Inclusive governance in non-profit organisations

Borzaga, Carlo and Sacchetti, Silvia (2015). Inclusive governance in non-profit organisations. In: Societa' Italiana degli Economisti (SIE), 22-24 Sep 2015, Naples, Italy.

URL: http://www.siecon.org/online/en/convegni/7113-2/

Abstract

The study of private non-profit enterprises that offer general interest services is only at the start. The understanding of existing organisations resists an inclusive, public interest view of governance. This contribution aims at providing a reflection on specific features that non-profit enterprises should have, and outlines four main justifications for including stakeholders in production governance: 1) access to knowledge and other resources, 2) trust creation, 3) internal efficiency, 4) external efficiency. Conclusions elaborate on Hansmann’s classic theory of the firm to suggest that governance solutions need to be assessed on the basis of total costs, considering also the lower level of social costs that is created when governance includes relevant stakeholders. Our model highlights that when social costs are high, even an enterprise with costly decisional processes, such as the multi-stakeholder, can be the most efficient solution amongst other possible alternatives.

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About

  • Item ORO ID
  • 45569
  • Item Type
  • Conference or Workshop Item
  • Extra Information
  • Listed on conference website as "Beyond the costs of ownership and contracting: the role of the costs of exclusion in the provision of general interest services"
  • Keywords
  • governance, social enterprise, multistakeholder, externalities, Hansmann
  • Academic Unit or School
  • Faculty of Business and Law (FBL) > Business
    Faculty of Business and Law (FBL)
  • Depositing User
  • Silvia Sacchetti

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