Understanding accountability in social enterprise organisations: a framework

2011 ◽  
Vol 7 (3) ◽  
pp. 224-237 ◽  
Author(s):  
Ciaran Connolly ◽  
Martin Kelly
Keyword(s):  
Impression Management ◽  
Information Disclosure ◽  
Social Enterprise ◽  
Theory And Practice ◽  
User Needs ◽  
Content Type ◽  
For Profit ◽  
Organisational Form ◽  
Private And Public ◽  
The Government

PurposeSocial enterprise organisations (SEOs) operate across the boundaries of the public, private and not‐for‐profit (NFP) sectors in delivering public services and competing for resources and legitimacy. While there is a rich literature on accountability in the private and public sectors, together with the wider NFP sector, SEOs have received comparatively little attention and remain a relatively under‐researched organisational form. Drawing on accountability, legitimacy and user‐needs theories, the purpose of this paper is to develop a practical framework which can be used to explore how accountability within SEOs is constructed and discharged.Design/methodology/approachThis paper draws on user‐needs, accountability, legitimacy and impression management theories expounded in relation to the private, public and NFP sectors.FindingsA framework to better understand how accountability can be discharged by SEOs is developed and discussed.Research limitations/implicationsWhile a framework for better understanding SEO accountability is presented, it is not empirically tested. However, the framework has the potential to facilitate a deeper appreciation of the theory and practice of accountability within SEOs and, notwithstanding the inherent difficulties in measuring and managing accountability, could be used to stimulate practitioner involvement.Practical implicationsAs little is known about the current extent of SEO information disclosure or accountability relationships, the framework could be used to assess the discharge of accountability by SEOs, with the findings informing future developments. This should provide useful insights into internal processes and organisational views on accountability bases and mechanisms and can then be used to inform the debate on how SEOs can best discharge their duty to account.Social implicationsUnderstanding the nature of SEO accountability reporting has important implications for those involved in advancing the SEO agenda. At a time of public sector cutbacks, and with the government searching for new and more effective ways of delivering services, the role of SEOs in this process is likely to receive greater attention and scrutiny.Originality/valueSEOs have grown extensively in size and prominence in recent years and policymakers have come to embrace the role that they play in societal development. This paper responds to a gap in the theoretical literature and contributes to the debate by developing a framework which can be empirically tested. Moreover, it can be used to prompt practitioner involvement and facilitate a better understanding of the complex issues surrounding accounting and accountability in this under‐researched area.

What social enterprises can learn from the freemium business model

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Francisco Layrisse ◽  
Ezequiel Reficco ◽  
Andrés Barrios
Keyword(s):  
Latin America ◽  
Business Model ◽  
Social Enterprise ◽  
Social Enterprises ◽  
Theory And Practice ◽  
Significant Variable ◽  
Value Capture ◽  
Content Type ◽  
For Profit ◽  
The Social

PurposeThe purpose of this study is to identify how the value dynamics of the freemium business model (BM) play out in a social enterprise.Design/methodology/approachWe draw on a multiple case study of two social enterprises –one nonprofit (Aravind Eyecare) in Asia and one for-profit in Latin America (Biodent)– to analyze the implications of applying the value architecture of a freemium BM to social enterprises.FindingsThe freemium BM departs from standard practice when applied in social enterprises. Meaningful differences include the feasibility/desirability of converting free users to paying ones, the presence of significant variable costs –which requires balancing the ratio of free and paying customers– and the use of nontraditional pricing schemes to enhance value capture. The social freemium BM can increase scalability, value creation and value capture. Under this model, “beneficiaries” can be more than passive recipients of value and contribute to a venture's success in various ways –such as lowering its operational costs or enhancing its value proposition toward third parties.Originality/valueWhile in the past years commercial enterprises have been disrupted by the emergence of freemium platforms, the social enterprise field has barely taken notice. We extract lessons and implications from this paradigmatic change for the theory and practice of business model innovation in social enterprises, of particular relevance to Latin America, where social and environmental disequilibria remain a recurring feat.

