Sustainability and Effectiveness of Environmental NGOs - The Influence of the Managerial Process

Débora Nacif de Carvalho – Centro de Pós-graduação e Pesquisas em Administração – UFMG – Brazil. Ivan Beck Ckagnazaroff - Centro de Pós-graduação e Pesquisas em Administração – UFMG – Brazil. 1. INTRODUTION Organisations in the Third Sector have acquired an important role in society, both in the provision of services and for social control and mobilization (LEWIS, 2001). As a result, they have had new demands imposed on them (ARMANI, 2003; FALCONER, 1999). According to Falconer (1999), whereas in the 1970’s and 1980’s the greatest challenges for Third Sector organizations were surviving in a hostile political environment and winning public recognition for their causes, in the 1990’s this sector’s legitimacy and credibility derive from their ability to act efficiently and effectively in providing their services. The increase in visibility of Third Sector organizations has brought greater demands regarding their capacity to produce work of quality, to position themselves politically and satisfy social demands. The challenges imposed upon them have become more difficult and require that these institutions be effective (ARMANI, 2003).

In this context, the management of institutions belonging to civil society is highly relevant and warrants the attention of the academic world (LEWIS, 2001). Falconer (1999, p. 20) in highlighting this point, states that “paradoxically, for a sector that came into existence with such high expectations and respect for its qualities and its potential for action, the Brazilian Third Sector seems to be badly equipped to take up this role”. The author also points out that these organisations have a low capacity for continuity and sustainability. For Armani (2003), the capacity for sustainable activity demonstrated by Third Sector organisations is not solely related to their internal management but also to the management of the environment in which they operate. That is to say, the question of sustainability focuses on issues that have to do with an organisation’s internal operations and socio-political insertion. In view of the important social role of Third Sector organisations and the challenges that they face in the search for sustainability, this research seeks to provide a reply to the following research question: “How is the management of Third Sector organisations carried out in relation to the question of sustainability?”

In view of this objective, the main concepts of the research were discussed – Third Sector and sustainability - as well as the dimensions of sustainability that served as a guide for the research: strategic management, personnel management, resource management, impact management, capacity for accountability, capacity for advocacy, public image management, management of partnerships and legal system. Following this, the research methodology was presented, along with the data collected and analysed. Finally, the final considerations were presented and the limits of the study and suggestions for future research were indicated.

2. THEORETICAL REFERENCES 2.1 The Historical Context

The idea that the Third Sector is not a recent phenomenon in Brazil is defended by many authors (FALCONER, 1999; RODRIGUES, 1997; COELHO, 2002; GOHN, 1997; THOMPSON, 1997; GONÇALVES, 1996). Rodrigues (1997, p. 43) states that,

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[...] it is only now, in the 1990’s that a distinction between it and the public and private sectors has begun to be made. In reality, it is a hybrid of them both and this means that it has very complex and specific features. (public objectives and private constitution).

In order to reconstitute the history of the development of the Third Sector in Brazil, the following description of four distinct periods is provided based on the work of Fernandes (1994) and Landim (1993).

In the first period, from colonisation until the middle of the 20th century, it was principally the Catholic Church that carried out social work, health care and education in the form of refuges, children’s homes, charitable hospitals and private Catholic schools. The so-called “voluntary associations” were permeated by the values of Christian charity, showing how the notion of philanthropy was initially linked to the precepts of the Catholic Church.

The second period was marked out by the directives of The Vargas Government based on state intervention in the economy and in society. During this time, The State took on the role of formulating and implementing public policies, depending on collaboration with non-profit making organisations for their implementation. To this end, in 1935, a law was promulgated which declared that such entities were of public interest. In 1938, the National Social Service Council was created and it determined that the institutions registered with it could receive government subsidies. The Church continued to play an important role in providing social services and, in some cases, received State financing for some of its projects.

The third period in the evolution of the Third Sector in Brazil was characterised by intense social mobilisation. During the rule of the military regime, many philanthropic and social work institutions joined with community organisations and the so-called “social movements” as official spokespersons on social problems. It was in this period that NGOs made their appearance as institutions linked to social mobilisation and political opposition.

With the re-democratization of the country from 1980 onwards and the decline of the interventionist model of the state from 1991 onwards, the question of citizenship and basic rights came to be the focus of non-profit making institutions, and these events constitute the fourth period in the history of the evolution of these organisations. In this period, the articulation of the Third Sector as a group began to increase in spite of the heterogeneous nature of the institutions comprising it.

2.2 The Concept and Characteristics of Third Sector Organisations The concept of Third Sector is still hazy and is the target of heated discussions. It is no easy task to define a concept for a group of organisations with such a hybrid composition and complex characteristics as those of the Third Sector. Franco (1997), cited in PEREIRA and GRAU (1999, p. 37), defines them as,

[…] “formed by groups of citizens from civil society, originally private but whose activities take place as a widening of a (new) social-public sphere and the functioning of which, in collective terms, is characterized by an extra-mercantile, extra-corporative and extra-party rationality” […].

In spite of the wide diversity of the Third Sector and the heterogeneous nature of its organisations, some of their characteristics are sufficiently specific to make it possible not to confuse them with other organisations: 1) they are outside formal State structure; 2) they are not profit making; 3) they consist of groups of citizens from civil society subject to civil law; 4) membership is non-compulsory; and 5) they produce goods and/or services for collective use or in the collective interest (FRANCO, 1999).

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2.3 Dilemmas of the Third Sector Research carried out with leaders of institutions in the Official Amazon Region concerning the problems that create the greatest difficulties for their activities (SUDAM/PNUD, 1997 cited in Falconer, 1999) revealed that lack of resources is the most frequently occurring problem, it being reported by 63% of those interviewed. The other difficulties are divided between internal/organizational questions, such as lack of human resources, unsatisfactory management and weaknesses in the institution’s infrastructure; and external factors such as lack of support from local authorities, deficiencies in community infrastructure, government bureaucracy and lack of political certainty (FALCONER, 1999).

The findings of this research show that the challenges faced not only extend to the internal management of organisations, but also to the environment in which they operate. In other words, the survival of organisations involves a complex network of relationships between internal capacities and the political, social and economic entities and issues of the environment in which they are inserted (FALCONER, 1999).

Falconer (1999) suggests that focussing solely on internal management is not enough to enable organisations to carry out their activities effectively and that it is necessary to have a wider focus that also considers their surrounding environment.

At this point, it would be appropriate to consider the notion of sustainability as an approach that deals with this complex network of relationships by taking the reciprocal influence of internal and external management issues as a basic premise and by treating them as complementary and interdependent factors (ARMANI, 2003). Sustainability therefore serves as a reference by directing the study of management in third sector organisations to internal aspects of the entities relationship with its environment.

2.4 The Question of Sustainability Sustainability is a theme that has been widely discussed in many areas. Governments, universities, companies and Third Sector organisations frequently deal with this theme without, however, reaching a consensus about a precise definition. This section offers a brief summary of the theories of authors who have studied the question of sustainability and then presents the concept adopted in this research.

The notion of sustainability emerged out of the concept of sustainable development as defined by the United Nations (UNO) Commission on the World Environment and Development (UNCWED) and published in 1948 in the report “Our Common Future”. Sustainable development is “that which meets the needs of the present without compromising the ability of future generations to meet their own needs” (SOUZA, 2000, p.2). This is a relatively simple concept but one that is difficult to operationalize, mainly because of the many ecological, technological, macroeconomic and other factors which exert a strong influence on projects for its implementation (BRINKERHOHH & GOLDSMITH, 1992). According to the Committee for Development Assistance of the Organisation for Economic Cooperation and Development (OECD), sustainable development depends on the strength and quality of a country’s organisations (BRINKERHOHH & GOLDSMITH, 1992). Thus, since the publication of the report “Our Common Future” and the statements from the OECD, many business organisations have been pressured to comply with propositions for sustainable development.

