Oxfam Crisis and the Need to Change NGO Policies and Procedures in the UK

Introduction

The global humanitarian aid system involves various non-governmental organisations (NGOs) that strive to help devastated areas and underserved populations. When a disaster occurs, these organisations initiate missions, bringing food and shelter to local people based on the funding from governments, corporations and other stakeholders. However, the humanitarian sector has long been surrounded by silence regarding the misconduct of its employees (Green 2015).

No tolerance can be shown to organisations that admit inappropriate behaviours of their workers. The eradication and prevention of misconduct is a global problem and an absolute duty of NGOs and international NGOs (INGOs). In this connection, it is of paramount importance to study the case of Oxfam Great Britain (GB) crisis in order to identify the key premises of the incident and elaborate on the ways to eliminate such situations in the future.

Oxfam, a British NGO, aims to address the problems of poverty and injustice around the globe. Only in the United Kingdom (UK), 6,000 people work for Oxfam, while this is one of the major non-profit conglomerates with offices in more than 90 countries. Recently, Oxfam GB was banned on working in Haiti due to the incident that occurred between its workers and the local population. The reason for this was the scandal that broke out in February, 2018, when it became clear that a number of employees of the organisation, including the leader of the local mission, attended sex parties involving prostitutes. It turned out that women were often forced to serve the employees of the organisation by threats. The questions are how this situation occurred, what the underlying issues were, and how to prevent such incidents in the future operation of NGOs.

The following research questions will be targeted:

• RQ1. What are the underlying premises and reasons for Oxfam crisis that led to inappropriate behaviours of its aid workers in Haiti, which should be addressed?
• RQ2. What is the role of public opinion in NGOs’ leadership improvement?
• RQ3. How can government impact policies and procedures of NGOs to resolve the case of Oxfam crisis and prevent further incidents?

The main hypothesis is formulated as follows: A lack of transparency, reporting, credibility and ethics in INGOs creates threat of misconduct among their employees, which can be eliminated via changing procedures and policies in the UK.

The methodology of the dissertation is based on the case study as a key way to collect, analyse and interpret relevant data. This research method is selected due to the need to explore the social behaviours of Oxfam employees and NGOs at a broader scale in order to interpret them in an in-depth manner. The analysis of data within its context as well as the opportunity to better comprehend the complexities associated with transparency and credibility of NGOs are the two advantages of the case study method, which are pertinent to this dissertation (Baškarada 2014). The literature review is used as a method to collect evidence from academic sources and official documents and data analysis was conducted based on categorisation and sorting.

The case of Oxfam crisis necessitates the three paramount research objectives to be explored in this dissertation. First of all, it should be emphasised that misconduct has long been unreported by workers and their victims, while some of the latter were underage. In terms of the modern world that strives to combat violence and exploitation, the alleged behaviour of Oxfam employees towards one of the most vulnerable populations is unpardonable (Inquiry report: summary findings and conclusions: Oxfam 2019). At the same time, the organisation kept silence about the events that happened in Haiti, allowing the culpable persons to leave it and work for other charities.

Public opinion is another construct that can be utilised to understand the potential improvements that can be done in the area of NGOs based on the examples from Oxfam crisis. The unethical behaviours of its aid workers made a long-lasting impact on the society by reducing the trust of people in such organisations in general. It is evident that public opinion should be restored to revive the effectiveness and the expected positive impact of charities (Keating Crack & Thrandardottir 2018). One of the ways to achieve it is to introduce regulations and public oversight, yet there is a risk of the increase in bureaucratic requirements and resource deficit. Therefore, this dissertation will investigate the links between NGOs and public opinion in order to reveal the ways to impact NGOs’ leadership.

The third focus of the research paper will be devoted to understanding the role of government in regulating the actions of NGOs. In particular, it is essential to analyse how procedures and policies of charities are currently regulated by the states and how they can be adjusted to ensure that the incidents like Oxfam crisis would not occur again (Khan 2018). Organisational statements, government documents, and other available reports will be examined in terms of the social responsibility concept as the strategy to benefit the world, balancing the social welfare and economic growth. The government accountability should be clarified, and the systems needed to be comprehended to identify the ways to adjust them.

The key limitation that should be specified with regard to the dissertation is related to the selected method of research. Some extent of subjectivity is intrinsic to case studies due to the fact that data selection bias may occur. In order to minimise this bias, the researcher tried to present data from various sources and include different points of view. In addition, the generalisability of the findings is another limitation since the paper aims to precisely focus on Oxfam GB crisis. Therefore, the conclusions made as a result of this dissertation should be interpreted with caution with regard to other misconduct cases related to employees of NGOs.

The dissertation is structured in a classical manner, including the following chapters: the introduction, literature review, theoretical framework, empirical analysis and conclusions. The introduction sets the scope of the academic work, including research questions, the contextual background, methodology and limitations. The literature review presents a broad analytical framework in order to identify the key tendencies and needs existing in the field of INGOs. In terms of the theoretical framework, the researcher designs the foundation for further empirical analysis. The subsequent empirical analysis chapter focuses on the comprehensive examination of Oxfam case and verification of the proposition. Ultimately, the conclusion highlights the key findings, practical implementation and other insights.

Literature Review: Analytical Framework

International relations (IR) are closely linked to the processes occurring within the countries, which creates the inextricable link that unites the international civil society. Modern IR are characterised by a growing increase in the number of international non-governmental organisations (INGOs) as well as the strengthening of their role and the determination of their place on the global arena. Such an expansion of INGOs occurs mainly due to the emergence of new worldwide problems, the diversity of relations that have arisen between nations, democratic processes in the sphere of internal and transnational relations of states, the manifestation of which is the desire to make society more open (Altay & Labonte 2014; Deloffre 2016).

Likewise any other participants of international relations, these organisations are expected to adhere to the basic principles of international law enshrined in the United Nations (UN) Charter. In particular, they should refrain from using or promoting the practice of violent methods. Non-state entities resorting to force, even if their actions are legitimate under international law and performing liberation movements or warring or insurgent parties, especially terrorist and militant groups, are not recognised by INGOs.

