The Governance of International Nongovernmental Organizations: How Funding and Volunteer Involvement Affect Board Nomination Modes and Stakeholder Representation in International Nongovernmental Organizations

The governance of civil society organizations (CSOs) is a crucial determinant of organizational legitimacy, accountability, and performance. International nongovernmental organizations (INGOs) are a subtype of CSOs and have received a lot of attention as actors in global governance. Research suggests that INGOs can follow a membership model, where the board is elected by the membership, or a board-managed model, where the board is appointed to represent major stakeholders. Following resource dependency theory, we argue that the choice between these two models depends on the INGOs different sources of funding and the degree of volunteer involvement: As donors and volunteers provide important resources, they are in turn granted the right to nominate board members or to sit on the board. In our quantitative study we show that individual members, regional member organizations, and governmental donors hold a stronger position in the governance of INGOs than philanthropists, foundations and volunteers. Our results inform research on CSO governance by highlighting the relevance of board nomination modes and by showing how CSOs can incorporate stakeholders into their governance mechanisms.     

Agency Problems between Managers and Employees in Nonprofit Organizations: A Discrete Choice Experiment

Most principal–agent literature of nonprofit organizations has focused on the relationship between board members and managers. However, in addition to the role as an agent of the board, the manager also performs a role as principal with respect to the nonprofit employees. By using a discrete choice experiment, we identify the objectives of managers and employees in nonprofit organizations and assess the presence of agency problems in this relationship. Our sample consists of 76 headmasters, 161 teachers, and 39 administrative employees in 74 secondary nonprofit schools in Belgium. We find that the six objectives set out in the experiment play an important role for both headmasters and subordinate staff. However, the results also indicate that some of these objectives are significantly more important for the headmasters. In sum, our results suggest that agency theory and stewardship theory are not necessarily in conflict with each other but can be combined into a more general governance framework for nonprofit organizations. Consequently, we argue that incentive structures that incorporate different types of objectives can facilitate the recruitment and retention of employees in nonprofit organizations.     

Civic Agency in Governance: The Role of Legitimacy with Citizens vs. Donors

Civil society strengthening programs aim to foster democratic governance by supporting civil society organization (CSO) engagement in advocacy. However, critics claim that these programs foster apolitical and professional organizations that have weak political effects because they do not mobilize citizen participation. This literature focuses on how donor programs lead to low legitimacy of CSOs with citizens, limiting the means to develop agency toward the state. Here I investigate the influence of CSO legitimacy with donors and citizens on civic agency. Empirical research was conducted in Bosnia–Herzegovina on CSOs considered legitimate by donors, citizens, and both. I found that different forms of legitimacy were associated with different strategies and agency. CSOs with both forms of legitimacy, which have not received much attention until now, turned out to be of particular interest. These CSOs demonstrated agency as intermediaries between donors, government, and citizens, which enabled greater agency and broader outcomes.     

Principal‐agent relationships on the stewardship‐agency axis

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.     

Donor withdrawal and local civil society organizations: An analysis of the HIV/AIDS sector in Vietnam

The impact of international donor arrival on local civil society organizations (CSOs) is well researched. Less well understood is how local CSOs react and adapt to donor withdrawal. This article explores this phenomenon in the context of the HIV/AIDS sector in Vietnam. Using data from government, donor and CSO sources in Vietnam, it examines how current and planned cuts in donor funding, including donor exit, impact local CSO agency and effectiveness. It finds that while donor withdrawal may reduce CSO capacity and independence, it can also prompt local innovations that—if successful—may improve CSOs’ responsiveness to local stakeholders.     

Constraining Is Enabling? Exploring the Influence of National Context on Civil Society Strength

This article analyses the influence of national context on civil society strength based on four key dimensions: level of democracy, political stability, rule of law and economic development. Whereas existing studies mainly focus on Western and post-communist countries, we explicitly include developing countries in our analysis. We use associational membership as proxy for civil society strength and include data of 53 countries. Rule of law, economic development and (to a lesser extent) political stability emerge from our multilevel regression models as the main factors affecting civil society membership. Unlike previous studies, we show that these relations are quadratic instead of linear. This means that where existing theories predict a drop in memberships in developing countries, we find a rise. In other words, harsh conditions actually strengthen civil society in terms of membership levels. We argue that this could be the case because reasons for CSO membership are essentially different in the developed and in the developing world. Contrary to theoretical assumptions, democratic rights do not appear critically important for civil society membership.     

Managerialism and Beyond: Discourses of Civil Society Organization and Their Governance Implications

Different disciplinary, theoretical, and empirical lenses have contributed to a kaleidoscopic picture of the governance of civil society organizations (CSOs). Most of the time, CSO governance is contrasted with corporate governance in business organizations; only rarely is the broad variety of CSOs taken into account. To widen this perspective, we develop an empirically grounded typology of five discourses of organization in CSOs: managerialist, domestic, professionalist, grassroots, and civic discourse. We argue that each of these discourses gives specific answers to the three core questions of governance: To whom is the CSO accountable, i.e., who are the key actors who need to be protected by governance mechanisms? For what kind of performance is the CSO accountable? And which structures and processes are appropriate to ensure accountability? The way in which different discourses answer these questions provides us with a deeper understanding of the reasons behind the manifold notions of governance in CSOs.     