Many authors have put forward their interpretations of the concept “sustainable organisation”. The most widely disseminated in business circles is based on the idea that companies should have a triple bottom-line. This means that, in addition to producing economic and financial results, companies should also engage in social actions and take care

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of the environment (HART; MILSTEIN, 2004). Thus, a business organization is considered to be sustainable when it meets its shareholders’ financial expectations, has a socially responsible attitude in the eyes of society and its activities do not damage the environment (COPESUL, 2001).

In addition to the business community, the concept of sustainability is also studied by social and environmental institutions. According to Kisil (1997), in the context of the Third Sector, this concept is used to express the long-term permanence and continuity of the efforts made to achieve human development. Some of the authors studied who deal with the question of sustainability stress internal organisational aspects and others highlight their external aspects.

Gibb; Adhikary (2000) argue in favour of the concept of sustainability from the point of view of the stakeholders. The authors believe that a Third Sector organisation’s survival depends on its ability to meet the expectations of its most important stakeholders. According to this idea, sustainability is not a construct linked to a single limited capacity of a company. It is a concept that depends on the extent to which the institution attains the pre-established goals set by actors who wield influence on the organisation and is, therefore, an individual, multidimensional measure for each company (HERMAN; RENZ, 1999).

Brinkerhohh; Goldsmith (1992) incorporate the notion of strategic planning into the notion of sustainability and emphasise the importance of a company positioning itself in relation to the external environment. According to these authors, two main issues permeate the concept of organizational sustainability. The first of these refers to the influence of internal organizational capacities and also to the dynamics of the external environment on sustainability. Thus, Brinkerhohh; Goldsmith (1992) point out the need for an institution to carry out an internal and external analysis to diagnose its level of sustainability. The principal internal variables taken into consideration are the technology utilised and the organisational structure. As regards the external variables, the level of hostility of the environment is considered to be relevant and, consequently, needs to be evaluated. The second issue that permeates the concept of sustainability concerns the importance of having an organisational strategy which takes into account the institution’s internal strengths and weaknesses and also the opportunities and threats present in the environment. The authors emphasise, in this way, the necessity of making a diagnosis of the organisation’s capacities and of the context within which the organisations operates, while, at the same time, also highlighting the importance of establishing measures which position the organisation in such a way that it can continue its long-term activities.

Fowler (2000) adds one more dimension to the notion of sustainability in Third Sector organisations by arguing in favour of the idea that, in order to survive, in addition to internal capacities, an organization needs to be agile, to be able to deal with the instability of the surrounding environment and to be able to adapt. The author proposes that in order to be deemed sustainable, a Third Sector organisation must manage its impacts and resources properly and possess the capacity to regenerate.

It is important for an organisation to produce a long-lasting external impact whose value is recognised by society. For Fowler (2000), the sustainability of such an impact is determined by the level of participation of those who have benefited from the implementation of the action, the level of empowerment that they manage to obtain and the competence shown by the organisation in carrying out its activities. As regards the management of resources, the author draws attention to an organisation’s capacity for raising funds by adopting different strategies for this purpose. The decisions about the organisation’s mission and values will condition the strategies adopted, which, in turn, will determine the type of relationship the organisation has with those who donate to it. It is also important that the institution should be capable of producing this relationship while, at the same time, preserving its autonomy. The

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last dimension that Fowler (2000), deals with is an organisation’s capacity for regeneration. The author puts forward the idea of building a virtuous spiral of sustainability which starts with putting the organisation’s mission into practice, as measured by its performance. As a result of the influence of its proposed objectives, an institution receives social recognition and builds up a good reputation. Good performance and a good reputation contribute toward the learning process and continuously create new knowledge. If, in addition to the other abilities discussed previously, an organisation is agile, it will be able to change and regenerate, According to Fowler (2000), an organisation will then adapt to producing better and more valuable impacts, which strengthen its good reputation and which in turn increase the acquisition of resources and, in this way, the spiral continues upwards.

It is obvious from all this discussion about the concept of organizational sustainability that the different authors are not unanimous in their opinions. Some points of view give more weight to an organisation’s internal aspects, while others designate external factors as the central focus of the concept. It is possible to find common points but one definition shared by all and which takes into account the term’s full complexity has not yet been produced. Notwithstanding all these divergent viewpoints, in order to allow study of Third Sector organisation’s capacity for sustainability, it is necessary to adopt one definition so that the object of study is capable of being identified in practice.

Bearing in mind the diversity of points of view, what exactly can be understood, then, by a sustainable Third Sector organization? What is it, in essence, that makes an institution sustainable? Brinkerhohh; Goldsmith (1992) draw attention to the possibility that the idea of sustainability is redundant. The authors hold that organisations are, by definition, sustainable forms of interaction between persons. If an institution exists, it is because it is sustainable at that moment in time. However, even these authors argue that the point of view that should be adopted is that the institution should not only be sustainable in the sense that they use the term but that it should continue to be sustainable and be able to continue its activities and survive in the long term.

In order to select a concept of sustainability that can be observed in practice and that also includes the most important dimensions of the construct, it is worth remembering both the nature and specific features of Third Sector organisations’ activities. These institutions’ resources come from donations and non-profit making, self-managed activities. Nevertheless, like any other organisation, these bodies must provide quality service in a competent manner. However, unlike other types of institution, Third Sector organisations work with values and ideas. As a result, their existence depends, to a large extent, on their legitimacy in relation to their beneficiaries (RAMOS, 2003). In view of these peculiarities Ramos (2003) argues that the permanence and continuity of the work of Third Sector organisations is conditioned by the success of three interrelated basic factors: financial viability, which is in turn dependent on the ability to organise and execute proposed activities and, also, the relevance of these activities to the groups that benefit from them. Thus, sustainability includes three levels of approach: technical, political and financial. If one of them is weak it jeopardizes the performance of the others (PERÔNICO, 2003). Salamon (1997, p. 94) corroborates Ramos’ (2003) view regarding the sustainability of Third Sector organisations when he states that the, “Third Sector demands “social underpinning”, that is to say, favourable social, economic and political circumstances.” The author summarizes the question of Third Sector sustainability in four critically important challenges: 1) the challenge of legitimacy – being recognized by all sectors of society; 2) the challenge of efficiency – showing operational capacity and competence; 3) the challenge of sustainability – possessing funds that allow provision of services; and 4) the challenge of collaboration – establish strategic partnerships with the State and the business sector.

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It is worth pointing out that Salamon (1997) adds that the capacity of establishing partnerships is the most important variable for the sustainability of Third Sector organisations and, therefore, he emphasizes the relevance of articulation between organisations.

The United States Government, via its International Development Agency (USAID), and in partnership with a section of the NGO community in Eastern Europe and Eurasia, has established a measure of sustainability, which uses variables to measure the sustainability of organisations in civil society in these countries. USAID (2002) presents factors which concern organisations’ relationships to their environment, such as the legal environment, capacity for advocacy and public image, and factors that deal with the internal dynamics of institutions, such as organisational capacity, financial viability, provision of services and infrastructure. According to the directors of this project, the availability of variables relating to elements that can enhance or constraint the development of organisations within civil society, allows those who are responsible for implementing US Government aid programs to take better decisions and work out more effective strategies for development projects (USAID, 2002). It is interesting to note that the factors presented by USAID (2002) include internal and external questions and emphasise that sustainability is related to actions in both spheres.