According to the resolution of the UN General Assembly of May 23, 1968 No. 1296, INGO is any international organisation that is not established on the basis of an intergovernmental agreement and not aiming at making a profit (ECOSOC Resolution 1296 (XLIV) 1968). This resolution elaborated by the Economic and Social Council (ECOSOC) specifies the key features of INGOs, which are considered to be: the implementation of activities in at least two states, the recognition by at least one state or the presence of consultative status with international intergovernmental organisations and receiving funding from more than one country.

The place of NGOs on local and international arenas is to encourage other organisations and promote accountability towards people, resources, and governments. Redeker and Martens (2018) specify that a program approach, which is now included in the charitable practice of corporate social responsibility, allows companies to concentrate the allocated resources on solving relatively complex problems concerning a significant number of people.

Such an approach assumes the presence of departments or specially appointed employees who support charitable programs in the structure of enterprises and, thus, become an additional factor of control over the effective targeted spending of funds, ensuring the transparency of charitable programs being implemented (Redeker & Martens 2018). However, such work requires appropriate qualifications and professional competencies and meaningful social investments. In this connection, specialists working in relevant government agencies and charitable organisations are expected to have substantial knowledge and skills.

The performance of NGOs is extensively monitored and controlled by various forms of international bodies. There are global governance organisations (GGOs) that encourage NGOs to participate in the affairs of the most underserved populations and devastated areas (Oxfam annual report 2017-2018 2018). Among the key entities, one may enumerate the International Monetary Fund (IMF), the United Nations (UN) and the World Bank that conduct governance over the non-profit organisations.

With the emerging global ties across the countries, the Transatlantic Trade and Investment Partnership (TTIP) also set their requirements on aid provision in the mentioned region. In their turn, Oxfam engages in the collaboration with global entities to attract their attention to the issues that need an immediate response, such as natural disasters, poverty, et cetera.

The Department for International Development (DFID) of the UK provides the aid in various areas, involving education, food provision, disaster recovery help and so on. As reported by the library of Congress, approximately 40 percent of DFID’s performance and funding is associated with NGOs (Regulation of foreign aid: United Kingdom 2015).

The need to work with such donors as the World Bank or the UN is caused by the fact that governments cannot fully and deeply research social problems and have limited budgets. Most importantly, the UK government understands that some assistance may not reach the target audience, which also makes it to seek partnerships with the INGOs that have experience in working in the local environment (Regulation of foreign aid: United Kingdom 2015). In other words, it becomes evident that governments and INGOs depend on each other and their collaboration and accountability before each other is the most effective way to combat social inequalities.

INGOs Positioning Within the International Law and Their Responsibilities

The core point in the international regulation of the status of INGOs is constituent, or constitutive, organisation of actions, which lay the legal basis for the status of its employees (Apte, Gonçalves & Yoho 2016; Barnett & Walker 2015).

As a rule, the foundations laid down in the constituent documents of an international organisation are further developed to meet the changing global requirements. However, practice shows that the normative consolidation of the safety standards of INGOs personnel is not enough for their actual compliance and implementation (Crack 2018). Therefore, it is becoming more and more obvious that there is a need to develop practical recommendations for the redesign of policies and implementation of these provisions. The work on the special agreements with a country, headquarters or a state hosting a peacekeeping or a humanitarian operation is essential.

In particular, the agreements between INGOs and the countries they operate in, for example, the contracts concluded between the UN Secretary-General with the United States (US) and Switzerland, are such a group of international legal acts designed to determine a status of employees of international organisations (Hielscher et al. 2017). It should be stated that all of them contain separate articles on staff groups. The establishment of inter-institutional relations and coordination of the activities of various organisations, either participating in the same humanitarian or peacekeeping body or carrying out various missions, but within the same territory, contributes to an increase in the level of security and, consequently, the efficiency of their functions.

Despite a seemingly crystal clear structure of the relationships between NGOs and governments, there is the place for complexities. One may note, for instance, the Aid-Trade -National Security nexus that exist in the UK context and Conservative Government. The latter is expected to act not only to assist other populations but also consider the economic interest, which can be achieved in terms of the international trade development.

As assumed by Carter (2016) based on the research by the Overseas Development Institute (ODI), the UK has great potential to eradicate global poverty, while applying cost-effective methods and avoiding aid-financed export sales. The key idea is to launch new markets in developing countries and accelerate their growth, thus enhancing returns in a long-term period (Carter 2016). At the same time, it is suggested that the creation of worldwide disaster insurance schemes can also contribute to resolving the Aid-Trade -National Security nexus.

INGOs and Their Relations with State and Non-State Actors

One of the central functions of INGOs is to establish links between governmental and non-state segments. In this case, they act as non-political entities that are capable of achieving the mentioned purpose, both at the national and international level. This possibility is based on increasing the trust of the identified parties to each other (Hielscher et al. 2017). The most significant factor promoting the establishment of trust between governments and non-governmental organisations is that many INGOs pass the national registration of their constitutive acts, which set out their goals and objectives.

Hielscher et al. (2017) stress that the influence of INGOs on the activities of intergovernmental organisations and their role in international relations manifest in various forms. For instance, they regularly send general and private information to states and intergovernmental organisations and their bodies related to their field of activity. They also disseminate information received from intergovernmental organisations. A particularly significant role is played by INGOs in the dissemination of knowledge about human rights. Most importantly, these organisations strive to ensure the transparency of their statements, employees and actions.

Such an unprecedented measure of INGOs is projected to demonstrate their commitment to the accountability of their activities. This intention is based on a number of individual, national, and industry initiatives undertaken by international NGOs in order to establish uniform standards of responsibility and develop corporate ethical norms. Despite the fact that the activities of NGOs are governed by the legal regulations of the countries where they operate, the Charter of Responsibility of International Non-Governmental Organisations was designed in order to develop international inter-sectoral standards in the non-governmental sector.

The mentioned initiative prioritises the ongoing work on the development of common principles and policies to ensure excellency, transparency, and accountability (International Non-Governmental Organisations Accountability Charter 2005). The Charter of Accountability sets out the fundamental values ​​and principles of the work of international NGOs, which include, among other things, management practices and their effectiveness; fundraising and working with various stakeholders.