GoBhaarati- contributing to the “Journey of Healthy Living”

2021 ◽  
Vol 11 (1) ◽  
pp. 1-19
Author(s):  
Vinit Vijay Dani ◽  
Meeta Dasgupta
Keyword(s):  
Learning Outcomes ◽  
Social Enterprise ◽  
Intrinsic Value ◽  
Distribution Channel ◽  
Social Enterprises ◽  
Health And Wellness ◽  
Content Type ◽  
For Profit ◽  
Academic Level ◽  
Start Up

Learning outcomes The learning outcomes of this paper is as follows: to showcase how a futuristic mission and planned branding initiatives can help start-up social enterprise to create a successful brand; to explain how a comprehensive understanding of the target group and innovative products/services and channel strategies help GoBhaarati position itself as an upcoming not for profit social enterprise; to argue how proper brand mission and branding can help even a small startup to create a brand identity in a fiercely competitive fragmented market dominated by big players; the constraints GoBhaarati faced in constituting and aligning distribution channel. These impulsions can have legal, environmental and or managerial foundations. Case overview/synopsis GoBhaarati Agro Industries and Private Limited (GoBhaarati) operated as a nonprofit social enterprise in the Health and Wellness Industry, providing natural indigenous traditional Indian products such as millets, honey, turmeric, jaggery, rock salt and serving millet-based snacks to consumers. At the epicenter of Gobhaarati's branding strategy was its health and wellness positioning. The company's mission was to increase the positive perception of millets and to convince consumers that there was intrinsic value in a product's origin and production processes. Iriventi aimed to achieve a turnover of at least ten crores by 2025, but the company's sales and financial resources were limited. With this clouding in mind, Iriventi could not decide whether to let GoBhaarati stay niche in business or to expand it organically. Complexity academic level Graduate and executive management education students can use the case. The case may also be used to focus on entrepreneurship and distribution management for start-up social enterprises. Supplementary materials Teaching Notes are available for educators only. Subject code CSS 8: Marketing.

Social entrepreneurship: creating social value when bridging holes

2018 ◽  
Vol 14 (4) ◽  
pp. 410-428 ◽  
Author(s):  
Suvi Kokko
Keyword(s):  
Value Creation ◽  
Social Enterprise ◽  
Institutional Logics ◽  
Social Enterprises ◽  
Social Value ◽  
Content Type ◽  
For Profit ◽  
Social Value Creation ◽  
Key Factor ◽  
Shared Goal

Purpose This paper aims to understand how social value is created in a context characterized by institutional complexity. By identifying stakeholders interacting in a social enterprise and the logics guiding their expected and experienced value, the study describes how social value is created when different institutional logics embedded in strong-tie networks are bridged. Design/methodology/approach Concepts of structural holes and institutional logics were applied to the empirical case of a social enterprise. Interviews provided the primary empirical material, but multiple data collection methods were used. Findings A shared goal facilitated co-existence of competing value logics, and provided common space forming multiple social value outcomes as products of the different logics. Research limitations/implications Limited to one case, this study shows that the interaction of otherwise unconnected stakeholders in a social enterprise, and their embeddedness in different institutional logics, provides one explanation for why and how social value is created. Practical implications Acknowledging and addressing gaps in knowledge and resources can lead to social value creation if social enterprises remain open to different logics. This suggests that co-existence of different logics can be a key factor for successful social value creation in social enterprises, if the competing logics are turned into complementary sources. Originality/value Dependency on logics from different networks of stakeholders shapes social enterprises to produce outcomes consistent with the different logics. The multiplicity of social value outcomes poses challenges for evaluating the success of social enterprises, especially when the tendency is to use evaluation approaches from the for-profit sector, focusing on the economic logic.

