The accountability of advocacy NGOs: insights from the online community of practice

ABSTRACT

Advocacy non-governmental organisations (NGOs) play an important role in society by keeping in check the power of corporations and governments and uncovering rights violations. They differ from other NGOs in terms of their agenda, funding structure and the stakeholders they serve, and operate in a context characterised by increasing demands for transparency, accountability and responsible advocacy. This study examines how the accountability agenda of advocacy NGOs is shaped by the need to maintain independence, preserve values and keep reputation unsullied when faced with financial and legitimacy pressures. A netnography method is employed to analyse the discussions taking place in the NGOs’ online community of practice to understand the implications of the accountability challenges faced by advocacy NGOs through the perceptions of NGO professionals. The study reveals that the accountability agenda of advocacy NGOs is determined by the interrelated threats of financial vulnerability, potential loss of independence, legitimacy challenges and the high level of public scrutiny. The findings highlight that imperfect accountability mechanisms (e.g. financial reporting and performance management systems) hinder the ability of advocacy NGOs to demonstrate their accountability.

HIGHLIGHTS

• Advocacy NGOs face the highest level of accountability demands among non-profits.

• Financial vulnerability and independence threats are the main accountability drivers.

• Complexities in performance management hinder signalling NGOs accountability.

• Netnography permits to explore perceptions of advocacy NGOs' practitioners.

KEYWORDS:

• Advocacy NGOs
• accountability
• online community of practice
• netnography

Acknowledgements

The author acknowledges the valuable comments of Carolyn Cordery, Iqbal Khadaroo, Ingeborg Astrid Kleppe, Dorothea Greiling and Johan Christiaens, the editors of Accounting Forum and two anonymous reviewers. The author also appreciates comments from participants at the European Academy of Management Conference 2014, the Nordic Accounting Conference 2014, and the 10th Workshop on the Challenges of Managing the Third Sector.

This research did not receive any specific grant from funding agencies in the public, commercial or not-for-profit sectors.

Disclosure statement

No potential conflict of interest was reported by the author.

Notes

1 The Jimmy Savile Charitable Trust was a charity foundation established by the UK TV and radio personality Jimmy Savile in 1984. During the sexual abuse scandal in 2012, when Savile was accused in multiple sexual assault cases, the charity announced redistribution of its funds among other charities and NGOs and its own closure. Source: http://www.bbc.co.uk/news/uk-england-20038794.

2 Because most of the accounting group participants are from the US, the major accounting framework that is considered is US GAAP.