Understanding accountability in social enterprise organisations: a framework

Abstract

PurposeSocial enterprise organisations (SEOs) operate across the boundaries of the public, private and not‐for‐profit (NFP) sectors in delivering public services and competing for resources and legitimacy. While there is a rich literature on accountability in the private and public sectors, together with the wider NFP sector, SEOs have received comparatively little attention and remain a relatively under‐researched organisational form. Drawing on accountability, legitimacy and user‐needs theories, the purpose of this paper is to develop a practical framework which can be used to explore how accountability within SEOs is constructed and discharged.Design/methodology/approachThis paper draws on user‐needs, accountability, legitimacy and impression management theories expounded in relation to the private, public and NFP sectors.FindingsA framework to better understand how accountability can be discharged by SEOs is developed and discussed.Research limitations/implicationsWhile a framework for better understanding SEO accountability is presented, it is not empirically tested. However, the framework has the potential to facilitate a deeper appreciation of the theory and practice of accountability within SEOs and, notwithstanding the inherent difficulties in measuring and managing accountability, could be used to stimulate practitioner involvement.Practical implicationsAs little is known about the current extent of SEO information disclosure or accountability relationships, the framework could be used to assess the discharge of accountability by SEOs, with the findings informing future developments. This should provide useful insights into internal processes and organisational views on accountability bases and mechanisms and can then be used to inform the debate on how SEOs can best discharge their duty to account.Social implicationsUnderstanding the nature of SEO accountability reporting has important implications for those involved in advancing the SEO agenda. At a time of public sector cutbacks, and with the government searching for new and more effective ways of delivering services, the role of SEOs in this process is likely to receive greater attention and scrutiny.Originality/valueSEOs have grown extensively in size and prominence in recent years and policymakers have come to embrace the role that they play in societal development. This paper responds to a gap in the theoretical literature and contributes to the debate by developing a framework which can be empirically tested. Moreover, it can be used to prompt practitioner involvement and facilitate a better understanding of the complex issues surrounding accounting and accountability in this under‐researched area.

The social economy as produced space: the ‘here and now’ of education in constructing alternatives

“…This is of course a non-exhaustive list; the idea here is to turn our attention toward social enterprise as well as the social economy in general as a collection of practices that indeed make an imprint on (and receive an imprint from) the places and spaces they are situated in. In speaking of accountability, Connolly and Kelly (2011) write that the desire to 'do good deeds' within social enterprise 'does not mitigate an organisation's duty to be accountable or to engage with its stakeholders ' (p. 234). Extending this out to the spatial practice of accountability, we might say that the activity of 'doing good deeds' is not divorced from the spatial texture that makes these 'good deeds' possible in the first place.…”

How Australian social enterprises use strategic marketing and social marketing to drive accountability and change for sustainable development

“…Social auditing is a relatively new practice, but it is gradually infiltrating nonprofit organisations (Connolly & Kelly, 2011) in conjunction with reporting on financial performance. Theoretical underpinnings for social impact measurement are drawn from accountability, legitimacy and user-needs theories (Connolly & Kelly, 2011).…”

“…By complying with social auditing, an organisation can view how its programs and products are performing on a macro level, and perceive how it is faring against competitors on a customer and market micro level. However, capturing data on social impacts is a diffuse process because it may include: "any metric that organisations, or those who evaluate them, use to ascertain progress toward stated goals and objectives, be it behavioural, skill based, or assessment of outcomes…" (Connolly & Kelly, 2011;Lane & Casile, 2011, p. 241 (Connolly & Kelly, 2011) is that accountability being complied with (Patton, 1992).…”

“…Accountability -means how well an organisation measures and compares its performance against established benchmarks for satisfying its value-laden motives and agendas (Connolly & Kelly, 2011).…”

“…Even fewer studies focus on how strategic marketing practices are operationalised to drive sustainable development. Additionally, while such third sector organisations claim to be embracing accountability to substantiate their performance (Connolly & Kelly, 2011), there is neither a mandatory, uniform reporting system for reporting to stakeholders on their impacts nor is there any substantial data collected to date on how this is accomplished.…”