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Que nous apprennent les Référentiels de Gouvernance Associative en France par rapport à la littérature ? Une analyse lexicométrique [What do the governance frameworks dedicated to French non-profit organizations teach us in comparison with literature? A lexicometric analysis]
Abstract
Cet article propose une analyse des référentiels relatifs à la gouvernance associative. Grâce à la lexicométrie, il synthétise les théories, mécanismes, parties prenantes et bonnes pratiques de gouvernance associative au filtre des principaux référentiels français (AFNOR, ASTC, Comité de la Charte, CSESS, ESSEC et IFA). Les référentiels sont plutôt disciplinaires (agence, dépendance aux ressources, contrôle) et tournés vers les parties prenantes internes. Des divergences conceptuelles, un temps de retard en comparaison avec la recherche et une inadaptation aux associations de petite taille sont également à remarquer. Est proposée une thématisation des bonnes pratiques issues des référentiels. [This article proposes an analysis of governance frameworks dedicated to grassroots volunteer organizations. Thanks to lexicometry, it synthesizes the models, theories, mechanisms, stakeholders and best practices of associative governance with the main French standards (AFNOR, ASTC, Comité de la Charte, CSESS, ESSEC and IFA). The frameworks are rather traditional (agency, resource dependence, control) and focused on internal stakeholders. Conceptual differences, a lag with research and a lack of adaptation to small associations are also noteworthy. A thematization of good practices from the standards is proposed].
... The studies on NPOs' behavior confirm these findings. The governance codes for NPOs aim to protect stakeholders and are mainly based on disciplinary governance (Plaisance, 2021a). Moreover, NPOs multiply isomorphisms with their public and private for-profit partners (Enjolras, 1996), who are looking for more control (Zoukoua, 2005). ...
... The list included 540 potential stakeholders. They were grouped into 27 stakeholder categories (Table 2) following all the associations' stakeholders usually analyzed by the French non-profit literature (Chatelain-Ponroy et al., 2012;Plaisance, 2021a;Zoukoua, 2006b). The exploratory approach explains why this number is so high. ...
[This is an article from a scientific journal] The inclusion of stakeholders by the French grassroots volunteer organizations (GVOs) is congruent with their governance and mission. As a result, its positive effects on performance are well known, but those on the disclosure of governance mechanisms and accountability are less well known. This research, thanks to the analysis of reports proposed by the largest French GVOs, highlights the contributions of each of the categories of stakeholders. The presence of beneficiaries is crucial, and that of leaders has more surprising effects. Several theoretical perspectives are thus opened up around stakeholder theory. The instrumental approach, which focuses on the contributions of stakeholders, is to be preferred to the normative approach, which considers that all stakeholders must be integrated into the management of GVOs.
... This article proposes a contribution to the study of NPOs that is still underexplored. More specifically, this study is based on French NPOs, in particular because management research dedicated to French NPOs is still emerging (Plaisance, 2021). Consequently, current studies can only be based on the scarce data available which leads to numerous methodological limitations. ...
This article examines whether accountability can contribute to the analysis of effectiveness in grassroots voluntary organizations (GVOs) in France.
Based on recent studies and stakeholder theory, hypotheses are formulated about the negative link between accountability and financial effectiveness and a positive link between accountability and non-financial effectiveness.
The findings show that accountability practices are positive determinants of financial indicators (apart from ROA) and employment of people in difficulty. In contrast, the other non-financial indicators are not explained by accountability practices.
The study points out the complexity and paradoxes surrounding accountability and highlights the risk of insensitivity to it. It thus underlines a specific French situation, close to the risks of myopia linked to accountability. One possible explanation could be the coupling and decoupling mechanisms that allow NPOs to regain power. Given the sometimes-random effects of accountability, producing nuanced theories is necessary and governance should oscillate between equilibrium and adaptation in the face of stakeholders. Finally, this article introduces the risk of insensitivity of NPOs to accountability (i.e. they act as they wish, regardless of control mechanisms such as accountability).
This study thus reveals governance dilemmas, which could be solved through less formal, more mission-oriented, more creative and therefore heterodox accountability.
The French context of mistrust of certain managerial approaches and the development of codes of governance based on a disciplinary vision are confronted with a growing and critical literature on accountability in nonprofit organizations (NPOs).
... Finally, it is also the responsibility of standardizers to participate in the knowledge of governance specific to French GVOs. Today, however, the existing standards are anchored in purely supervisory visions (Plaisance, 2021) that GVOs are abandoning. Updating and dissemination work would make it possible to generalize good practices. ...
This article studies French grassroots volunteer organizations, their governance and their accountability. The sample is composed of French major GVOs, in terms of reputation and resources. Their reports and declarations are analyzed. Using multiple regressions, the study shows the relevance of intervention areas, legal statuses and action domains and types when explaining governance mechanisms. Accountability practices are poorly influenced by structural characteristics, but this study points out many weaknesses in both GVOs’ governance and accountability. This research underlines the inapplicability of current literature and the necessity to build a research specific to French GVOs. They are not subject to the same structural influences as other NPOs.
