Assessing the Impact of Nonprofit Organizations on Multi-Actor Global Governance Initiatives: The Case of the UN Global Compact

Abstract

This study empirically assesses the impact of nonprofit organizations (NPOs) on multi-actor global governance initiatives. Multi-actor global governance initiatives have emerged to strengthen joint action among different societal actors to tackle transnational social and environmental issues. While such initiatives have received a great deal of academic attention, previous research has primarily focused on businesses’ perspectives. In light of the important role of NPOs within such initiatives, critically addressing NPOs’ role by assessing their impact on the effectiveness of such initiatives is crucial. This article builds on the United Nations Global Compact (UNGC)—the largest multi-actor global governance initiative in the world—and offers a panel analysis on a unique dataset including 820 NPOs from 68 different countries. The findings suggest that NPOs have indeed strengthened the UNGC over time, yet their engagement explains only a small fraction of differences in UNGC activity across countries. This study contributes to the emerging research on nonprofits’ social responsibility by fostering the actorhood thesis, which places higher responsibility for the impact and requirements for accountability on NPOs. Furthermore, the study supports discussions about the increasing political role of NPOs by providing the first empirical evidence for their political leadership and impact in multi-actor global governance initiatives.

Is peer regulation perceived as an effective mediator to strengthen the mission orientation of INGO leaders?

“…Constructivism might be suitable theoretical venue for analyzing organizational behavior, and understanding contested interpretations of situations and processes and how INGO leaders learn to make sense of them, and incorporate them into their mission‐oriented strategy (Kennedy, 2019). Concerning INGO accountability and governance, a better understanding of how to connect and intertwine the different expectations of funders and state agencies in the home country on the one hand, and beneficiaries and local authorities on the other hand, is necessary (Hengevoss, 2021). Including other perspectives means to overcome existing hierarchical and power‐related processes, where donors play the dominant role (Mitchell et al, 2020).…”

“…In this context, the nonprofit management literature discusses peer regulation to be an increasingly important mode of governance to strengthen a mission‐oriented strategy in INGOs (Crack, 2018; Gugerty, 2008; Hengevoss, 2022; Lloyd, 2005). Peer regulation describes the process where, on a sector level, INGOs organize to jointly develop and promote common standards of quality, accountability, and performance for their sector (Crack, 2016; Ebrahim, 2003).…”

Inclusion in Global Environmental Governance: Sustained Access, Engagement and Influence in Decisive Spaces

“…For example, the number of accredited NGOs in consultative status at the Economic and Social Council of the United Nations grew dramatically after 1990 [39]. Similarly, NSAs participate as observers, presenters, or advisors in meetings for agreements on environmental or human rights issues, such as the Arctic Council and the Aarhus Convention [46] and at the United Nations Global Compact [47].…”