Question
Introduce the NFP of the pet industry
– Current, past, future industry
– government policies
– risk of NFP of the pet industry and how to reduce it
Use Humane Society (Canada) as an example :
– the board of director duties
– who is accountability
– accountability issues and suggestions
– how everything process
– government policies
– what risks humane society is facing and how to reduce it.
These are just some rough ideas I came up, please analysis these more deeply and explore them with what you think is important. But, accountability must be talked in the paper.
I will upload our PPTs if you need it to inspire you finding more thoughts but mainly based on research and critical thinking.
– the current issues with the health sector in the long term care industry and the role of the Board of directors is very timely-
This is what the professor said when we discuss the topic.
It is a term paper, please write it with a professional form which includes a table of content, subtitles and etc. of course the most important is the quality of the paper. Do not hesitate to contact me if you have any questions.
Solution
Non-for-Profit Pet Industry
Introduction
The not-for-profit (NFP) pet industry has had a long history in Canada since it has been in place for nearly twenty decades. The history of the sector began with the first institution of an animal welfare charity, The Canadian Royal Society for the Prevention of Cruelty to Animals (CSPCA) in 1869. The purpose of CSPCA was to develop legislation that protected animals from cruelty, enforce the law, deliver humane education programs, and promote public education about the humane treatment of animals (“A Comprehensive Look” 4). Since the establishment of CSPCA, the NFP pet industry has continued to grow through the institution of government policies to govern the sector, the introduction of fiduciary, legal, and strategic roles for the board of directors and accountability in the management of the NFP pet organizations. Furthermore, due to the nature of the industry, the NFP pet sector is exposed to operational risks, which can be mitigated through auditing.
Past, Current and Future of the NFP pet industry
Growing research reveals that the NFP pet industry in Canada has evolved significantly in terms of size since the establishment of the first animal welfare charity in the country. By 1869, only a single welfare charity, CSPCA, had been established in Canada (“A Comprehensive Look” 4). This society was founded after the province of Canada passed its first animal cruelty law, the Cruelty to Animal Acts of 1957 (Ingram 222). As such, the NFP pet industry was small in size, since there were few sectoral participants. Besides, limited government legislation governed the sector by then.
Furthermore, research shows that the scope of work of the NFP pet industry was broad several decades ago. Notably, at the inception of the societies, the range of practice of CSPCA surpassed the mere protection of animals. A report by Humane Canada shows that the then established organizations also participated in the prevention of cruelty against children, especially the homeless and orphans (“A Comprehensive Look” 4). This information is confirmed by Marsh, who ascertains that the first Humane Society was founded in Toronto by Kelson Joseph to prevent cruelty to children and animals (1238). The synthesis of the information reveals that the scope of work of the NFP pet industry was not distinguished in the past.
However, as opposed to the past, the NFP pet industry today is more abundant in scale. As observed by the Humane Society of Canada, the industry has grown from a single animal welfare charity in 1869 to 125 Humane Societies and SPCAs in every province and territory in Canada (“A Comprehensive Look” 4). For example, in Prince Edward Island, the Prince Edward Island (PEI) Humane Society operates as an independent NFP organization that shelters homeless, injured, and lost companion animals, hosting over 1600 pets each year (“About Us”). Other NFPs organizations include the Alberta SPCA, Saskatchewan SPCA, Nova Scotia SPCA, just to mention but a few. The presence of Humane Societies and SPCAs across the provinces in Canada signifies the significant growth in size of the NFP pet industry in the country.
Additionally, the NFP pet industry today has a more specific and limited role than was the case years ago. As noted, the Humane Societies in Canada were initially established to protect children and animals against cruelty. Nonetheless, with the subsequent developments in the industry, the movement for the humane treatment of animals separated from that of human welfare issues (“A Comprehensive Look” 4). As is evident from the Humane Society’s website, the industry is now primarily focused on protecting animals and the environment (“About HSC”). These efforts are accomplished through the help of volunteers who work with the societies to keep companion animals safe from cruelty and harm, and funds from donors who finance these operations, as shown in figure 1.
Figure 1
Source: Humane Societies and SPCAs in Canada
While there lack certainties about the future of the NFP pet industry, one thing remains clear; the scope of work of the sector is likely to expand in the days to come. As observed by the Humane Society of Canada, the industry currently offers animal sheltering services, which include receiving surrendered animals, providing health examinations, medical treatment, temporary housing, food, hygiene, and placing the animals in foster homes (“A Comprehensive Look” 8). However, a current survey conducted among the 125 Humane Societies and SPCAs reveals that there is a growing trend for the societies to provide veterinary services such as spay, vaccinations, microchipping, and general veterinary care to animals owned by members of the community (“A Comprehensive Look” 8). This information suggests that the scope of work for the NFP pet industry will evolve soon to incorporate diverse activities other than providing shelter and care to animals.