Armani’s (2003) point view about the notion of sustainability is similar to the one held by USAID. He presents a concept that deals with internal questions of organisations by means of the term “management focus” and external questions under the heading of the term “systemic focus”.

The author proposes that sustainability should be understood by reference to these two complementary focuses: the systemic and the managerial. In the case of the systemic focus, attention is directed at political insertion, at the credibility and strengthening of an organisation’s social base, which are the factors which determine its ability to stimulate processes of lasting social change. In the case of the managerial focus, the emphasis is on the challenges of management and the states of effectiveness and efficiency in organisations. According to Armani (2003), the managerial focus is not sufficient on its own to produce the strength to acquire the political, social and economic sustainability of Third Sector institutions and the notion of sustainability should therefore be analysed from both the managerial and the systemic perspectives.

The author complements these points by stating that,

The systemic focus shows itself capable and willing to consider not only the individual development of organisations (predominant in the managerial focus) but to also take into account the challenges faced by the non-governmental sector as a whole, such as the legal, political, cultural and economic factors that restrict its potential and limits in any one historical and social context (ARMANI, 2003, p. 5).

In order to study Third Sector organisations’ capacity for sustainability, Armani (2003) suggests some parameters to serve as guiding principles. From the point of view of the managerial approach the following dimensions are considered: 1) financial sustainability; 2) democratic and efficient organisation of work and management; 3) human resource staff; 4) participative and efficient planning, monitoring and evaluation; and 5) the ability to produce and systematise information and knowledge. From the systemic approach where the managerial focus is integrated with the socio-political focus, the author prioritises the following dimensions: 1) a mission with a social foundation and that is legitimate and relevant; 2) autonomy and credibility (stakeholder accountability); 3) power to influence social processes and public policies (advocacy); and 4) the ability to establish partnerships and alliances. In light of these proposals, Armani’s concept of organizational sustainability was considered to be the one most suitable for use in this research because it is able to take on

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board the internal and external approaches to organisations, and, instead of using as dichotomous dimensions it accepts the fact that they are related and exercise a mutual influence on each other.

TABLE 1 - Authors and Dimensions of the Concept of Sustainability AUTHORS DIMENSIONS OF THE CONCPET

Hart, Milstein (2004) Financial, Social and Environmental Gibb, Adhikary (2000) Meeting important stakeholders expectations

Brinkerhohh, Goldsmith (1992) Strategic Management, Technology and Internal Structure

Fowler (2000) Resources and Impact Management of and the Ability to Adapt Ramos (2003) Tecnical, Polítical and Financial Expertise

Salamon (1997) Legitimacy, Efficiency, Financial Sustainability, Collaboration (Partnerships)

USAID (2002) Legal Environment, Organisational Capacity, Financial Viability, Capacity for advocacy, Provision of Services, Infrastructure

Armani (2003)

Managerial Focus: Financial Sustainablity, democratic and efficient organisation of work and management, trained human resource staff; planning system, participative and efficient planning, monitoring and evaluation the ability to produce and systematise information and knowledge. Systemic Focus: a mission with a social foundation and that is legitimate and relevant accountability, capacity of advocacy, the ability to set up partnerships.

Source: Produced by the authors of the article

2.5 Dimensions of Sustainability Armani (2003) proposes many parameters as a basis for the analysis of organizational sustainability in the Third Sector. The work of Fowler (1997) and USAID (2002) were used in the selection of the dimensions of the concept used in this research. From the managerial perspective, the dimensions selected where those related to an area that Fowler (1997) considers to be fundamental for the development of an organization in the Third Sector. They were: strategic management, human resources management, resource management and impact management. For the systemic focus the following dimensions were selected from USAID (2002): capacity for accountability, capacity for advocacy, public image management, management of partnerships and the legal system

• Managerial Focus i) Strategic Management: According to Bennett et al. (1996), the core of every organisation is constituted by its identity, values, beliefs, culture and motivation. In the case of the Third Sector this question is even more vital because these organisations are founded on and motivated by values. Thus, strategic management, that are responsible for transforming the organizational mission and vision into strategies (FOWLER, 1997), takes on special importance. ii) Human Resources Management: According to Fischer (1998, p.52), human resources management should be understood as “the group of policies, practices, attitudinal patterns, actions and techniques used by an organisation to influence and guide human behaviour at work”. The organisations in civil society are, in essence, are service providers, an area in which technical expertise, involvement and personal dedication are essential features. However, what may be considered as the differentiating factor in an organisation may also be its greatest limitation. Therefore, there should be constant professional development of its collaborators and this should also be in tune with the strategic objectives of the institution (FISCHER, 2004).

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iii) Resource Management: management of resources in a Third Sector organisation is based, to a great extent, on the attraction of resources, since this type of organisation does not have the aim of generating a financial surplus. Thus, other means of acquiring funds have to be found (FOWLER, 1997). The management of fund-raising activities is understood as the organisation’s ability to raise funds in sufficient quantity and in a continuous manner (FALCONER, 1999). Valarelli (2002) adds that this process will be more effective the wider the notion of resources held by the institution is and the more diversified and appropriate to its characteristics and external environment the fund-raising activities are. The author argues that resources should not only be understood in the financial sense but as material resources as well, including human resources. In addition, he points out that the concept of fund-raising means the range of activities employed for this purpose, such as sponsorship, donations, partnerships, provision of services and sale of products, among others, and is not restricted to obtaining funds by means of more permanent methods, as is often the case. iv) Impact Management: an organisation’s sustainability depends on, among other factors, on the full implementation of what is proposed in its mission statement. Management of the impacts caused by the institution is intended to manage the changes made to the environment by the activities that are intended to fulfil its mission. In spite of the cogency of this evaluation, this activity has not been one that institutions have put into practice very frequently (FOWLER, 1997), which is a reflection of the complexity of the impacts created by its activities, the inefficiency of monitoring techniques and other problems of management.

• Systemic Focus v) Capacity for Accountability: means “a person’s or organisation’s responsibility, in relation to another person for something or some type of act ”(MOSHER, 1968 quoted in CAMPOS, 1990, p. 33). The term has to do with the question of an organisation’s responsibility for its activities and their results and for it being transparent in the allocation of its financial, material and human resources (EDWARDS; HULME, 1995). In spite of its importance, the term “accountability” has no translation in Portuguese. According to Campos (1990), this is not only simply a question related to the lack of an equivalent term in Portuguese. According to this author, Brazilians have only a slight awareness of the meaning of the word. In Brazil, citizens are not accustomed to demand the attribution of responsibility, transparency and performance to public organisations and they, in turn, do not adopt this attitude. According to Campos (1990), it is only when citizens are organised, vigilant and conscious of their rights that there will the right conditions for accountability. This relationship shows that there is a reciprocal influence between the processes of accountability and participation and demands from citizens in relation to public issues. vi) Capacity for advocacy: According to Armani (2003), advocacy consists of activities whereby an institution plans, promotes and influences processes of social mobilization, organization and articulation concerning the framing of public policies. This capacity of an institution to influence government organs is strongly determined by the environment in which the organization operates, to the extent that it favours or obstructs the implementation of an organisation’s activities (USAID, 2002). Therefore, the capacity for advocacy is also considered an important skill for the survival of Third Sector organizations. vii) Public Image Management: in order for an organization to be sustainable, the government, the private sector and the society must have a positive image of it, including a wide understanding and appreciation of its role (USAID, 2002). Image is defined as the sum

