Who controls the board in non-profit organizations? The case of private higher education institutions in Colombia

Abstract

How should the governance system in a non-membership non-profit organization be designed? This organizational form has no shareholders; instead, donors provide funds. Thus, at the organizational level, the board of directors could have all the power. Under this legal form, who controls the board? If too powerful, boards could misuse resources or distract the organization from its foundational goals. We examine the case of private higher education institutions (HEIs) in Colombia and the balance of power in university governance systems which feature this organizational form. Most HEIs in our sample have a kind of assembly of representatives as the governance body with the highest authority and able to appoint and control the board. We specifically discuss the assemblies' reason for being, structure, and functions in private HEIs in Colombia. We analyze a total of 204 HEI governance structures and find governance arrangements with the characteristics of an assembly of representatives in 154 (75.9%). Our analysis highlights features in some of these governance bodies that could lead to overly powerful assemblies (e.g., founder donors with tenure for life). Clearly, a proper balance of power is required to avoid rent-seeking behaviors or the pursuit of harmful private non-monetary benefits from assembly members as well as boards.High Educ (2018) 75:909-924

Corporate Governance and Disclosure of Information on Corporate Social Responsibility: An Analysis of the Top 200 Universities in the Shanghai Ranking

“…Our research proposes to develop a comprehensive analysis based on the information disclosed, more objective than that obtained from questionnaires and more generalizable than that obtained from specific cases. Studies about the influence of some non-financial issues and disclosure of them and the strategic use of transparency and disclosure have been gaining strength [7,15,24]. By analyzing the factors, specifically the characteristics and composition of the CG that determine disclosure of CSR our study complements studies performed.…”

“…To date, only limited attention has been paid to this relationship in the university environment. In this study, we aim to contribute to the CSR and CG research by considering this relationship at the universities level.A review of studies of the university environment shows that few analyze this topic, and studies to date focus primarily on issues such as board structure, management models, and transparency [23][24][25]. Furthermore, the methodologies applied (case study, questionnaires, etc.)…”

“…A review of studies of the university environment shows that few analyze this topic, and studies to date focus primarily on issues such as board structure, management models, and transparency [23][24][25]. Furthermore, the methodologies applied (case study, questionnaires, etc.)…”

Una revisión propositiva a la política pública para el mejoramiento del gobierno en las IES en Colombia

“…De igual manera, Restrepo y colaboradores han continuado con la agenda de investigación al respecto. Por ejemplo, en Bradford et al (2018a) se hace un análisis al sistema de gobierno a nivel organizacional en las ies colombianas. Los autores argumentan que, dado la inexistencia de propietarios en organizaciones sin ánimo de lucro, se espera que los consejos superiores o directivos cuenten con todo el poder y representen el máximo órgano de gobierno.…”

“…Sin embargo, los autores encuentran que en el 76 % de las ies privadas en Colombia existe una asamblea (de fundadores, miembros o representantes) como el máximo órgano de gobierno, con la potestad de nombrar el consejo. Bradford et al (2018a) discuten la razón de ser, estructura y funciones de estos órganos, su poder excesivo y la necesidad de establecer un balance de poderes apropiado para evitar extracción de rentas y comportamientos autointeresados de parte de los miembros de estos órganos de gobierno en las ies privadas colombianas.…”