National Kidney Foundation of Singapore (A) – Anatomy of a Crisis
Wee Beng Geok and Yvonne Chong
Overview
When the National Kidney Foundation (NKF) of Singapore came under the scrutiny of the nation back in the July of 2005, it was evident that there was going to be major changes in the local social welfare scene.
As a non-profit charitable organisation, the main aim of NKF was not only to look after the needs of its patients but encompassed drawing resources from society and moving towards changing and improving society as a whole.
In this report, we focus on the issues that the top management faced and how this entire saga has affected not only NKF but also its numerous internal and external stakeholders.
Introduction
Without a doubt, much attention was on the man who helmed NKF, Mr. T.T Durai. The main issue that enraged the public and stakeholders (including fellow welfare organisations, the government and the patients) was how NKF had dishonestly reported its patient numbers and the duration for its cash reserves would last. It is evident that there has been a breach in ethical conduct by the organisation and fingers unanimously pointed at Durai, who was alleged to have been responsible for the plight that NKF had landed itself in.
Utilitarianism
Constantly seeking to provide better service for as many affected patients as possible, how decisions in NKF were made or should have been made relates to the ethical concept of utilitarianism whereby choices are made based on the highest degree of benefit to those affected; in the context of NKF, key stakeholders affected would be the public (donors) and the patients.
According to statistics1, out of every dollar that the public donated, only 10 cents went to patient subsidies. Given that patients subsidy was the main reason for donations, donors felt that the percentage allocated (10%) was unreasonably below expectations. However, NKF chose to put 41% of every donation