Charity Transgressions, Trust and Accountability

Voluntas: International Journal of Voluntary and Nonprofit Organizations, Forthcoming

Posted: 15 Feb 2011

See all articles by Carolyn J. Cordery

Carolyn J. Cordery

Aston University; Victoria University of Wellington - School of Accounting and Commercial Law

Rachel F. Baskerville

Victoria University of Wellington - School of Accounting and Commercial Law

Date Written: July 1, 2010

Abstract

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.

Keywords: Accountability, Stakeholder Salience, Charities

JEL Classification: L30, M41

Suggested Citation

Cordery, Carolyn J. and Baskerville, Rachel F., Charity Transgressions, Trust and Accountability (July 1, 2010). Voluntas: International Journal of Voluntary and Nonprofit Organizations, Forthcoming, Available at SSRN: https://ssrn.com/abstract=1634463

Carolyn J. Cordery

Aston University ( email )

Aston Business School
Aston Triangle
Birmingham, B4 7ET
United Kingdom

Victoria University of Wellington - School of Accounting and Commercial Law ( email )

Faculty of Commerce and Administration
PO Box 600
Wellington
New Zealand

Rachel F. Baskerville (Contact Author)

Victoria University of Wellington - School of Accounting and Commercial Law ( email )

Faculty of Commerce and Administration
PO Box 600
Wellington
New Zealand
006444636951 (Phone)
006444635076 (Fax)

HOME PAGE: http://www.victoria.ac.nz/sacl/staff/rachel-baskerville.aspx

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