A special place in the Charter is given to respect for common principles that are protected by the Universal Declaration of Human Rights. In particular, independence, a responsible attitude towards upholding rights, the effectiveness of programs, the absence of discrimination, openness and the ethical foundations of fundraising can be enumerated (Keating & Thrandardottir 2017). It determines the general “strategy, consistent with the organisational mission, ensure that resources are used efficiently and appropriately, that performance is measured, that financial integrity is assured and that public trust is maintained” (International Non-Governmental Organisations Accountability Charter 2005, para. 2).

In other words, the Charter of Accountability testifies to the fact that international NGOs seek to maintain a commitment to transparency and accountability of their activities, while also highly valuing the trust and support of the public.

The evidence shows that in the relations between the state and NGOs, there are several problematic areas. Among others, there are claims by NGOs for the role of global actors in the system of international relations that can compete with modern states and attempts by leaders of such administrations to become significant political figures, competing with officials and institutions of political power. The main trend that determines the direction of the interaction between the state and international non-governmental organisations is the implementation of state regulation of the development of NGOs. A lack of effectiveness of feedback from the national governments and large representatives of non-governmental organisations along with the poor effectiveness of institutions regulating the communication between these sides can be mentioned.

Criticism of INGOS

The activities of humanitarian organisations give rise to certain problems and sometimes provoke criticism from both states and other international and non-governmental organisations. It must be admitted that sometimes criticism seems to be reasonable: it is rather difficult for humanitarian program managers to control where aid actually goes: to needy ones, corrupt officials, or militants. As a result, humanitarian aid often not only does not contribute to a peaceful settlement, but, on the contrary, delays military conflicts, by no means always reaching the addressees. For instance, in the camps, refugees set up by humanitarian INGOs are sheltered by wounded insurgents, while the armed groups use these camps as training bases or for recruiting new soldiers, including women and children.

The massive influx of large international NGOs leads to the actual destruction of local humanitarian administrations, primarily in the health sector, which is due to the diversion of qualified personnel from the local organisations to global structures, which offer local specialists much higher wages and the possibility of emigration to developed countries. In addition, the presence and vigorous activity of international humanitarian non-governmental organisations, especially in the Third World countries, contributes to the creation of a parasitic economy and makes the population dependent on humanitarian supplies.

The activities of humanitarian organisations in the field of human rights, culture and education, which officially declare charity to be the goal of their activities, may have a social and political orientation, can be rather controversial. The field of education and human rights is a priority for large international NGOs with headquarters in the US, Germany, Great Britain and other Western countries. For example, MacArthur Foundation, Ford Foundation, Carnegie Foundation, Oxfam, Amnesty International and others can be listed among them.

In many cases, these NGOs are, in fact, act as the centres of the spread of Western culture, way of thinking and life. On the one hand, recognising certain usefulness of such educational activities, Schwenger, Straub and Borzillo (2014) note that it is through participation in these programs that specialists from various countries become supporters of Western-style democracy. It also leads to the shift in the focus on those areas of activity and problems that are most relevant not for their own cultures yet for developed countries, from where these structures originate and are funded.

On the other hand, the importance of humanitarian NGOs in alleviating the suffering of millions of people cannot be overestimated. Every day, these organisations save thousands of lives and help the destitute throughout the world. In recent years, they played a major role in providing humanitarian assistance to people affected by the military conflicts in Somalia, Libya, and Rwanda and also from numerous natural disasters, such as the 2018 Indonesia earthquake and tsunami or 2010 Haiti earthquake (Manilla Arroyo 2014).

On the world stage, international non-governmental organisations actively cooperate with organisations of the UN system and other transnational structures. Fundamentally, the idea of ​​providing independent humanitarian assistance became one of the main priorities of international politics at the end of the 20th and the beginning of the 21st centuries (Ong 2015; Kaloudis 2017). It is largely due to the efforts of the Doctors without Borders, the International Committee of the Red Cross, Care International, et cetera, which are the most influential structures in the INGO environment.

Performance of INGOS and Political Issues

In their official statements, global NGO structures take a strongly apolitical position, claiming that their role is to promote the protection of human and civil rights. Formally, they criticise violations of human rights regardless of the views or political affiliation of those who bear any responsibility, but in reality, their activities often have a clear political connotation. This thesis is vividly illustrated by the characteristics of the activities of the largest international human rights NGO Human Rights Watch (Powers 2014; Thrall, Stecula & Sweet 2014).

The statistics of the reports of this transnational structure show a clear bias that it feeds, or fed before the regime change, to some countries, such as Yugoslavia, Russia, China, Iraq and a number of other states that have acted or are acting as opponents of the US and its allies on the international arena.

In addition to accusations of political commitment of its activities, Human Rights Watch is often criticised for interfering in the internal affairs of other states, including with the aim of supporting various oppositionists and rebels. During the events in Kazakh Zhanaozen, for example, violent treatment of the local population was noted (Human Rights Watch concerns and recommendations on Kazakhstan 2016). Large non-governmental organisations perform at the direction of states and performing functions, often internationally, which, as a rule, happens when states seek to emphasise transparency and the democratic nature of the sphere of activity that is given under the management of NGOs.

A significant number of non-governmental actors can presumably be regarded as an integral part of modern diplomacy, if perceiving diplomacy as the communication system of the international community (Allan & Hadden 2017; Kuyper & Bäckstrand 2016). To a certain extent, it can be claimed that international NGOs, as important social institutions that establish and develop intensive contacts within the framework of multilateral diplomacy, fill in the gaps that exist in the modern context of overly bureaucratic international politics.

The multiplicity of international actors, the digital revolution and the openness of the world lead to a gradual erasure of the lines between domestic and foreign policy. In many areas of international cooperation, NGOs occupy niches, where states are gradually losing their functions and / or authority (Lewis 2018a). The exceptional complexity of multilateral negotiations about climate change, genetic engineering, environmental protection, interreligious dialogue, et cetera require the involvement of experts, scientists as well as the representatives of business and culture in the negotiation process. In many respects, INGOs that are actively involved in informal diplomacy provide personnel for the mentioned issues.

