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Fu Hong Society: Governance with Strong Operational Oversight  
Product Ref: 13/540C Company: Fu Hong Society

Product Type: Case Industry: Public Sector & Non-Profit

Related Product(s): Teaching Note
Authors: Sammy Fung   Herman Chan   W. H. Lo
In comparison to those of other nongovernmental organizations (:NGOs;) of similar size in Hong Kong, the organizational chart of Fu Hong Society (:FHS;) shows a comparatively large number of corporate governance committees or subcommittees under its governing board, the council. The 21 committees and subcommittees mobilize over 100 FHS members and stakeholders to play roles of functional oversight for almost all operational aspects of FHS, including such diverse areas as services monitoring, complaint appeals, finance functions, human resources, building maintenance, marketing, public relations, IT functions, research, and exchange projects with other NGOs. As FHS is an NGO that receives over 84% of its expenditures from the Hong Kong government (:HKG;) for rendering subvented services to serve people with intellectual disabilities, it is natural that its council performs its governance roles in a manner that is consistent with the HKG・s advocated code of practices for corporate governance in NGOs. This code of practices calls for NGO boards and directors to focus on assurance of legal and regulatory compliance, sound financial management, performance monitoring, and operational transparency. The formation of a large number of governance committees and the recruitment and appointment of related member and stakeholder resources are largely the result of a conscious decision of the FHS council to exercise strong monitoring and operational oversight of FHS.

Why did FHS・s council adopt this approach? How does it monitor FHS・s operations and service execution?
Functional Area : Strategy & General Management

Learning Objective: 1.Compare and contrast the roles and responsibilities of CEOs in the nonprofit sector and those of their counterparts in the for-profit sector.
2.Discuss how NGO boards and their CEOs should manage their relationship.
3.Critically appraise the governance approach of FHS・s board.
4.How should an NGO board・s effectiveness be measured?
Length: 23 pages Country: Hong Kong SAR

Pub. Year: 2013 Level of Difficulty: 1
This product type is available in the following language(s):      English
Related Information: N/A
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