Objectif : La présente recherche explore la relation entretenue entre la gouvernance des organisations à but non lucratif et leur performance globale, qui inclut également leur impact sur leurs parties prenantes. Elle affiche donc des objectifs analytiques autour des liens avec les parties prenantes : avec qui œuvrer et à qui rendre des comptes ? comment rendre des comptes et raffermir les liens avec elles ? quels comptes rendre et quels sont les critères d’évaluation ? Les effets de la gouvernance, les formes prises par la reddition des comptes et la construction sociale de la performance et de l’impact organisationnels sont donc particulièrement étudiés.Approche et méthode : L’ancrage principal est la vision contingente des organisations, à laquelle appartiennent les théories des parties prenantes et de la dépendance aux ressources. A partir d’une démarche hypothético-déductive insérée dans le paradigme épistémique réaliste critique (PERC), les hypothèses issues de la littérature sont testées à partir de méthodes d’analyses de données textuelles, de régressions multiples logistiques et linéaires ainsi que de modèles d’équations structurelles. Les analyses ont porté sur les données des plus grandes associations françaises, sur un questionnaire auprès des dirigeants associatifs pendant la crise de la Covid-19, sur une enquête auprès de parties prenantes individuelles ainsi que sur le cas des Jeunes Agriculteurs.Résultats : Les études menées ont permis de montrer que les mécanismes de gouvernance s’expliquent notamment grâce au secteur et aux actions de l’association. En revanche, les liens entre gouvernance et performance globale sont à étudier au cas par cas. Il en va de même pour les effets de la reddition des comptes sur la performance. La performance à court-terme des associations, à savoir leur viabilité, est renforcée par le maintien des dispositifs de gouvernance tandis que l’adoption d’une orientation sociétale a des effets contrastés sur la viabilité. Enfin, globalement, la gouvernance améliore l’impact et la qualité de relation avec les parties prenantes qui elle-même a un effet positif sur l’impact organisationnel. Cependant, ces résultats doivent être étudiés dans le détail des mécanismes de gouvernance, des parties prenantes et des dimensions de la performance.Implications théoriques : Les résultats obtenus permettent de répondre aux objectifs fixés. Ainsi, la vision contingente de la gouvernance des organisations à but non lucratif conduit à une forte adaptabilité (dans chaque organisation et à ses parties prenantes). Le reporting est un mécanisme crucial de reddition des comptes mais la relation avec les parties prenantes est aussi particulièrement pertinente. Enfin, l'ensemble des concepts abordés sont contingents, permettant d'expliquer une vision émotionnelle et subjective de l’impact ainsi que la multidimensionnalité de la performance. Les théories mobilisées sont donc particulièrement adaptées pour les associations et leur opérationnalisation a été revisitée.Implications praticiennes et sociétales : Les résultats invitent à une mesure raisonnable et flexible de l’impact des organisations à but non lucratif et soulignent le caractère crucial de la gouvernance pour améliorer la performance et l’impact, en dépit des méfiances. La priorisation des parties prenantes est en outre cruciale, pour éviter les problèmes associés à la reddition des comptes holistique. Les composantes de la qualité de relation peuvent alors devenir des critères de hiérarchisation et de priorisation des parties prenantes, car elles varient selon les parties prenantes et ont un effet sur la performance et l’impact.
We answer the call that governance research should focus more on processes outside the boundaries of boards, especially for nonprofit organizations. In particular, we suggest and elaborate concrete steps with respect to the advantages of a leadership coalition perspective to focus more on the behavioral and informal aspects of governance. Through a comparative case analysis of five nonprofit organizations, we explore contingencies between characteristics of nonprofit leadership coalitions and governance quality. We identify two dimensions to classify leadership coalitions: centralized versus diffused influence and specific versus holistic influence. These dimensions are subsequently related with observed governance quality. We frame our finding in the existing literature on group faultlines, which are socially constructed dividing lines within groups, and we discuss the importance of establishing a balanced coalition between a weak or nonexisting and a strong dominant coalition to ensure high governance quality. We also present propositions on how governance quality and its various sub-dimensions can be studied as a complex, nonlinear intermediate concept between coalitional aspects of leadership groups and nonprofit organizational performance. Finally, we discuss concrete avenues for further testing and verification of our theoretical interpretation.
Inter-organizational trust : conceptualization and measurement
Trust is a key factor of the development of partnerships between buyers and suppliers. Despite the interest stirred by the concept of trust, disagreement exists regarding its conceptualization, its size and nature inter-organizational context. This article sets out a conceptualization and an operationalization of trust in inter-organizational context. This operationalization has been tested and validated with 176 French manufacturing firms. The original instrumentation concept of trust could be useful for companies to improve the governance of exchange relationships with their partners.
Because of strong competition and crisis, NGOs need to reassure stakeholders about the effectiveness of their management. Our article deals with the effectiveness of NGOs’ standards (labels, certification, etc.). Interviews were implemented on main French NGOs and on the Association pour la Recherche sur le Cancer that suffered of a big crisis in 1996. The aim is to analyze the effectiveness and limits of NGOs’ standards.
The purpose of this study is to examine the relationships between self-governance through board members and firm performance. Results of this study revealed significant relationships only between some board characteristics and some measures of financial performance. Overall, the findings indicate that board members are not promoting good governance in their organizations. This indicates the need of a specific governance framework to guide board members of nonprofit organisations (NPOs) to engage in good self-governance for the benefits of the NPOs and their relevant stakeholders.
