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2.2.4 Voluntary failure theory
Voluntary failure theory was raised by a famous American scholar named Salamon. In addition to market failure, government failure, Salamon (1994) was through research on the global non-profit sectors to find that the phenomenon of failure also exists in non-profit organizations (NPOs), which is mainly reflected in that, first, resources that public welfare organizations obtain are not enough to meet the expenditure for operation of public welfare projects and daily work, leading to that public welfare organizations can not be self-sufficient, let alone relying entirely on themselves to develop and grow up, they can only continue to rely on the financial subsidies from government. The lack of financial independence often leads to the problem of less democracy in the operation of projects, those who actually grasp economic resources according to their own preferences to determine the operation of projects and how to use limited resources without having to seek the views of the majority (Salamon, 1981). Second, work of public welfare organizations is often carried out by volunteers who are caring and enthusiastic. Based on the lack of training for volunteers and the lack of sufficient volunteers, the quality of public goods provided by public welfare organizations for the society is not high and the results are not satisfactory. At the same time, as public welfare organizations do not have the financial resources to hire professionals to join, it leads to the failure to provide quality public goods, thereby affecting the organizational performance and playing the roles of organizational effectiveness (Salamon, 1981; Lane, 2011). Finally, the limitations of the objects of public welfare organizations, namely the objects that public welfare organizations carry out activities to help are not all the public, they are often some specific social groups, result in that costs of public goods provided by public welfare organizations are very high, and the efficiency is very low and difficult to produce scale effect (Salamon, 1981; Lane, 2011). As a kind of NPO, the Red Cross also has the phenomenon of volunteer failure. Thus it should make full use of volunteer failure theory to discuss how to remedy these defects so as to ensure the better work of the Red Cross.
2.2.5 Trust theory
Coleman's (2007) trust theory is based on the basic assumption and the starting point of “rational person”, it is believed that trust is the process of interaction and game for interest between the two rational actors, the premise of his assumption is that these two people are purposeful actors, the purpose is to meet personal interests, for a trustee, it is faced with the problem of trustworthiness or dishonesty, and the principal is faced with the problem of whether it can trust the trustee. For the same reason, a charitable organization faces the problem of trustworthiness or dishonesty, and donors are faced with the question of whether they can trust the charitable organization, which organization they can trust, when the phenomenon of dishonesty occurs in a charitable organization for their own interests, donors’ interests will be harmed, if there is not remediation, donors will no longer trust the charity organization, the trust of donors towards the charitable organization is declining, and the charitable organization will bear the consequences of loss for its’ losing donors’ trust (Coleman, 2007; Long, 2016).
As a rational client, in order to assure their donation can be sent to those who need it, donors will take various measures to mitigate their risk of trust through collecting as much information as possible about a charitable organization, and make full use of the information to make the decision about whether they can trust and be loyal to a charitable organization; for charitable organizations as trustees, performance in work activities and disclosure of information is an important way to prove that they are trustworthy, therefore, to deepen the mutual understanding between donors and charitable organizations, as well as effective communication can help to improve the trust of donors towards charitable organizations (Coleman, 2007).
2.2.6 Social psychology theory
Social psychology mainly studies individual social psychological phenomenon and group social psychology phenomenon (Long, 2016; Long and Yang, 2016). Individual social psychological phenomenon refers to that social individuals are affected and constrained by other people or social groups to have reactions such as interpersonal attraction, interpersonal perception, inhibition and compliance, and so on in thinking, feelings, behaviors and other aspects. Group social psychological phenomenon is mainly reflected in group decision-making, group cohesion, social and psychological atmosphere, etc., it is the unique psychological characteristics that a group has. In comparison, in most cases, individual social psychology is more susceptible to outside influence, and group social psychology is generally more mature and stable (Long, 2016; Long and Yang, 2016). Public trust of the Red Cross mainly depends on the psychological cognition and psychological identification of social individuals and social groups. Subjective evaluation of the public on the Red Cross finally forms public trust of the Red Cross, high subjective evaluation shows the high public trust of the Red Cross, low subjective evaluation reflects the low public trust of the Red Cross. Social individuals’ psychology is easily affected by opinions of public figures, reports of news media and other aspects, initially this effect is mainly represented as the simply following the trend, when the impact reaches a certain level, it will form a more stable psychological positioning of the social group for the Red Cross (Long, 2016). The “Guo Meimei” event initially affected only part of the public to have a negative view on the Red Cross. However, with the expansion of the event, and more inside story was blown out, the public became more and more dissatisfied with the Red Cross to form a kind of “snowball" effect "Red Cross", eventually leading to social groups’ negative impression and positioning for the Red Cross, which led to the devastating blow towards public trust of the Red Cross (Long, 2016; Long and Yang, 2016).
