Charity Transgressions, Trust and Accountability

This research demonstrates how sustained charity fraud is supported when organisations do not develop strong accountability links to salient stakeholders. Whilst increased regulation is one response to reduce charity fraud and to increase organisational accountability, regulators seldom recognise the myriad heterogeneous needs of stakeholders. This research explores the tactics employed by beneficiaries and the donating public to escalate their accountability demands on such charities. By preferring the most powerful stakeholders, charities miss the opportunity to design effective processes to discharge accountability to meet their moral obligations to legitimate stakeholders. This article calls for increased ??stakeholder understanding?? by charity governors as a policy to recognise the moral rights of these stakeholders and to reduce charity transgressions.     

Technology at the planning table: Activity theory,negotiation and course management systems

Abstract

This paper presents results from a qualitative inquiry into how online courses in UK and US HEIs are shaped by stakeholder negotiations around course management systems. The investigation used a multi-theory framework composed of Cervero and Wilson's (1994) negotiation of power and interests model and activity theory. Forty-six stakeholders from seven sites participated in the study. The findings identified four primary benefits that prompt stakeholders to employ specific course management systems and described two types of relationships that exist between the stakeholders and their CMS.     

Should NPOs Follow International Standards for Financial Reporting? A Multinational Study of Views

Financial reporting is an important aspect of not-for-profit organisations’ (NPOs’) accountability. Globally, numerous and varying regimes exist by which jurisdictions regulate NPO financial reporting. This article explores whether NPOs should be required or expected to follow sector-specific international financial reporting standards. We investigate stakeholder perceptions on the nature and scope of any such developed standards, interpreting our findings through the lens of moral legitimacy. Using an international online survey of stakeholders involved in NPO financial reporting, we analyse 605 responses from 179 countries. Based on our findings, we argue that diverse stakeholder groups, especially those who are involved with NPO financial reporting in developing countries, are likely to grant moral legitimacy to developed NPO international accounting standards if the consequences are to enhance NPO accounting and accountability information, subject to agreement as to whether all or only NPOs of a certain size should comply and whether any such standards should be mandatory.     

Accountability as a Managerial Tool in Non-Profit Organizations: Evidence from Italian CSVs

The long-term performance of NPOs is based on their ability to link and maximize social value as defined in their mission. This involves legitimacy obtained from stakeholders influenced by and influencing NPO activities, and their operational capacity or economic efficiency. Thus, NPOs have to utilize multiple level accountability systems which should be compatible with their multiple objectives and stakeholders’ claims. The accountability system of an NPO should focus on its operational capacity, because in order to maximize its efficiency, an NPO has to measure its resource use, cost structure, and financial structure. Legitimacy obtained from stakeholders is also integral. If an organization is considered a social contract between multiple stakeholders, it has to consider the social economic effects of its activities and it has the duty to account for them. However, since the mission of an NPO is to create and distribute social value to a certain specific group, its social value creation has the most important role and an NPO should measure the social value it has created. This article analyzes the accountability system of a specific type of Italian NPO called Centri di Servizio per il Volontariato (CSVs)—namely centers which provide services for voluntary associations. The aim of the research is to verify if the accountability system adopted by CSVs satisfies their need for multiple level information (operational, legitimacy, and social value) and accomplishes their stakeholder claims, and to determine its impact on the definition and implementation of their strategy and on their long-term performance. The research was carried out using the action research model, and the findings are based on the analysis of a sample of 64 CSVs situated throughout Italy.     

The persistence of cliques in the post‐communist state. The case of deniability in drug reimbursement policy in Poland