We conduct an exploratory qualitative comparative case analysis of the S&P 1500 firms with the aim of elaborating theory on how corporate governance mechanisms work together effectively. To do so, we integrate extant theory and research to specify the bundle of mechanisms that operate to mitigate the agency problem among publicly traded corporations and review what previous research has said about how these mechanisms combine. We then use the fuzzy-set approach to qualitative comparitive analysis (QCA) to explore the combinations of governance mechanisms that exist among the S&P 1500 firms that achieve high (and not-high) profitability. Our findings suggest that high profits result when CEO incentive alignment and monitoring mechanisms work together as complements rather than as substitutes. Furthermore, they show that high profits are obtained when both internal and external monitoring mechanisms are present. At the same time, however, monitoring mechanisms evidently combine in complex ways such that there may be simultaneity of substitution and complementarity among and across the various monitoring and control mechanisms. Our findings clearly suggest that the effectiveness of board independence and CEO non-duality—governance mechanisms widely believed to singularly resolve the agency problem—depends on how each combine with the other mechanisms in the governance bundle.
The paper surveys in a critical manner the recent development in firms theories. It is organized around two directions. The first one analyses the contributions recently proposed around the vision of the firm envisaged as a “nexus of contracts”, focusing on the different recent variants of the theories of property rights and of imperfect contracts applied to the firm. The second - starting from Cyert, March and Simon - passing by the contributions of Edith Penrose, Chandler and evolutionary theorists, analyses the theories of the firm conceived as a processor of information and knowledge and finally as a “nexus of competencies”. The strength but also the limits of both approaches are highlighted.
By investigating managerial objectives, we test the simultaneous need for both control (agency theory) and collaboration (stewardship theory) in public and non-profit governance. We construct a discrete choice experiment to elicit preferences of managers in Belgian public and non-profit nursing homes. The results confirm that boards of nursing homes may experience pressure to simultaneously control and collaborate with their managers, thereby suggesting that agency and stewardship theory can be combined into a more general internal governance framework. We conclude by providing some policy implications to improve public and non-profit governance.
Cette contribution est d'ordre méthodologique. L'Analyse de Données Textuelles (A.D.T.) regroupe aujourd'hui de nombreuses méthodes, et de nombreux outils, qui visent à découvrir l'information « essentielle » contenue dans un texte. En s'intéressant plus particulièrement à la demande des chercheurs en Management Stratégique, quatre exemples sont présentés, tous issus du même laboratoire de recherche, des différentes approches de l'A.D.T. De quoi parle-t-on? C'est le domaine de l'analyse lexicale. Comment en parle-t-on ? Il s'agit alors d'analyse linguistique. Comment structurer une pensée ? C'est l'ambition de la cartographie cognitive. Et enfin comment interpréter un contenu ? Il s'agit de l'assistance à l'analyse thématique. Pour ces quatre approches (illustrées par les quatre outils Alceste, Tropes, Decision Explorer, NVivo) on discute des problèmes méthodologiques et théoriques posés : discours et représentation, langage et énonciation, structuration et communication, interprétation et abstraction… Mots clés : méthodologie, lexicale, linguistique, cartographie, qualitative.
The paper’s starting point is the fact that the non-profit actors who professionalise are caught between their social mission and their business objectives. We address the issue by studying the governance-competencies combination in the non-profit sector, an uncommon subject in the literature in spite of its interest. The paper’s central question is: “How can the governance of a non-profit organisation benefit its social and business objectives? Where do competencies come into play in that context? We build an analytical framework based on two theoretical corpuses stemming from finance and strategic management: contractual theories and the theories of resources and competencies, the latter of which enrich what is known as the cognitive approach to financial governance. The empirical section is based on action-research work carried out in a longitudinal way with a non-profit association, Citoyens de la Terre (CT). CT is engaged in promoting corporate social responsibility (CSR) and sustainable development (SD) among tourism professionals in Provence and Mediterranean territories in France. The paper presents a case study with embedded design given that the organisation is part of several Social and Mutually-Beneficial Economics (SMBE) and for-profit networks. Our qualitative methodology is based on data polyangulation. Results confirm certain hypotheses suggested in the literature and offer stimulating insights for our knowledge of the management and governance of professionalised non-profit organisations. First, the paper confirms that, and clarifies how, the contractual and cognitive approaches to governance are complementary, and it adapts them to the non-profit field of activity. It shows the merits of a governance system which carefully balances disciplinary mechanisms in management and representatives bodies on the one hand, and participating democratic practices engaging legitimate stakeholders in decision-making processes on the other. The paper introduces the notion of managed contract-based governance in order to account for the organisation’s policy to find a suitable compromise between efficient management and militant values based on its priority objectives at each stage of its life cycle. Second, the study highlights the competencies that appear to be major determinants in the success of the governance and associative project. It emphasises the advantages resulting from a competencies-centred governance which results in: (1) directing members towards activities and responsibilities which will benefit the organisation most; (2) clarifying members’ responsibilities in accordance to their status and mission in the organisation; (3) clarifying the function of management and representative bodies on the basis of their proper competencies; (4) safeguarding the complementary qualities of individual competencies harnessed to achieve the collective project; (5) encouraging members to share competencies with the organisation in a mutually-enriching process. The success of the organisation’s project also crucially depends on the members’ expertise in the necessary competencies. In the case of CT, acquiring, selecting, renewing and transferring competencies are central to the organisation’s project. In that respect, CT is akin to Janus, the two-headed Roman god, since its pivotal role is to ensure two-way competency transfers, between SMBE and classical economics, which are the cornerstone of its mission. Two suggestions for further research conclude the paper. First, the study may be enlarged to include a wider sample of non-profit organisations with a view to generalising statistical results. Second, the study may proceed with the ongoing investigations to examine how competency transfers are carried out in sustainably developed tourism projects which involve other actors in other territories.