There is a development of what is called track two diplomacy (Lewis 2018a; Van De Velde 2018). It is about entering into the international arena specialists capable of establishing contacts, developing cooperation, conducting informal negotiations and mediating conflict resolution. NGOs should be considered as an essential component of the power that can positively change the humanitarian sector.

Today, it becomes possible to discuss the diplomacy of a new style. Examples include campaigns complementing negotiations on the Anti-Personnel Mine Ban Convention or the creation of an International Criminal Court. It were civil society organisations that initiated the signing of the Arms Trade Act, while the recognition of the role of NGOs in international politics is also evidenced by an increasing number of organisations receiving consultative status with the UN: as of 2011, they numbered more than 3.5 thousand (Tortajada 2016).

In this regard, the following question arises: can NGOs in the future do without a serious, detailed legal framework for their activities on the international arena? Apparently, there is a lot of work in this area. Moreover, it is necessary to work on the development of these rules simultaneously with the modernisation of existing diplomatic norms since network diplomacy is becoming increasingly in demand, when both state and non-governmental actors act together.

INGOs Accountability Issues and Decentralization

The disunity of NGOs identifies the dependence of the sustainable development of non-governmental administrations on the success of direct and indirect lobbying of its interests in the legislative and executive authorities at all levels. The interests of a separate organisation are often priority over those of the field of activity as a whole (Van De Velde 2018). The orientation of the authorities mainly to individual non-governmental organisations, yet not to the entire national system of the formation of a civil society is another problem that requires attention.

As for grassroots in the Global South, many INGOs are willing to relocate their headquarters to make the cooperation with the local organisations more fruitful. Williams (2018) states that southern organisations are also stepping up to take their niches and identify their interests. For instance, “Oxfam’s next major step towards localisation came with … international secretariat to relocate to Nairobi by 2019. The move reflects a decision to further democratise the organisation in terms of … becoming more accountable towards the communities they serve in the South” (Williams 2018, p. 5). The recruitment of qualified staff is the key to the mentioned relocation, which requires the introduction of new strategies to integrate the local needs and the organisation’s vision. The shift, however, is accompanied by the struggles of relocating resources and localising agenda.

The interaction of INGOs with some countries is associated with limitations, such as in socialistic countries of China or Cuba, the so-called free zones. In China, a law was passed establishing new strict requirements for registration of foreign NGOs and giving broad powers to supervisory authorities to control them. However, due to the large number of requirements and their imperfections, only one percent of all the existing organisations can fulfil the law and act legally (Li 2018).

Many public organisations in China, especially those working in the political sphere, have difficulty registering and sponsoring their own activities as the ambiguity of their legal status scares off potential investors. Some funds and institutions awaiting registration have suspended their programs in the People’s Republic of China (PRC) and have stopped sending and issuing new grants to their Chinese partners. Some companies, such as Oxfam Hong Kong, have applied for temporary activities in mainland China to support their mainland projects and partners.

Some of the partners rely on funding, and when they cannot transfer money, it is a huge risk for all the participants regardless of the fact that whether the partners are independent or not (Bloodgood & Tremblay-Boire 2017). However, as explained by the representative of an unnamed organisation, a temporary work permit will not be a way out of the situation in the long term due to the high level of uncertainty, bureaucracy and pressure on NGOs and their partners (Li 2018).

According to the new law, foreign NGOs are obliged to report to the supervisory authorities about their expenses for the coming year. As previously stated by Vice Premier of Public Security, Yan Huanning, this bill is aimed at regulating the activities of foreign NGOs in China, protecting their legitimate rights and interests as well as developing the exchange and cooperation of Chinese and foreign organisations (Wu 2017). Accordingly, the requirement to register foreign NGOs in the Ministry of Public Security is another step towards strengthening state security.

Some development-oriented NGOs are overly influenced by sponsors in their activities. Due to the lack of independent sources of funding, they receive them mainly from governments, consortia, foundations as well as from individuals in individual states, so they easily fall under the control of these institutions and individuals (Bloodgood & Tremblay-Boire 2017). For example, in the US, by systematically reducing aid or denying it, non-governmental organisations have to act with the consideration of the needs of their sponsors.

As it can be viewed from the current evidence, INGOs and NGOs have complicated relationships with the governments and other organisations that can provide financial assistance. The management of their activity is a subject to the collaborative approach at resolving the emerging social problems around the globe.

Theoretical Framework

The grounded theory requires saturation of the data rather than the coordination of all received data so they are not limited to one type of clearly defined cases. In consistence with the identified theory, the analysis should alternate with the process of collecting information or should go parallel, being iterative in nature, confirming the preliminary hypothesis and, thereby, verifying it. According to Birks and Mills (2015), the observance of this principle allows creating a theoretical sample in the research process, which denotes the data selection process. In particular, it refers to the researcher combines the collection, coding and analysis of relevant data and decides what data to collect further to develop the theory and where this data can be found.

There are two key approaches to the grounded theory that are elaborated by Strauss and Glaser, the sociologists. According to the latter, social life is structured in such a way that the researcher stumbles upon local systems of categories of those problems to which the study is devoted (Birks & Mills 2015). In this sense, it is sufficient for the analyst to be open to the surrounding social reality in order to form a theoretical sample for exploring reality. Glaser’s theory uses deductive work in order to extract a conceptual guide from codes obtained by induction, including on which group or subgroup should be collected more data that allows designing a theory. According to the logic of Strauss, an analyst’s task is reduced to enriching the data with new meanings rather than merely composing the information together.

Regarding this dissertation, the general procedure of theoretical analysis is to extract codes from raw data from the very beginning of their collection by means of a constant comparison of the incoming materials and develop them until the latter become saturated, meaning embedded in the emerging theory. To build a theory, the researcher constantly posed the following questions: What is the main task (or problem) in the given area? What other data sources / cases can show on the aspects of this problem? What categories are included in this data? Data formed in this way serves as a source of conclusions for the formation of new units in order to make discoveries, enriching, expanding and polishing the interpretation of the results.

