Nonprofit governance in times of Covid-19: should organizations change their practices and strategy in the middle of a crisis?
Journal of Accounting & Organizational Change
ISSN: 1832-5912
Article publication date: 20 September 2023
Abstract
Purpose
In the face of crises, nonprofit organizations (NPOs) have focused on their financial viability but there are other operational aspects to consider (e.g. activity or volunteer involvement). This study aims to investigate whether governance changes made by NPOs in times of crisis have enhanced organizational viability in a broader sense.
Design/methodology/approach
Through community-engaged research, the link between governance changes and organizational viability is examined. This study is based on a survey of 10,926 French NPOs and the conceptual framework of societal orientation.
Findings
They show that changing governance in the midst of a crisis can protect organizational viability, if the beneficiaries and members remain the core of the strategic target and if the content of volunteering remains stable.
Research limitations/implications
This study, therefore, calls for a better study of the risks of governance changes for internal stakeholders, both at the level of scholars and within the organizations themselves. The results extend recent works on governance change and highlight the relevance of societal orientation in times of crisis.
Practical implications
This study helps to counter the criticisms regularly made about governance (particularly in France) and highlights the importance of maintaining the board of directors in NPOs. It invites NPOs to make decisions that protect their values, mission and beneficiaries at all times.
Originality/value
This study focuses on societal orientation in relation to stakeholder theory, as well as the nonfinancial aspects of viability.
Keywords
Acknowledgements
Acknowledgements: The author wishes to thank Jacques Malet, Cécile Bazin and Marie Duros of Recherches and Solidarités for their kind provision of the Covid-19 survey database and their support in the research process undertaken on the basis of this survey.
Conflict of Interest: The author is a board member and member of the expert committee of Recherches and Solidarités, and receives no compensation.
Funding: This research was supported by the Institut Français du Monde Associatif which funded the translation services associated with this article.
Data availability statement: The data that support the findings of this study are available from Recherches and Solidarités.
Citation
Plaisance, G. (2023), "Nonprofit governance in times of Covid-19: should organizations change their practices and strategy in the middle of a crisis?", Journal of Accounting & Organizational Change, Vol. ahead-of-print No. ahead-of-print. https://doi.org/10.1108/JAOC-10-2022-0151
Publisher
:Emerald Publishing Limited
Copyright © 2023, Emerald Publishing Limited