Value Creation through Social Alliances

Author(s):  
Rukiye Sönmez

As social problems have grown in magnitude and complexity, social alliances have brought businesses, nonprofit organizations, and governments together. Alliances between nonprofits and businesses have been increasing and becoming more strategically important. This research aims to explore (a) types of social alliances between nonprofit organizations and for profit organizations and, (b) the patterns of social alliances types which defined by Austin (2000), philanthropic, transactional, and integrative. Social alliances differ from other types of alliances due to their structural differences. Hence, it is important both for the partners of the alliance and society that the value created in the social alliance is determined and increased. Knowing which factors create value and which factors increase or decrease the created value make it possible for the social alliances to be managed.

2007 ◽  
Vol 4 (2) ◽  
pp. 83-88
Author(s):  
Cláudio Machado Filho ◽  
Adalberto Fischmann ◽  
Luciana Rocha de Mendonça ◽  
Sandra Guerra

This paper discusses the governance issues in nonprofit organizations (NPO). The theoretical framework of agency theory is used to analyze the relationship between agents and principals (donors and volunteers) in such kinds of organizations. Similarly to the for-profit organizations, the mechanisms of incentives and monitoring are crucial to the alignment of interests among principals and agents. However, considering the NPO’s intrinsic characteristics, due to the difficulty to implement external and internal governance mechanisms, the challenges of alignment are far more complicated. The NPOs are idiosyncratic, being in many situations complex to establish performance comparisons with similar organizations


Author(s):  
Hillel Schmid ◽  
Yeheskel “Zeke” Hasenfeld

Contracting out of social services is defined as the purchase of services by government agencies from for-profit and nonprofit organizations. It has a long history beginning with the English Poor Law of 1723 and becoming a major policy during Reagan's administration. Both the advantages and shortcomings of contracting out are described and analyzed. The effects on providers' accountability to government and clients and the implications for social work practice and ethics are discussed. Special emphasis is given to the social workers' dilemma facing a dual loyalty to contractor–employer on the one hand and to clients on the other.


2020 ◽  
Vol 49 (6) ◽  
pp. 1233-1258
Author(s):  
Rachel Bocquet ◽  
Gaëlle Cotterlaz-Rannard ◽  
Michel Ferrary

Despite intensive research dedicated to both social alliances and business models, a research gap persists with regard to why and how nonprofit organizations (NPOs) choose (or not) to partner with for-profit organizations (FPOs) to obtain funding. By adopting an NPO-centered analysis, this article presents a new framework, based on Bourdieu’s forms of capital. With an explicit consideration of symbolic capital—and the risks of damaging it if the NPO turns to FPOs for funding—the authors explore specific issues related to NPO business models. The empirical test of the framework relies on an original database of 150 nongovernmental organizations with international scope. It reveals four distinct business models (public, civic, opportunistic, and diversified) and demonstrates that a high stock of symbolic capital gives organizations the power to choose and eventually diversify their funding sources, including partnering with select FPOs.


2021 ◽  
pp. 089976402110176
Author(s):  
Andrea M. Scheetz ◽  
Tonya D. W. Smalls ◽  
Joseph Wall ◽  
Aaron B. Wilson

The nonprofit sector may suffer financially from inconsistency in regulations and polices surrounding internal control implementation. To address this issue, our study explores how perceived internal control strength differs between nonprofit and for-profit organizations. Furthermore, we examine three components of the Committee of Sponsoring Organization framework to determine which components might significantly influence whistleblowing for nonprofit organizations. As expected, all three components appear to significantly influence whistleblowing for those in for-profit organizations. For those in nonprofit organizations, the perception of control activities and monitoring activities significantly mediates the relationship between organization type and whistleblowing intentions. Finally, the data indicate that the use of an anonymous website for whistleblowing at a nonprofit organization may require added attention and resources if employees at nonprofits are to use this outlet to the same extent as it is used at a for-profit organization.


2020 ◽  
Vol 9 (1) ◽  
pp. 94-117
Author(s):  
Andrea Scheetz ◽  
Tonya D. W. Smalls ◽  
Joseph Wall ◽  
Aaron B. Wilson

ABSTRACT Scant coverage of fraud in nonprofit organizations and smaller firms exists despite surveys and headlines indicating fraud prevalence is at greater levels among these firms than at for-profit and larger firms. Applying a combination of stakeholder salience theory and whistleblowing theory, this paper establishes a background for such comparisons. Results of a survey of 153 fulltime employees uncover differences in whistleblowing between for-profit and nonprofit organization types. We find those who work at for-profit organizations are more likely to whistleblow than those who work for nonprofit organizations. The results and supplemental analysis suggest whistleblowing intention for fraud is significantly more likely for larger organizations (measured by number of employees) regardless of organization type. Further, as geographic reach increases, for-profit employees are increasingly likely to report.


2020 ◽  
Vol 49 (6) ◽  
pp. 1152-1160
Author(s):  
Yongjian Bao ◽  
Zhe Shen ◽  
Wenlong Yuan

Many businesses have joined governments and nonprofit organizations to serve the social needs under the tremendous pressure of Covid-19. We propose that businesses that expanded into the social domain during the Covid-19 crisis differ significantly from each other and vary extensively in value creation. We extend the motivation and ability framework to derive a typology of businesses under this situation and conceptualize value creation behaviors in both a free market and a monopolistic market with the governments as the buyer.


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