Corporate Governance: How Non-Profit Boards Influence Organizational Decisions

Julianna Browning
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Julianna Browning: California Baptist University

Chapter 5 in Board Directors and Corporate Social Responsibility, 2012, pp 82-100 from Palgrave Macmillan

Abstract: Abstract Traditionally, for-profit boards of directors use the corporate model of governance and the boards of non-profit organizations (NPOs) use the philanthropic model. While there is a trend toward the corporate model when considering the emphasis on entrepreneurial and strategic activity of the board and active management participation on the board, the NPO board governance model remains generally philanthropic in nature. The differences are significant, to the point where the boards of for-profit and non-profit organizations have different governance models, characteristics, and decision-making styles. The literature on NPO boards describes a quite different picture than that of for-profit boards. A comparison of the characteristics of philanthropic (traditional non-profit) and corporate (traditional for-profit) board governance models is summarized in Table 5.1 (Alexander et al, 1988; Epstein and McFarlan, 2011).

Keywords: Corporate Governance; Board Member; Managerial Compliance; Corporate Model; Lifecycle Stage (search for similar items in EconPapers)
Date: 2012
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Persistent link: https://EconPapers.repec.org/RePEc:pal:palchp:978-0-230-38930-4_5

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DOI: 10.1057/9780230389304_5

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