How the Environment for Accountability has Changed

Increased demand for accountability

• more competition for scarce resources;
• increased vulnerability to legal and financial liabilities;
• intensified pressure to demonstrate impact;
• and ever growing need.

All of these factors have contributed to the demand from more discerning stakeholders, including funders, donors, legislators, the public and consumers, for greater accountability.

As well, non-profit organizations are struggling to balance the inherent tensions related to today’s accountability environment. Staff and Board members are asked to be:

• strategic and businesslike without compromising values and passion;
• seek collaborative relationship and remain intensely competitive;
• find innovative approaches but avoid risk;
• be transparent without impinging on confidentiality;
• focus on results while attempting to change human behaviour.

They must balance all of this while meeting the often conflicting needs and expectations of multiple stakeholders.

Current frameworks of accountability are inadequate 

Government funders have attempted to address this new accountability environment by focusing on reducing risk and gaining control, which in turn has lead to a demand for more reporting, more detailed information and more rules. Many in the sector would argue that this has not brought about higher levels of accountability or helped the sector to meet the demands for more accountability by other stakeholders.

The way that the sector has typically defined and managed accountability is also inadequate to meet the demands of today’s environment. In many organizations, accountability is responsive to external demands; it is seen as an item on a list of obligations that need to be fulfilled. Organizations respond by putting more internal procedures in place to:

• disseminate information,
• meet the legal and regulatory requirements,
• abide by reasonable ethical standards,
• develop balanced budgets and
• prepare financial statements.

But this concept of accountability doesn’t satisfy the needs of more discerning stakeholders. It isn’t enough to simply say what is to be achieved, measure it and manage the money well. It is also critical to effectively engage stakeholders in determining the best of all courses of action and demonstrate tangible progress toward achieving the mission.  

Many organizations try to achieve greater levels of accountability by tinkering with isolated elements. However, if accountability is addressed in a piecemeal fashion, then organizations may only partially satisfy accountability standards. For example, they might:

• disseminate more information without fully engaging stakeholders;
• invite more consumers to be on the Board without thinking how they can play a meaningful role;
• measure levels of efficiency without being clear about the results they are trying to achieve.

So the demand for accountability grows, but there is no clear, useful and consistent framework that can be used to help organizations to effectively satisfy multiple demands and measure whether or not it is accountable.

A new, more encompassing framework of accountability is needed

In today’s environment, accountability should mean:

earning and maintaining stakeholders' trust by using the resources entrusted to
the organization to effectively and efficiently deliver results that matter.

If organizations are to achieve this, accountability must permeate the culture at all levels of the organization. Being accountable must be more than a series of agenda items to be ticked off or just the responsibility of the Board and CEO/Executive Director. It becomes a way of working and should affect the way the organization is:

• governed and managed;
• forms partnerships, structures policies and systems;
• allocates and accounts for resources;
• engaging stakeholders.