Help or resistance? Product market competition and water information disclosure: evidence from China

2019 ◽  
Vol 11 (5) ◽  
pp. 933-962
Author(s):  
Zhifang Zhou ◽  
Tao Zhang ◽  
Jiachun Chen ◽  
Huixiang Zeng ◽  
Xiaohong Chen
Keyword(s):  
Information Disclosure ◽  
Market Competition ◽  
Product Market ◽  
Product Market Competition ◽  
Competition Intensity ◽  
Ownership Type ◽  
Content Type ◽  
Industry Competition ◽  
The Government ◽  
The Relationship

Purpose This paper investigates the relationship between product market competition and firms’ water information disclosure and how firms’ ownership type can affect this relationship in China, offering new insights into corporate water management. Design/methodology/approach The authors investigated 303 Chinese listed companies in highly water-sensitive industries to examine how product market competition influences corporate water information disclosure by subdividing the product market competition into market competition at the firm level and the industry competition intensity at the industry level. Findings The results show that there exists an inverted U-shaped relationship between industry competition and water information disclosure; enterprises with the highest market power in a mildly competitive industry are more willing to voluntarily disclose water information and play an industry benchmarking role. Further tests demonstrate that the relationship between industry competition intensity and water information disclosure is stronger for state-owned enterprises than for private enterprises. Research limitations/implications The current water resources regulations in China are relatively lax and the water risk awareness of firms is weak, which may affect the applicability of the results. In addition, water information disclosure research is a relatively new field and a quantitative index system for water information disclosure is still in the exploratory stage. Further developments, including the selection, definition and measuring methods of a water index are required. Practical implications The authors developed a new direction of enterprise water management activities from the perspective of market competition. Based on the market conditions in China, the authors also investigated the impact of the ownership type of the enterprises on the relationship between market competition and water information disclosure. Social implications The authors suggested that the government should improve laws and regulations and adopt incentive mechanisms to encourage enterprises to implement water resource management. In addition, the government should encourage high market status enterprises to actively fulfill their environmental responsibilities so that the entire industry is encouraged to follow suit. Originality/value This study represents an important development in the field of environmental accounting and is the first research on corporate water information disclosure; it also extends the research on the influence mechanisms of market competition on the environmental management practices of enterprises.

Funding higher education through waqf: a lesson from Pakistan

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Muhammad Usman ◽  
Asmak Ab Rahman
Keyword(s):  
Higher Education ◽  
Educational Institutions ◽  
Public And Private ◽  
Content Type ◽  
For Profit ◽  
Not For Profit ◽  
Academic Activities ◽  
Higher Educational ◽  
The Government

Purpose This paper aims to study waqf practice in Pakistan with regard to its utilisation in funding for higher educational institutions (HEIs) and investigates waqf raising, waqf management and waqf income utilisation. Design/methodology/approach The paper is based on the views of 11 participants who are actively involved in the waqf, its raising, management and income utilisation, and is divided into three subcategories: personnel of higher educational waqf institution, personnel of waqf regulatory bodies and Shari’ah and legal experts as well as archival records, documents and library sources. Findings In Pakistan, both public and private awqaf are existing, but the role of private awqaf is greater in higher education funding. However, due to lack of legal supervision private awqaf is considered as a part of the not-for-profit sector and legitimately registered as a society, foundation, trust or a private limited company. Waqf in Pakistan is more focusing on internal financial sources and waqf income. In terms of waqf management, they have firm guidelines for investing in real estate, the Islamic financial sector and various halal businesses. Waqf uses the income for developmental and operational expenditure, and supports academic activities for students and staff. Waqfs are also supporting some other HEIs and research agencies. Thus, it can be revealed that a waqf can cater a sufficient amount for funding higher educational institutions. Research limitations/implications In Pakistan, both public and private awqaf are equally serving society in different sectors, but the role of private awqaf is much greater in funding higher education. Nevertheless, the government treats private awqaf as a part of not-for-profit sector in the absence of a specific legal framework and registers such organisations as society, foundation, trust or private limited company. The waqf in Pakistan mostly relies on internal financial resources and income from waqf assets. As the waqf managers have over the time evolved firm guidelines for investment in real estate, Islamic financial sector and various other halal businesses, and utilisation of waqf income on developmental and operational expenditures, academic activities of students and educational staff, other HEIs and research agencies, it can be proved that the waqf can potentially generate sufficient amount for funding HEIs. Practical implications The study presents the waqf as a social finance institution and the best alternative fiscal instrument for funding works of public good, including higher education, with the help of three selected waqf cases. Hence, the paper’s findings offer some generalisations, both for the ummah at large and Pakistan. Social implications The paper makes several policy recommendations for policymakers, legislators and academicians, especially the government. As an Islamic social finance institution, the waqf can help finance higher education anywhere around the world in view of the fact that most countries grapple with huge fiscal deficits and are hence financially constrained to meet growing needs of HEIs. Originality/value The study confirms that the waqf can be an alternative source for funding higher education institutions whether it is managed by the government or is privately controlled.