The Revitalization of a Popular Movement: Case Study Research from Sweden

This article tries to enhance knowledge about organizational characteristics and processes that are important for mitigating oligarchic tendencies in the governance of CSOs, and to discuss the factors that condition the operation of these characteristics and processes. Civil society is frequently seen as an important part of societal governance and discussed as the intermediary link between the individual and society. This connection is often made through the aggregate function of civil society organizations (CSOs). Currently there are discussions regarding the decline of traditional cross-class federative CSOs and the possible effect of this on democracy in society. This article presents a longitudinal case study of the governance within a large, membership-based federative CSO and illustrates the revitalization of a CSO and its mission through the influx of a new group of members from the surrounding environment. The author argues that this revitalization process was possible partly because the proposed changes were in keeping with the organization’s original ideological core and partly because of the organization’s open democratic governance system. This permeability is found at two levels: first, the borders are open for individuals to enter the organization as members, and second, the borders of the internal governance system are open for members to take part in the decision-making process. This enabled ideas to percolate up from the members through the democratic decision-making system to the top of the organization, and some ideas are translated into statutes and policies, which then trickle down to the members again through the executive structure. The conclusion is that a functioning democratic governance system, which is able to stay true to the organization’s ideological core at the same time as it is able to modify it in light of societal change, seems imperative for this kind of organization. By doing this, the organization is not just staying true to its original mission but also actively contributing to democracy in society by including new groups into the decision-making process.     

The G20's engagement with civil society: participation without contestation?

ABSTRACT

With global governance experiencing a democratic deficit, the G20's formalized engagement with civil society – the C20 – seems to be an anomaly. However, there is a gap between the G20's rhetoric and practice, with the C20 incorporating civil society organizations (CSOs) into the G20, while also limiting their ability to contribute to its agenda. This article attempts make sense of this gap by analysing the C20 through the modes of participation framework, arguing it represents an attempt to organize and manage social conflicts emerging from civil society, but do so in a way that constrains its ability to contest G20 policy. The article analyses the ways in which the C20 is designed to do so, as well as CSO strategies to overcome these constraints. While these strategies increase CSO's leverage and independence, their effectiveness remains shaped by G20 practices and the underlying political economy structures of the global economy.     

Revisiting Agency and Stewardship Theories

Using principal–agent theories, this study examined differences in the perceptions of nonprofit chief executive officers (CEOs) and board chairs on key governance aspects, including board performance, leadership, satisfaction with diversity, and board meetings. Using data from the CEOs and board chairs of 474 nonprofit organizations, we found statistically significant differences in the governance perceptions of these leaders of nonprofit organizations. The findings provide support for an agency theory explanation about the differing interests of principals (board chairs) and agents (CEOs). The findings suggest that these two sets of nonprofit actors frequently operate from different perspectives, potentially affecting the governance of their organizations.     

The Relationship Between Liberian CSOs and International Donor Funding: Boon or Bane?

The Liberian environment is characterized by enormous reliance on international aid, substantial amounts of which is channeled through civil society organizations (CSOs). These civil society organizations have played an important role in Liberia’s redevelopment since the end of the civil war in 2003, despite the fact that international aid to Liberia is increasingly characterized by unstable funding patterns and shifting donor priorities. This makes it vital to deepen our understanding of international aid funding to Liberian CSOs. This study uses mixed methodology to examine what impacts the ability of Liberian CSOs to attract aid funding, the nature of the donor–CSO relationship, and how this relationship impacts the capacity and behavior of CSOs. Results indicate CSO competence and efficiency are associated with ability to attract aid funding. Pressures and imbalance in the donor–CSO relationship contribute to high levels of environmental uncertainty for Liberian CSOs in the sample, leading to adaptive behaviors related to activities and funding streams.     

Invisible Barricades: Civil Society and the Discourse of the WTO

Concerns about the legitimacy and accountability of international institutions have prompted a sizable literature on the potential of civil society to help democratize global economic governance. Attention has primarily focused on the institutional factors impacting civil society participation in global governance. In this article, however, I point to the existence of yet more fundamental barriers operating at the level of discourse. I use critical discourse analysis (CDA) to analyze the discourse of the World Trade Organization (WTO), focusing on a key text in which it attempts to engage directly with the concerns of civil society, supported by a broad range of additional data sources, including documentary materials, interviews, and observation. Drawing on the case of the WTO, I argue that the discourse of global governance institutions can itself act as an ‘invisible barricade’, preventing the meaningful inclusion of civil society in policy debates and deliberations.     