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of beliefs, attitudes and impressions that a person or group of persons has about an object. These impressions may be true or false, or real or imaginary (BARICH; KOTLER, 1991). A person’s internal values and his or her experiences of an object influence, to a great extent, his or her impressions of any object. Thus, different groups may have a different image of the same object (TAVARES, 1998). viii) Management of Partnerships: the capacity to establish partnerships is a very important skill for an organization nowadays. According to Falconer (1999), the solution of public problems demands the combined efforts of actors from the three sectors of society. Partnerships can maximise the impact of an organisation’s activities but they need to be managed properly. The analysis of the management of partnerships by the organisations studied in this research raises some important issues, regarding the positive and negative aspects of such partnerships. Partnership is understood here to mean an agreed relationship between two or more organisations, which involves a division of roles, responsibilities and risks and the search for common aims (LEWIS, 2001). The author stresses that a partnership should be understood as a process influenced by external factors such as economic, political and cultural questions and that it should be subject to constant revision and discussion. ix) The Legal System: The legal system refers to the regulatory context in which an organisation operates. Institutions possess a series of rights and obligations in relation to their members and are subject to financial regulation in relation to the contributions that they receive. Thus, the whole of the judicial machinery which regulates the working of Third Sector organisations may either favour or jeopardise their survival (SALAMON; TOEPLER, 2000). 3 METHODOLOGY This research used a qualitative multi-case study strategy (YIN, 1994) and aimed to describe (VERGARA, 2000) and analyse management activities from the angle of organisational sustainability. The primary data were collected by means of semi-structured interviews (YIN, 1994). The choice of informants was made by interviewing the representatives of stakeholders with whom the organisations under examination had contact, for each of the dimensions of sustainability included in the research. This led to a total of 36 interviews as shown in Table 1. In order to maintain the anonymity of the interviewees, their names have not been mentioned in the presentation or analysis of data.

TABLE 1 – The Informants ORGANISATION INFORMANT

A B C TOTAL

Leader 2 3 1 6 Donator 2 2 2 6 Beneficiary 2 2 2 6 Employee 3 1 2 6 Volunteer 2 - - 2 Partner 2 2 2 6 Legal Specialist - - - 2 Formulator of Public Policies - - - 2 TOTAL 17 10 9 36

Source: Produced by the authors based on research data

A script was produced for each type of informant, which contained questions about the dimensions of sustainability which were relevant to their activities, as shown in Table 1. The

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interview scripts were drawn up on the basis of each dimension of sustainability discussed previously and on information from “NGO Sustainability Index Executive Summary (USAID, 2002).

In addition to the primary data, secondary data were also collected by means of document analysis. The collection of secondary data included finding relevant information in reports and internal regulations from among other documents that were made available by the managers of the organisations in the research.

TABLE 2 – Types of Informant and the Dimensions of Sustainabilty

TYPE OF INFORMANT

DIMENSIONS OF SUSTAINABILITY Leader Donator Benefic-

iary Employee Volun-teer

Specialist. in Third Sector

Legislation.

Specialist in Environmental

Legislation

Forumulator. of Public Policies

Partner

Strategic Management X X X X X X

Human Resources Management X X X

Resource Management X X

Impact Management X X Public Image Management X X X X X X X X X

Legal System X X X Capacity for Advocacy X X

Management of Partnerships X X

Capacity for Accountability X X X X X X X

Source: Produced by the authors of the article. The data obtained were dealt with qualitatively in that they were codified, examined and

analysed in order to comply with the original proposals of the research (QUIVY; CAMPENHOUDT, 1995).

3.1 The Selection of the Organisations studies in the Research It was decided to bring together institutions that operate in the same area, since they are subject to the same legislation and have similarities in their working methods which make them useful in view of the dimensions of the concept of sustainability adopted. For various reasons, it was also decided to study the institutions that work in the environmental area. According to Fonseca; Pinto (1996), the environmental NGOs occupy an important niche, as soon as there is a general perception in society that natural resources are being degraded as a result of the expansion of economic activities and from demographic pressure. For these authors, this niche is made even larger by the State’s inability to implement measures to control and regulate environmental degradation.

The increasing concern with environmental issues is reflected in their increased visibility in the media, in the passing of environmental legislation and in the frequency of conferences on this theme, such as the United Nations Conference on the Environment and Development (UNCED) – Eco-92 (FONSECA; PINTO, 1996).

Fonseca & Pinto (1996) state that environmental NGOs work in diverse areas. The great majority of the organizations that are legally established have only local influence and intermittent activities. There is a second group which, although it in continuous activity,

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depends on the hiring of professionals for specific projects. The last group is made up of organizations at a more advanced stage of professionalization; however, according to data from the National Registry of Environmental Organisations ii, less than half of these organisations have annual budgets of more than US$300,000. In addition to Brazilian organisations, there are subsidiaries of international organisations active in Brazil which invest a total of between eight and ten million dollars annually.

These authors believe that the environmental NGOs have a fundamental role in a country with so many natural resources but with a State whose activities in the conservation and preservation of this wealth are so limited. Among the strategies for action adopted by these organisations, Fonseca; Pinto (1996) mention: the production and dissemination of information, the execution of projects in the countryside which make the conservation of natural resources viable, and political activity in order to find mechanisms for influencing decision-making channels.

The State of Minas Gerais, in particular, has a tradition of participation in the discussions about environmental questions. The legislation from Minas Gerais in this area is considered to be advanced and the State Council for Environmental Policy (SCEP) [In Portuguese, COPAM - Conselho Estadual de Política Ambiental] was created before the National Council for Environmental Policy (NCEP) [In Portuguese, CONAMA - Conselho Nacional de Política Ambiental] thus demonstrating the importance given to the preservation of the environment by the State of Minas Gerais.

The institutions studied were selected from a list of environmental NGOs in the State of Minas Gerais found at the websiteiii of one of the oldest NGOs in the State, the Minas Gerais Association for the Defence of the Environment (MGADE) [In Portuguese, AMDA –Associação Mineira de Defesa do Ambiente]. The list contained 159 organisations, 33 of which were located in the city of Belo Horizonte and, of these, 27 had a telephone. All the 27 organisations were contacted by telephone but it was only possible to talk to 7 of them because the other telephone numbers were incorrect. Of the 7 institutions that it was possible to contact, it was found that only 4 had an institutional website. It was decided to focus the research on the 3 organisations with a website which also had a wider range of activities and were not restricted to one niche only.

The organisations were identified as Organisation A, Organisation B and Organisation C, so that there identity was protected and the authors could therefore have more freedom in analyzing the data collected

3.1.1 Organisation A

Organisation A was founded in 1978. It is a non-profit making association which is one of the oldest, and also one the most active, environmental bodies in Minas Gerais. It is led by a council of activists and its membership is open to anyone interested in the environmental cause. It fights for the improvement of public policies on the environment and for the creation of a more socially responsibility society regarding environmental issues.

In order to support itself, the institution relies on hundreds of regular donations from individuals and from 14 member organisations, as well as the funds coming from projects carried out in partnership with private companies and one public body. Its staff is made up of employees, service providers, work experience trainees and volunteers, totalling 15 persons.