Does policy uncertainty affect corporate environmental information disclosure: evidence from China

2020 ◽  
Vol 11 (5) ◽  
pp. 903-931 ◽  
Author(s):  
Yue Pan ◽  
Qiuping Chen ◽  
Pengdong Zhang
Keyword(s):  
Information Disclosure ◽  
Negative Relationship ◽  
Environmental Information ◽  
Policy Uncertainty ◽  
Appraisal System ◽  
Environmental Disclosure ◽  
Content Type ◽  
Environmental Information Disclosure ◽  
The Government ◽  
The Relationship

Purpose The purpose of this study is to investigate whether and how policy uncertainty affect corporate environmental information disclosure. Design/methodology/approach This study conducts a difference-in-difference estimation and systematically investigates the relationship between policy uncertainty and corporate environmental information disclosure. The baseline regression results are robust to a series of robustness and endogeneity tests. Findings The authors show that firms located in cities with stronger policy uncertainty disclose less information on environmental issues. Furthermore, this negative relationship is stronger in the Midwest and in pre-industrial regions and for stated-owned firms and firms in highly polluting industries. Practical implications This study argues that policy uncertainty reduce the corporate disclosure of environmental information. Therefore, the results provide evidence on how to better emphasize the importance of green gross domestic product in the performance appraisal system for officials. Social implications This study confirms that corporate environmental disclosure is a response to public pressure. The results encourage the government and the public to increase corporate awareness of environmental protection. Originality/value This study contributes to the literature in the following ways. First, the authors provide a new perspective to study the relationship between policy uncertainty and corporate finance. Second, it contributes to the literature on corporate environmental information disclosure by linking policy uncertainty with firms’ disclosure of environmental information. Third, this study is a serious attempt to solve the problem of endogeneity between policy uncertainty and corporate environmental information disclosure.

Delineating novel aspects of social enterprise theory

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Patrick J. Murphy ◽  
Artem Kornetskyy ◽  
Joseph T. Nixon
Keyword(s):  
Social Enterprise ◽  
Social Enterprises ◽  
Ecological Value ◽  
Entrepreneurial Ventures ◽  
Content Type ◽  
For Profit ◽  
Governmental Organizations ◽  
Non Governmental Organizations ◽  
The Social ◽  
Enterprise Theory

Purpose Social enterprises are defined in practice in terms of one operational model generating measurable value in more than one of the economic, social and natural/ecological value denomination categories. However, entrepreneurship theory does not generally or explicitly reflect this definition, which has generated confusion about the social enterprise concept. The purpose of this paper is to contribute to social enterprise theory by delineating novel aspects of this definition and their conceptual ramifications. Design/methodology/approach The authors review the social enterprise literature with a focus only on the most original contributions and most distinct research questions. The authors do not explicitly review research on traditional for-profit entrepreneurial ventures, not-for-profit/non-governmental organizations or mainstream social entrepreneurial ventures. Findings The authors offer several implications for social enterprise theory based on practices that are unique to the area but not amenable other areas of entrepreneurship. The contribution is instrumental to establishing social enterprise as a distinct theoretic area. Originality/value By focusing on novel aspects of social enterprise not easily explainable by mainstream theoretic traditions, the authors offer an original contribution to the development of social enterprise theory.

