Accountability in French non-profit organizations: between paradox and complexity

Abstract

Purpose

This article examines whether accountability can contribute to the analysis of effectiveness in grassroots voluntary organizations (GVOs) in France.

Design/methodology/approach

Based on recent studies and stakeholder theory, hypotheses are formulated about the negative link between accountability and financial effectiveness and a positive link between accountability and non-financial effectiveness.

Findings

The findings show that accountability practices are positive determinants of financial indicators (apart from return on assets [ROA]) and employment of people in difficulty. In contrast, the other non-financial indicators are not explained by accountability practices.

Research limitations/implications

The study points out the complexity and paradoxes surrounding accountability and highlights the risk of insensitivity to it. It thus underlines a specific French situation, close to the risks of myopia linked to accountability. One possible explanation could be the coupling and decoupling mechanisms that allow non-profit organizations (NPOs) to regain power. Given the sometimes-random effects of accountability, producing nuanced theories is necessary, and governance should oscillate between equilibrium and adaptation in the face of stakeholders. Finally, this article introduces the risk of insensitivity of NPOs to accountability (i.e. they act as they wish, regardless of control mechanisms such as accountability).

Practical implications

This study thus reveals governance dilemmas, which could be solved through less formal, more mission-oriented, more creative and therefore heterodox accountability.

Originality/value

The French context of mistrust of certain managerial approaches and the development of codes of governance based on a disciplinary vision are confronted with a growing and critical literature on accountability in NPOs.

Citation

Plaisance, G. (2024), "Accountability in French non-profit organizations: between paradox and complexity", Journal of Applied Accounting Research, Vol. 25 No. 3, pp. 420-447. https://doi.org/10.1108/JAAR-01-2023-0006