3.1.2 Organisation B

Organisation B is a non-profit making foundation. It was created in 1989 and is considered a reference point in Minas Gerais in the collection and application of scientific knowledge for the conservation of biological diversity. Its mission is the conservation of Brazilian bio-diversity by means of technical-scientific activities. Its program of activities

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comprises six lines of action: conservation of biodiversity, protected areas, environmental planning, environmental education, training and the disclosure of public policies.

A large part of its funds are raised by projects in partnership with private companies and the government but it also receives regular donations from individuals. It has a shop where t-shirts, key chains and other objects with its logo are sold. At the time of the collection of data, the organisation was working on 15 projects and, counting paid employees and service providers for specific projects, had 25 people in its team of workers. 3.1.3 Organisation C

Organisation C is the Brazilian branch of an international environmental institution whose mission is the preservation of global biodiversity and raising the level of social consciousness about the possibility of living in harmony with nature. In Brazil, it was founded in 1987 and its first conservation project began in 1988. Organisation C has its headquarters in Belo Horizonte and has 4 offices located in different Brazilian states.

More than 95% of the funds that go to support Organisation C come from abroad, from foundations in the United States, bilateral agencies and other sources. It has a team of 52 employees in five offices and there are also 15 work experience trainees.

Organisation C has more than 100 partners all over Brazil, among which there are non-profit making organisations, private companies, governments and universities. In this way, it is able to increase its funds and extend its activities for the conservation of bio-diversity.

4 PRESENTATION AND ANALYSIS OF THE FINDINGS 4.1 The Dimensions of Sustainability 4.1.1 Strategic Management Organization A

The discussion about its strategies takes place at weekly meetings of the Consultative Council where activities are analysed and new measures proposed. This planning only takes place for specific, short-term activities. There is no integrated and articulated planning of organisational initiatives. At the time the data were being collected, Organisation A was going through a process of strategic planning. Innumerable other attempts had already been made. Even though no clear and defined strategy for the organization had been formally established, there were “points of concentration” on activities that sought to influence environmental public policies. However, these activities cannot be considered to be the focus of the organisation’s activities, since it has not yet finalized its process of strategic planning. One of the causes of the institution’s lack of a clear and formally established direction is that there is a certain divergence of views amongst the directors as regards the mission, approach and strategies that need to be implemented. This disagreement is reflected in the discontinuity in the processes of strategic planning and, consequently, in the lack of direction, a fact which makes it difficult to organise priorities and results in management being unplanned Many stakeholders who were interviewed drew attention to the institution’s lack of direction and this contributed to the organisation not being proactive in relation to the changes in its environment. The consequences of this lack of planning were found in various dimensions of the management process, such as Human Resources Management and Public Image Management among others. These dimensions will be presented and analysed in parts of this section below.

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Organization B Organisation B has a clearly defined mission that is understood by the stakeholders interviewed and it carries out its projects according to the resources at its disposal. One of its strategies is the production and divulgation of information and it therefore adopts the policy of encouraging the exchange of information between the researchers that it hires to carry out its projects. The management effort of Organisation B is directed at ensuring that its projects are carried out. Therefore, the organization of the institution is centred on projects. There are annual planning meetings in which all the employees participate. However, only employees involved in theoretical work actually give their opinion. This planning is not very rigid, due to the need for flexiblity in order to take advantage of the opportunity to obtain finance by means of funds, advertisements and other ways of raising financial resources. The method Organisation B has adopted for organising projects has consequences for other areas of management, such as Human Resources and the Capacity for Accountability among others that will be discussed below. Organisation C Organisation C obeys the directives that come from its headquarters and shares its mission, approach and global strategies. In Brazil, every year there are meetings to review strategic planning, in the course of which an evaluation of the internal and external environment is made, goals are reviewed and a long-term plan, consisting of 5 and 10-year strategies, is drawn up, influenced by the available resources and by the priorities of those who are financing the projects developed by the organisation. Some of the important partners take part in these meetings and, from 2004 onwards, all the employees have been included. Organisation C is an institution that carries out projects in collaboration with other organisations. It is responsible for financing, producing information and training its local partners and for creating the conditions for them to carry out the projects. It works in partnership and more than 100 institutions are presently executing projects funded and managed by it. It promotes regular meetings for the exchange of information, with the aim of disseminating and sharing of knowledge, which helps to strengthen its partners. Organisation C has a policy of making its project reports and research available to all by means of a data base which its partners have access to.

Every year, an external auditor is hired to review all the organisation’s procedures in order to organise and control its performance.

The way in which Organisation C operates, signing local partnerships to carry out its projects, affects the way in which its management procedures are organised in other areas, such as the Management of Partnerships and Resource Management and others which will be analysed below.

It is important to note that one indicator of its level of organisation and of the importance given to its management procedures are its own performance indicators. In Organisation A, where management is not a priority and management procedures are carried out in an unplanned manner, there are no performance indicators, not even a list of objectives. In Organisation B, which is completely dedicated to its area of activity, management is seen only as a supporting area and not as a strategic area for the organisation and there are only performance indicators for projects, required by those who are financing them. There are no indicators which appraise the organisation’s overall performance. Lastly, in Organisation C, even though it is also an institution that lives by the projects that it carries out, management is a strategic factor in the organisation’s activities. Organisation, planning and control of procedures permeate all its areas.

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4.1.2 Human Resources Management Organisation A There is no human resource management, nor any clearly defined functions, individual goals, job appraisal or any other practice related to managing people which is formally established within the organization. Organisation B In the case of both the service providers and the employees, there are no formally established human resources procedures. There are some ad hoc incentives to participate in events, courses and seminars as a form of training. There is an earnings hierarchy for researchers according to their educational level Organisation C The formally established human resource procedures in Organisation C are as follows: selection of employees is based on a series of established norms and procedures; training, including training of partners, is supported but only on demand; there is a type of socialisation where the areas and structure of the organisation are presented to the employees; remuneration is organised according to a structure of positions and salaries with specific vertical and horizontal lines of progression, even though there is no career plan. As regards job appraisal, there are individually established goals that match the overall goals of the organisation. There is also self-appraisal and appraisal by the employee’s supervisor which forms the basis for salary increases. The analysis of Human Resource Management in the organisation investigated repeats the ideas put forward by Fisher (2004) when he argues that it is not an area which receives much attention from Third Sector organisations. Even though Organisation C is more organised in these areas in comparison with the other two organisations, it does not have one person solely responsible for this area. It is worth pointing out that the level of organisation of HR in Organisations A, B, and C coincides with the importance they give to management as a whole. 4.1.3 Resource Management Organisation A There is no planning whatsoever for raising and managing funds, which come from three sources: personal donations, institutional donations and projects. There are clearly defined rules and norms for the three types of funds, which specify the amounts donated, the rights and responsibilities of the donators and the conditions in which the organisation carries out projects in partnership with other organisations. The relationship between Organisation A and its institutional donators is the one with the highest degree of interaction compared with it other supporters. In spite of the fact that institutional donations make up more than 70% of its income, they do not interfere in the attitude or approach taken by Organisation A in its activities and there has never been any conflict over this issue. The analysis of Organisation A’s Resource Management makes it clear how a non-profit making organisation’s fund raising procedures can influence other areas of the its management, as Bennet et al. (1996) and Fowler (1997) note. The organisation’s public image is negatively affected by its fund raising from institutional donators, despite the fact that its approach and attitudes regarding environmental issues have not suffered from any interference thanks to the establishment of formal regulations and procedures regarding financing.

