What is Robin Hood not telling you? It takes more than one brave NPO to create value in society Barreal, M.R., Dooms, M., Pepermans, R. How can we better understand Stakeholder Value Creation in NPOs? How can value be measured? What trade-offs should be considered in this measurement?
NPOs not only have impact in their beneficiaries, especially in developing countries. Stakeholders such as employees, volunteers and society itself may be paying the price of “helping” beneficiaries1. Establishing stakeholders’ expectations and perceived obligations will allow us to acknowledge the VALUE2 and TRADE-OFFS for the NPOs’ operations 3 Theory
4 Contracts
Stakeholder + Psychological = SPC 5 STAKEHOLDER PSYCHOLOGICAL CONTRACTS Perceived obligations of stakeholders towards each other and the reciprocity that emerges from the fulfilment of such obligations in the intention of creating value Exchange of different currencies between parties…
TRANSACTIONAL4
RELATIONAL4
IDEOLOGICAL6 Survey stakeholders and NPOs in order to determine:
Stakeholder’s Value
Stakeholder’s Obligations
NPO’s Expectations
NPO’s Value
NPOs’ Obligations
Stakeholder’s Expectations
Stakeholder’s Value
TOTAL VALUE will emerge from balanced and fulfilled SPCs between Stakeholders and NPOs
NPO’s Value
Breached by the stakeholder
Breached by the NPO Trade-offs will emerge from realized unfulfilled SPCs as opportunities for improvement 1. Ebrahim, A. (2005). Accountability Myopia: Losing Sight of Organizational Learning. Nonprofit and Voluntary Sector Quarterly (Vol. 34). 2. Austin, J. E., & Seitanidi, M. M. (2012). Collaborative Value Creation: A Review of Partnering between Nonprofits and Businesses: Part I. Value Creation Spectrum and Collaboration Stages. Nonprofit and Voluntary Sector Quarterly, 41(5), 726–758. 3. Freeman, R. E., Harrison, J. S., & Wicks, A. C. (2007). Managing for Stakeholders. Yale University Press. 4. Rousseau, D. M. (1989). Psychological and implied contracts in organizations. Employee Responsibilities and Rights Journal, 2(2), 121–139. 5. Brown, J. A., Buchholtz, A. K., & Dunn, P. (2016). Moral Salience and the Role of Goodwill in Firm-Stakeholder Trust Repair. Business Ethics Quarterly, 2(26), 181–199. 6. Bingham, John Byron. 2005. “Multiple Obligations: Distinguishing the Dimensionality and Confirming the Role of Ideology within the Psychological Contract Framework.” Texas A&M University 7. Icons by Tomas Knopp and Vladimir Belochkin from Noun Project
For more information & feedback: Maria Renee Barreal
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