This article explores a key question in political sociology: Can post‐communist policy‐making be described with classical theories of the Western state or do we need a theory of the specificity of the post‐communist state? In so doing, we consider Janine Wedel's clique theory, concerned with informal social actors and processes in post‐communist transition. We conducted a case study of drug reimbursement policy in Poland, using 109 stakeholder interviews, official documents and media coverage. Drawing on ‘sensitizing concepts’ from Wedel's theory, especially the notion of ‘deniability’, we developed an explanation of why Poland's reimbursement policy combined suboptimal outcomes, procedural irregularities with limited accountability of key stakeholders. We argue that deniability was created through four main mechanisms: (1) blurred boundaries between different types of state authority allowing for the dispersion of blame for controversial policy decisions; (2) bridging different sectors by ‘institutional nomads’, who often escaped existing conflicts of interest regulations; (3) institutional nomads’ ‘flexible’ methods of influence premised on managing roles and representations; and (4) coordination of resources and influence by elite cliques monopolizing exclusive policy expertise. Overall, the greatest power over drug reimbursement was often associated with lowest accountability. We suggest, therefore, that the clique theory can be generalized from its home domain of explanation in foreign aid and privatizations to more technologically advanced policies in Poland and other post‐communist countries. This conclusion is not identical, however, with arguing the uniqueness of the post‐communist state. Rather, we show potential for using Wedel's account to analyse policy‐making in Western democracies and indicate scope for its possible integration with the classical theories of the state.     

Public reporting: A neglected aspect of nonprofit accountability

Nonprofit organizations have a compulsory external accountability (largely involving financial reporting) to government agencies such as the Internal Revenue Service and state regulators. They also have a pragmatic “must‐do” accountability to their funders, clients, and other obvious stakeholders. But are nonprofits also accountable to the public at large? If so, how can such accountability be implemented, given the diffuseness and breadth of the public as an audience? This article suggests that nonprofits should consider the citizenry as a stakeholder, if only due to the substantial taxpayer subsidy of the sector. The theory of public reporting that emerged in public administration literature beginning in the 1920s and 1930s can be helpful. Using principles, templates, and examples from public administration, nonprofit organizations can pursue more vigorous public reporting as one method to increase citizen confidence in their activities and in the sector as a whole.     

Stakeholder influence,government power,and new opportunities for Chinese Internet companies: A multilevel network analysis of cross-sector networks

In recent decades, Chinese Internet companies have experienced exponential growth. As the Internet industry increasingly commends tremendous financial resources, they also face growing stakeholder expectations for corporate social responsibility (CSR) actions. One way through which Chinese Internet companies conduct CSR is by building cross-sectoral collaborations with nonprofit and nongovernmental organizations (NGOs) and governmental agencies. Aiming to understand Internet companies’ strategic relationship building on CSR issues, the researchers drew from stakeholder influence theory and research on a network approach to stakeholder influence, and applied multilevel network analysis to model three networks related to Chinese Internet companies’ CSR collaborations. Specifically, we found that power and urgency are significant predictors of the structure of Internet companies’ cross-sector CSR alliance network. Organizations affiliated or endorsed by the central Chinese government are the most desirable CSR stakeholders. Additionally, the study also revealed that for Internet companies, devoting their attention to Internet-related social issues could increase their desirability as strategic stakeholders from other sectors and among Internet companies.     

What is Negotiated in Negotiated Accountability? The Case of INGOs

This paper discusses the constructivist, negotiated perspective to INGO accountability. According to this perspective, INGO accountability is a process of mutual negotiations between different INGO stakeholders who hold different accountability demands. Acknowledging that this perspective provides a good starting point for a better understanding of INGO accountability, we comment on this conceptualization of INGO accountability. Through an analysis of accountability instruments and procedures, we examine closely how the demands of the INGO’s stakeholders are embedded in particular relationships of accountability which are sustained by particular accountability logics. From this analysis, we point out that, due to the differences that exist between these accountability logics, processes of negotiation are likely to be filled with complex tensions and trade-offs. Moreover, as some accountability logics are much clearer and more compelling than others, a constructivist perspective on INGO accountability does not automatically coincide with an understanding of INGO accountability in which primordial importance is given to the beneficiaries.     

The Inherently Contested Nature of Nongovernmental Accountability: The Case of HAP International

While the principled case for humanitarian accountability is relatively straightforward, the practice is demonstrably more complicated, necessitating constant negotiation among stakeholders. However, despite the wave of research into nongovernmental accountability, few empirical studies have grappled with the phenomenon’s inherently contested nature. This paper foregrounds tensions arising in the elaboration of nonprofit accountability. Its approach is informed by critical constructivist theory, an international relations approach attuned to social power, identity and exclusion, and conceptual contestation; its conclusions are supported by interview data with key stakeholders. Focusing on the Humanitarian Accountability Partnership (HAP) International, it finds that initial consensus on the desirability of beneficiary (downward) accountability quickly gave way to principled disagreements and operational difficulties. Specifically, the initiation stage of HAP was marked by two conflicts—a debate about enforcement and a turf war over control—culminating in rebranding and relocation. The implementation stage was characterized by tensions over certification and intra-organizational struggles over leadership. The contemporary practice of accountability is shown to be a contingent and contested social process, with humanitarian identity and practice ultimately at stake.