One of the most important criteria of the grounded theory is the validity of the results, the level of confidence in the outcomes, of the research project (Birks & Mills 2015). The grounded theory was selected as the basis of this dissertation as its main task is not to explain the thoughts, actions and behaviour (as is often assumed in research projects), but to demonstrate how behaviours relate to experience and environment. Thus, the theory arises through the vision of the problem at a larger scale and can be applied to the identification and resolution of the issue of misconduct among employees working for INGOs.

Empirical Evidence and Analysis

Oxfam was founded in 1942 as the Oxfam Committee for Famine Relief, which now has the association of 20 charitable organisations, operating worldwide, especially in underserved areas. The charity prioritises such goals as the fight against poverty, social inequality, and tax crimes, assistance to victims of natural disasters, as well as projects in the field of education and health. Currently, the organisation published 455 publications on human rights and another 577 publications on proposing good governance (Khan 2018).

Working in humanitarian settings in Haiti, several workers of Oxfam allegedly conducted sexual misconduct towards the local women, some of which were presumably underage in 2010 (Bacchi 2018; Hobbs 2018). Only in 2018, this incident became publicly known, which caused dissonance in the society and compromised NGOs in general.

Underlying Premises and Reasons that Led to Oxfam Conflict

The review of Oxfam reports as well as the documents of GGOs is characteristic of the fact that NGOs contribute to global governance accountability (Power of people against poverty: Oxfam strategic plan 2013-2018 n.d.). As an NGO, Oxfam is expected to hold GGOs accountable by applying the mechanisms of a formal accreditation, civil society advisory bodies, and NGO-specific reporting (Redeker & Martens 2018). The elimination of challenges related to accountability is another role of NGOs that establish and develop the legitimacy of their initiatives (Keating & Thrandardottir 2017).

The key responsibility of Oxfam is to serve as an advocate for democracy across the globe and disseminate humanitarian values (Safeguarding in action: our 10-point action plan 2019). In some cases, non-profit organisations operate more successfully and economically than state institutions. Unlike public sector companies, they can quickly respond to the needs of society to develop and provide a wide variety of programs and services in a timely manner in both domestic and international settings. NGOs are the main institutions of civil society, which act as the main partner of public authorities in solving problems facing society.

After the sex scandal with humanitarian workers at Oxfam in Haiti, the need to create an effective system of control over the work of such structures becomes evident. The actual and formal goals and donations are the issues that require further clarifications. According to experts, a considerable part of the money might be spent not on helping the needy but on the entertainment of volunteers or promoting the interests of governments and corporations (Danyi 2019). The British government can discontinue funding this charitable association if the latter does not ensure the implementation of measures to prevent such situations in the future.

The given sex scandal became public due to the investigation conducted and published by The Times’ reporters in 2011. The post stated that Oxfam fired four employees and allowed three more people to leave the organisation on their own will. This was preceded by an internal investigation that revealed the facts of sexual exploitation, the use of pornography and intimidation. According to the document, among the staff of Oxfam in Haiti, there was a culture of impunity for the mentioned misconduct (O’Neill 2018). Moreover, the authors of the investigation suspended that, in some cases, the prostitutes who provided services to the employees were underage, which makes the situation more critical. The Times claims that Oxfam also did not report the incident to the Haitian authorities, explaining that the likelihood of any actions by the authorities was vanishingly small.

On June 18, 2007, the Human Rights Council adopted a document entitled to the UN Human Rights Council: Institution Building. In accordance with it, a new complaints system was established in order to respond to systematically and reliably confirmed cases of gross violations of fundamental freedoms and human rights and across the globe under any circumstances (Berghmans, Simons & Vandenabeele 2017). The grievance procedure involves reports submitted by individuals, groups of individuals or non-governmental organisations that claim to be victims of human rights violations or have reliable information about such violations.

The fact that Oxfam did not report timely on sexual exploitation of its workers is one of the premises of the scandal volume. In case, the INGO acted according to the mentioned standard, sexual misconduct of workers could be investigated more properly, and the corresponding adjustment could be introduced much earlier. Keeping silence shows that the actions of Oxfam were not transparent, and the reports to the Charity Commission were not complete.

Eliminating the Culture of Tolerance

The culture of tolerating inappropriate behaviour caused the significant outflow of donors. The head of Oxfam, Mark Goldring, was summoned to parliament for a hearing organised by the committee of international relations. During his speech in the British Parliament, Goldring apologised for the actions of the high-ranking employees of the foundation, who were caught using the prostitutes in Haiti, noting that 7,000 donators ceased funding.

He acknowledged that the international charity movement as a whole suffered as a result of this scandal. It was also stated before the parliamentarians that the organisation is investigating 26 new cases of illegal sexual behaviour of Oxfam employees. The NGOs management received this information after the start of the investigation of events in Haiti. In this connection, it becomes evident that the study of the internal communication as well as staff selection and training are to be improved to avoid such misconduct.

Reporting and assurance are the key areas that characterise Oxfam incident, namely, the failure of management to coordinate their workers. The current evidence shows that the UK government started the efforts to clarify these issues not only at Oxfam but also other charities (Sandvik 2019). As it can be comprehended from the speech of Penny Mordaunt during her presentation at the Safeguarding Summit, 179 organisations were requested to provide their assurance statements and reporting on sexual exploitation cases, which marks the beginning of the system renovation (Penny Mordaunt’s speech at Safeguarding Summit 2018).

The responses provided by the organisations reveal that insufficient attention is paid to robust risk management, while the standards are regarded as too limited. Therefore, Mordaunt offers the implementation of new standards, including risk identification and reaction by NGOs, safeguarding practices, and the role of beneficiaries.

Public Opinion and NGO Leadership Improvement

NGOs contribute to the involvement of individuals in social activities, as a result of which the process of their transformation from passive objects, waiting for outside help, into active subjects of social activity is carried out. Public opinion is regarded as the paramount construct involved in the operation of NGOs, including Oxfam (Kolk 2016). The radiance of ideas and convincing actions are thought to be the key premises of their accountability and a lack of for-profit intentions. More to the point, NGOs implement international agreements to establish standards and codes: for example, the People in Aid merged with the Humanitarian Accountability Project (HAP) to create CHS Alliance (Listening to people – rebuilding trust 2019).

