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Balancing Control and Coaching in CSO Governance. A Paradox Perspective on Board Behavior
Authors:Karin Kreutzer  Claus Jacobs
Institution:(1) Department of Strategy, Organization and Leadership, Danone Chair of Social Business, European Business School, Rheingaustr. 1, 65375 Oestrich-Winkel, Germany;(2) Institute of Management, University of St. Gallen, Dufourstr. 40a, 9000 St. Gallen, Switzerland
Abstract:How can the internal governance of civil society organizations be conceptualized more adequately by accounting for the dual and simultaneous requirements of controlling and coaching in board behavior? Empirically, we seem to agree that effective governance of a civil society organization is crucial to its sustained viability. Conceptually, however, we observe a lack of consensus on how to best understand CSO governance. By critically juxtaposing two major theoretical lenses to conceptualize governance, namely, agency and stewardship theory, we identify a number of challenges when dealing with board–management relations that deserve our attention. While agency theory privileges controlling behavior, stewardship theory emphasizes the coaching behavior of boards. The purpose of this article is to offer a concept of governance that is informed by a paradox perspective advancing a subtler, more adequate conceptualization of board governance that accounts for these often conflicting demands on CSO governance. Drawing on illustrations from a longitudinal interpretive case study, we exemplify our propositions empirically. The article concludes with discussing the implications of our argument for CSO governance research and practice.
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