Theory Content involved
The theory of organization externalization Management of NPO
Voluntary failure theory Human resources management of NPO
Trust theory Performance, donation effect, social and economic benefits of NPO
Social psychology theory Public relations management, public relations at the time of crisis, marketing and other issues of NPO
The above theories illustrate the reasons for the loss of public trust of NPO from different perspectives. The theory of organization externalization mainly expounds the reasons for the loss of public trust of NPO from the structure and management of organization. Voluntary failure theory is mainly from the perspectives of management, professional quality of organizational staff, as well as the level of service and social effects of NPO to explain the reasons for the loss of public trust. Trust theory mainly explains the loss of public trust of NPO from the perspective of public demand. Social psychology theory is from the perspective of communication to explore the reason for loss of public trust of NPO. Based on the above theories, the author of this study constructed the evaluation system of public trust of the Red Cross, and elaborated on how to improve the public trust in the Red Cross in the future.
2.3 Empirical study on public trust in the Red Cross
2.3.1 Relationship between government and charitable organizations
There are two kinds of views on the relationship between government and charitable organizations,
one is that government should strengthen the support for the Red Cross. Han (2016) believed that the third sector is not a perfect organization of virtue, it also has flaws such as the problem of a voluntary failure in the third sector, the government should strengthen support and guidance to improve the public trust in the third sector. In his view, the inherent flaws of the third sector are manifested in four aspects: insufficient supply of charity, special charity, paternalism of charity organizations, amateur charity. Han (2016) thought that NPO in China should enhance the establishment of a relationship with the government, use the government’s capacity to perfect its own development environment, and show the achievements got under the supporting of the government. Actually, Chinese government always imposes relatively strong support on NPO with the Red Cross as their representative. But the author of this study thought that the method and direction on support should be changed (Han, 2016).
Another point of view is that NPO should reduce dependence on government to ensure independence, avoiding interference and obstacles of government towards the development of NPO.
Chui and Jordan (2016), Najam (2005) studied the relationship between NPO and government. He proposed “theory on the relationship between the government and the non-profit organizations” (cooperation, confrontation, complementary, cooptation), which deems that “necessary tension” exists between the government and NPO. Even the relationship between government and NPO is friendly, it is mutually attractive and repulsive with various patterns of manifestation, such as constructive, destructiveness, conflict and compromise (Najam, 2005). “Necessary tension” is the fundamental feature of the relationship between government and NPO. Under the framework of “necessary tension”, Najam (2005), based on the purpose and executive strategies of government and NPO, generalized the relationship between government and NPO into four patterns, i.e. cooperative relationship, conflicting relationship, complementary relationship and absorptive relationship (Najam, 2005). Under the overall framework of these four relationship, although government may have one kind of relationship with NPO, but meanwhile, different institutions and members of government may establish other different relationship with NPO; different branches and member in one NPO may establish another relationship with one department of the government (Najam, 2005). On this point, the author of this study believed that the relationship between government and NPO with the Red Cross as their representative mainly reflect on the constructive of the government imposed on NPO, and the dependency of non-profit organizations on the government (Najam, 2005). Meanwhile, these two features are relatively obvious; in the course that the government helps NPO to develop, the government may also become the potential hinder strength for the development of NPO (Najam, 2005). It should pay attention to this point. |