The development of such unions is directed towards enhancing the positive impact of NGOs and ensuring legitimate control over GGOs and self-regulation mechanisms. Oxfam crisis reveals the fact that the contemporary regulations and standards fail to meet its goals and responsibilities.

The rebuilding of trust is critical for Oxfam that is now associated with violence towards vulnerable populations. The evidence demonstrates that the strategy of adding more regulations can be beneficial to provide oversight for actions of the NGO. In fact, Keating, Crack and Thrandardottir (2018) note that this solution presents many risks of bureaucratic struggles and resource utilisation. While creating more requirements, they may turn out to be cost-ineffective and extremely difficult to perform.

Lewis (2018b) states that an informed debate on the role performed by NGOs and that their responsibilities and workplaces are vague and unclear today. It is mentioned that a lack of effective management systems is one of the premises that ultimately led to Oxfam crisis in Haiti. Consistent with Lewis (2018b), Ratcliffe (2019) also claims that misleading public opinion regarding NGOs should be enhanced as many people are likely to misinterpret their actions. In fact, no or little education is introduced in communities to allow the populations to understand what NGOs do for underserved places, which is complicated by budget and resource allocation difficulties.

Speaking of the specifics of non-profit organisations, their responsibility should be expressed primarily in the effectiveness of their work: they often use not their own, but someone’s money and resources. Therefore, the degree of their responsibility to the public and government depends on how successfully they spend the funds received (Celeste 2018; Petchesky 2016). In addition, the responsibility of Oxfam is not to undermine stakeholder confidence in the sector, yet, on the contrary, to increase it.

Rawlinson and Booth (2018) stress that this is especially critical for the countries where Oxfam operates and where there is a low level of trust to this non-profit organisation. In order to strengthen the trust, it needs to be transparent, accountable, and effective. It is important that this topic is introduced into public space so that it can be discussed, systematically relating their social responsibility to the society challenges (Corporate responsibility n.d.). This discussion is anticipated to become much broader when the issue of the volume and degree of complexity of the reporting of NGOs to government bodies is fully resolved.

Failure to Ensure Social Responsibility and Limited Funding

The role of the government can be discussed in terms of the concept of social responsibility that refers to the fulfilment of the social obligations prescribed by law and the willingness to rigorously bear the corresponding mandatory expenses (Response to Charity Commission report on Oxfam 2019).

At the same time, the specific concept means is a willingness to voluntarily incur non-binding social expenditures based on moral and ethical considerations, beyond the limits established by tax, labour, environmental, and other legislation. Khan (2018) assumes that the case of Oxfam crisis was not surprising and notes that there are various documents that provide information about the sexual exploitation of people by humanitarian workers and peacekeeping agencies. The author largely refers to sexual misconduct instances in West Africa and questions the fact that the efforts on the prevention of such issues did not lead to success. This proves the failure of NGOs to

With regard to NGOs, governments may act as regulatory bodies that encourage or restrict particular behaviours. It is reported by the official documents that in response to Oxfam crisis, the UK government expressed its dissatisfaction and cut funding until the organisations start practising moral leadership (Development cooperation in crisis: Oxfam policy brief 2016). Such a decision also stimulates further actions, including the 10-point improvement plan that was created by Oxfam and involved a comprehensive set of actions. In consistence with the actions of the government, the fundraising of Oxfam decreased rapidly due to the low confidence of stakeholders in the appropriateness of resource allocation.

In this case, the positive impact of the government can be made to motivate public trust. Instead of initiating the punitive measures, Arie (2018) suggests considering the closer collaboration of NGOs and authorities. The UK government can assist Oxfam with identifying the social messages they propose to disseminate, supporting their development by providing funding and consultations.

The recent literature is characteristic of the increasing amount of regulations in the field of controlling NGOs, while some failures remain. In particular, the UK Charities Commission was expected to analyse Oxfam crisis, yet it relied solely on data provided by this organisation instead of conducting independent research (Sexual exploitation and abuse in the aid sector 2018).

The accountability of the government cannot be regarded as strong or complete since the structures for monitoring and responding to inappropriate behaviours of NGO employees are not well-developed. Oxfam crisis vividly shows that NGOs possess great knowledge and skills on human development and support, yet their authority needs to be challenged in order to avoid its misapplication. As noted by Anders (2018), it is still unclear whether charities and funding bodies can practice what they preach and do they comply with their mission and goals, acting under the closest attention of the government.

In terms of public trust, it is also possible to consider the Global Reporting Initiative (GRI) that regulates the openness of organisations. Traxler, Greiling and Hebesberger (2018) identify that this is an international process designed for a long period of time and carried out with the participation of various stakeholders, whose mission is to develop and distribute of recommendations based on a global scope for reporting on sustainable development. These recommendations are intended for voluntary use by organisations in the process of reporting on the economic, taking into account the environmental and social components of their activities. The purpose of the recommendations is to help reporting organisations and parties interested in their activities to identify and understand the organisation’s contribution to sustainable development.

For Oxfam leadership, there are several advantages of applying GRI standards in the field of sustainable development and public trust revitalisation. First, the strategic and current problems that companies face today requires a continuous dialogue with investors, stakeholders, government agencies, donors and employees (Traxler, Greiling & Hebesberger 2018). Reporting is a key element needed to build and support sustainable development and public engagement. Second, Oxfam is expected to proactively turn its attention to the importance of maintaining relationships with external parties as a key element of its performance (Rahill et al. 2014).

The dialogue on aid issues, priorities and future plans related to sustainability allows the development of partnerships. Third, transparency through appropriate reporting is a tool to help strategically link disparate and isolated functions of this INGO, such as management, organisation, motivation, and regulation.