Aufbau des Zivilsektors in Transformationsländern: Lokalisierungsprozesse von Nichtregierungsorganisationen

The civil society in the transformation countries in Central and Eastern Europe is considered as the success factor for the development status of the democratic reforms in this area. Based on long years experience in the field the author shows how civil society organisations (CSO) are formed and what kind of problems they face concerning organizational development, voluntarism and professionalisation and fundraising. Due to the fact that CSO are initiated from outside or that they copy Western patterns the localisation processes—adaptation to the local condition and enculturation—are the basis for sustainability. But, the exclusive view to the civil sector and its extraordinary support may cause reluctance in parts of the population. The across-the-sectors Development Partnership is a way of cooperation in strategic development and project management of CSO, governmental organisations and enterprises. The results of this comprehensive approach on local, regional and national level are documented by best practice examples from Lithuania, Hungary, Croatia, and Bosnia and Herzegovina.     

Transnational political action and ‘global civil society’ in practice: the case of Oxfam

The term ‘global civil society’ has taken on increasing significance within scholarly debate over the past decade. In this article we seek to understand transnational political agency via the study of a particular transnational actor, Oxfam. We argue that various schools of thought surrounding the global civil society concept, in particular the prevailing liberal‐cosmopolitan approach, are unable to conceptualize transnational political action in practice – due largely, in the case of liberal‐cosmopolitanism, to a shared normative agenda. We also assess what contribution literature on development and civil society has made to the analysis of groups such as Oxfam. In investigating Oxfam's own perceptions of its context and the meanings of its agency, we discover an anti‐political perspective derived from an encounter between Oxfam's longstanding commitment to liberal internationalism and globalization discourse. Existing scholarship has insufficiently identified the local or parochial nature of the identities of global civil society actors.     

Face-to-Face Interaction with Government Officials and Its Effects on the Political Attitudes on the Civil Society Organizational Members: The Study from Japan

This study attempts to answer the question: When do civil society organizations (CSOs) function as a bridge between the informal political sphere and the formal political sphere by changing the political attitudes of their members? To answer this question, I used the Japanese General Social Survey 2003 (JGSS 2003). My main findings involve the effect of the face-to-face interactions that the CSO members have with government officials. The findings suggest that while CSO members without such interactions are no more psychologically politically engaged than non-members, the members with such interactions are. The findings have an empirical importance to those who study Japan since the country is currently undergoing CSO–government relationship reform and the number of CSOs is growing rapidly in the recent years. The study also has a theoretical importance to civil society scholars since this study attempts to unfold the mechanism in which CSOs’ positive effects on the members’ political attitudes are produced.     

Approaches to civil society in authoritarian states: The case of China

Both civil society in China and research on Chinese civil society have developed profoundly over the last three decades. Research on Chinese civil society can be classified into two categories: a structure‐oriented approach and an agency‐oriented approach. Both approaches acknowledge the state's dominant position in restricting the political space for civil society engagement, but they differ in their understanding of state–civil society relations. A key concern within the structure‐oriented approach is to analyze how the autonomy of civil society organizations is shaped by their structural position vis‐à‐vis the state. Agency‐oriented scholars, on the other hand, reject the analytical focus on structural autonomy. Instead, they build on a more nuanced understanding of the authoritarian yet nonmonolithic context in China and analyze how civil society organizations develop specific strategies to be able to operate within their restricted political space. In particular, agency‐oriented scholars have analyzed two ways in which organizations exercise agency: by strategically developing formal or informal ties with state actors and by bringing their engagement into the public sphere to raise awareness and express their voice. What could be further developed in the agency‐oriented approach is, however, a deeper understanding of the political dimensions of civil society agency.     

Transnational social capital: the socio‐spatialities of civil society

Civil society remains a contested concept, but one that is widely embedded in global development processes. Transnationalism within civil society scholarship is often described dichotomously, either through hierarchical dependency relations or as a more amorphous networked global civil society. These two contrasting spatial imaginaries produce very particular ideas about how transnational relations contribute to civil society. Drawing on empirical material from research with civil society organizations in Barbados and Grenada, in this article I contend that civil society groups use forms of transnational social capital in their work. This does not, however, resonate with the horizontal relations associated with grassroots globalization or vertical chains of dependence. These social relations are imbued with power and agency and are entangled in situated historical, geographical and personal contexts. I conclude that the diverse transnational social relations that are part of civil society activity offer hope and possibilities for continued civil society action in these unexpected spatial arrangements.     

“Corporate” governance in nonprofit organizations

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.     

Exploring the association between board and organizational performance in nonprofit organizations

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.     

Incorporating translation into sociolinguistic research: Translation policy in an international non‐governmental organisation

This article explores aspects of translation, multilingualism and language policy in the field of transnational civil society. By focusing on translation policies at Amnesty International, an international non‐governmental organisation that performs a key role in global governance, this article seeks to contribute to a globalisation‐sensitive sociolinguistics. It argues that combining a sociolinguistic approach – more precisely linguistic ethnography – with translation studies leads to an increased understanding of the language practices under study. Furthermore, the article calls for more interdisciplinary research, stating that there is space for sociolinguistics and translation studies to contribute to research in international relations and development studies by highlighting the role of multilingualism and challenging the traditionally powerful position of English in transnational civil society.