Although accountability systems are established to ensure organizational adherence to financial and ethical standards for nonprofit organizations, the reality of whether such standards make a difference to donors has not been measured. This article discusses the current landscape of accountability systems and accountability ratings and describes a model for estimating the effect of ratings systems on donor behavior within the theoretical context of information asymmetry. Hypotheses are tested with nonprofit ratings for New York charities from the Better Business Bureau's Wise Giving Alliance to estimate the effect of accountability ratings on the amount of contributions an organization receives. Results indicate that the Wise Giving Alliance "pass" ratings have a statistically significant effect on the contributions received; however, "did not pass" ratings are nonsignificant. The study is important for academics as well as practitioners who are monitoring time and money spent on accountability issues.
Purpose
– This paper aims to focus on governance theories and practice variables in Not-For-Profit Service Organizations. The research answers two questions: what the prevalent governance practices of Not-for-Profit Service Organizations (NPSO) are, and whether there is a crossover among NPSO governance practices and For-Profit-Organization theories in the literature.
Design/methodology/approach
– A questionnaire to the 285 organizations within the defined parameters obtained a 18 percent response. Data were collected regarding the boards' predominant roles in the organizations' governance activities, the top executives' predominant roles in the organizations' operations and their interrelationship with the boards, and the boards' most common meeting agenda topics.
Findings
– The findings prove that governance models in NPSO are mostly driven by Agency Theory (52 percent of the sample). Stewardship and Resource Dependence Theories also contribute to existing governance models (28 percent), while some of the organizations have developed Hybrid Models (20 percent) drawing from the various theories.
Research limitations/implications
– The limited number of organizations participating in the research does not allow a generalization. However the diversity of organization types and sizes within the scope do provide a panoramic view of the not-for-profit service sector.
Practical implications
– Having proved that there is a crossover of governance practices among For-Profit and Not-for Profit Organizations, this research opens the door to the evaluation of many other existing or potential crossovers in governance and other management elements.
Originality/value
– This research is novel in its approach to look for similarities rather than differences between For-Profit and Not-for-Profit Organizations. The approach allows both sectors to learn from each other and seek for fresh improvement alternatives.
The scholarly interest in governance has peaked remarkably within the social sciences in the last couple of decades (Kitthananan 2006; Kjaer 2004; Pierre 2000). The multi-faceted usage of the governance concept found in the study of civil society indicates that more than one phenomenon is in fact being addressed, and that several different approaches are taken at the same time. For students of civil society
organizations (CSOs) in particular, two main strands of research dealing with the idea and concept of governance seem to be of interest.
The first one focuses on what we may call ‘‘external governance’’ and is concerned with the processes through which societies are governed. Increasingly, institutional mechanisms other than those of the state, such as civil society and the market sector, are involved in processes of external governance (Bozzini and Enjolras 2011; Rhodes 1997). This has entailed an increased political and scholarly interest in how CSOs are involved in governance.
The second strand of governance scholarship deals instead with organizational (‘‘internal’’) governance. Here questions are typically raised about particular modes of internal governance and their efficiency, with a particular interest for the role of the board (Ostrower and Stone 2006).
While in the first of these two genres, there is a dominance of political scientists, scholars with a background in management studies, law or economics, tend to dominate the other. Both strands of literature are quite rich and well-developed in their own right, although the concept of governance might not always be the one preferred by the authors. It is however less common for governance scholars to engage in debate across this field border, or to address issues seen as central in the other field.
This paper addresses the governance of hybrid forms of organisation arising in new social movements, characterised by diverse institutional logics and democratic decision making. Our theoretical framework encompasses the governance theory of Kooiman with insights from new developments in institutional theory. This framework allows us to examine governance as the capacity to link together disparate institutions from the perspective of interactions between action, project and instrument, and to explore the institutional work that results from these interactions. By studying a French activist coalition, we explore the micro-processes that make it possible to accommodate diversity in an organisation intended to produce solid institutions. Our results show that the three elements of governance—action, project and instrument—have an impact on the cohesion of diversity-based organisations and on building and consolidating institutions. When these elements are flexible and versatile enough, and when they mutually nurture each other, a plurality of logics is possible, the coalition goes forward, and true institutional work can be accomplished. When one of these elements of governance—instruments in particular—becomes autonomous and rigid, diversity is more difficult to achieve and one logic is likely to prevail over the others, compromising the very survival of the coalition and impeding the emergence of a new institution.
The main approach to the study of corporate governance within companies is predominantly based around 2 important theories focussing on 2 different standpoints - that of the shareholder and that of the stake-holder. The theory deals with the delicate balance of creation and distribution of profit between management and one or more outside agencies – whether shareholders or other stakeholders. A third theory has recently emerged however – namely the cognitive theory of governance. As a means to the creation and distribution of profits, this theory is more concerned with a company’s structures and, as a consequence, its ability to identify problems as they arise and to deal with them appropriately and effectively. Despite the conceptual differences between the theories, the characteristics pertaining to corporate bodies and the importance accorded to its management team remain at the heart of all critical analysis. Because of the very particular way that profit and non-profit making business organisations are constituted legally as well as the manner in which they are set up and run it is not easy to apply these same models of governance. As a result, this area of the business sector has not attracted as much academic interest or analysis as corporate governance proper. This is a regrettable oversight in view of the importance this type of organisation plays generally in the business world. In view of this, and always within the framework of research currently being undertaken on corporate governance generally, this article is an attempt to encourage global analysis of what makes for a successful profit or non-profit-making business organisation in terms of management.
