Downward accountability and value creation : an examination of two Non-Profit Organisations in South Africa

Thesis (PhD)--Stellenbosch University, 2022.ENGLISH SUMMARY: Accountability towards various stakeholders has been identified as a significant principle for good governance. However, there is a dearth of accountability frameworks that govern the Non-Profit sector’s accountability towards an organisation’s end-user. It has been observed that Non-Profit Organisations in South Africa demonstrate low levels of downward accountability, which may affect their value creation because end-users are an important stakeholder in creating a Non-Profit Organisation’s value. Guided by the Public Value Strategy, this research examined how an NPO’s mission and goals, support and authorisation and the organisation’s operational capacity created an environment for creating NPO value. The research therefore had two aims: firstly, it set out to establish the perceptions of value created by two selected Non-Profit Organisations in South Africa. Secondly, the research sought to develop a model for increasing downward accountability in NPOs. To determine how downward accountability facilitated value creation, the research established how the accountability practices of the selected NPOs promoted end-user participation in creating organisational value, explored whether NPO service end-users were perceived as stakeholders in development processes, and established whether the two NPOs had put in place mechanisms that enabled end-users to engage in programming processes that resulted in enhancing the value of the NPO. These research objectives were achieved by utilising a mixed methods approach involving both qualitative and quantitative design, and exploring respondents’ understanding and practices around participation, co-creation, good governance and the production of valued outcomes. The sample was sourced from respondents from two NPOs – one of which was an International Non-Governmental Organisation operating in Gauteng province and the other a South African NPO working in the Western Cape province. Data was collected from NPO Staff, Directors, Board members and service end-users through a self-administered, online, questionnaire with qualitative and quantitative questions. The research complied with all ethical guidelines and ethical clearance was obtained from Stellenbosch University’s Research Ethics Committee on Social, Behavioural and Education Research. The study found that the two organisations, despite not having Accountability Policies, demonstrated high levels of downward accountability and suggested that the problem of low levels of NPO downward accountability does not lie in the absence of a global framework, but that it is a question of the values that drive an organisation’s strategy. The study findings did not illustrate a direct causal relationship between downward accountability and NPO value creation and demonstrated, rather, that accountability practices provide opportunities for external stakeholders to provide input that, when adopted, can contribute to the NPO implementing more responsive programmes. This, in turn, leads to the NPO being perceived as a value-creating entity. The research findings contributed towards the development of a downward accountability model that identified three key factors for promoting downward accountability in an NPO: a compliance framework, performance indicators and defined accountability processes. This research has illustrated the significance of downward accountability on NPO governance, impact and stakeholder perceptions of an NPO’s value creation. The research affirmed the usefulness of the Public Value Strategy’s analytical framework and the study’s original contribution lies in recognising the Value Creation theory’s potential in enhancing an NPO’s governance, performance and service delivery.AFRIKAANSE OPSOMMING: Verantwoordbaarheid teenoor verskillende belanghebbendes word as ’n belangrike beginsel van goeie beheer beskou. Nietemin is daar ’n gebrek aan raamwerke wat die sektor sonder winsoogmerk se verantwoordbaarheid teenoor die eindgebruikers van organisasies reguleer. Daar is opgemerk dat organisasies sonder winsoogmerk (OSW’s) in Suid-Afrika veral lae vlakke van afwaartse verantwoordbaarheid toon. Gebrekkige verantwoordbaarheid teenoor eindgebruikers, as belangrike rolspelers om waarde vir ’n OSW te skep, kan opvattings van die nut en waarde van dié organisasies beïnvloed. Aan die hand van die publiekewaardestrategie ondersoek hierdie navorsing hoe ’n OSW se missie en doelwitte, ondersteuning en magtiging sowel as bedryfsvermoë ’n bevorderlike omgewing vir waardeskepping daarstel. Die navorsingsdoelwitte was tweërlei: eerstens, om twee gekose OSW’s in Suid-Afrika se opvattings van waardeskepping te bepaal en, tweedens, om ’n model vir toenemende afwaartse verantwoordbaarheid in OSW’s te ontwikkel. Om vas te stel hoe afwaartse verantwoordbaarheid waardeskepping in die hand werk, bepaal die navorser (i) hoe die verantwoordbaarheidspraktyke van die gekose OSW’s eindgebruikers se deelname aan organisatoriese waardeskepping bevorder, (ii) of die eindgebruikers van OSW-dienste as belanghebbendes in die ontwikkelingsproses beskou word, en (iii) of die twee OSW’s oor meganismes beskik wat eindgebruikers in staat stel om aan programmeringsprosesse deel te neem wat tot organisatoriese waarde bydra. Die navorsingsdoelwitte is bereik deur ’n gemengdemetodebenadering met sowel ’n kwalitatiewe as kwantitatiewe ontwerp, en deur respondente se begrip en praktyke van deelname, gesamentlike skepping, goeie beheer en die lewering van waardevolle uitkomste te ondersoek. Die steekproef het uit respondente van twee OSW’s bestaan – die een ’n internasionale nieregeringsorganisasie in Gauteng, en die ander ’n Suid-Afrikaanse OSW in die Wes-Kaap. Data is van personeellede, direkteure, raadslede en dienseindgebruikers ingesamel deur ’n aanlyn vraelys met kwalitatiewe en kwantitatiewe vrae wat respondente self moes beantwoord. Die navorsing het aan alle etiekriglyne voldoen, en etiekgoedkeuring is van die Universiteit Stellenbosch se Navorsingsetiekkomitee oor Sosiale, Gedrags- en Onderwysnavorsing bekom. Die studie bevind dat, hoewel die twee organisasies nié verantwoordbaarheidsbeleide het nie, albei hoë vlakke van afwaartse verantwoordbaarheid toon. Dít dui daarop dat die probleem van lae vlakke van afwaartse verantwoordbaarheid in OSW’s nie aan die gebrek aan ’n oorhoofse raamwerk te wyte is nie, maar eerder afhang van die waardes waarop ’n organisasie se strategie berus. Die studie vind geen regstreekse oorsaaklike verband tussen afwaartse verantwoordbaarheid en OSW-waardeskepping nie. In plaas daarvan, blyk verantwoordbaarheidspraktyke geleenthede te bied vir eksterne belanghebbendes om bydraes te lewer wat, indien dit aanvaar word, die OSW kan help om meer responsiewe programme te implementeer. Dít lei op sy beurt daartoe dat die OSW beskou word as ’n entiteit wat waarde skep. Op grond van dié bevindinge word ’n model vir afwaartse verantwoordbaarheid dan ontwikkel wat drie hooffaktore vir beter afwaartse verantwoordbaarheid in ’n OSW identifiseer: ’n voldoeningsraamwerk, prestasieaanwysers, en duidelik omskrewe verantwoordbaarheidsprosesse. Hierdie navorsing onderstreep die belang van afwaartse verantwoordbaarheid in OSW-beheer en -impak, en belanghebbendes se opvattings van OSW-waardeskepping. Dit bevestig boonop die nut van die analitiese raamwerk van die publiekewaardestrategie. Die oorspronklike bydrae van die studie lê in die besef dat die waardeskeppingsteorie gebruik kan word om OSW-beheer, -prestasie en -dienslewering te verbeter.Doctora