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Corporate Governance: How Non-Profit Boards Influence Organizational Decisions

In: Board Directors and Corporate Social Responsibility

Author

Listed:
  • Julianna Browning

    (California Baptist University)

Abstract

Traditionally, for-profit boards of directors use the corporate model of governance and the boards of non-profit organizations (NPOs) use the philanthropic model. While there is a trend toward the corporate model when considering the emphasis on entrepreneurial and strategic activity of the board and active management participation on the board, the NPO board governance model remains generally philanthropic in nature. The differences are significant, to the point where the boards of for-profit and non-profit organizations have different governance models, characteristics, and decision-making styles. The literature on NPO boards describes a quite different picture than that of for-profit boards. A comparison of the characteristics of philanthropic (traditional non-profit) and corporate (traditional for-profit) board governance models is summarized in Table 5.1 (Alexander et al, 1988; Epstein and McFarlan, 2011).

Suggested Citation

  • Julianna Browning, 2012. "Corporate Governance: How Non-Profit Boards Influence Organizational Decisions," Palgrave Macmillan Books, in: Sabri Boubaker & Duc Khuong Nguyen (ed.), Board Directors and Corporate Social Responsibility, chapter 5, pages 82-100, Palgrave Macmillan.
    • Handle: RePEc:pal:palchp:978-0-230-38930-4_5
    DOI: 10.1057/9780230389304_5
    as

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