Public services and charities: Accounting, accountability and governance at a time of change

Abstract

This special issue is based on a selection of papers initially presented at the conference on 'Public Services and Charities: Accounting, Accountability and Governance at a Time of Change' (Centre for Not-for-profit and Public-sector Research, Queen's University Belfast, January 2017). 'Public services and charities' is a distinctive grouping that includes organisations that are not-for-profit and often have wide social and cultural goals that drive mission and actions. These organisations operate in a very fluid environment. Expectations of the public at large and of government are changing; economic pressures bear down on them particularly acutely; performance metrics and a push for marketisation reflect a spirit of the age; 'business practices' are frequently afforded a reputation of being 'good' and applicable in all settings; while news reporting and social media often amplify any perceived shortcomings. The papers included in this special issue present an opportunity to reflect on some of the key changes taking place with respect to accounting, accountability and governance in this setting. Such opportunities to reflect can support evaluation of the stated objectives of implemented and proposed changes, and also help to inform policy making within government and elsewhere. Key arguments made in these papers, and the overarching themes of this special issue, are explored in this editorial.

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

“…Since effective accountability is thought to complement and build trust (Vosselman and van der Meer‐Kooistra, ; ter Bogt and Tillema, ; Hyndman and McKillop, ), the studied charities’ various efforts to improve public accountability can be expected to enhance public trust.…”

“…First, the disclosure of non‐financial performance information, particularly related to outcomes, is considered important in shaping charities’ accountability and trust relationships with the public (Sargeant and Lee, ; Sargeant et al ., ; Sutton et al ., ; Rutley and Stephens, ; Hyndman and McKillop, ). In both studied charities, an evolving institutional logic guided actors’ day‐to‐day institutional work towards broadening stakeholder accountability: the consequent move towards non‐financial, outcomes‐based performance reporting was an artefact of this shifting institutional logic.…”

“…The concept of trust, defined as ‘a belief in the reliability, truth or ability of something or someone’ (Hyndman and McKillop, , p.7), has received considerable attention in accounting research. While it has been suggested that accounting can both complement and substitute for trust (Emsley and Kidon, ; Free, ), accounting has also been described as a trust‐building technology (Vosselman and van der Meer‐Kooistra, ) and there is much evidence that effective accountability can complement trust (e.g.…”

“…Also, the good reputation of a charity and its leaders can mobilise public trust, enhance the charity's ability to engage with beneficiaries, volunteers and skilled employees, and encourage donor loyalty (Bennett and Gabriel, ). Conversely, scandals and negative media coverage can damage the trustworthiness of a charity and the sector as a whole (Prakash and Gugerty, ; Hyndman and McKillop, ), thus eroding stakeholder support and undermining the charity's mission and legal status as registered charity. Overall, this body of literature supports the notion that ‘good accountability supports the building of trust’ in the charity sector (Hyndman and McKillop, , p. 7), but points to charity accountability being a broad‐ranging concept that focuses on more than just financial results.…”

China's Healthcare Costing in Times of Crisis: Conflicts, Interactions, and Hidden Agendas

“…Market‐like structures and private sector management styles have been promoted internationally as important strands of new public management to address these emerging challenges. While the overall success of such public sector reforms is debatable (Hyndman and Lapsley, ; Hyndman and McKillop, ), they have been criticized for failing to solve the healthcare crisis (Kurunmaki et al ., ; Lapsley, ).…”