     

Wealth,Rights, and Resilience: An Agenda for Governance Reform in Small‐scale Fisheries

The diversity of social, ecological and economic characteristics of small‐scale fisheries in developing countries means that context‐specific assessments are required to understand and address shortcomings in their governance. This article contrasts three perspectives on governance reform focused alternately on wealth, rights and resilience, and argues that – far from being incompatible – these perspectives serve as useful counterweights to one another, and together can serve to guide policy responses. In order to better appreciate the diversity in governance contexts for small‐scale fisheries it puts forward a simple analytical framework focused on stakeholder representation, distribution of power, and accountability, and then outlines principles for identifying and deliberating reform options among local stakeholders.     

Negotiating the Organizational Effectiveness of Social Ventures among Multiple Stakeholders

When planning their social ventures, entrepreneurs generally need to consider multiple stakeholders with conflicting views of organizational effectiveness. We propose a scoring technique that is often used for the analysis of multiple-issue negotiations to analyze and manage the stakeholder conflicts. We show how the quantitative assessment of stakeholders’ preferences results in a one-dimensional subjective measure of organizational effectiveness for each stakeholder. Our approach complements recent research by contributing to a quantitative discussion of organizational effectiveness. Due to typical structural features of the employed scoring template, we are able to derive general principles concerning the conflict structure and the interaction of multiple stakeholders. We find that an increase in the number of stakeholders required for an agreement tends to decrease the perceived organizational effectiveness for the initial negotiators. On the other hand, the multitude of possible agreements is also reduced, thereby sharpening the focus on acceptable proposals to the stakeholders involved.     

Decreasing occupational injury and disability: the convergence of systems theory, knowledge transfer and action research

Many work injuries and their associated disabilities are preventable, but effective prevention requires coordinated action by multiple stakeholders. In trying to achieve coordinated action occupational health practitioners can learn valuable lessons from systems theory, knowledge transfer and action research. Systems theory provides a broad view of the factors leading to injury and disability and a means to refocus stakeholder energies from mutual blaming to effective strategies for system change. Experiences from knowledge transfer will help adopt a stakeholder-centered approach that will facilitate the concrete application of the best and most current occupational health knowledge. Action research is a methodology endorsed by the World Health Organization and the US Centers for Disease Control, which provide methods for successfully engaging stakeholders needed to attain sustainable change. By combining concepts from the three fields we propose MAPAC (Mobilize, Assess, Plan, Act, Check), a five-step framework for developing projects aimed at decreasing occupational injury and disability. Although most practitioners would be familiar with some of the concepts, we believe an explicit framework linked to transferable knowledge from these diverse fields can help design and implement effective programs. We provide examples of model application in workers compensation and in the healthcare workplace.     

A holistic approach to stakeholder management: A rhetorical foundation

The day-to-day concerns of managing stakeholders are a critical matter for public relations practitioners and scholars alike. “Stakeholder theory” subsumes the knowledge base about stakeholders, who are individuals and groups who affect or are affected by an organization's actions. This article argues that a holistic view of stakeholder management rests on rhetorical grounds and concerns answering three fundamental questions: (1) How are stakeholders created? (2) How can relationships with stakeholders be maintained? and (3) How can relationships with stakeholders be improved? Example cases are used to demonstrate how retrospective analysis reveals the effectiveness of stakeholder management approaches. Ultimately and most important, the combination of theory and case analyses are synthesized into a prospective approach to stakeholder management that organizations may use during strategic planning.     