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Organisation B In order to raise funds, Organisation B has sought out partners for its projects and sponsors for its products with a good environmental record and which have the same objectives as the organisation. Since it has a recognised name for good projects in the environmental area, it is also sought after by sponsors and financers as well as being on the mailing list of financial institutions from whom it receives information bulletins about lines of finance. Since it is an organisation whose resources are already committed to specific projects, Organisation B has great difficulty in maintaining its administrative and support structure for its technical staff. Organisation C Nearly 95% of the financing received by this organisation comes from its world headquarters where the majority of its funds are raised by the organisation at a global level. In Brazil, two relatively important fund-raising strategies are: 1) the personal relationships of those who make up the Council of the organisation and 2) being on financial institutions’ mailing lists due to its recognised competence in carrying out environmental projects. Organisation C survives from donations and financing so that all the resources it receives are already committed to specific projects. At the very beginning of each year, the organisation already identifies the projects that will be considered and how each one will be financed. As a co-executor of projects, Organisation C has two roles: financer and executor of projects and financer of other organisations which execute projects. When analysing the area of Financial Management of the three organisations, it is important to point out that the one which receives funds with no prior commitment to a specific objective is the one whose financial management is least satisfactory, ie, Organisation A. This shows that, in spite of the restrictions imposed on Organisations B and C, as a result of the prior commitment of their budgets, if there is no overall planning of such activities, then financial management will also be unsatisfactory. Another issue which deserves attention is the difficulty in obtaining funds for the maintenance of the organisation’s administrative structure. This issue has a direct effect on its capacity for sustainability, given that it is this area which provides the support for its area of activity. 4.1.4 Impact Management Organisation A Organisation A does not carry out a systematic appraisal of its activities, for the simple reason that it does not plan such activities. In the case of projects, there are performance indicators, such as the number of people taking part in lectures, but the organisation does not control or check this. For some projects there are attempts to establish indicators that really reveal changes in people’s behaviour, such as those relating to increases in the conservation of certain areas or the number of people attending lectures. It is important to point out that Organisation A’s stakeholders do not demand performance indicators for the impact of its activities and projects. Organisation B Organisation B has performance indicators for its projects because they are demanded by financial institutions, who release funds according to extent that these targets are reached. However, the production of these indicators is not a priority for the institution. It is worth highlighting the fact that many of the projects carried out by Organisation B, even those which benefit the interviewees, are concerned with analysing situations, and,

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therefore, serve as a basis for producing policies that can bring about changes. This may be one of the reasons that Organisation B does not prioritise production of these performance indicators. Organisation C Organisation C has both indicators for environmental impact, such as the percentage of reforested regions, and for the socio-economic impact of its projects, such as the number of persons who stop working at extractive activities and turn to other activities. These indicators are produced by the organisation’s team of workers, by researchers and partners, and their applicability and effectiveness are continually reviewed The area of Organisation A devoted to Impact Management reflects its concern for management in general. Evaluation and control are processes that are present in all its areas of management and contribute to the effectiveness of its activities. Trying to manage the impacts resulting from the organisation’s activities requires making a great effort to monitor, evaluate and control as well as the production of instruments that are really capable of registering changes in the situation that has been affected. This structure is difficult to maintain but the intention of an environmentalist institution is not simply to carry out campaigns for conservation of the environment but to succeed in really conserving it. Thus, an adequate system of impact management is necessary in order to check if the organisation is meeting its objectives or is just expending energy on ineffective activities. 4.1.5 Capacity for Accountability Organisation A Organisation A presents a retailed account of its financial situation and its activities to its Financial Council. It presents a not very detailed report to its institutional donators in meetings that are held every six months and it posts a report on its website for its individual donators. One of the managers believes that Organisation A should be more transparent and not limit its accountability to the presentation of lists of activities and assets sheets. However, there is no demand for this from stakeholders. Organisation B Organisation B presents reports of its finances and activities to its financers, according to established rules, to is Council and, also, to the Public Prosecutor. It therefore complies with the legislation concerning private foundations. There are no accounts of any type published at its website, even though it receives regular donations from individuals. In addition to the types of accountability described above, Organisation B also tries to be transparent to the beneficiaries of its projects by holding meetings at which its sources of financing, their intended use and the use made of resources are disclosed. In spite of this, it was found that neither Organisation B’s beneficiaries nor the other stakeholders know how the organisation works as a whole. Organisation C Organisation C’s accounts are directed at its financers and are drawn up according to established procedures. Some financers actually carry out audits on the projects they finance, even though Organisation C has a policy of hiring an external auditing company on an annual basis. This policy results from the fact that, in the country where its world headquarters are located, there are legal norms that demand such a procedure for non-profit making organisations

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In addition to the above-mentioned procedures, the organisation holds meetings once a year which bring together all its partners. At these meetings, reports are presented on the activities carried out in partnership with Organisation C as a way of exchanging experiences and making public what has been achieved. The issues raised in the analysis of these organisations Capacity for Accountability fits in with what Campos (1990) says when he states that Brazilian society is not very aware of the concept of accountability. While, on the one hand, society does not make many demands for transparency and responsibility on the part of organisations, it is also true that organisations do not show much concern for being held responsible for their activities by the various sectors of the public with which they interact. This weak link between society and its organisations does harm to both sides, since it jeopardises organisations’ credibility and does not put any pressure on them to become more accountable. 4.1.6 Capacity for Advocacy At present there are two formal channels of communication between Third Sector organisations and those who formulate public policy. These are, the State Council for Environmental Policy (SCEP) [in Portuguese, COPAM - Conselho Estadual de Política Ambiental] and the NGO Forum. COPAM is made up of representatives from the first, second and Third Sectors and is the space for discussion and formulation of environmental policies. The NGO Forum is made up of representatives from environmentalist NGOs from the State of Minas Gerais and of representatives form public organs connected to environmental issues. The issues to be raised at COPAM are discussed and formulated at the Forum. The interviewees pointed out that the members of the Forum are still learning how to use this channel of communication both for the reason that it is a recently established arena for discussion (the first meetings took place at the end of 2003) and because the Forum demands an attitude of cooperation and partnership that is very different from the place of combat that a large number of the participants initially thought it would be. Organisation A As was stated in the section on Organisation A’s Strategic Management, in spite of the fact that it has no clear and formally established strategy, there are “points of concentration” for influencing environmental public polices. Organisation A was responsible for the idea of the NGO Forum and it was established with the support of the present Secretary for the Environment and Sustainable Development for the State of Minas Gerais. From what was said by the interviewees, it could be seen that the more open and democratic attitude of the present State Secretary for the Environment has favoured the organisation’s capacity for advocacy, since it is linked to the person of the secretary. Organisation B Advocacy is not one of Organisation B’s priorities. The institution carries out environmental planning and, since this is one of the organisation’s main products, it conditions the choice of priority areas for the conservation of biodiversity in Minas Gerais and indicates where governments should invest in conservation projects and which areas should be made available for economic activities. Due to its recognised technical competence in the environmental area, Organisation B is often invited to take part in public assemblies and meetings to give its views on the issues under discussion.