The contribution of board structure and process dynamics to organiza tional and board effectiveness is the focus of this article. Based on data collected from a cross section of Canadian nonprofit organizations, the results show a positive association between the perception of board effec tiveness and the use of many of the most widely advocated prescriptions on how a nonprofit board of directors should operate. However, when objective indicators of organizational performance are examined, the link between performance and board behaviors is found to be more limited.
Purpose – The collapse of some prominent corporations over the last ten years has been attributed to poor governance. Not-for-profit agencies are now examining their own governance policies and practices in an attempt to prevent the calamities that have plagued the private sector. Because heritage sites, conservation organizations and heritage-based tourism are significant factors in the social life and economies of many countries, the proper management of cultural heritage initiatives is vital. This paper seeks to undertake the development of a set of good governance principles applicable to the oversight and operation of cultural heritage institutions. Design/methodology/approach – The fifth World Parks Congress, in South Africa in 2003, encouraged the development of governance principles for protected areas based on the UNDP document Governance for Sustainable Human Development. Using these standards as a reference for the cultural heritage setting, UNESCO and ICOMOS charters and conventions, along with documents from National Trusts in specific countries are examined with regard to their relevance to good governance. Findings – A set of good governance criteria and principles including legitimacy and voice, direction, performance, accountability, and fairness, is developed. Practical implications – The paper addresses governance issues and principles relevant to non-governmental and public sector governance in the cultural heritage sector. Originality/value – The paper draws on principles of good governance from several international heritage related agencies, trusts and organizations to develop a set of principles that can be recommended for use in the cultural heritage sector.
Le concept de « stakeholder » peut susciter deux réactions : son incongruité (comment se l'approprier en langue française ?) rebute, tandis que son caractère heuristique séduit. Un seul et même mot pour englober l'ensemble des groupes et individus concernés par les activités des organisations, cela venait sans aucun doute combler un manque. Le terme est, en effet, mobilisé pour identifier et organiser les responsabilités de l'entreprise vis-à-vis des différents groupes (issus de l'environnement élargi) qui y contribuent. Après son introduction aux Etats-Unis par la publication du livre de Freeman en 1984, il s'est rapidement développé dans la littérature autour de l'éthique organisationnelle et de la Responsabilité Sociale de l'Entreprise (RSE). L'idée d'introduire (ou de réintroduire) des aspects normatifs, une dimension éthique explicite dans le management, a suscité un mélange de fascination et de répulsion, telles que les réactions épidermiques de certains économistes (Sternberg 2001 ou Jensen 2002). Le concept se porte bien, en apparence, réussissant le tour de force de connaître à la fois un gros succès managérial, car toutes les grandes entreprises reconnaissent leurs parties prenantes, affichent leurs engagements vis-à-vis de ces dernières sur leurs sites Internet, et d'être devenu incontournable sur le plan académique, òu la théorie des parties prenantes peine à constituer un paradigme dominant.
This article challenges a normative assumption about accountability in organizations: that more accountability is necessarily better. More specifically, it examines two forms of "myopia" that characterize conceptions of accountability among service-oriented non-profit organizations: (a) accountability as a set of unconnected binary relationships rather than as a system of relations and (b) accountability as short-term and rule-following behavior rather than as a means to longer-term social change. The article explores the effects of these myopias on a central mechanism of accountability in organizations—evaluation—and proposes a broader view of accountability that includes organizational learning. Future directions for research and practice are elaborated.
This article provides an overview of the literature on nonprofit principal-agent relationships. It depicts the nature of agency theory and stewardship theory, analyzes the origin of their struggle within the nonprofit structure, and marks directions for a conciliatory approach. We open with an introduction to agency theory and discuss the two main components of its mathematical branch. We thereby contrast it with stewardship theory and elaborate on the arguments that can affect the position of nonprofit principal-agent relationships on the stewardship-agency axis. Analysis of the existing literature points to a lack of consensus as to which theory should be applied. We argue that the division of nonprofit principalagent relationships into board-manager and manageremployee interactions may help to clarify the balance between agency theory and stewardship theory and may lead to the establishment of a strongly founded theory on nonprofit principal-agent relationships. We close with a discussion of how this article may prove valuable to nonprofit policymakers and other empirical researchers.
Non-profit organizations (NPOs) are increasingly obliged to
demonstrate performance in terms of efficiency and effectiveness. The introduction of performance measurement systems is advocated not only to promote external accountability but also for internal
coordination purposes. However, studies concentrating on the use of
performance measurement systems within NPOs and on how they
balance both internal management needs and external accountability
reporting obligations within their implemented performance
measurement systems are scarce. We would like to narrow this gap by
addressing this question with regard to NPOs in Austria. Therefore we
analyze the design and instrumental purposes of their performance
measurement systems employed, explore who exerts influence on the
development of performance measurement systems and discuss several contingency factors in this context. Additionally, we inquire how the NPOs interviewed assess the cost-benefit ratio of the performance measurement systems imposed on them.