Conflict Resolution: Governments, Policies and Procedures

Several solutions to Oxfam crisis are offered by the academic and official sources, the common feature of which is to adjust the operation of international development agencies. According to Khan (2018), the charities should reconsider the functioning of their structures, thus understanding their weaknesses and addressing them. At the same time, it is critical for them to determine their role in promoting the world without the place for abuse towards vulnerable populations.

The safeguarding crisis is also accompanied by significant finding cuts from the government and fundraising activity, which makes it evident that the financial aspect of the given topic should be taken into account (Dudman 2018; How the world should respond to humanitarian crises 2016). Consequently, several sources report that Oxfam needs to demonstrate that it applied moral leadership principles and ensured that sexual misconduct would not occur again.

The revitalisation of civil society can be achieved via the ethical action taken by INGOs and reinforced by governments. In particular, the idea of bringing people together across social, religious, politic and economic differences is proposed by Edwards (2013), who argues that donors of INGOs should become not campaigners yet changers. This assumption is to be “infused through the structures of politics and the economy like a virus” (Edwards 2013, p. 20). Many organisations have week roots in their civil societies, and Oxfam is not an exception. In this regard, it seems to be better for INGOs to prioritise the public involvement in the preparation and implementation of new policies (Edwards 2013). One may suggest that by doing so, Oxfam GB can significantly enhance the trust of citizens and return their funding. To implement this potential option, the statements made by the organisation should resonate with the social concerns, which will allow receiving their respond.

From the perspective of the government, oversight can be strengthened, which may be conducted by means of the collaboration with watchdog agencies. In order to monitor the activity of Oxfam, this initiative should imply the shared work on remaining committed to the ethical standards set for INGOs (Amagoh 2015). It should be stressed that the government oversight would positively impact the truthful reporting on the status of the organisation. Accordingly, the evidence shows that when public receives open messages from charities, it is likely to be more confident in their role in changing the world for the better (Dhanani & Connolly 2015; Lempert 2016).

Such monitoring also allows revealing ethical improprieties, thus detecting them as soon as possible. Consistent with Amagoh (2015), one may propose that that oversight initiative should include disclosure requirements on revenues, activities, money spending points, and conflict of interests. In sum, the regulation of Oxfam as the NGO working on the global arena should be increased by the UK government based on a number of new policies and procedures.

Peer Regulation and Staff education as the Ways to Control INGOs

INGOs have complex relationships with other similar organisations regarding their accountability, which refers to the concept of peer regulation. It allows setting a common agenda and reviewing each other’s performance to find the best ways to serve the target audiences. Another benefit that is pertinent to Oxfam organisational learning, which contributes to the integrity across the networks of charities (Crack 2016).

However, these benefits are counterbalanced by the concerns of employees on labour intensively and bureaucratic challenges. As assumed by Crack (2016) in the recent study based on the interviews with the participants of various NGOs, more accurate research on peer regulation is needed. Thus, the government can be recommended to take a closer look at this opportunity by encouraging other NGOs to partner with Oxfam, while minimising the mentioned barriers to the effectiveness of the monitoring.

Another solution that is associated with employee training is suggested by Danyi (2019), who prioritises staff vetting and further education on the necessity to treat the people they assist properly. A range of sources reviewed point to the need to take action for the entire charity sector, which became especially pronounced after the case of Oxfam crisis that turned out to be public. Carolei (2018) states that the employees who engaged in sexual intercourse with the women who needed help may seem the key perpetrators, yet, in fact, the whole system is to blame.

In order to make sure that people are safe and secure, the ways to train the staff and listen to the voices of victims should be found (Carolei 2018; Oxfam training 119 staff to become investigators and invests over €2m as part of package to strengthen safeguarding worldwide 2018). The internal culture of charities needs to be more transparent, and the practices they apply need to be discussed openly to reiterate public trust. The importance of accurate and timely reporting is also identified by Danyi (2019) as the measure that can help in combating misconduct.

Recently, Oxfam announced that it would take more measures in order to eliminate the incorrect behaviour of its employees in the future. The board of directors of the organisation appointed a special consultant to deal with the existing practice of Oxfam and also introduced new employee review procedures and mandatory courses of exemplary behaviour for beginners (Green 2015). At the same time, Oxfam plans to establish closer contacts with other charitable organisations in order to prevent morally unstable citizens from entering them. The government of the GB supports such a decision to prevent sexual misconduct of NGO workers, providing financial and policy-related assistance.

Conclusion

International NGOs are unique in their ability to effectively solve the most diverse problems, finding the appropriate financial and human resources. Well-designed international policy-based instruments regulating their status contribute to enhancing the authority and significance of INGOs. It is necessary to achieve a satisfactory resolution of this problem in order for INGOs to obtain a universal foundation for an even more effective accomplishment of the tasks set and a general readiness for new world problems of the 21st century. Oxfam has great potential to recover its authority after the sexual misconduct scandal related to the events after Haiti earthquake in 2010.

Namely, the workers of this organisation used the local women, some of whom were presumably underage, as prostitutes. The incident resonated only years after the publication of investigation in The Times magazine.

Taking into account the successful experience of Oxfam in the field of protecting human rights and providing aid, as well as monitoring their implementation, it is critical to expand their capacity to participate in international conferences relating to the preparation of relevant conventions and policies. While offering this organisation more rights with respect to the control of compliance by the government with their international obligations the parties to which they are, the problem of ensuring the transparency and safety of NGOs in the performance of their duties can no longer be overlooked.

Therefore, the adoption of the additional protocols relating to the protection of the target populations of NGOs is a requirement of time. The most important element should be its strict observance, and, in this regard, it is of fundamental importance to develop an effective mechanism for its implementation.

The urgent problem of the damaged image and unacceptable reproaches in inappropriate behaviour calls for the need for a clear legal regulation of transparency and accountability of the activities carried out by Oxfam. It will, thereby, protect them from decreased public trust and vulnerability of the target populations. It is revealed that the two main premises that underlie the identified problem are issues with accountability and openness of the organisation.

Even though it was supposed to report the UK Commission, Oxfam allowed the workers participated in the scandal leave to other workplaces, keeping silence about their misconduct and remaining ignorant towards the victims. At the same time, it failed to meet the standards of ethics declared universal across the INGOs and set in order to protect the fundamental human rights.

