New Research Piece on NPB Role in Stakeholder Relations

Cain, Edgar and Munroe from the Institute on Governance produced a new piece of research entitled: The Not for Profit Board’s Role in Stakeholder Relations: Survey Results and Analysis. This research explores the approaches and practices related to stakeholder relations in a governance context.

Research questions:
• How are the boards of NFP and related organizations currently identifying and engaging stakeholders?
• What governance models for stakeholder relations exist or can be created to help boards fulfill this role?
• What roles should should boards play distinct from staff.

Key Concepts:
Key concepts that are explored: moral ownership, Stakeholder Identification and Analysis , as well as Stakeholder engagement.

IOG used a 34 question bilingual survey targeting one board member and one senior executive from each respondent organization. A total of 217 individuals finished the survey.

Summary of Findings:
• Some stakeholders matter more than others regardless of organizational type
• The data that supports the significance of staff as a stakeholder contrasts with Carverʼs theory of moral ownership.
• There is a broadly supported foundation of stakeholder tools and techniques.
• Stakeholder analysis is most consistently used for program design and determining strategy.
• There has not been a widespread adoption of performance measurement for stakeholder relations.
• Chief executives and boards have diverging views on the boardʼs role in stakeholder relations.
• Type of governance model can indicate the scope of stakeholder relations and its role in activities of the organization.
• Approaches to stakeholder relations have some dependence on the primary revenue source of an organization.
• Co-operatives demonstrate leadership in member-based stakeholder relations and direct engagement of stakeholders.
• Charities demonstrate leadership in engaging stakeholders to improve programs.
• Direct representation of interests on a board can lead to conflicts of obligations, particularly for mid-sized operations.
• Boards elected by members are more responsive to stakeholders.

Click here to access to the complete survey results and analysis.

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