Community members' perceptions on social,cultural changes and its implication for educational transformation in a small school district community

Abstract

Systemic organisational transformation with broad stakeholder involvement is needed in our educational systems. While involving all stakeholders is crucial for building grass-roots community support and garnering input in order to achieve fundamental transformation in schools, community members are typically the least represented stakeholder group in most change efforts. This article's investigation of the community's involvement in a change effort in the United States reflects how important it is to harness the power of stakeholder ownership and help community members communicate and participate in learning communities. This study specifically examined the impact of community members' involvement in school-based community forums on the change effort at large.     

Who Determines How Nonprofits Confront Uncertainty?

This study examines the impact of managers, board members, beneficiaries, donors, and government entities on nonprofit strategic decisions. Using data collected from GuideStar, the National Center for Charitable Statistics, and surveys, we provide evidence that strategic decisions of nonprofits are shaped by the ability of the aforementioned stakeholders to diversify their interests. Our findings offer nonprofits another means by which they can understand and therefore manage their strategic decisions. In addition, our framework suggests future applications of stakeholder theory conceive of stakeholder salience as a bidirectional phenomenon.     

Turning Social Return on Investment on Its Head

This article undertakes a critique of social return on investment (SROI), combining the existing research literature with an analysis of six case studies of supported social enterprises employing people with disabilities and other challenges that affect their access to the conventional labor market. The critique of SROI focuses on its positivist roots and its emphasis on one number, the SROI ratio. It also discusses the technical challenges in producing that number, including concerns about its reliability. The article presents the stakeholder impact statement, an approach that is rooted in interpretivism and attempts to understand the impact of enterprises through the eyes of multiple stakeholders. Unlike SROI, which is a supplement to conventional accounting statements, the stakeholder impact statement integrates financial and social impact data, thereby placing them on the same level of importance.     

Give the Emperor a Mirror: Toward Developing a Stakeholder Measurement of Organizational Transparency

The concept of organizational transparency has vaulted to prominence in recent years. While the virtues of transparency have been tied to trust and credibility, there have been no efforts to measure this abstract concept. Guidelines exist to help organizations be more transparent, but the real test is how stakeholders perceive an organization's transparency. This paper focuses on developing a stakeholder measurement of organizational transparency. Factor analyses, structural equation models, and reliability alphas on the measurement items indicate the instrument measures three transparency reputation traits (integrity, respect for others, openness) and four transparency efforts (participation, substantial information, accountability, and secrecy).     

U.S. Fortune 500’s stakeholders engagement during the COVID-19 pandemic: Evidence for proactive approaches

In times of a national crisis such as COVID-19, it is important for organizations to show that they are good corporate citizens. At the same time, organizations should carefully select the type of messages that resonate with stakeholders so as to reduce stakeholder skepticism. This study examines how U.S. Fortune 500 companies discussed their COVID-19 pandemic CSR actions on Facebook over 15 months and how the public responded to such messages. We identified three CSR themes: internal stakeholder proactive CSR, external stakeholder proactive CSR, and external stakeholder accommodative CSR. When publics engaged, external stakeholder proactive CSR was significantly associated with better behavioral engagement outcomes, more positive emotional engagement outcomes, and less negative emotions. However, such effects are moderated by industry type. Our findings inform public relations theory and practice and suggest that in times of major crises, organizations should prioritize proactive approaches to engage external stakeholders while being mindful of specific institutional contexts.     

Expertise and experience: a deliberative system of a functional division of labor for post-normal risk governance

Public policy is increasingly facing human-made risks in various domains (technology, environment, energy, food, health, security, etc.) that pose new challenge for risk governance. These risks induce cognitive, evaluative and normative challenges that result from uncertainty and ambiguity. This necessitates a new interplay between the state, experts, stakeholder groups, and the public at large. We confront the notion of risk governance with theories of deliberative democracy: How can societies develop deliberative institutions and processes for governing risks more effectively and how can society be better involved in risk governance? We argue that a deliberative system with a functional division of labor that assigns specific tasks to and recognizes specific competences in experts, stakeholder groups, and citizens facilitates an appropriate integration of scientific and experiential substance. We argue that the integration of expertise and experience can be conveyed by differentiated deliberation by expert, stakeholders, and the public, which produces better outcomes than the classical risk analysis approach in many regulatory systems. To this end, we combine theory, normative conceptualization, and institutional practicability.