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Organisation C Advocacy comes within the range of Organisation C’s activities and, by making the results of its research public, it gives technical support to the decisions taken by those who formulate public policy. Organisation C is frequently invited to take part in public assembliesiv on environmental issues and representatives from its Council have a good relationship with some of those responsible for formulating public policies on the environment. By means of these mechanisms it manages to make its opinion on important questions known. In the same way as Organisation B, Organisation C carries out political activities to influence the formulation of public policies but its initiatives are less effective. The three organisations studied engage in different, but equally important, activities, as regards their ability to influence environmental public policies. As was mentioned in the section on the theoretical references used in the research, activities related to advocacy have a great effect on the role of Third Sector Organisations, since they shape the context in which the institutions operate and either facilitate their activities or make them more difficult. 4.1.7 Public Image Management Organisation A Organisation A’s lack of strategic planning also has negative consequences for the institution’s public image. The testimony shows that the organization is personified by one of its leaders. Another consequence of the lack of strategic planning is the lack of planning of the organisation’s communication activities. According to the interviewees, the image of Organisation A for the general public, the private sector and the public sector is controversial; loved by some and hated by others. This fact is mainly due to the institution’s combative attitude in trying to stimulate strong social control, denouncing any violations of the law committed by the public and private sectors and demanding action from the appropriate organs. In this way, while it is admired and respected by one section of society it irritates another sector.

The image of Organisation A is even more controversial due to the fact the majority of its financing comes from private companies. As a result, other Third Sector organisations, companies and government organs believe that the institution has sold out and would never denounce the companies which donate to it.

This situation shows that measures need to be taken to ensure that the institution’s activities are not even more negatively affected. The development of its capacity for accountability to make its decision-making and allocation of funds more transparent can increase its credibility in society and improve its public image.

Organisation B Organisation B’s communication activities are mainly directed at one specific target public. According to the stakeholders who were interviewed, Organisation B is not known to the general public and should invest in advertising its activities more publicly. It is has won public recognition in its area of activity for its products, its competence in carrying out its activities and for the persons who work in it. Consequently, it is sought after as a partner and to carry out projects Organisation C According to the interviewees, Organisation C is not well known to the public in general, despite the fact that it won recognition and respect in its area of activity. This is due, in large part, to the small amount of effort put into communication. Since a large part the

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funding it receives comes from its world headquarters it did not make the publicising of its activities a priority. Recently, a communication team was set up and investment in this area was increased. Communication activities are focussed on publicising the cause that the organisation is fighting for, so that people become better informed and more aware of it, as well as seeking medium and long-term partners that can carry out the projects which it finances. The dissemination of this information is accomplished by means of newsletters, mailing lists, the organisations website, seminaries, congresses, publications and, more recently, television campaigns. This analysis of Public Image Management reinforces the importance of public recognition and credibility for the institution’s activities, since it has a positive influence on the formation of partnerships, the acquisition of resources and the attraction of human resources (USAID, 2002). 4.1.8 Partnership Management Organisation A

At the time of data collection, Organisation A had project partnerships with a public organ and two private companies. The institution seeks partnerships and is sought after by other institutions for the same reason. According to the partners who were interviewed, it is responsible, committed to environmental conservation and has well-qualified workers.

According to the stakeholders who were interviewed, being linked to a Third Sector organisation is very positive for the company’s image and this is the benefit of having a partnership with Organisation A. Its positive image in some sectors of society has a strong influence on its capacity to enter into partnerships.

Organisation B At the time of data collection, Organisation B had partnerships with institutions from the public sector, the private sector and the Third Sector. According to the interviewees, these partners seek partnerships with the organisation because of its good image, its technical capacity and the infrastructure it possesses for carrying out environmental projects. The following positive points of having a partnership with Organisation B were raised: the institution’s experience and technical capacity and its good relationships with other Third Sector organisations and academic centres. The negative point of having to include the organisation’s administrative fees in the financing of the projects was also emphasised. Organisation C As was mentioned above in the analysis of Organisation C’s Strategic Management, it is the policy of this institution to work in partnership with other organisations. Its list of partners makes up a network of more than 100 organisations. One of its leaders believes that, by means of activities carried out in partnership with private companies and the government, it is possible to increase dialogue and combined activities with other Third Sector organisations, widen its area of activity and thus multiply its activities. Partnerships do not just involve passing on sums of money. They also result in exchange of information. In the case of partnerships with other smaller NGOs, the relationship also includes management consultancy, among other resources that are important for the training of partners. Organisation C’s partners pointed out the following positive points of partnership: its capacity, organisation and competence in the environmental area and raised the same three points as negative aspects of entering into a partnership with it. They pointed out that small organisations have to be careful not to be swallowed up by BINGOs (Big International

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NGOs) such as Organisation C. Even in a partnership type of relationship, the weaker partner can disappear as far as beneficiaries are concerned. The importance of partnerships in maximising an institution’s results can be seen from this analysis of the Management of Partnerships by Organisations A, B and C. Many projects would not be able to achieve their objectives without the contribution made by partners. Consequently, this type of relationship deserves to be given some attention by institutions so that it can be managed properly and so that there may be positive results for all the parties involved. 4.1.9 The Legal System According to the specialists in Third Sector legislation who were interviewed and the leaders of the organisations studied, legislation in the area is deficient, not objective and concentrates on inspecting organisations instead of stimulating their development. This problem is also present in the laws that regulate donations made to institutions and the remuneration of their leaders. According to the interviewees, the financial incentives permitted by law are insufficient to stimulate donations and the prohibition on remuneration for leaders of some types of Third Sector organisations makes it even more difficult to carry out the professionalization and training of a staff of competent workers. As regards environmental legislation, the interviewees believe that there are many qualified professionals in the area and that the legislation in the State of Minas Gerais is one the most advanced bodies of law in the country. However, it is not effective because organisations do not comply with it. The Organisations and the Dimensions of Sustainability Due to the fact that Organisation A does not have an adequate Strategic Management policy, all its other areas are jeopardized. Without establishing a mission and strategy or a process of continuous appraisal of the organisation’s internal and external environment, it becomes difficult to determine priorities and to carry out effective action in real situations. Human Resources Management, Resource Management, Impact Management, Public Image Management and Management of Partnerships are left without orientation, objectives. This leaves management unplanned, with initiatives that are not organised into an integrated whole and with no overall mission for the whole organisation. In spite of having established strategic objectives, Organisation B only makes use of management as a secondary activity and not as a strategic activity which can maximise the organisation’s results. Since Organisation B organises its activities by project, it directs almost all its efforts toward that main area of activity and does not concern itself so much with the means to these objectives, such as Human Resources Management, Impact Management and Public Image Management, which could improve the organisation’s performance. Finally, Organisation C gives great importance to management activities and this can be seen by the concern shown for planning, organisation, coordination and control in all areas of the organisation. Even in the areas that are a means to the organisation’s main aim, such as Human Resources Management, Impact Management and Management of Partnerships, there are procedures that look after the management of these activities. Table 2 presents these points in a schematised manner.

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TABLE 3 – The Organisations and the Dimensions of Sustainability ORGANISATIONS DIMENSIONS OF

SUSTAINABILTY A B C

Strategic Management

No definition of mission, approach or strategy.

There is a definite approach but strategic management policies are not systematically applied

There are systematic and developed strategic management policies.

Human Resources Management

No organised system of HRM.

There are some policies for workers that are hired for specific projects

There are some organised and formal HRM policies.

Resource Management

The budget is not subject to prior commitment, the lack of strategic planning damages prejudices the planning and control of financial allocation.

The budget is already committed to projects. The donators’ priorities influence the organisation’s priorities.

The budjet is already committed to projects. The donators’ priorities influence the organisation’s priorities.

Impact Management There are no mechanisms for managing the impact of its activities.

Impact appraisal is only carried out for projects where it is a requirement.