The literature review was thoroughly prepared for this dissertation to be utilised as the analytical framework and discuss the essential concepts in the given field. In a globalising world, the role of the international ties and aid in terms of foreign policy is growing. The governments tend to lose their positions as monopolists in political processes. After examining the formats of interaction between INGOs, the state and local organisations, several basic features can be distinguished. There are such relationships as cooperation, the delegation of rights to the provision of social services and endowment of an associate status with an international organisation.

More trustful relationships with the government and public promote the improvement of the activities of non-profit organisations in attracting funding, also leading to an increase in professionalism and accountability. The essence of change necessary for modern INGOs is the raise in the transparency and responsibility to effectively provide global aid and attract donors from various stakeholders.

The empirical analysis chapter is devoted to studying the case of Oxfam GB conflict based on the literature available through academic studies, publications of official organisations and credible magazines as well as other relevant sources. In order to answer three research questions specified in the introduction chapter, the case study analysis was divided into three main sections, which contributed to the detailed examination of each of the questions.

The analytical framework was used to guide the analysis of the key premises that led to the crisis (section 1), the role of public trust in terms of Oxfam’s leadership (section 2) and the ways the government may impact procedures and policies of NGOs (section 3). In the course of the analysis, all the questions were answered, and the key proposition was verified. It was revealed that the culture of misconduct tolerance and assurance were the underlying factors that caused a resonated feedback from society. More to the point, the critical role of public trust and government regulation were also supported by a variety of documents.

Today, it is obvious that without involving the public in the system of NGOs, it is impossible to successfully solve numerous global problems. The role of these organisations as the systemic players of the international structure and actual participants in global governance processes raises exponentially. As a recognised and legitimate actor of the global humanitarian system, Oxfam can not only express public opinion and influence its formation but also make a serious impact on the global development through participation in resolving the social and humanitarian problems across the countries.

The Global Reporting Initiative, Doing Development Differently (DDD), peer regulation and other options are discussed in this dissertation, the use of which provides the insights on making INGOs more transparent. In particular, they are to be expected to disclose the sources of funding, spending points, employee characteristics and behaviours as well as any misconduct cases. The given problem can be solved by adopting apposite international documents – a universal code of conduct for an international NGO. The results of this activity seem to be beneficial both at the regional and international levels.

Thus, as it can be concluded from the analysis of Oxfam GB sex scandal in Haiti, a comprehensive approach towards its resolution and prevention of similar misconduct in the future is the best decision. In order to move forward, the organisation should not only reconsider its current Human Resources practices and procedures but also prioritise the relationships with the UK government, other charities, local authorities in other countries and, perhaps, most importantly, public involvement. As the INGOs, Oxfam should play the role of public diplomacy actor, exerting a direct influence on the foreign policy process, being a mediator and agent of the interests of civil society.

It should consider the engagement with various organisations, from charities to global peacekeeping projects. Today, it is indisputable that NGOs are becoming effective tools of public diplomacy that allow successfully integrating into international relations and adapting to the constantly changing situation in the world in order to shape the consciousness of civil society and influence internal processes.

Future Research Directions

The UK interested in the development of civil institutions and NGOs due to their mobility that they are faster for the state to foresee and respond to problems arising in society. The tasks of the state, NGOs and civil society require strengthening in the formation of the state strategy, forecasting, development and clear legislative support for the development of the non-governmental sector. Correspondingly, future research should be focused on understanding the place of Oxfam in working on the conflict factors and the ways to address sexual misconduct of its employees. For example, a more detailed study can be conducted in developing countries they serve, including Haiti, Chad, Rwanda and others. The paramount importance is to assigned to the views of the local population, especially women and teenagers as the most vulnerable categories.

The study of the ways to implement new policies and procedures elaborated by Oxfam and the government can be noted as another research area. For example, the proposal to adjust the reporting mechanisms need further clarifications on their practical goals, processes and expected outcomes: timelines, formats and responsible persons should be identified. With this in mind, other NGOs can be included in the study to build on their advantages and failures in terms of the organisational learning principle. In addition, the countries marked by the limited access of INGOs, such as China, present an especial interest since the related evidence is scarce. In general, other sexual misconduct cases, the experience of INGOs and change strategies need to be researched thoroughly.

Practical Relevance of Findings

It is possible to declare that Oxfam crisis of sexual misconduct set the impetus to a sequence of policy changes related to the performance of NGOs at a global scale. Considering that the incident had long been kept in silence, it evoked a serious of investigations that may reveal even more inappropriate behaviour cases of workers offering aid to the vulnerable populations. From the practical viewpoint, it is imperative to ensure human and civil rights of all people, which one of the paramount functions of INGOs. In this regard, the UK government and the public should take the opportunity to become change promoters, thus eradicating the discussed problem not only in Oxfam but also other charity organisations.

The Oxfam crisis also shows that the authority of the organisation decreased significantly, while donors seem to be reduced, which restricts the future performance. The insights discussed in this dissertation seem to be useful to apply to restore public trust and improve on the previous mistakes. The new mechanisms of public communication can be adopted in Oxfam in order to use the opportunity to form a positive reputation on the world stage. Being a participant in the foreign and domestic political processes, the interaction with the state and other public institutions would help not only to create a positive image and influence public opinion but also build an effective dialogue with the community.

From this point of view, Oxfam and other INGOs represent a unique phenomenon in international practice and are a potential resource for successfully addressing social challenges and employee misconduct.

Another essential point is that previously, the sexual abuse committed by humanitarian workers remained uncovered in many cases. Now, they came to the fore, which turned into substantial reputational damage, but, on the other hand, the organisations, such as Oxfam, are seriously motivated to combat the distortions in the future. Since the UK regulator received all the information, several options for further action should be considered. However, given that in the past, humanitarian workers were looked upon as people meeting the highest moral standards, Oxfam’s calm and business-like response to the revealed abuses looks like an attempt to save a good face. In practice, it should work on an increase in donations and improvement of the authority of such humanitarian organisations.

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