Observatory

EthosWatch Transparency Rating: Methodological Framework for NGOs

1. Introduction

Transparency and accountability are foundational principles for organizations working in the field of human rights. Despite their critical role, many Non-Governmental Organizations (NGOs) face challenges in demonstrating the extent to which they adhere to transparency and governance standards. The EthosWatch Transparency Rating introduces a structured methodology to assess, compare, and monitor NGOs claiming to protect and promote human rights. The aim is to provide a reliable benchmark for donors, policy makers, and communities.

2. Literature Support

The methodology is informed by two key scientific contributions:

• Ortega‑Rodríguez (2020): Identifies transparency as a fundamental component of accountability in NGOs, outlining its purpose, dimensions, and implications for organizational legitimacy. (DOI: 10.3390/su12145834).

• Bekkers et al. (2025): Emphasizes the importance of transparent data and methodological practices in nonprofit research, providing a framework for reproducibility and trust. (DOI: 10.1007/s11266-025-00736-0).

3. Methodology

The EthosWatch Transparency Rating is based on five main pillars:

1. Governance

• Board structure and responsibilities

• Decision-making procedures

• External oversight and audit mechanisms

2. Financial Disclosure

• Annual financial statements

• Revenue and expenditure breakdown

• Independent financial review or audit reports

3. Operational Transparency

• Clarity of mission and objectives

• Disclosure of programs and activities

• Public access to results and impact assessments

4. Stakeholder Engagement

• Inclusion of beneficiaries and stakeholders in decision-making

• Feedback mechanisms and grievance procedures

• Partnerships and collaborative practices

5. Ethical & Integrity Standards

• Code of ethics and conflict-of-interest policies

• Anti-corruption and whistleblowing mechanisms

• Diversity, equity, and inclusion practices

(0 = No evidence, 1 = Minimal, 2 = Partial, 3 = Substantial, 4 = Full compliance). 

The overall Transparency Score is the weighted average of all indicators, expressed as a percentage and mapped onto a rating scale (A to E).

4. Expected Impact

The Transparency Rating is expected to generate multiple benefits:
– For NGOs: Strengthened credibility and improved governance practices.
– For Donors: Reliable benchmarking tool for funding decisions.
– For Communities: Greater confidence in organizations that represent their interests.
– For Policy Makers: Evidence-based insights for regulatory reforms and monitoring.

References

Ortega‑Rodríguez, C. (2020). Transparency as a Key Element in Accountability in Non‑profits. Sustainability, 12(14), 5834. https://doi.org/10.3390/su12145834

Bekkers, R., Chapman, C. M., Prosser, A. M. B., Wiepking, P. et al. (2025). Let us be Clear: Why and how to Demonstrate data and Methods Transparency in Nonprofit Research. Voluntas. https://doi.org/10.1007/s11266-025-00736-0