Enhancing Malaysian NGO Effectiveness: Intergrating Corporate Governance with Organizational and Economic Sustainability

¹ Faculty of Business, Taylor’s University, Subang Jaya, 47500, Selangor
² Faculty of Entrepreneurship and Business, Universiti Malaysia Kelantan, Pengkalan Chepa, 16100 Kota Bharu, Kelantan

^* Corresponding author: fadzlynadzmy@gmail.com

Abstract

Effective corporate governance is fundamental, providing the strategic oversight and accountability required for Non-Governmental Organizations (NGOs) to function transparently and ethically. This paper explores the critical interplay between corporate governance, organizational sustainability and economic viability in improving the effectiveness of NGOs, particularly in the elderly care sector. A qualitative interpretive research methodology was adopted, involving in-depth interviews with the top management of 10 Malaysian elderly care centres of NGOs operating in Klang Valley area. The findings revealed the majority of NGOs perceived corporate governance as a necessary pillar for sustainable NGOs. By identifying how robust governance frameworks influence organizational practices and economic sustainability, this study demonstrates the synergistic relationship that allows NGOs to establish long-term social impact. Therefore, a recommendation plan has been proposed. A comprehensive model that incorporated corporate governance and organizational sustainability has developed and comprising all the factors that are relevant for elderly care centres of Malaysian NGOs. The findings of the study suggest that integrating these elements not only improves organizational resilience but also build donor trust and community support, resulting to more effective and sustainable NGOs operations. This study will benefit the board of NGOs and policymakers to strengthen governance system in Malaysia.