The study of nonprofit governance is coming into its theoretical heyday by incorporating a sophisticated understanding of its contingent and multidimensional nature. A systems view of governance acknowledges the interplay of internal and external dynamics on board performance. But empirically, large-scale, generalizable data that can test these concepts on board performance have been scarce. This study helps to fill that gap with a structural equation analysis of a national representative survey of member-serving organizations. The results suggest that board performance is associated with complex organizational and labor dynamics, and that performance metrics themselves are multidimensional. Furthermore, not all relationships with strong boards are directly measurable. Some appear related to indirect external market dynamics or healthy internal dynamics such as learning and self-evaluation.
This study compares governance practices and structures used in stock exchange listed companies and not-for-profit organizations (NPO). It aims to identify and evaluate how these two groups of organizations develop solutions and define good organizational governance practices and implications for developments of the governance of NPOs. In order to compare governance solutions, a framework was adopted based on five categories, or building blocks, existing in a governance system and addressed in different governance codes. Information was collected from NPO's by-laws and from companies public documents. The comparison helped identify major differences and similarities between governance practices, especially targeting development aspect for NPOs.
Volunteering is any activity in which time is given freely to benefit another person, group or cause. Volunteering is part of a cluster of helping behaviors, entailing more commitment than spontaneous assistance but narrower in scope than the care provided to family and friends. Although developed somewhat independently, the study of volunteerism and of social activism have much in common. Since data gathering on volunteering from national samples began about a quarter of a century ago, the rate for the United States has been stable or, according to some studies, rising slightly. Theories that explain volunteering by pointing to individual attributes can be grouped into those that emphasize motives or self-understandings on the one hand and those that emphasize rational action and cost-bene tit analysis on the other. Other theories seek to complement this focus on individual level factors by pointing to the role of social resources, specifically social ties and organizational activity, as explanations for volunteering. Support is found for all theories, although many issues remained unresolved. Age, gender and race differences in volunteering can be accounted for, in large part, by pointing to differences in self-understandings, human capital, and social resources. Less attention has been paid to contextual effects on volunteering and, while evidence is mixed, the impact of organizational, community, and regional characteristics on individual decisions to volunteer remains a fruitful held for exploration. Studies of the experience of volunteering have only just begun to plot and explain spells of volunteering over the life course and to examine the causes of volunteer turnover. Examining the premise that volunteering is beneficial for the helper as well as the helped, a number of studies have looked at the impact of volunteering on subjective and objective well-being. Positive effects are found for life-satisfaction, self-esteem, self-rated health, and for educational and occupational achievement, functional ability, and mortality. Studies of youth also suggest that volunteering reduces the Likelihood of engaging in problem behaviors such as school truancy and drug abuse.
Stakeholders are demanding nonprofit organizations (NPOs) continually improve themselves and work effectively while operating in an ever-changing environment. While there are many ways to approach this operational challenge, this paper examines the impact of acquiring an accountability certification, specifically the Standards for Excellence® Certification. Using a sample of 102 NPOs that have received the Standards for Excellence certification, we find that the certification is associated with increases in public support relative to a control group of nonprofits that did not receive the certification. These results suggest that some stakeholders favorably respond to the certification process, and NPOs can realize tangible benefits from becoming certified.
At first sight, governance can appear as a matter of human relationships (between stakeholders, partners or agents in contractual theory). However it is still important to direct attention towards its technical purpose. Beyond their precise functions, management tools certainly have political and structural effects. They are the material support of organisations, and the former can be studied to analyse the latter. This article analyses the governance of non-profit, home care organizations through the techniques of performance evaluation. These techniques were imported from for-profit organizations to the non-profit sector. What social relationships between stakeholders are revealed by the operation of evaluation and what does it say about governance ? The research is based on the study of the case of five home care nonprofits (52 semi-directives interviews and 9 observations).
The role of different policy actors, including elected and appointed officials and professional administrators, in setting, administering, and implementing policies and programs has been the subject of much investigation. Most recently, an article by James Svara has developed the concept of the continuum of policy and administrative decisions and moved away from the notion of a sharp separation between the two. This article compares the involvement of state level boards using the continuum developed by Svara. Participation in four areas of policy-administrative involvement is empirically and systematically examined for the 68 boards in Virginia with agencywide purviews. Findings indicate that boards are more active in mission and policy areas than in administration and management. However, boards with higher levels of statutory authority are significantly more involved in all four areas.
Purpose
The purpose of this paper is to explore financial governance as practiced by NGOs in Ghana and further examines the determinants of the financial governance structures of the NGOs. The study specifically investigates which organizational‐level characteristics exhibit any link whatsoever with governance as it relates to budget preparation, budget execution and internal controls and budget monitoring.
Design/methodology/approach
Using a questionnaire to conduct the survey, a cross‐sectional regression analysis was executed.
Findings
The findings of the study indicate that the most positively influential factor in explaining an NGO's adoption of a governance framework is its size. The other variables, organizational age and independence, are not significant across all three financial governance proxies and when they prove significant, the effect is negative.
Originality/value
The findings hold important policy implications and especially so for countries that attract significant funding via relatively small‐sized NGOs.
For about a decade, the intensifying debate on corporate governance has led to multiple initiatives promoting rules of "best practice." These initiatives are led by a great variety of actors, such as institutional investors, international organizations, national governments or corporate managers themselves. They have brought about several so-called corporate governance codes, which are applicable on a voluntary basis and contain some recommendations that are often represented as an "ideal" solution. Whenever ideas on corporate governance are hence promoted on a large scale and there is growing consent on them representing a universal standard, a critical examination of their theoretical underpinnings may prove helpful to avoid being locked into a narrow and possibly counterproductive perspective.
