How can the public trust charities? The role of performance accountability reporting

Abstract

Charities rely on public trust to exist. However, that trust has diminished, with a perceived lack of accountability seen as a key reason. This study draws on case studies of two New Zealand charities to examine their performance accountability reporting practices and potential implications for public trust. The findings surface the day-to-day agency of charity actors in shifting performance accountability practices towards modes of disclosure that are relevant and accessible to the public. This paper contributes to the literature by extending understandings of how charities produce accountability information that can enhance public trust and, thus, support their mission achievement.

Qualitative accounting research: special issue introduction

“…The next paper, by Yang and Northcott (2019), deals with an increasingly interesting subject of trust in accounting and who the accounting is being done for, in this case charities. As with the other pillars of societythe government, media and businessthere is lessening trust even in non-government organisations, many of whom are charities (Ries et al, 2018).…”

“…As with the other pillars of societythe government, media and businessthere is lessening trust even in non-government organisations, many of whom are charities (Ries et al, 2018). As Yang and Northcott (2019) highlight, it is essential that charities need 'public trust to sustain their activities'. The same can be said for all businesses, so there are some lessons we can learn from this paper for all organisations, not just charities.…”

“…Nguyen (2019) The construction of accountant identity in a transitioning economy: the case of Vietnam Nguyen and Kend (2019) An examination of the Vietnamese emerging market economy: understanding how and why auditors have responded to the audit law reforms Nguyen and Rahman (2019) From totalitarianism to capitalismthe case of IFRS adoption in Vietnam Yang and Northcott (2019) How can the public trust charities? The role of performance accountability reporting Abhayawansa et al (2019) A practice theoretical analysis of the irrelevance of integrated reporting to mainstream sell-side analysts Rentschler et al (2019) A longitudinal study of Aboriginal images in annual reports: evidence from an arts council shaped by organisational strategy'; however, the more contemporary view is that the MCS 'shapes, and is shaped by, strategy'.…”

Accountability in Ontario's Health Care System: The Role of Governance and Information in Managing Stakeholder Demands

“…When trust is eroded, the "assets upon which [the nonprofit] builds the capacity to deliver on its mission risk being weakened or destroyed" (Jepson, 2005, p.521). Trust is therefore built and maintained by demonstrating accountability (Dainelli et al, 2013;Fowler & Cordery, 2015;Hyndman & McConville, 2018;Jepson, 2005;O'Dwyer & Unerman, 2007Yang & Northcott, 2019). As a result, when trust is low or broken, organisations are forced to demonstrate greater accountability in order to rebuild its trust (Dainelli et al, 2013;Hyndman & McConville, 2018b;O'Dwyer & Unerman, 2007).…”

“…Storytelling and especially success stories were particularly prevalent. Photographs and storytelling through beneficiary testimonies is seen as a particularly effective way of communicating outcome performance to the public (Yang & Northcott, 2019).…”