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What is the NGO ? Discuss Its Type , Role And Legal Status ? Explain Various Methods in Which NGO Operates

Contents are covered under Business Environment of MBA Ist Semester 

Meaning of NGO 

NGO means non - government organisation. Any organisation who is doing non profit activity is called NGO . The aim to make NGO is to do social activities . These organisations do not involve in commercial activities . The source of fund may be private or govt. NGO collects fund through donation . Now , NGO are also known as private voluntary organisation . 

It is estimated that 40000 NGO are working internationally and more than 1 million NGO are only in India . Main objectives for making NGO are to reduce poverty , increase employment and support to poor children.

Student Welfare Council (NGO ) is sending Cheque for Children affected from Tsunami

( Members from left - Dr. Mathura Das Savtantra, Prof. Vinod Kumar, Krishan Kumar and many more.....)

Types of NGO 

On the basis of Acronyms


INGO means international non govt. organisation . For example UNO and ILO are INGO.


BINGO means business oriented international NGO . CARE , RED Cross and Green peace are BINGO


ENGO means environmental NGO


GONGO  means govt. operated NGO .


QUANGO means quasi autonomous NGO

For example ISO


TANGO means Technical assistance NGO


CSO means civil society organisation.

Types of NGO on the basis of World bank's classification

1. Operational

Operational NGO is that type of NGO which are created for development projects .

2. Advocacy

Advocacy NGO is that type of NGO which are created for awareness projects .


USAID is created as private voluntary organisation in US .

Legal Status

NGO  has legal status under following laws

  1. Any charitable society registered under society registration act 1860
  2. Trust 
  3. Any ltd company formed under company law 1956 of India 
Methods in which NGO operates 

There are following methods to operate NGO

  1. Lobbying
  2. Other Social welfare projects like project for providing food , drinking water , and poverty alleviation.
Role of NGO in Consumer awarness 

NGO plays a very important role in the consumer awareness . Consumer is the person who buys the products of the company. It is his right to choose the right product at right price . Many NGO are created for providing awareness to consumer with the help of print media , seminars and work shops with this consumers knows what are the points with a business man to cheat  the consumers . He can give low quality products. These NGO are also helpful to give remedies to helpless consumers . Large nos. of advocates and legal experts work voluntarily in NGO . So , consumer can get help or advice from these members .

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Objective of Business Environment

Following are main objectives of business environment:
1. Knowledge of Information 
By studying the business environment, we can know the changes of business. This information is very useful for our business. Every businessman should aware current environment of business. With this, he can think the future of his business in such environment. 
2. Basis of Decisions 
One of main objective of the study of business environment that it can provide all the information which is needed for taking good decisions. Suppose, you completed your internal business environment study. With this study, you can take decision relating to purchase, sale, salary and price because you know your competitor, you know your suppliers and you know your customers. 
3. Helpful in making of Policies 
For making good business policies, we need to know and scan business through business environment. 
4. Technological Planning 
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Limitation of Business Environment Analysis

Following are main limitation of business environment analysis:

1. Unexpected and Unanticipated Events 

We can not tell unexpected and unanticipated events in business environment analysis. Sometime, business has to face unexpected happenings. So, there will no benefit of business environment in these cases.

2. No sufficient Guarantee

Business environment analyst does not give any guarantee whether all events will happen as per estimation in business environment.

3. Uncritical Faith 

Sometime data may be incorrect. So, decisions on basis of these analysis may be risky for business.

4. To much information

Sometime too much information relating to business environment analysis will create the doubt in businessmen.

Technological Environment

Definition of Technological Environment :-

“Technological Environment means the development in the field of technology which affects business by new inventions of productions and other improvements in techniques to perform the business
 work. "