Government Policies
While the majority of the NFP Humane Societies in the pet industry operate as independent organizations, free from government funding, their activities are regulated by government policies established at the provisional level. For instance, the government policies governing the industry may vary from one province to another depending on the legislative Act set at the provisional level. For example, the NFP pet industry in Alberta is governed by the Statutes of Alberta on the Animal Protection Act. Notably, this statute determines the approval of Humane Societies, duties of the societies, and the power of the peace officer in the Alberta NFP pet industry.
An analysis of Alberta Statutes provides a brief overview of the government policies that regulate the NFP pet industry in Canada. For example, Section 9 of Alberta Statutes defines the conditions for approval of Humane Society. Notably, the policy states that a Humane Society is approvable by the Minister if one of its principal objects is the prevention of cruelty to animals, and it meets the requirements of the Minister (“Revised Statutes of Alberta” 7). This policy implies that an organization cannot operate in the industry if it fails to meet the two critical elements of the provisional statutes.
Furthermore, the Animal Protection Act also highlights the primary duties of the NFP pet industry in Alberta. For example, Section 5 of the provisional policy statutes outlines the responsibility of the Humane Society to provide care. Notably, sec 5(3) of the statute provides that a “humane society to which an animal is delivered under section 3(2) may, in accordance with the tariff provided for in the regulations, recover any expenses incurred in respect of the animal from the owner, and may require the owner to pay those expenses before the animal is returned to the owner” (“Revised Statutes of Alberta” 5). In essence, the policy establishes the duty of care by the humane society and owners of companion animals that are surrendered to the shelters.
Duties of Board of Directors
Like other public sectors and profit organizations, the NFP Humane Societies also comprise the board of directors who assume distinct duties in their respective societies. As the literature suggests, the responsibilities of the boards in NFP organizations such as Humane Societies fall under three categories; strategic, legal, and fiduciary (“Serve on a Not-for-profit Board?” 1). Each of these duties serves a specific purpose in the industry.
The strategic duties of the board entail leading the Humane Society to the fulfillment of its goals. As the literature suggests, the board is charged with assisting the NFP achieve its mission by adopting a clearly articulated mission statement (“Serve on a Not-for-profit Board?” 1). Notably, to attain the NFP mission, the board sets and oversees various strategic objectives within the organization. The strategic duty of the board is evident from various Humane Societies in Canada. For example, as provided in Ottawa’s Humane Society, the board is tasked with providing strategic direction for the firm to achieve its mission and goals (“OHS Board of Directors”). Similarly, the PEI Humane Society outlines the provision of strategic direction for the organization to achieve its objectives as a primary task of the board (“Volunteer as a Board Member”). Synthesis of this information reveals that the board of directors in the NFP pet industry have a common strategic duty to lead their respective societies to success.
Furthermore, the board also assumes legal duties in the NFP pet industry. A growing literature suggests that the legal responsibility of the board in NFP organizations falls under the categories of duty of care, loyalty and obedience (“Serve on a Not-for-profit Board?” 2). Thus, it is required to make sound judgment when acting on behalf of the NFP as a fulfillment of the duty of care (“Serve on a Not-for-profit Board?” 2). Similarly, the duty of loyalty requires the board to prioritize the interests of the NFP before their personal needs. On the other hand, the duty of obedience requires the board to take action that is consistent with the mission of the NFP and ensure compliance with laws and regulations that fall within the legal responsibility (“Serve on a Not-for-profit Board?” 2). In essence, the statutory duties of the board cover compliance of the latter to organizational and legal laws that govern the NFP.
Besides, the board is also required to undertake fiduciary responsibility within the NFP pet industry, which entails the act of one party acting in the interest of the beneficiaries or other parties involved (Styhre 113). In the context of NFP, the board of directors has a fiduciary duty to act in the best interest of all industry stakeholders through actions such as, protecting the organization’s property, financial assets, and reputation (“Serve on a Not-for-profit Board?” 3). This responsibility is also emphasized in some of the Humane Societies that operate in Canada, such as the Toronto Humane Society (“Board Director Profile”). Generally, the fiduciary duty of the board entails actions that aim at serving the best interest of the organization and its stakeholders.
Accountability
Accountability is a critical aspect of the NFP pet industry governance in Canada. Notably, the concept entails the act of the management of NFP being liable and answerable for its actions and behaviors of those whom it takes charge over. Readings from the course materials suggest, the accountability of the NFP may fall under two categories; owners and other stakeholders. In the first category, the NFP is accountable to owners of the organization who include the government, the general public, or individual members. Also, the NFP is accountable to the many stakeholders in the industry, including donors, volunteers, communities in which the NFP operates, and other funding agencies.
