Leadership Failures in Social Institutions: Kids Company (B)

Social organizations carry out activities that, although necessary for the common good and essential for the most vulnerable segments of society, are not well executed by either businesses or states and public institutions. The credibility and support they need depend heavily on the trust of their beneficiaries, partners, society as a whole, and the authorities. These organizations are not immune to improper management conduct or complex difficulties, which puts them at the center of scandals and jeopardizes the pursuit of their valuable socio-economic and environmental missions. This document discusses three cases: RarĂ­ssimas in Portugal, and Kids Company and Oxfam in the United Kingdom. The discussion of these cases, which can be done separately or together, has two major objectives: (1) it helps understand the dynamics of social organizations and the potential emergence of (unnecessary) management/leadership problems and ethical issues; (2) it contributes to protecting the entire social sector. When the reputation and sustainability of a social sector organization are endangered, the entire sector suffers, as suspicions can be cast upon other organizations.

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