Who’s in Charge, in Whose Interest? The Experience of Ownership and Accountability in the Charity Sector

Manuscript accepted by Management Research Review. doi: 10.1108/MRR-04-2020-0190

23 Pages Posted: 13 Nov 2020

Date Written: September 25, 2020

Abstract

Purpose: This paper examines the puzzles of “ownership”, the legal and psychological commitment of directors, through the experience of the work of boards at non-profit organisations. Design/Methodology/Approach: An exploration of the literature on charity governance leads to a first-person reflection on the tensions in directing two common types of non-profit organisations.

Findings: In the UK as in other countries, charities are companies, bound by company law as well as regulatory constraints of the non-profit sector. This creates responsibilities of ownership without the material benefits. In contrast to corporate share ownership, a sense of psychological ownership may pre-date appointment as a director, facilitating stewardship behaviour, facilitating stewardship and accountability.

Research implications: This paper calls for expanded empirical work on boards of non-profit organisations, giving a focused agenda of aspects to highlight the differences between charities and the corporate sector.

Practical implications: The focus on psychological ownership can influence recruitment, induction and organisation of the work of charity boards, helping to ease resource deficits.

Social implications: With pressure mounting in deliver of public services, the charity sector needs to fill growing gaps in provision. The constitution of boards plays a valuable role.

Originality/Value: By incorporating psychological ownership in a framework of accountability, this paper points towards both a research agenda and practical considerations for charity boards.

Keywords: Charity boards, non-profit organisations, directors, trustees, corporate governance

JEL Classification: M1, M14, L21, L31

Suggested Citation

Nordberg, Donald, Who’s in Charge, in Whose Interest? The Experience of Ownership and Accountability in the Charity Sector (September 25, 2020). Manuscript accepted by Management Research Review. doi: 10.1108/MRR-04-2020-0190, Available at SSRN: https://ssrn.com/abstract=3699330

Donald Nordberg (Contact Author)

Bournemouth University ( email )

Executive Business Centre, 89 Holdenhurst Road,
Bournemouth, BH8 8EB
United Kingdom

HOME PAGE: http://staffprofiles.bournemouth.ac.uk/display/dnordberg

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