Legitimacy, accountability and impression management in NGOs: the Indian Ocean tsunami

2015 ◽  
Vol 28 (7) ◽  
pp. 1075-1098 ◽  
Author(s):  
Susan Lee Conway ◽  
Patricia Ann O'Keefe ◽  
Sue Louise Hrasky
Keyword(s):  
Indian Ocean ◽  
Impression Management ◽  
Voluntary Disclosure ◽  
Annual Reports ◽  
Indian Ocean Tsunami ◽  
Main Concern ◽  
Management Activity ◽  
Content Type ◽  
For Profit ◽  
The Indian Ocean

Purpose – Prior research has investigated legitimation strategies in corporate annual reports in the for-profit sector. The purpose of this paper is to investigate this phenomenon in an NGO environment. It investigates Australian overseas aid agencies’ responses to criticism of the relief effort following the Indian Ocean tsunami in 2004. It aims to determine whether voluntary annual report disclosures were reflective of impression management and/or of the discharge of functional accountability. Design/methodology/approach – The paper applies content analysis to compare the structure and content of the annual reports of 19 Australian overseas aid agencies before and after the Indian Ocean tsunami. Findings – Results suggest voluntary disclosure in annual reports significantly increased post-tsunami and was more consistent with impression management activity rather than functional accountability suggesting a response to the legitimacy challenge. The use of impression management tactics differed with agency size, with larger agencies using ingratiation in order to appear more attractive while smaller ones promoted their particular achievements. Originality/value – This paper makes a contribution by extending prior impression management and legitimacy literature to an NGO environment. It has implications for the development of these theories as it looks at organisations where the stakeholders are different from the for-profit sector and profits are not the main concern. It raises issues about the concept of accountability in the NGO sector, and how the nature of organisation reporting is changing to address the challenges of a sector where access to funds is highly competitive.

Determinants of information disclosure by Spanish state-owned enterprises in accordance with legal requirements

2019 ◽  
Vol 32 (6) ◽  
pp. 616-634 ◽  
Author(s):  
Javier Andrades ◽  
Domingo Martinez-Martinez ◽  
Manuel Larrán ◽  
Jesus Herrera
Keyword(s):  
Local Governments ◽  
Information Disclosure ◽  
Good Governance ◽  
Public Confidence ◽  
Central State ◽  
Content Type ◽  
Amount Of Information ◽  
Spanish Law ◽  
Public Managers ◽  
Private And Public

Purpose The purpose of this paper is to examine how different variables can affect the amount of information reported by Spanish enterprises owned by the central state as well as by local and regional governments, all categorized as state-owned enterprises (SOEs). Design/methodology/approach Using, as a reference, the obligations of information disclosure contained in the Spanish Law 19/2013 on Transparency and Good Governance, the authors performed a web-content analysis of web pages of all Spanish SOEs and the authors examined a sample of Spanish enterprises owned by regional and local governments. Findings The results show that the amount of information reported by Spanish SOEs is quite reduced and limited. Among the variables examined, the most influential ones for explaining the amount of information reported are the nature of public ownership and the institutional size. Originality/value This study contributes to the literature by exploring the potential determinants of the online disclosure of mandatory information reported by enterprises whose ownership is shared by private and public organizations. Thus, this research could help public managers make decisions and improve public confidence.

scholarly journals The impact of decisions to outsource the internal audit function in South Africa

2013 ◽  
Vol 6 (3) ◽  
Author(s):  
Elmarie Papageorgiou ◽  
Nirupa Padia ◽  
Yaeesh Yasseen
Keyword(s):  
South African ◽  
Internal Audit ◽  
Shareholder Wealth ◽  
Theory And Practice ◽  
The South ◽  
Internal Audit Function ◽  
Government Sector ◽  
Private And Public ◽  
The Government ◽  
The Impact

Organisations are constantly striving to maximise shareholder wealth by improving the effectiveness and efficiency of operations. Since the early 1980s, there has been an emerging trend to outsource functions considered to be non-core. These trends have now moved into the internal audit sphere, a function that was previously maintained in-house. Using survey data collected from organisations in the South African private and public sectors, the degree of internal audit outsourcing, the rationale behind organisations’ outsourcing decisions, the types of internal audit services provider, the perceived status of in-house internal auditing and perceptions of independence of outsourced internal audit functions were determined. It was noteworthy that no significant differences were observed between sectors with regard to interaction with external auditors and threats to independence. The biggest difference appears to be that private companies chose a “Big 4” accounting firm more often than the government sector did. This study contributes to the existing body of knowledge and bridges the gap between theory and practice by highlighting the impact that the decision to outsource has had on the South African internal audit function.

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