Nonprofit organizations are expected to be effective, efficient, and transparent, but they also must legitimize their governance practices. Such high expectations often lead to the adoption of concepts and practices from the for-profit sector, including, notably, the use of self-assessment. This article provides an overview of current practice in the use of self-assessment by nonprofit boards in Switzerland, its antecedents, and its effects from a neoinstitutionalist perspective.
Nonprofit organizations (NPOs) are increasingly required to become (more) effective. This review summarizes and integrates the results of studies focusing on NPOs' governance effectiveness. It proposes an extension of stakeholder theory to NPOs concerning governance involving diverse stakeholder groups. What makes this paper innovative is that it aims to identify more than effective board governance, and takes the perspectives of multiple nonprofit key stakeholders into account. This approach is particularly valuable as numerous researchers argue that the likelihood of NPOs being perceived as effective increases when they manage to align the, possibly very diverse, expectations of stakeholders on good governance. We consequently focus on the relationship between (1) the needs and objectives of key stakeholders and (2) (expected) governance (structures) in NPOs. The stakeholders we consider are government, beneficiaries, private donors, board members, management, volunteers, and non-managerial staff members. Results not only show the lack of attention some stakeholders have received in the literature, but also the governance related conflicting needs and objectives between stakeholder groups. In addition, even in the same stakeholder groups it is not rare that opposing findings are reported. Several studies indicate the (unforeseen) negative impact on (being accountability to) other stakeholders when NPOs try to be responsive to the needs and objectives of a particular stakeholder group. The value of this review lies in the fact that it reveals both the complexity of and the need for stakeholder management in NPOs, if they want to be perceived as (more) effective by their numerous stakeholders, and related to that gain insight in how to improve their governance practices. Numerous directions for further research are suggested.
Argues that the formal structure of many organizations in post-industrial society dramatically reflect the myths of their institutional environment instead of the demands of their work activities. The authors review prevailing theories of the origins of formal structures and the main problem which those theories confront -- namely, that their assumption that successful coordination and control of activity are responsible for the rise of modern formal organization is not substantiated by empirical evidence. Rather, there is a great gap between the formal structure and the informal practices that govern actual work activities. The authors present an alternative source for formal structures by suggesting that myths embedded in the institutional environment help to explain the adoption of formal structures. Earlier sources understood bureaucratization as emanating from the rationalization of the workplace. Nevertheless, the observation that some formal practices are not followed in favor of other unofficial ones indicates that not all formal structures advance efficiency as a rationalized system would require. Therefore another source of legitimacy is required. This is found in conforming the organization's structure to that of the powerful myths that institutionalized products, services, techniques, policies, and programs become. (CAR)
BRUNO HAUTENNE " Contribution to a sociology of the association "
Without the work that Michel Crozie made at the beginning of the sixties, socio-logy of organisations, this way of thinking new in the French-speaking countries, would not now be considered as one of the subjects of the field of sociology. So far not even a study of the same kind has been made about associations which are also structures highly representative of the social work.
The Board Self-Assessment Questionnaire (BSAQ) was developed to assess board performance in six areas that previous research has shown to characterize highly effective boards. Data from 623 board members in 34 nonprofit organizations were used to examine this instrument's reliability, validity, and sensitivity, including the relationship between board scores and selected indicators of the organization's financial performance. Results indicate that the BSAQ is a sound and useful tool for evaluating board performance.
Several critical factors, including demographic trends and shifts in public policy, promise to alter the balance between public, nonprofit, and proprietary provision of human services in the years ahead.
This study investigates whether nonprofit organizational effectiveness is judged consistently by differing constituencies and whether changes in board effectiveness and overall organizational effectiveness (judged by differing constituencies) are the result of changes in the use of practices regarded as the “right way” to manage. The results show that different constituencies judged the effectiveness of nonprofit organizations differently, at both periods; that a change in the use of correct board practices over time, controlling for board effectiveness at time 1, was not related to board effectiveness at time 2; and that a change in the use of correct management practices, controlling for organizational effectiveness at time 1, was not related to organizational effectiveness at time 2, except for board members. Implications of the results are considered. Claims about best practices for nonprofit boards and organizations must be evaluated more critically. Finding the right fit among practices is more important than doing things the “right way.
This article begins to fill gaps that currently exist between research on the governance of nonprofit organizations and research on public governance and focuses on how nonprofit governance research can benefit from insights in the public governance liter- ature. As boundaries between nonprofit governance and public governance are increas- ingly fluid, our theoretical understanding as well as our empirical work on governance must expand to encompass these new relationships. The article summarizes the extant empirical literature on nonprofit governance and compares this research to emerging work on public governance. Drawing on this literature, the article specifically calls for research on nonprofit governance that (a) gives greater attention to the links between organizational governance and the public interest, (b) incorporates a broader view of governance as a process engaging multiple actors and taking place at multiple levels, and (c) links governance to accountability for results.
Prevailing conceptions of the welfare state in the United States have failed to acknowledge the widespread partnership that exists between government and private voluntary organizations in the provision of human services. Thanks in large part to this partnership, voluntary organizations have retained a significant role in the American welfare state, delivering a larger share of government-financed human services than government agencies. By cutting back on government spending, therefore, the Reagan administration has significantly reduced the revenues of the nonprofit sector while calling on this sector to do more. Although nonprofits as a group have overcome the resulting cutbacks, they have done so chiefly by increasing their income from service charges, rather than their private charitable support.
