analysis Companies that abide by the norms of mixed paradigm consider private profit making interests as a paramount issue in business; but, at the same time, they also consider that the scale of their business operations are highly sustainable in nature. This implies that such companies pay high value to environmental and social impacts of their profit making business initiatives. Such organizations face several conflicts between social and private issues in business. Nevertheless, according to goals and objectives of the firms, adequate weights are provided to matters of public and private interest in business. The Administration department of such organizations looks into matters relating to internal profit making activities in business. On the other hand, environmental and social matters are tackled by the Board of Directors in these organizations. Mixed paradigm had gained worth and value during the occurrence of Great Depression, when welfare maximizing role of government had become an indispensable factor of a capitalistic society. WWB is not a profit making organization and thus, does not follow norms of mixed paradigm (Anheier & Ben-Ner, 2003). From the above analysis, it can be inferred that radical paradigm can more appropriately describe the nature of WWB operations, compared to neoclassical and mixed paradigms. Governance Structure of WWB Since WWB is a radical organization, its Board of Directors is responsible for ensuring that private profit making motivations are dominated by social interests. Professionals in the organization aim to serve the interests of societies by primarily stressing on welfare of women. The company is governed by talented professionals, who are experts from diverse backgrounds. There are four main segments of governance in the organization: Executive Team This team comprises the primary governing leaders of the organization. 1. Mary Ellen Iskenderian (President and CEO) 2. J. Thomas Jones (Chief Operating and Financial Officer) 3. Anna Gincherman (Chief Product Development Officer) 4. Harsha Rodrigues (Chief Strategy Officer) 5. Carola Saba (Chief Development Officer) (Women’s World Banking, 2014). Staff Fellows Board The company is governed by a Board of Trustees since it is a charity organization. Nonetheless, it should be noted that members of this Board cannot undertake decisions independently. All decisions of the Board are made as per policies, annual budgets and strategies of the concern. The company conducts quarterly Board meetings. The Board Members of WWB (2012-2013) are: Officers Jennifer Riria Chair Mary Houghton Vice Chair Honorary Members for Life Ela Bhatt Michaela Walsh Board Members Connie Collingsworth Samit Ghosh Suzanne Nora Johnson Nejira Nalic Anthony Noto Julie Redfern Beth K. Roberts Angela Sun Marleen H.J. van den Horst Roshaneh Zafar (Women’s World Banking, 2014). However, donation funds (for WWB) are raised by Friends of WWB/USA, Inc., which is a sister concern of the company under a separate Board of Directors. The Board members of Friends of WWB/USA, Inc are law, academic and financial experts of U.S (FWWB, 2014). Figure 1: Board of Directors of Friends of WWB/USA, Inc. (2012-2013) (Source: FWWB, 2014) The diversified pool of members in the organization helps to conduct community services of superior quality. All decisions of the Board are finalized with strong involvement of community members. The activities of the company’s Board of Directors seek to achieve democracy for women across societies and hence, can be considered as a true reflection of social or radical paradigm. Conflict and Resolution Governance Since the company is a charitable organization, it greatly depends on charities and volunteers. The company tries to increase involvements of community members in its operations in matters relating to fund raising, volunteering and accumulating charities. Since the company intends to provide financial aids to women worldwide, it requires substantial amounts of funds so as to accomplish its goals and objectives in business. Since 2007, after incidence of global financial crisis, it has become largely difficult for non-profit organizations to raise non-productive charitable funds from markets. Therefore, without any exception, the organization of WWB also faces problems in raising adequate funds. The company claims that its business operations are made feasible through assistance of the funding partners. The Philanthropic fund raising partners of the company are: Government of Australia (AusAID) The Ministry of Foreign Affairs of Finland The Grand Duchy of Luxembourg Swedish International Development Cooperation Agency (SIDA) (Women’s World Banking, 2014). There are also several other public enterprises that helps the company to gather funds. These are: Andean Development Corporation (CAF) Government of the Federal Republic of Germany (BMZ) Hivos InterAmerican Development Bank (IDB) Irish Aid The New Zealand Aid Programme Agencia Española de Cooperación Internacional para el Desarrollo (AECID) United Nations Capital Development Fund (UNCDF) Cordaid ICCO (Women’s World Banking, 2014). The company shares its business with three groups of partners. These are: Implementing Partners 1. BSR 2. Diamond Bank 3. Hatton National Bank 4. Nationwide Microbank 5. Population Council Strategic Alliance Partners 1. Half the Sky 2. Roland Berger Industry Initiative Partners 1. The Microfinance CEO Working Group 2. The MIX 3. Social Performance Task Force (Women’s World Banking, 2014). WWB also accumulates funds from its official website through individual donation programs as well as invites individual or grouped entities to become its corporate partner (Iskenderian, 2013). Conclusion From the above context, it would be correct to conclude that the organization of Women’s World Banking (WWB) is a non-profit firm that operates in more than one paradigm. The existence of the company on the international forum implies liberal global status across nations where the governments support social causes. At the same time, WWB is also a radical organization as it aims to uplift the status of women in unequal neoliberal capitalist world. The Board of Directors and the Executive Body of the organization helps to suffice objectives of the concern in a non-dictatorship democratic manner. Thus, WWB is a replica of a typical social organization existing in the contemporary world. The company seeks to enhance women’s economic and political empowerment all over. Though active initiatives of all the governing members, the company has become successful in improving access of information and resources for women by virtue of which they are able to undertake both financial and non-financial decisions appropriately. Economic status of a nation can only improve if existing gender related discrepancies and unjust practices are reduced. This can only be attained with active contribution of social organizations, similar to WWB. After all, if development process is not actuated, then the idea itself gets endangered (Women Empowerment, 2013). References Anheier, H. K. & Ben-Ner, A. (2003). The Study of Nonprofit Enterprise: Theories and Approaches. New York City: Springer. Forbes. (2014). Womens World Banking Brings Credit to the Third World. Retrieved from http://www.forbes.com/2010/07/12/womens-world-banking-microfinance-entrepreneurs-finance-wharton.html. FWWB. (2014). Friends of Women’s World Baking. Retrieved from http://www.fwwbindia.org/. Hansmann, H. (1987). The Economic Theories of Non Profit Organizations. Retrieved from http://www.ppge.ufrgs.br/giacomo/arquivos/eco02072/hansmann-1987.pdf. Iskenderian, M. E. (2013). Women’s World Banking. Retrieved from http://www.microinsurancenetwork.org/file/WWB_Mary_Ellen_Iskenderian_Going_beyond_business_12Feb2013.pdf. Women Empowerment. (2013). Women Empowerment. Retrieved from http://www.womenempowerment.org.in/. Women’s World Banking. (2014). Women’s World Banking. Retrieved from http://www.womensworldbanking.org/. WWBG. (2014). Women’s World Baking Ghana. Retrieved from http://www.wwbg.com.gh/. Read More