Similarly, in the context of the NFP pet industry, accountability lies within the organization towards its owners and stakeholders. To illustrate, the Regina Humane Society (RHS) organization provides an accountability guide for societies and their employees. The code provides that the organization is accountable to four categories of parties; members, adopting families, volunteers, and donors; City of Regina administrators, community members and service workers who rely on the help of RHS employees; professionals who assist RHS operate through sponsorships and professional advice; and Veterinarians, animal welfare groups and individuals and the pet care industry (“Accountability”). As information from the example suggests, accountability in the NFP pet industry governs the actions of the Humane Society and its employees towards the public interest. Accountability is also a probable pillar for the industry’s endurance, as it is only through being answerable to their actions that the sector can receive funds from donors.
Risk of NFP of the Pet Industry and How to Reduce it
Unlike the crown and public sector organizations, the NFP may not be subject to risks that arise from the concentration of power in the management, as a significant fraction of leaders in such institutions operates under voluntary conditions. Nonetheless, operational risks are quite probable as the management of the daily operations within the NFP lies primarily in the hands of the board of directors and volunteers. Operational risks in the NFP pet industry may be manifested in multiple ways, including fraud. Notably, given that majority of the employees work voluntarily, some may indulge in wrongful deception for personal gains. For example, some may decide to use the proceeds from the sale of companion animals for personal expenses rather than follow the established code on the utilization of such gains. This type of risk may arise from the nature of the industry, whereby employees are not compensated for their jobs, compelling some to indulge in deceptive practices that expose the sector to operational risks.
If unaddressed, the highlighted operational risks can interfere with the endurance of the NFP pet industry, since the Humane Societies may end up losing money required to facilitate their operations through fraud. Therefore, the industry may need to put in place risk management measures to reduce the probability of such risks occurring. Notably, operational risks in the sector can be reduced through the implementation of internal and external audits. With the help of auditors, the Humane Societies can adequately monitor and account for every fund donated and generated within the organization.
Conclusion
Synthesis of findings from the research reveals that the NFP pet industry in Canada has significantly evolved and grown since the establishment of the first Humane Society decades ago. Notably, the industry has grown in scale, and the roles and structure of the societies have become more definite. Additionally, the literature suggests that the provisional government is significantly involved in the operations of the industry through policies that govern the activities of the societies. Also, the results of the study reveal that today, the board of directors in the NFP pet industry has distinct legal, fiduciary, and strategic roles. Accountability is also identified as a critical element in the industry, with the management of the sector bearing the responsibility to owners of the societies and other external stakeholders. Also, it is opined that the operational risks such as fraud in the sector can be reduced through the use of internal and external auditors.
Works Cited
“A Comprehensive Look at the Sector.” Humane Societies and SPCAs in Canada, humanecanada.ca/wp-content/uploads/2020/03/CFHS-Sector_Report_-_EN_-_Final.pdf. Accessed 4 June 2020.
“About HSC.” Humane Society, www.humanesociety.com/abouthsc/abouthscsub. Accessed 4 June 2020.
“About Us.” PEI Humane Society, www.peihumanesociety.com/about-us/. Accessed 4 June 2020.
“Accountability.” Regina Humane Society, reginahumanesociety.ca/about-us/governance/accountability/. Accessed 4 June 2020.
“Board Director Profile.” Toronto Humane Society, www.torontohumanesociety.com/pdfs/THS_Director_Profile_-_FINAL.pdf. Accessed 4 June 2020.
“Revised Statutes of Alberta 2000 Chaoter A-41.” Alberta Animal Protection Act, www.qp.alberta.ca/documents/Acts/A41.pdf. Accessed 4 June 2020.
“Serve on a Not-for-Profit Board? A Primer on Board Responsibilities.” AICPA, www.aicpa.org/content/dam/aicpa/interestareas/notforprofit/resources/governancemanagement/downloadabledocuments/not-for-profit-board-responsibilities.pdf. Accessed 4 June 2020.
“Volunteer as a Board Member.” PEI Humane Society, www.peihumanesociety.com/volunteer/volunteer-board-faq/. Accessed 4 June 2020.
“Volunteer for the Board of Directors.” Ottawa Humane Society, ottawahumane.ca/about-us/ohs-board-members/board-of-directors/. Accessed 4 June 2020.
Ingram, Darcy. “Beastly Measures: Animal Welfare, Civil Society, and State Policy in Victorian Canada.” Journal of Canadian Studies, vol. 47, no. 1, 2013, pp. 221-252.
Marsh, James. “The Canadian Encyclopedia.” The Canadian Encyclopedia, 1999.
Styhre, Alexander. “What We Talk about When we Talk about Fiduciary Duties: The Changing Role of a Legal Theory Concept in Corporate Governance Studies.” Management and Organizational History, vol. 13, no. 2, 2018, pp. 113-139.
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