The economics-based theoretical and related empirical literature on the governance of nonprofit organizations is brought together and integrated in a way easily accessible for noneconomists. This literature is scattered in academic journals covering economics, health economics, management, and accounting, and in the more nonprofit-geared research publications. After defining corporate governance, I present in a nontechnical way the most appropriate economic framework for studying governance problems: the principal-agent theory. Most of the economic literature deals with the role and influence of the board and its relation to the organization's management and performance. This is reflected in the article's structure. The board's functioning, composition, and committee structure are first discussed, followed by a review of the literature on incentive-based remuneration schemes, disclosure of financial information, and the use of debt to mitigate agency problems between the board and management. The literature dealing with donors and subsidizing authorities in governance relations is then presented. The article concludes with a number of practical implications of the scholarly obtained results to date, as well as some suggestions for further theoretical and empirical research.
This article examines the circumstances under which nonprofit organizations adopt corporate governance practices. In the study reported here, the authors found that adoption of corporate governance practices depends primarily on the presence of a supportive institutional (that is, value) context as well as available resources to support governance restructuring. These findings strongly suggest that the adoption of structures and practices from the for-profit sector is neither a feasible nor even a desirable solution to problems facing many nonprofit organizations.
The concept of governance has been widely discussed in both the business and non-business sectors. The debate has also been entered into within the charity sector, which comprises over 169,000 organizations in the UK. The UK-based Charity Commission, which describes itself as existing to ‘promote sound governance and accountability’, has taken a lead in this debate by promoting greater regulation and producing numerous recommendations with regard to the proper governance of charitable organizations. However, the concept of what is meant by governance is unclear and a myriad of ideas are placed under the umbrella of ‘good governance’. This paper explores the major themes that form the basis of much of this discussion, examining both the theoretical underpinnings and empirical investigations relating to this area (looking from the perspective of the key stakeholders in the charity sector). Based on an analysis of the extant literature, this paper presents a broad definition of governance with respect to charities and outlines a future research agenda for those interested in adding to knowledge in this area
A number of contingency factors may be relevant for effective nonprofit organizations and their boards. Although all boards must fulfill certain critical roles and responsibilities, strategic choices can be made about adopting different governance configurations or patterns. These choices can be meaningfully informed by understanding organizational contingencies such as age, size, structure, and strategy—and, even more important, by external contingencies and environmental dimensions such as degree of stability and complexity. This article extends or layers contingency thinking beyond its traditional focus on an alignment between the external environment and the organization's structure to focus as well on the alignment of the organization's governance configuration with its structure and environment. Structural contingency theory in general, and specifically within nonprofits, is reviewed. Two cases are presented of organizations that used an approach based on contingency theory in an action research process to examine and change their governance configurations. The steps they followed may help other nonprofits adapt their governance structures and practices and fulfill their responsibilities for board assessment and reflection.
Drawing on the general literature on organizational effectiveness, the specialized literature on nonprofit organizational effectiveness, and recent research in the field, this article advances nine theses, or conclusions, about the effectiveness of public benefit charitable, nonprofit organizations (NPOs). NPO effectiveness is (1) always comparative, (2) multidimensional, (3) related to board effectiveness (but how is not clear), (4) related to the use of correct management practices but not in any simple “best practices” way, and (5) a social construction. Furthermore, (6) it is unlikely that there are any universally applicable best practices that can be prescribed for all NPO boards and management, (7) organizational responsiveness is a useful organizational-level effectiveness measure, (8) distinguishing among types of NPOs is important and useful, and (9) level of analysis makes a difference in researching and understanding effectiveness. The article concludes by considering implications for organizational practice, boards and governance practices, program evaluation, including program outcomes assessment, and capacity building and capacity builders.
This article proposes a new theoretical concept of nonprofit governance using transaction cost economics and the economic theory of contracts. After a short review of economic approaches to corporate governance, I clarify the specific nature of the governance problem in nonprofit organizations. Based on this analysis, I derive criteria for selecting an organization's relevant stakeholders. If stakeholders provide valuable specific resources without the protection of a comprehensive contract that details exactly how the organization is to use these resources, then such stakeholders seek decision and control rights in order to direct the use of the resources they have provided. I argue that the core problem of governance is how to enhance valuable specific contributions of the relevant stakeholders while keeping the costs of bargaining between stakeholders and the costs of collective decision making low. The theory developed is then applied in a discussion of practically relevant governance mechanisms, and the concept of governance is used to contribute to the discussion on the strengths and weaknesses of the nonprofit character of organizations from a governance perspective.
Note: This study investigated six dimensions of effective board performance, as suggested by Chait, Holland, and Taylor (1991), in relation to three theoretical explanations (agency theory, resource dependency theory, and group/decision process theory) of how board governance activities potentially influence organizational performance. Survey research findings revealed that strategic contributions from the board are more robust in organizations with higher financial performance. In addition, organizations that are judged to be higher performing also reported having high-performing boards across all dimensions. In particular, the interpersonal dimension provided a unique explanation of judgments of organizational performance.
The managers and constituents of nonprofits are increasingly concerned about measuring and managing organizational performance. Financial measures alone, or even supplemented with a collection of ad hoc nonfinancial measures, are not sufficient to motivate and evaluate mission accomplishments. This article describes the adaptation of a new performance measurement and management approach, the Balanced Scorecard, to the nonprofit sector. Several examples of actual implementation are provided.