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Governance Codes of Practice in the Not‐for‐Profit Sector
Author(s) -
Dawson Ian,
Dunn Alison
Publication year - 2006
Publication title -
corporate governance: an international review
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.866
H-Index - 85
eISSN - 1467-8683
pISSN - 0964-8410
DOI - 10.1111/j.1467-8683.2006.00482.x
Subject(s) - corporate governance , business , code of practice , code of conduct , profit (economics) , accounting , not for profit , shareholder , public relations , economics , political science , finance , engineering , engineering ethics , law , microeconomics
In the area of not‐for‐profit organisations the role, scope and desirability of governance is an emerging field. Both in academic literature and in practice the attempts to provide for governance of not‐for‐profit organisations are currently discrete and disparate. This is set to change with the publication by the National Hub of Expertise in Governance of a Code for organisations within the sector. This article examines the appropriateness of the new Code as a tool of regulation for the not‐for‐profit sector. In particular it focuses upon the challenges facing codes of practice for not‐for‐profit organisations, such as the identification of shareholders and organisational vision, and the purposes that such codes could have in the not‐for‐profit sector. The article concludes that whilst there is much of value in the new Code as a governance and regulatory tool, significant aspects the Code remain unclear; particularly the extent of the Code's constituency and the balance to be struck on the issue of compliance.