There are varioius mechanisms for appraising the impact of its activities

Capacity for Accountability

Its accounts are published on its website and disclosed to its financers.

It sends its accounts to the Public Prosecuter’s Office and to its financers.

It sends its accounts to its financers.

Capacity for Advocacy

It engages in direct activities of advocacy.

It engages in indirect activities of advocacy.

It engages in indirect activities of advocacy.

Public Image Management

It has a controversial public image. Its lack of strategic planning prejdices its public image managment.

It has a positive public image. It has a positive public image.

Management of Partnerships

It carries out some projects in partnership. It could maximize its results with better management.

It carries out many projects in partnership.

It carries out many projects in partnership and so its activities are widespread and it manages to increases its resources.

Legal System The difficulty some companies found by some companies in hiring good managers does not encourage donations, partnerships and institutional transparency. There is also excessive emphasis on inspection.

Source: Produced by the authors on the basis of the research data.

5 CONCLUSIONS The first point that must be made is that, even though they are of great importance in their area of activity, the organisations studied in this research have mistakes in their management. Even though Strategic Management is responsible for identifying organisational objectives and strategies, it is not a developed area in Organisations A and B. The first organisation does not even have a definition of its mission, approach or strategy and this creates difficulties in many other areas such as Human Resources Management, Resource Management, Impact Management and Public Image Management. The second organisation has a more well-defined approach but does not have organised Strategic Management procedures, for example, the periodic review of strategic planning. In contrast to the others, Organisation C has strategic management with organised and developed policies. This concern for planning and organisation is reflected in all its other areas where management activities provide support for all the other activities carried out.

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Human Resources Management is an area that receives less attention in the organisations studied. The level of development of its procedures and policies coincides with the attention given to management as a whole in these institutions. Organisation A has no organised HR system while Organisation B has some procedures directed at the workers hired for the institution’s projects. Even though there is no one in charge of the HR area in Organisation C, the one which shows most concern for management systems, it does have some organised and formal policies for Human Resources Management.

The management of resources is a complex area for organisations in the Third Sector. Since they survive on the basis of donations, partnerships and sponsorship of products and projects, it is often the case that the priorities of those who make donations influence their priorities and so affect their strategic planning. This situation can be found in Organisations B and C, which, although they have an established mission, organize their strategies of action according to the availability of resources. Organisation A, on the other hand, does not have a previously committed budget. In principle this can be considered as a positive factor, however, due to the lack of adequate Strategic Management, the Management of Resources also fails to take place correctly because there is no planning and control of the allocation of resources.

Since it requires a great deal of effort, qualified human resources and accurate methods of appraisal, Organisation A is incapable of managing the impact of its activities and Organisation B is only carries out this appraisal when the financer of a project demands it. However, Organisation C, which uses more precise management methods, has various techniques for appraising the impact of its activities and monitoring the effectiveness of its projects. The Impact Management of the organisations studied in this research reflects their capacity to monitor the effectiveness of their activities and it can therefore be concluded that Organisations A and B may be expending great effort in their activities without achieving the results aimed at. The organisations studied do not have a very developed Capacity for Accountability. One of the main reasons for this is the lack of mobilisation and articulation of both its stakeholders and society as a whole. Society is not in the habit of demanding transparency from organisations and they also do not show much concern in accounting for their actions, unless they are obliged to. This is a delicate issue that can affect their public image and reduce their legitimacy and credibility in the eyes of society. The institutions studied in this research have different levels of activity for advocacy. Organisations B and C have indirect procedures by means of which they attempt to influence public policies by providing information and Organisation A uses more direct methods by articulating politically with other Third Sector organisations and private companies. Even though they are different in nature, the activities of Organisations A, B and C are very important for shaping decision-making in the area of the environment and exerting pressure for conservation of the environment.

Public Image Management is an important area but is not always properly managed by the institutions studied. As a result of the way in which Organisation A raises funds and its lack of strategic planning, its public image has been affected in a negative manner, and this has reduced its credibility in the eyes of society. Despite the fact that Organisations B and C do not prioritise investment in communication they have a positive public image and, because of this, they attract good partners and donators.

Management of Partnerships is an important area for the organisations in this research, since it is able to ensure the viability of activities which would otherwise not be possible for the individual organisations to carry out alone. Nevertheless, Organisation A does not take proper advantage of its partnerships by accepting that better management would maximise its results. Organisations B and C carry out many projects in partnership with other

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organisations, so that their activities are widespread and they manage to increases their resources.

The Legal System is the last area to be considered in this research and it can facilitate the organisation’s activities or make them more difficult to carry out. It was seen that the legislation as it stands makes it difficult to hire good managers since some Third Sector organisations are forbidden to pay them any money. There are insufficient incentives to make donations, engage in partnerships or be transparent. The legislation also gives too much emphasis to inspection, which has a negative effect on attracting human, material and financial resources and does nothing to stimulate transparency and accountability in the exercise of activities/

Depending on the organisation’s strategic objectives, it is understandable that one area will receive more attention than the others in order to concentrate effort. In the case of Organisation A, its “point of concentration” is on its Capacity for Advocacy while Organisation C links its objectives to its Management of Partnerships. In this way, an organisation’s management activities are shaped by its organisational mission and, it is for this reason, also, that the establishment of constant reappraisal of the organisations mission is so important for proper management and for maintaining sustainability.

It is important to reaffirm that the analysis carried out referred to the three organisations studied and cannot be generalised to such a heterogeneous sector as the Third Sector. Due to this limitation, it is suggested that more research should be carried out in other Third Sector organisations, which operate in different areas and which have a different profile from the ones studied here.

On the basis of the conclusions presented here, it is hoped that this study has helped to make it clear that the concept of sustainability looks to an organisation’s future, to the actions that it should taken today in order to guarantee its performance in the present and the future. In order for this to happen, in addition to managing its different areas properly, it is necessary for an institution to be capable of adapting and altering its policies and practices in line with the needs of its social environment. Sustainability should therefore be treated as a process, a continuous search for resources, information and mobilisation in order to ensure the strengthening and development of the organisation.

6 BIBLIOGRAPHY ARMANI, D. O desenvolvimento institucional como condição de sustentabilidade das ONGs no Brasil. 2003, 10 p. Disponível em < www.aids.gov.br/final/biblioteca/sustenta/desenvol.htm> acesso em: 20 jul. 2004. BARICH, H, KOTLER, P. A framework for marketing image management. Sloan Management Review. vol. 32, n.2, winter/1991, p. 94-104. BENNETT, J. et al. NGO Funding Strategies: an introduction for Southern and Eastern NGOs. Oxford: INTRAC Publications, 1996. 90 p. BRINKERHOHH, D. W., GOLDSMITH, A A, Promoting the sustainability of development institutions: a framework for strategy. World Development, vol.20, n.3, p. 369-383, 1992. CAMPOS, A. M. Accountability: quando poderemos traduzi-la para o português? Revista de Administração Pública. v. 24, n. 2, fev/abr. 1990, p. 30-50. COELHO, S. C. T. Terceiro Setor: um estudo comparado entre Brasil e Estados Unidos. 2 ed. São Paulo: Editora SENAC, 2002. 223 p. COPESUL, 2001. Disponível em <www.copesul.com.br/site/investidores/2001/rel_adm/Sustent_Empresarial.pdf>. Acesso em: 11 jan. 2005. EDWARDS, M, HULME, D. NGO Performance and Accountability: Introduction and Overview In: __________________ (orgs.). Non-Governamental Organizations-

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