Browsing by Author "Dineo, Shirley Seabe"

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    An economic examination of non-profit accountability to client-communities in South Africa
    (Stellenbosch : Stellenbosch University, 2019-12) Dineo, Shirley Seabe; Burger, Ronelle; Jegers, Marc; Stellenbosch University. Faculty of Economic and Management Sciences. Dept. of Economics.
    ENGLISH SUMMARY : The target of non-profit organisation (NPO) accountability is efficacy in achieving the mission, the efficiency with resource use, risk-minimising and guarding against corruption (Mook, 2012). However, for a long time, the focus has been on efficient use of money and policing maleficence. The emphasis on functional accountability has created a narrow view off accountability as answering to donors at the expense of being accountable to the people they serve (Gent, Crescenzi, Menning & Reid, 2013; Mook, 2010: Murtaza, 2012). There has however been a shift inspired by normative ideas about the NPOs’ responsibility to their clients beyond “a moral responsibility to provide services that reflect their true needs” (Guo, 2007, p. 459). Despite this shift and the arguments for greater accountability to NPO clients, we still know very little about the role of client-communities as principals of NPOs. These principals have even received limited treatment in the theoretical economics literature (Jegers, 2015). This study, therefore, provides an economic investigation of the NPOs’ accountability to client-communities using South Africa as a case study. Its first applies spatial econometric techniques to test the hypothesis that if NPOs are responsive to the needs of the people, a correlation between NPO density and need should be evident. The study then draws from principal-agent theory and the rights-based approach to formulate a framework and construct propositions that can guide research on NPO accountability to client-communities. This research test three of the propositions: two related to the leadership characteristics correlated with greater accountability to these stakeholders and the other to the implications of greater NPO accountability for community satisfaction with the NPO’s operations. The findings showed that NPOs are geographically concentrated due to agglomeration benefits from knowledge and skills, as well as the availability of private philanthropic resources, but have broad geographic reach in terms of meeting the needs of communities. The organisations are also accountable to communities, which translated to favourable evaluations by community members. However, the findings showed that NPOs are more likely to be responsive if altruistic leaders with more education and experience control the organisations. Furthermore, revenue, location and organisational type are significant conditions for community accountability and the mediators of its relationship with community satisfaction. Overall, the findings lead to the conclusion that NPOs in South Africa, especially small community-based organisations are accountable to client-communities. Nonetheless, we identified several limitations which could be addressed by future research.