Plugging-in Inclusivity, Resilience, and Sustainability: Why Private Sector Approaches by Nonprofits is not Such a Bad Thing During Uncertain Times

• In Event: Organizational resilience

Abstract

How may nonprofit organizations (NPOs) achieve their development goal of serving the marginalized, while ensuring their own organization’s sustainability and the resilience of a development productive system in their area of service? What assessment tools may be used?
This paper presents an alternative model to New Public Management (NPM) in a food security context, where nonprofit organizations seek to address food security among the vulnerable sector during a time of uncertainty. The model is offered as a sustainability approach for managing NPOs, yet gearing towards resilience of a food system in general.
NPM emphasizes business-like approaches in public service organizations (PSOs), which includes among others giving senior managers freedom to be fully responsible for executed activities, such as formulating:performance measurement where definition of goals, targets and indicators of performance are preferably quantitatively formulated; output control linking resource allocation to desirable results; and strictness and prudence in resource use -- where budgetary discipline aims to increase productivity and efficiency (Hood, 1991).
The findings of a previous study conducted by the author in 2021 were reviewed in this paper. The study used multiple mixed qualitative and quantitative data through rapid appraisal (Vondal 2010). Data collection of that study included reviews of secondary sources; a mini- survey; focus group discussions (FGDs); and key informant interviews (KIIs) among 15 private sector organizations with CSRs related to food security and nutrition implemented mostly by nonprofit organizations before and during the pandemic. The interviewees included executive officers and managers of the of the respective CSR programs.
This paper proposes the adoption of Inclusive Business Frameworks (IBFs) by nonprofits, herein considered PSOs. IBF approximates the adoption of NPM principles but argues that adoption of private sector approaches may not necessarily be a bad thing – in fact this may hold the key to sustainability and resilience in some types of NPOs. The G20 in 2015 defined the Inclusive Business Framework as one that “defines inclusive business, sets out recommendations to enable inclusive business, and proposes a way forward for governments, the private sector, and other stakeholders.” IBF has four features: engaging the base of the economic pyramid (BoP) intentionally, pursuing financial viability, scaling the business model, and measuring and managing impact.
Measuring impact in the business context may differ in the nonprofit sector context; the latter has multiple bottom-lines, with often myriad goals. The paper theorizes that inclusivity may be demonstrated by aiming to include those in the bottom of the pyramid (BoP) in interlocked production activities. This inclusive approach may also help strengthen the resilience of overall productive systems, especially during times of crises and uncertainty. Achieving viability and scalability in the IBF may be achieved through the value chain analysis (Porter, 1985). VCA ensures coordination and links among the various chains of production or service delivery units in PSOs.
The use of IBF in this paper is envisioned to contribute to sustainability and resilience of both the NPO and the productive system where the NPO functions, i.e., resilience of a food system towards food security goals.

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Author

• Maria Faina Lucero Diola, University of the Philippines